Livestock production constitutes a very important component of the agricultural economy of developing countries, a contribution that goes beyond direct food production to include multipurpose uses, such as skins, fibre, fertilizer and fuel, as well as capital accumulation. Furthermore, livestock are closely linked to the social and cultural lives of several million resource-poor farmers for whom animal ownership ensures varying degrees of sustainable farming and economic stability. To feed the growing human population, more land will need to be devoted to the cultivation of food and cash crops and, being a finite resource, this will reduce its availability for pasture and fodder. The importance of animals as an efficient and economic means of food production has been challenged, as have its effects on the environment. In livestock production, the overriding considerations are the availability and efficient use of local natural resources. A successful livestock development strategy requires the formulation of resource management plans that complement the wider economic, ecological, and sociological objectives. Particular attention needs to be given to land-use systems and to the natural resources required for improved livestock production. There is considerable potential for increasing consumption and, hence, production of animal products (milk and meat) in these countries. Animal products not only represent a source of high-quality food, but, equally important, they are a source of income for many small farmers in developing countries, for purchasing food as well as agricultural inputs, such as seed, fertilizers and pesticides. At farm level, dairying is a labour-intensive activity, involving women in both production and marketing. Labour typically accounts for over 40 per cent of total costs in smallholder systems. The livestock-product processing sector has also been identified as a contributor to employment generation and the reduction of rural depopulation.