When livestock medicine becomes a poverty trap

Communal livestock farmers in South Africa spend an average of 70% of their farming income on animal remedies, yet many still struggle with poor animal health and productivity. Agricultural economist Dr Siphe Zantsi explained to Glenneis Kriel why these costs are keeping farmers trapped in a poverty cycle and why the problem really matters to the wider livestock industry.

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For many communal livestock farmers, keeping animals healthy comes at a staggering cost. An analysis by the Agricultural Research Council (ARC) of 457 livestock-owning households in communal areas of KwaZulu-Natal, Limpopo and the Eastern Cape found that farmers spend, on average, about 70% of their monthly farming income on livestock remedies (see box for more information about the participants).

The findings, published in the South African Journal of Agricultural Extension in 2025, found that most of the households spent between R1 and R55 per animal. Average yearly spend on animal health was found to be the highest for sheep remedies (R3 364), followed by cattle (R2 749) and goats (R1 912).

According to Dr Siphe Zantsi, agricultural economist at the ARC and lead author of the study, the high costs leave many farmers with little money to improve the productivity of their herds.

“If such a large proportion of your income goes towards medicines and treatments, there is very little left to invest in better genetics, supplementary feed or infrastructure,” he says. “Many farmers, in effect, remain trapped in a cycle where they are constantly spending money to solve health problems without building the productive capacity of their farming enterprises.”

WHY COMMUNAL FARMERS PAY MORE

According to Zantsi, animal health costs account for a far smaller share of production costs in commercial livestock systems.

The reasons for this imbalance are complex. Commercial farmers generally benefit from economies of scale. They buy vaccines and animal remedies in bulk, often at lower prices, and can use entire containers before they expire.

Communal farmers, however, typically own much smaller herds and flocks.