Throughout Lao PDR, livestock production is one of the most important agricultural
activities in rural areas especially among poor households. Livestock products provide
not only much needed food or income, but also represent a crucial form of savings
because livestock can readily be sold for cash in times of need. Because most rural
households do not have access to traditional finance institutions where savings can be
deposited, livestock provides an important and necessary risk diversification strategy.
Unfortunately, savings in livestock are prone to shocks, especially from animal disease.
Thus, livestock presents a savings opportunity for the rural poor, but it comes with a
relative high degree of risk. This problem is compounded by the fact that producers are
often unable to restock their assets after a disease incidence because of limited
financial access.