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Livestock play an important role for poor rural households in regions such as the Peruvian Andes. Research methods leading to a better understanding of the role of livestock in household poverty dynamics, and what better targeted policies and interventions may enhance that role, however, are not readily available. We utilized multiple methods, including Stages-of-Progress and household surveys, which gave us a combination of qualitative and quantitative results. We examined how over the last 10 and 25 years households have moved into and out of poverty in 40 rural communities in two different highland regions of Peru. We also examined the role played in these movements by different livestock assets and strategies. We found a significant number of households had escaped poverty, while at the same time many households have fallen into poverty. The reasons for movements up versus down are not the same, with different strategies and policies needed to address escapes versus descents. Diversification of income through livestock and intensification of livestock activities through improved breeds has helped many households escape poverty and this method allowed us to explore what exactly this means in the diverse areas studied. These findings can contribute to better targeted livestock-related research and development strategies and policies, not only in Peru, but in other regions where similar livelihood strategies are being pursued.
