Economic aspects of animal welfare

Abstract

Economic activities are not conducted in a vacuum; external factors may influence production efficiency, and the activity itself may also result in positive or negative impacts. Although disregarding animal welfare aspects appears to hurt only animals that are harmed as a consequence, banning animal torture is as significant a social interest as combating environmental pollution. Therefore, countries and relevant organisations of certain countries (such as the European Union) regulate via provisions the enforcement of animal welfare aspects with regard to economic activities. Below, economic activities covered by animal welfare regulations and the impacts of animal welfare requirements on economic efficiency will be analysed. In most cases, fulfilling such requirements imposes higher costs for the company at issue and, thus, has an inflationary effect on prices similar to levying a tax. As a consequence, animal welfare regulations generally jolt enterprises from the usual minimum cost-maximum return intersection, so animal protection may appear costly at first. However, in the long term in most cases, they do not bring lower revenues because applying the new ‒ often more expensive ‒ method or technology boosts productivity and because the loss of competitors due to compliance failure may increase the market share for complying companies. The consumers’ behaviour is a paradox: on one hand, they are becoming more and more aware of the environmental impacts of their daily lives, whereas on the other hand, concern for the ethical treatment of animals does not always mean changes in purchasing habits. If we look at the production side, animal healthcare statistics prove that the large majority of losses in livestock breeding (mortality, compulsory slaughtering, diseases, poor reproduction and body mass index (BMI) results, medical expenses, etc.) are not caused by obligate pathogens. Most losses are the direct result of diseases due to unfavourable conditions related to animal breeding, feeding and raising or other external factors (power failure, damages from hail, etc.). Through the appropriate keeping and adequate care of animals, sensible animal welfare attitudes and practices may prevent material losses.