Innovations in marketing of livestock products in India^*

The paper examines marketing systems and value chains for livestock and livestock products and innovations therein. The paper finds that livestock and livestock products are largely traded informal markets resulting in higher transaction cost, and price risk. Except for a few pockets of modernization, value chains are yet to develop. Given the growing demand for livestock products and consumer concerns for safe and quality food, there is a considerable scope to develop efficient and inclusive value chains. From a review of some successful innovative value chains we find that value chain approach has considerable potential to (i) improve small farmers’ access to markets and finances (ii) reduce transaction costs, and (iii) mitigate supply and market risks. The policy should aim at strengthening value chains and their interface with financial markets in order to empower smallholder producers to capture benefits of value addition.