Welfare economics applies cost-benefit analysis to animal welfare interventions, helping policymakers and producers prioritise the most impactful improvements.
Welfare economics provides a crucial bridge between ethical arguments for animal welfare improvement and economic decision-making by producers, retailers, and governments. While welfare has intrinsic moral value beyond its economic dimensions, cost-benefit evidence is often necessary for policy action and industry change. Research consistently shows that many welfare improvements pay for themselves through reduced mortality, medication costs, and improved feed conversion. The challenge is distributing these costs and benefits fairly across supply chains, particularly when consumer price sensitivity limits premium pricing for welfare-assured products.