The sustained rise in demand for food of animal origin, driven by growing populations, increasing consumer affluence, and increasing urbanization, is underpinned by structural changes along the whole animal food supply chain. Distribution, processing and production sites are affected. This “livestock revolution” is characterised by prominence of large retailers, a tendency towards vertical integration and coordination along the food chain, and industrialisation of the production process. Since each of these developments may raise market barriers for small scale operators, sustaining the revolution may not be compatible with sustaining small scale livestock production. Moreover, the structural changes are accompanied by an increasing use of crops for livestock feed, rather than human food, raising questions about food security and poverty. Industrialisation if poorly managed can result in externalities in the form of environmental damages. This paper explores each of these factors and highlights issues that policy makers must take into account when responding to the livestock revolution.

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