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Economic effects of participation in animal welfare programmes: does it pay off for farmers?

Published online by Cambridge University Press:  01 January 2023

H Heise ,
S Schwarze  and
L Theuvsen
H Heise
Affiliation:
Contact for correspondence and requests for reprints: hheise@gwdg.de
S Schwarze
Affiliation:
University of Goettingen, Department of Agricultural Economics and Rural Development, Platz der Göttinger Sieben 5, D-37073 Goettingen, Germany
L Theuvsen
Affiliation:
University of Goettingen, Department of Agricultural Economics and Rural Development, Platz der Göttinger Sieben 5, D-37073 Goettingen, Germany
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Abstract

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There has been an increased demand by some sections of society for higher farm animal welfare standards. In response, a number of programmes marketing products of animal origin, produced under higher animal welfare standards, have been established on the market in recent years. However, the market segments for products from so-called animal welfare programmes (AWPs) have remained small. Farmers are considered an important stakeholder group for higher market shares of more animal welfare-friendly products. Farmers’ decision to adapt their production to the requirements of AWPs is multi-dimensional, but always linked to financial incentives. Since little is known about the financial attractiveness of higher animal welfare standards in livestock farming, this study investigates the perceived economic success of 579 conventional farmers keeping livestock on their farms. The survey data were analysed using propensity score matching to assess the average effect of participation in AWPs on a farm's perceived profitability, liquidity and stability from the farmer's point of view. No significant effect was found of participation in AWPs on the economic success of farmers. The implications of this result are two-fold. On the one hand, it suggests that it is of particular importance to create further financial incentives to encourage farmers to take part in these programmes. On the other, it shows that farmers’ concerns that the required costly and highly specific investments will pay off are unfounded, as farmers participating in AWPs rate their own financial situation as equivalent to that of their colleagues not participating in AWPs.

Keywords

animal welfareanimal welfare programmeseconomic effectsfarmersGermanypropensity score matching
Type
Articles
Information
Animal Welfare , Volume 27 , Issue 2 , May 2018 , pp. 167 - 179
Copyright
© 2018 Universities Federation for Animal Welfare

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