The economics of animal welfare reform is complex: welfare improvements often have upfront costs but generate long-term benefits for productivity, consumer trust, market access and risk management.
Economic arguments for animal welfare can be powerful levers for change, particularly with businesses and investors who may not respond to ethical arguments alone. However, welfare advocates must be cautious about over-relying on economic arguments, because they only justify welfare improvements that have a positive business case — leaving many welfare improvements that are economically costly but ethically necessary under-supported. The strongest strategy combines economic arguments for easily achievable welfare improvements with ethical arguments and regulatory pressure for improvements that may not have an immediate business case. Animal welfare economics research supports evidence-based advocacy by quantifying both the costs and benefits of welfare reform.