On the way to the Global Livestock Sustainability Conference in Thailand, I picked up a copy of the book “The Mystery of capital” by Peruvian economist, Hernando de Soto. In it he describes how the concept of capital (which meant cattle or livestock in Medieval Latin) was derived from livestock – a movable, low-maintenance asset that is self reproducing. His description is dead-on, and pastoralists certainly have capitalized on the savings and asset function of their livestock. I have often observed that they dont need credit since they can always generate cash by selling a few animals. However, in the course of the Livestock Revolution, livestock seems to turn into a source of liabililtes: significant investments are required in order to enter the industrial mode of production. Farmers are required to take up loans for erecting the housing for the animals. Since they have no control over either input or product prices, they tend to end up heavily indebted with no opportunity the debt cycle. This is described for Thailand by Isabelle Delforge in her study of pig and poultry contract farming, as well as by various sources for the United States. It wold seem that this situation very much affects the “sustainability fo the livestock sector”, since it locks farmers/livestock keepers into a straight jacket that prevents them from adapting to changing economic situations.