While not efficient in terms of introduced inputs, this sector uses resources of little or no alternative uses, and for the same reason, its potential to expand beyond moderate growth rates is constrained by low technology uptake, insufficient market facilities and infrastructure, and small economies of scale. Often, these systems are closed cycles of nutrients, farm labour, energy, etc. Unless these cycles are broken, technology uptake will remain constrained. Production system pathways . Livestock systems develop in response to resource endowment and market opportunities.
Grazing systems have limited scope for expansion.
To some extent, in countries such as Laos and less densely populated areas of Indonesia, the Philippines and China, these systems can intensify by incorporating new technologies, especially in the higher potential areas. Usually, this needs to be facilitated by stronger institutions, local empowerment and regulation of access to resources. Where this does not happen, and where population pressure persists, grazing systems are threatened with resource degradation through overgrazing. Historically, where agro-ecological conditions were favourable, grazing systems have developed into mixed farming systems, now common throughout Asia. Mixed farming systems will see continued intensification and important growth, with livestock based on crop by-products and surplus.