Profitability of animal welfare
Increasing numbers of people are concerned about the conditions of farm animal husbandry systems and of the whole meat industry as well as of the welfare of farm animals in Germany. The willingness to pay for animal welfare-friendly products is increasing, while until now there is only one market...
| Autor principal: | |
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| Formato: | Second cycle, A2E |
| Lenguaje: | Inglés Inglés |
| Publicado: |
2021
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| Materias: | |
| Acceso en línea: | https://stud.epsilon.slu.se/16612/ |
| _version_ | 1855572770062073856 |
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| author | Zibolka, Jana |
| author_browse | Zibolka, Jana |
| author_facet | Zibolka, Jana |
| author_sort | Zibolka, Jana |
| collection | Epsilon Archive for Student Projects |
| description | Increasing numbers of people are concerned about the conditions of farm animal
husbandry systems and of the whole meat industry as well as of the welfare of
farm animals in Germany. The willingness to pay for animal welfare-friendly
products is increasing, while until now there is only one market-based farm
animal welfare (FAW) label in Germany, the “Initiative Tierwohl” (ITW). This
initiative is the first cross-sectoral alliance of the agricultural industry, the meat
industry and the food retailing. The purpose of this on farm-study was to gain
insights into the concept of animal welfare and to analyze the economic effects
on a farm with fattening pigs participating in the ITW. Further, the farmer´s
evaluation about current challenges in the fattening pig sector as well as his
motivation for implementing higher FAW standards were examined. Five
methods were applied: a literature review, a qualitative interview, a business
segment accounting, an extra-cost accounting and a risk analysis. The results
of the literature review showed the need for a uniform definition of FAW, unified
measuring tools for FAW and the necessity using participatory approaches
developing generalities. In this study four different scenarios were examined: the
ITW program phase from 2018 to 2020, the program phase of the ITW from 2021
to 2023, the planned German state label and a control scenario. The analysis
regarding the extra costs per pig of the FAW programs demonstrated that the
opportunity costs keeping lower amounts of pigs, caused by the space
requirements of 10 % and 20 % more space, form the highest cost position. The
payed renumerations of 5,10 €/pig and 5,28 €/pig in the ITW-scenarios are
enough to cover all incidental extra costs. The planned German label has to face
high singular investment costs and a presumed renumeration of 6,00 €/pig
would not be enough to cover the extra costs. Participating in the ITW leads to
reduced fluctuations of the contribution margin of about 11 %, also called
hedging effectiveness. Analyzing economic effects of FAW programs on farms
represents an instructive approach to reflect the design of such a program.
Further research is needed to analyze which factors determine the profitability
of FAW programs the most. Risk-reducing effects of higher FAW standards have
to be examined more in detail, for instance including potential positive synergies
between FAW and animal health. Considering farmers´ individual risk attitudes
will give more concrete recommendations for action in the end. |
| format | Second cycle, A2E |
| id | RepoSLU16612 |
| institution | Swedish University of Agricultural Sciences |
| language | Inglés Inglés |
| publishDate | 2021 |
| publishDateSort | 2021 |
| record_format | eprints |
| spelling | RepoSLU166122021-04-28T01:01:25Z https://stud.epsilon.slu.se/16612/ Profitability of animal welfare Zibolka, Jana Agricultural economics and policies Animal husbandry Increasing numbers of people are concerned about the conditions of farm animal husbandry systems and of the whole meat industry as well as of the welfare of farm animals in Germany. The willingness to pay for animal welfare-friendly products is increasing, while until now there is only one market-based farm animal welfare (FAW) label in Germany, the “Initiative Tierwohl” (ITW). This initiative is the first cross-sectoral alliance of the agricultural industry, the meat industry and the food retailing. The purpose of this on farm-study was to gain insights into the concept of animal welfare and to analyze the economic effects on a farm with fattening pigs participating in the ITW. Further, the farmer´s evaluation about current challenges in the fattening pig sector as well as his motivation for implementing higher FAW standards were examined. Five methods were applied: a literature review, a qualitative interview, a business segment accounting, an extra-cost accounting and a risk analysis. The results of the literature review showed the need for a uniform definition of FAW, unified measuring tools for FAW and the necessity using participatory approaches developing generalities. In this study four different scenarios were examined: the ITW program phase from 2018 to 2020, the program phase of the ITW from 2021 to 2023, the planned German state label and a control scenario. The analysis regarding the extra costs per pig of the FAW programs demonstrated that the opportunity costs keeping lower amounts of pigs, caused by the space requirements of 10 % and 20 % more space, form the highest cost position. The payed renumerations of 5,10 €/pig and 5,28 €/pig in the ITW-scenarios are enough to cover all incidental extra costs. The planned German label has to face high singular investment costs and a presumed renumeration of 6,00 €/pig would not be enough to cover the extra costs. Participating in the ITW leads to reduced fluctuations of the contribution margin of about 11 %, also called hedging effectiveness. Analyzing economic effects of FAW programs on farms represents an instructive approach to reflect the design of such a program. Further research is needed to analyze which factors determine the profitability of FAW programs the most. Risk-reducing effects of higher FAW standards have to be examined more in detail, for instance including potential positive synergies between FAW and animal health. Considering farmers´ individual risk attitudes will give more concrete recommendations for action in the end. Ett ökande antal personer visar oro över djuruppfödning och djurhållning. Detta gäller även skötseln och skyddet för lantbruksdjur i Tyskland. Konsumenter som är villiga att betala för produkter som har en inriktning på bra djurvälfärd ökar. Det finns för närvarande en marknadsbaserad djurvälfärdsmärkning, eller en så kallad ‘market-based farm animal welfare label’ (FAW) i Tyskland, nämligen “Initiative Tierwohl” (ITW). Detta initiativ är den första övergripande sammanslutningen inom jordbruks-, kött- och livsmedelsindustrin. Syftet med denna studie var att få en inblick i ämnet djurskydd och djurvälfärd för att undersöka de ekonomiska effekterna hos en gård med slaktsvin som deltar i ITW-initiativet. Dessutom undersöktes jordbrukarens egna bedömningar av de aktuella utmaningarna inom sektorn för slaktsvin och hans motivation att genomföra en högre nivå av FAW-standarder. Fem metoder användes: litteraturstudie, en kvalitativ intervju, en analys av verksamhetsgrenar, en merkostnadsberäkning och en riskanalys. Resultaten av den genomgångna litteraturen visade på behovet av en enhetlig definition av FAW, enhetliga mått för FAW och behovet av att använda metoder som är inkluderade under en sådan process. Fyra olika scenarier undersöktes i denna studie: ITWprogrammet under 2018 och 2020, ITW-programmet från 2021 till 2023, den planerade nationella märkningen i Tyskland och ett scenario som användes som kontroll. Analysen av merkostnaderna per gris under FAW-programmet visade att alternativ kostnaderna utgör den högsta kostnadsposten för ett mindre antal grisar när utrymmeskraven ökar med 10% resp. 20%. Det räcker med en ersättning på 5,10 € per gris och 5,28 € per gris i ITW-scenarier för att täcka alla rörliga kostnader. Det planerade tyska djurvälfärdsmärkningen kommer att innebära höga investeringskostnader och en beräknad betalning på 6,00 € per gris räcker inte för att täcka merkostnaderna. Deltagande i ITW leder till att fluktuationerna i täckningsbidraget minskar med cirka 11%. Ytterligare forskning behövs för att analysera vilka faktorer som bäst avgör lönsamheten för ett FAWprogram. Att högre FAW-standard skulle minska riskerna behöver undersökas ytterligare, till exempel genom att integrera potentiella positiva synergier mellan FAW och djurhälsa. Att ta hänsyn till jordbrukarnas individuella attityder till egen risk kan ge mer konkreta rekommendationer för framtida åtgärder. 2021-04-23 Second cycle, A2E NonPeerReviewed application/pdf en https://stud.epsilon.slu.se/16612/1/zibolka_j_210423.pdf Zibolka, Jana, 2021. Profitability of animal welfare : a German pig fattening business participating in the German animal welfare initiative “Initiative Tierwohl”. Second cycle, A2E. Alnarp: (LTJ, LTV) > Dept. of Biosystems and Technology (from 130101) <https://stud.epsilon.slu.se/view/divisions/OID-643.html> urn:nbn:se:slu:epsilon-s-16612 eng |
| spellingShingle | Agricultural economics and policies Animal husbandry Zibolka, Jana Profitability of animal welfare |
| title | Profitability of animal welfare |
| title_full | Profitability of animal welfare |
| title_fullStr | Profitability of animal welfare |
| title_full_unstemmed | Profitability of animal welfare |
| title_short | Profitability of animal welfare |
| title_sort | profitability of animal welfare |
| topic | Agricultural economics and policies Animal husbandry |
| url | https://stud.epsilon.slu.se/16612/ https://stud.epsilon.slu.se/16612/ |