Work

Farm Animal Welfare and Producer Profitability

Year: 2025

Type: article

Abstract: Past research shows that farm animal welfare (FAW) policies can reduce consumer and retailer welfare, but producer welfare implications are less certain. This study uses equilibrium displacement modeling of the U.S. wholesale shell egg market to determine how the transition to cage-free egg sales could affect short- and long-run producer welfare. Under varying assumptions and retailer demand shifts, the results consistently demonstrate that producer profits are expected to decline as retailers pivot toward cage-free purchasing, holding all else constant. These findings help explain the tension surrounding FAW policies across the supply chain and can be used to inform industry and policymaker discussions on the topic.

Source: Journal of Agricultural and Applied Economics

DOI: 10.1017/aae.2024.40

Authors: Aaron J. Staples, Jayson L. Lusk, Vincenzina Caputo, Glynn T. Tonsor

Institutions: University of Tennessee at Knoxville, Oklahoma State University, Michigan State University, Kansas State University

Language: English

Topic: Economics of Agriculture and Food Markets

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Decent work and economic growth, Zero hunger

Open Access status: gold

Estimated APC paid: $2,660