Global poverty alleviation has progressed substantially, but it still remains a monumental work in progress. This paper examines the potential for livestock sector development to accelerate poverty reduction. In particular, we review a number of studies and provide our own estimates of how livestock productivity be a potent catalyst for livelihood improvement among the world’s rural poor majority. Because of structural change in food demand patterns, particularly in emerging economies, livestock and their many products often offer better income growth opportunities to agricultural smallholders than staples and many other crops. Policies that facilitate smallholder market access can help them capitalize on these opportunities. In this way, markets can offer avenues for self-directed livelihood improvement through individual enterprise development, and policies that help overcome barriers to market access, information failures, and other market constraints can be cost effective strategies for poverty alleviation.