Evidence on whether higher welfare farming is financially viable, and the market forces and policy mechanisms that determine welfare outcomes.
The economics of animal welfare improvement are complex. In market systems, welfare improvements must be either paid for by consumers through premiums, subsidized by governments, or mandated through regulation. Consumer premiums alone cannot drive universal welfare improvement because welfare-insensitive buyers will always choose cheaper products. Regulation sets minimum standards for all producers, removing competitive disadvantage from welfare leaders. Evidence from the EU shows that mandatory welfare improvements become affordable and commercially normal once applied universally through legislation.