Valuation of communal area livestock benefits, rural livelihoods and related policy issues

The multiple benefits from livestock production to rural households are evaluated in Thorndale, a communal area of the Limpopo Province South Africa. Monetary values of livestock products are presented. Values from most previous studies are static (and thus outdated), as a result of conceptual and methodological shifts. The net monetary value of the direct benefits from livestock was estimated as $656 per household/annum, excluding the holding of cattle for savings. The net value is equivalent to 22.7% of the value of the other livelihood sources that were considered, and inclusive of cash income streams, crops, and secondary woodland resources. A net 168% herd increase in livestock was recorded between 1993 and 1999. More households owned goats compared to cattle, and cattle were important for use as draught power, and for milk. Households without livestock benefited through gifts and services, valued at $33 per household/annum. Policy concerns are the provision of adequate market and pricing mechanisms for communal area livestock, tailored savings, investment support, credit schemes, and infrastructure. An appropriate multipurpose benefit production model, other than a commercialised model is suggested for the sector.