Mankind uses some 40 species of animals as domestic livestock to meet our needs for food, clothing, power, etc. Within these species, there are in total some 4,500 breeds that are referred to as the global animal genetic resources. Each breed comprises a unique set of genes. More than 30% of breeds are estimated to be at risk of extinction, and many more, particularly in developing countries, are threatened by inefficient utilization. The Food and Agriculture Organization of the United Nations has been mandated by its member nations to manage the global animal genetic resources, and major progress has been made in the last few years. However, resources are limited, and priorities will have to be set for breed conservation, for breed development programmes and for evaluation studies. Breeds that are taxonomically distinct should be favoured for conservation, the objective being to maintain maximum genetic diversity of each livestock species. Genetic distances and phylogenetic diversity provide the best available objective criterion, and microsatellites are the current markers of choice for obtaining the genetic data. Microsatellite-based genetic distances will describe breed similarities due to common ancestry, but cannot account for consequences of artificial or natural selection. Phylogenetic trees for 11 water buffalo populations in southeast Asia, constructed using 25 polymorphic protein coding loci or 21 microsatellite loci, show differences in both topology and branch lengths, but the microsatellite tree is a better representation of the similarities due to common ancestry. Thus phylogenetic diversity, based on microsatellite loci, should be used as an initial guide in making conservation decisions for livestock breeds.