Smallholder dairying offers high returns to land and labour, a source of regular income, gives women an opportunity to become economically active, encourages cooperation between smallholders and transfers capital from urban centres to rural areas through the trade of milk: a low risk and low cost activity that has the potential to reduce poverty and improve livelihoods. [NOTE: The main target audience for the FAO Diversification booklets are people and organisations that provide advisory, business and technical support to small-scale farmers and local communities in low and middle-income countries, as well as policy makers and programme managers. They are not intended to be technical ""how to do it"" guidelines; however each booklet identifies additional sources of information, technical support and websites.]