Global recognition of the need to conserve animal genetic resources comes at a time when the livestock sector faces significant challenges in meeting the growing demand for livestock products and the mitigation of negative environmental impacts caused by livestock. In developing regions it would seem that portions of the growing demand for livestock products are being met by increasing animal numbers instead of achieving increases in production efficiency. Concurrently, extensive grazing and mixed crop-livestock production systems are largely responsible for significant greenhouse gas emissions and other forms of environmental degradation. Under the growing demand and environmental sustainability rubric there exists a need to garner maximum benefit from diverse animal genetic resources. These three areas; growing demand on animal products, environmental issues, and conservation of AnGR form a nexus that national policies must simultaneously consider. To advance this integration, a policy framework is proposed that consists of incentives to produce, a secure resource base (e.g., genetic resources, land tenure) and access to markets for outputs and inputs including technology. Within this framework a set of potential policies are suggested that promote conservation, livestock sector growth and environmental sustainability.