Diversification of Livestock-Keeping Smallholders in Mountainous Rural Regions of Azerbaijan and Georgia

Abstract

Diversified livelihoods combining farming, livestock keeping and non-farm income are characteristic of many rural households worldwide. For the Central Asian and Caucasian region, livestock keeping is especially important in terms of land use and socio-cultural heritage. We contribute to the literature with data from the under-researched Caucasus region and investigate: (i) the extent of diversification in smallholder households; (ii) the role of livestock keeping in diversification; (iii) the influence of household-specific and location-specific variables and diversification on household income. Based on a dataset of 303 households, we calculate contribution margins for the main agricultural activities, household income, and diversification indices and analyze the influence of diversification, asset and location variables on household income with a regression model. Household income is generally diversified and a combination of four income sources (crops, livestock, poultry/bees and social benefits) was the most frequent. The econometric analysis shows that higher household incomes are positively correlated with higher household land and livestock assets, the presence of non-farm work and social benefit income sources and with an increasing specialization as measured by the diversification index. For enhancing rural household incomes and slowing down rural-urban migration, the development of non-farm job opportunities is recommended.

Economic and Environmental Sustainability Trade-Off Analysis in Sheep Farming Using the Farm Accountancy Data Network Database

“…Going into the details of the sample, over 80% of the sample is represented by male farmers over 40 years of age and with a low level of education. This could be the reason for the almost complete absence of diversification, which is one of the strategies households employ to increase and stabilize income, reduce risks, and maintain food security by making use of diverse assets and opportunities provided by their environment and the markets they can access [110,111]. Whether diversification occurs in other sectors beyond livestock farming, such as arable farming or non-agricultural incomes, it could be a profitable strategy, especially for the pastoral regions [111,112].…”

“…This could be the reason for the almost complete absence of diversification, which is one of the strategies households employ to increase and stabilize income, reduce risks, and maintain food security by making use of diverse assets and opportunities provided by their environment and the markets they can access [110,111]. Whether diversification occurs in other sectors beyond livestock farming, such as arable farming or non-agricultural incomes, it could be a profitable strategy, especially for the pastoral regions [111,112]. Our findings confirm previous research [110,113], according to which a higher level of formal education and the older age of farmers affect the diversification strategy and the farm's production, the first positively and the second negatively, in addition to the adaptation and adoption of changes and new technologies.…”

Influential Factors, Enablers, and Barriers to Adopting Smart Technology in Rural Regions: A Literature Review

“…Rural regions are also known because of their limited economic and social influence [32,33]. Indeed, from a socio-economic perspective, the primary activities in rural areas are limited to specific sectors [34], such as forestry, agriculture, and livestock, and very rarely include advanced services [35,36]. This focus has a holistic effect on rural areas from a social point of view, defining a specific and relatively simple lifestyle that usually assumes are people living in small communities in scattered areas [37].…”

The Onion Sector in Azerbaijan: A Descriptive Analysis and Links to the Policy Decisions in 2023

“…Citrus fruits provide essential vitamins and minerals, while vegetables form an integral part of the Azerbaijani diet. Cattle, sheep goats, and poultry are the primary livestock raised in Azerbaijan (Neudert et al, 2020). Cattle are reared for meat and milk, sheep and goats for meat, milk, and wool, and poultry as a significant protein source.…”