In recent years there has been a decline in donor support for livestock research and production in the developing world. Evaluation studies suggest that such activities have a mixed record of success. Failures have been ascribed to institutional weaknesses and an inability to identify farmers’ priorities. In addition, there is an increasing donor concern about the adverse environmental effects of livestock, particularly in fragile ecosystems.

Concern has been expressed that, if the decreasing support is not reversed, donor supported activities will underplay the important rôle of livestock in rural development.

There are, however, signs that many of the lessons of experience have been learned and that there is an improving understanding of the crucial part played by livestock in sustainable land-use systems and in generating cash income.

Donors are increasingly appraising livestock activities within an agro-ecological or land-use systems framework and adopting a ‘demand-led’ approach based on farmer's priorities. Past experience suggests that Government institutions should concentrate on regulatory functions and other activities unsuited to the private sector. There is, therefore, a greater willingness to involve private-sector organizations, co-operatives and non-governmental organizations. Environmental impact assessments are becoming an integral part of donor supported rural development activities.

Any increase in the levels of funding for livestock research and development will depend on the socioeconomic and environmental impact of livestock in the developing world being better understood and, wherever possible, quantified.