Commodities:
Meat, Milk, Dairy Products & Eggs

A commodity is "something that can be bought and sold; something useful or valuable" (Penguin English Dictionary 2002). In this sense domestic livestock, such as sheep or goats, rabbits, chickens or ducks, are commodities. However, these animals and birds are generally only useful and valuable to the farmers and pastoralists that raise them. These livestock might equally well be described as capital resources. Livestock products, such as meat, milk and eggs, together with hides and skins and wool, contribute more directly to human consumption needs and are clearly examples of commodities.

Commodities and Markets Meat Dairy Products and Eggs References and Further Reading

Commodities and Markets

Livestock products are useful and valuable, either as items of food contributing to human diets, or as materials such as hides and skins or wool and other fibres, used to make clothing or other household goods. As such they contribute to subsistence production (see under Subsistence). However, very few households are self-sufficient in all the various types of livestock products, so markets develop and these commodities are bought and sold within the community. The most direct transactions are likely to occur within local village markets (see under Rural Markets).

Towns and cities are growing rapidly in practically all developing countries, as a result of rural to urban migration. Hence there are increasing opportunities for sales of livestock products in the growing urban markets (see under Urban Markets). At the same time "globalization" is also occurring, meaning that international trade is increasing. This implies that livestock producers within each country must compete with producers in other countries. If a particular commodity can be imported more cheaply than it can be produced within the country, then consumers are more likely to buy the imported product. The country will become increasingly dependent on imports of the product. Conversely if the commodity can be produced more cheaply within the country and is of similar quality then opportunities are likely to exist for exporting to other countries.

Patterns of production, consumption and trade differ between commodities and between continents and countries. Specific groups of commodities, derived from smallstock are discussed below.

Meat is an important source of protein, minerals and vitamins in human diets. Although vegetarians do not eat meat, they may obtain these nutrients from dairy products and eggs. Strict vegans live without consuming any animal products, and must derive these nutrients from plant food only. Nonetheless for a majority of the world's population meat is a valuable source of these nutrients and contributes to the total food energy supply.

In developed countries, where average supply and consumption of meat are high, many are concerned at the risks to health of eating meat, which may raise blood cholesterol levels and the risk of heart disease. The risks are thought to be greater from eating "red meat" from ruminant cattle, sheep and goats, rather than white meat from poultry. Lean pork and bacon are intermediate in effect. These considerations may help to explain the widespread change in tastes away from red meats towards white meats (see under Rural Markets).

The most important types of meat derived from smallstock are lamb, mutton and goat meat, pigmeat and poultry. There are quite large differences in patterns of supply and consumption per person between and within countries. Some broad indications are given by the average estimates of supply per person, for the main developing country continents (Figure 1). Data for bovine (cattle and buffalo) meat are also included for comparison with those for smallstock.

Several points are worthy of note.

• Meat consumption, particularly of beef and poultry meat, is much higher in Latin America than in other developing regions.
  
• Meat consumption is low in Sub-Saharan Africa, with nearly two thirds obtained from ruminant cattle sheep and goats. Meat supplies have stagnated over recent decades.
  
• In the Near East and North Africa, consumption of sheep and goat meat is higher than elsewhere, while pig meat is not eaten. Poultry meat now makes up almost half the total.
  
• South Asian meat consumption is generally low and vegetarianism is common.
  
• In East and South East Asia, pig meat consumption is higher than in the other continents while very little sheep and goat meat is eaten.
  
• In all regions poultry meat supply and consumption have risen faster than those of any other kind of meat. In Latin America and South East Asia, the growth has been very rapid.

Trade statistics for the main types of meat are given in the notes on Urban Markets. Of the main smallstock products, ovine (sheep and goat) meat along with large numbers of live animals are exported from Sub-Saharan Africa, much of this trade being imported by Near Eastern countries. A much smaller number of animals and quantity of sheep and goat meat are exported from South Asia.

For pigmeat, South Asia and Latin America are the only non-importing regions of the developing world. In fact Latin America is a major exporting region, although even there live pigs are imported. Poultry meat is exported from Latin America and East and South-East Asia, while large quantities are imported by Sub-Saharan Africa and the Near East.

Dairy Products and Eggs

Whole milk is known as a "complete food" because it contains such a wide range of nutrients, including protein, vitamins and minerals such as Calcium which is necessary for healthy bone growth. Milk from animals is particularly beneficial to breast feeding mothers and growing children. Although most of the milk consumed globally is from cattle or buffaloes, in some situations sheep or goat milk is used.

There are quite large differences in the supply and consumption per person between and within countries. Some broad indications are given by the average estimates of supply per person, for the main developing country continents (Figure 2). However, these estimates include all types of milk and dairy products, evaluated as "milk equivalents". No attempt has been made to separate sheep and goat milk products from those of the bovine animals. The following points may be noted.

• Supply and consumption per person is above average in the Near East, South Asia and particularly in Latin America.
  
• The very low supply and consumption in East and South East Asia may be associated with inability to digest lactose (milk sugar) in a high proportion of the human population - Lactose Intolerance.
  
• In the Near East and South Asia about 2 kg of the consumption of dairy products is in the form of butter or ghee.
  
• In the Near East, cheese consumption exceeds that of butter. Sheep milk production is important in this region and soft cheeses such as feta and haloumi are made using simple processing methods in milk-producing areas.

Figure 2 also shows levels of supply and consumption of eggs. Valuable protein, vitamins and minerals are also provided in eggs. Cholesterol is present in the yolks and very high levels of consumption may increase risks of heart disease. This is unlikely to be a problem for the majority of people in developing countries, where average consumption is relatively low. In Latin America consumption is above the average for developing countries, but is only two thirds of that in the developed countries. Consumption is quite low and declining in Sub-Saharan Africa, and low but increasing in South Asia.

Net trade in dairy products is discussed under Urban Markets. As was shown there, milk and dairy products make up by far the largest item of net imports, in all regions, although South Asia is almost self-sufficient. Statistics on the trade in eggs, show Africa, the Near East and Latin America as net importers. However, East and South East Asia, and South Asia to a smaller extent are net exporters of eggs.

FAOSTAT (2005). FAO Statistical Database on the worldwide web (accessed March 2005).

Clottey, S.J.A. (1985). Manual for the slaughter of small ruminants in developing countries. FAO Animal Production and Health Paper 49. FAO, Rome.

FAO (1998). Animal feeding and food safety. Report of an FAO Expert Consultation Rome, 10-14 March 1997. FAO Food and nutrition paper – 69. FAO, Rome.

FAO. (2004). Good Practices for the Meat Industry. FAO Animal Production and Health Manual 2. FAO, Rome.

Primary (or late-onset) Lactase Deficiency

Lactose intolerance is due to an inability to digest significant amounts of lactose, the predominant sugar of milk. This inability results from a shortage of the enzyme lactase, which is normally produced by the cells that line the small intestines. Lactase breaks down milk sugar into simpler forms that can be absorbed into the blood stream.

Lactase levels are high in all mammals following birth. In most mammals, however, lactase levels decline after the infant is weaned. Man is the only mammal that may retain lactase activity into adulthood. The gradual lactase disappearance usually does not begin until the child reaches between 2 to 6 years, although it can also begin at virtually any time later in life. The timing and rate of decline is genetically determined. Lactase deficiency is mostly seen in those racial or geographic groups whose ancestors did not drink milk as a nutrient.

The ability of adults to drink milk is perhaps better known as Lactase Persistence. Lactase Persistence is mainly confined to northwest Europeans and certain African subpopulations. This was a survival trait from times of meat famine, when milk was required as a rich source of protein and the gene for lactase persistence was passed along.

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