Economic feasibility of animal welfare improvements in Dutch intensive livestock production: A comparison between broiler, laying hen, and fattening pig sectors

This study compared the economic feasibility of production systems with different levels of animal welfare (AW) in the broiler, laying hen, and fattening pig sectors. Economic feasibility over a five-year time horizon was assessed using stochastic bio-economic simulation models. The results suggest that the main determinant of economic feasibility in each sector is the producer price. It is not only the level of the price premium but also the certainty and variability of this premium that is important in the decision to convert to an alternative system. From the perspective of the farm, different approaches should be followed in the three sectors to further develop the market for products with higher levels of AW. The results imply that the broiler sector has the best perspective in the short to medium term for developing this market. In the fattening pig sector, conversion options should be made more financially attractive, for example by increasing price premiums or providing conversion subsidies. The laying hen sector has the worst prospects for improving AW in the short to medium term. Therefore, given the current production systems in this sector, producer price premiums need to be increased in order to increase the adoption of alternative production systems.