Economic analysis of animal welfare improvements challenges the assumption that better welfare necessarily costs more, and demonstrates multiple co-benefits.
The economic case for animal welfare investment is stronger than conventional wisdom suggests. The costs of poor welfare including disease treatment, mortality, reduced growth, impaired reproduction, and product quality losses frequently exceed the cost of welfare improvements. High-disease dairy herds spend more on antibiotics and veterinary fees while producing less milk than well-managed herds. The welfare premium in retail markets provides additional financial incentive for higher-welfare production in premium segments. Corporate disclosure of animal welfare performance, driven by investor demand through ESG criteria, is creating market signals that reward welfare improvement. The economic and welfare arguments for better farm animal welfare are increasingly aligned.