Economic arguments for animal welfare improvement are increasingly influential in policy and industry contexts, with evidence that welfare and productivity can be aligned in many production systems and that consumer demand for ethical products is growing.
The economics of animal welfare present a mixed picture. In some production contexts, welfare improvements align with productivity and cost reduction: reducing disease, improving feed conversion, and decreasing mortality. In other contexts, welfare improvements such as lower stocking densities and slower-growing breeds have real cost implications that require either price premiums from consumers or policy requirements to level the competitive playing field. Economic arguments are useful tools for advocates but should not displace the fundamental moral case that animals matter regardless of economic efficiency.