Assessing Animal Welfare and Farm Profitability in Cow-Calf Operations with Stochastic Partial Budgeting.

Haseeb Ahmed,Ulf Emanuelson,Helena Hansson,Charlotte Berg,Jan Hultgren,Helena Röcklinsberg,Karin Alvåsen

doi:10.3390/ani11020382

Haseeb Ahmed, Ulf Emanuelson + Show 5 more

Open Access

https://doi.org/10.3390/ani11020382

Copy DOI

Abstract

Simple SummaryThe increased consumer demand for high levels of farm animal welfare (FAW) have prompted debates about the costs of achieving higher FAW. Yet, little is known about the economic consequences of improvements in FAW, especially in cow-calf operations. This study contributes to the literature by investigating the relationship between farm profitability and improved FAW measure in terms of increased space allowance in Swedish cow-calf operations. We found that a 0.5 m2 increase in space allowance per calf (achieved by a corresponding reduction of herd size) was associated with a 6.9 to 18.7% reduction in farm-level contribution margins in the short term. Our results suggest that FAW improvements can be costly for farms and these costs should be considered while taking policy decisions regarding improvements in FAW standards.The societal demand for good farm animal welfare (FAW) has increased over time. Yet, very little is known about the economic consequences of improvements in FAW in cow–calf operations. This study investigates on-farm economic consequences of improved FAW measures in cow–calf operations. It uses a stochastic partial budgeting approach to examine the relationship between contribution margins and improvements in FAW in terms of increased space allowance for a typical Swedish cow-calf operation, as compared to current practices. In the current practice, a cow should be given at least 5 m2 and the calf 2.2 m2. We found that a 0.5 m2 increase in space allowance per calf (achieved by a corresponding reduction of herd size) was associated with a 6.9 to 18.7% reduction in contribution margins in the short term. Our analysis does not include possible indirect gains like decrease in disease incidence and enhanced non-use or ‘soft’ values associated with increased FAW. However, our analysis indicates that high FAW standards can be costly and careful cost–benefit analysis should be a part of decision-making processes regarding FAW standards. Our results also suggest a need for government support payments and/or the development of market mechanisms to stimulate farmers to continue producing livestock-based foods with high FAW.

Highlights

High levels of farm animal welfare (FAW) are important for consumer satisfaction and for ensuring ethical standards of animal-based food systems [1,2]
Informal interviews with extension agents in Sweden prior to undertaking this study suggested that inadequate space allowance for young animals was a welfare concern at least in some cow-calf operations, making our specific research question important from an economic as well as an animal welfare point of view
This study investigated the economic consequences of measures to improve farmanimal welfare in cow-calf operations

Summary

Introduction

High levels of farm animal welfare (FAW) are important for consumer satisfaction and for ensuring ethical standards of animal-based food systems [1,2]. Farmers in all parts of the world have to deal with several cost and benefit trade-offs when it comes to improving FAW. Improvements in FAW may increase profits by ensuring better animal health, higher farm efficiency, and increased value of animals [3,4,5,6,7,8,9]. There is very little understanding of how these trade-offs interact and relate to farm profitability, especially in the cattle meat sector. Evidence-based trade-offs related to FAW are important for understanding cow-calf farmers’ economic incentives for improving

Objectives

Methods

Results

Discussion

Conclusion