Following the remarkable success of performance testing in the commercial sector, the Agricultural Research Council's Animal Improvement Institute (ARC–AII) initiated a beef cattle performance testing scheme for smallholder farmers in 1996. The scheme, which became known as Kaonafatsho ya Dikgomo (Sotho for animal improvement), has been running well in the Northern and North West Provinces and is set to spread gradually to the rest of the country.
The paper explores the implications of rural livelihood diversity for agricultural innovation policies. It summarises literature on the nature of rural poverty, with particular emphasis on the relative roles of farm and non-farm income. It also reviews the various roles, direct and indirect, that agricultural innovation can play in rural poverty reduction. Finally, it uses an agricultural knowledge and information systems (AKIS) perspective to argue for a differentiated approach to targeting agricultural innovations, based on an analysis of rural assets.