Current dairy subsidy structures in many countries financially support production regardless of welfare standards. Reforming these subsidies to reward welfare improvements could drive systemic change in the industry.
Dairy subsidies represent an enormous lever for welfare improvement that is largely untapped in most countries. When governments pay dairy farmers without requiring welfare standards, they effectively subsidise poor practice. Welfare-conditioned payments create financial incentives that align economic interest with animal wellbeing, driving improvement more effectively than voluntary certification alone. Designing effective welfare payment schemes requires moving from input-based measures, such as housing type, to outcome-based indicators measuring the welfare experience of individual animals.