In Laos, swamp buffalo are raised by small farm holders for a variety purposes inagriculture production. It is estimated that the current buffalo population is more than 1.05 million and that small holders own more than 95 percent of national livestock herd.Livestock production plays a vital role in small farm systems in Laos. Livestock production generates more than 50 percent of household cash income. Large ruminants like cattle and buffalo play a particularly important role as a “live saving bank” since they act as capital accumulation and insurance functions for smallholders. The role of livestock, particularly large draft animals, becomes more important when the oil price increases as they provide a source of labour as well as manure for the crops. Moreover, livestock play a significant role in the Lao economy as a whole. They are an important source of foreign exchange through livestock export. However, livestock production still relies on a free-range system with minimal inputs. The result is high mortality rate and low productivity.