Economics of Animal Welfare: Opportunities and Challenges in an Evolving Market

Abstract

Objective: This review article examines the economic benefits of animal welfare, focusing on how welfare-friendly practices can improve production efficiency and open new market opportunities.

Design/Methodology/Approach: The review draws on a critical analysis of existing literature on animal welfare and its economic impact, considering both the direct and indirect benefits of these practices.

Results: The findings show that animal welfare enhances product quality, lowers long-term costs, and offers competitive advantages in a market increasingly concerned with animal ethics. Effective management also helps prevent economic losses by maximizing the production system’s potential.

Limitations of the Study/Implications: Although implementing animal welfare practices may require upfront investments in infrastructure and management, the long-term benefits include greater profitability and access to new markets. Distinguishing between direct and indirect benefits is therefore essential to maximizing economic returns.

Findings/Conclusions: Prioritizing animal welfare is not only a moral responsibility but also delivers significant economic and social benefits. Embedding animal welfare into agricultural strategies can foster a more sustainable and prosperous future for all stakeholders.