Production costs and animal welfare for four stylized hog production systems

Nonhuman animal welfare is arguably the most contentious issue facing the hog industry. Animal advocacy groups influence the regulation of hog farms and induce some consumers to demand more humane pork products. Hog producers are understandably reluctant to improve animal well being unless the premium they extract exceeds the corresponding increase in cost. To better understand the relationship between animal welfare and production costs under different farm systems, this study investigates 4 stylized hog production systems. The results show that increasing animal welfare for all hogs in the United States will increase retail pork prices by a maximum of 2% for a small welfare increase and 5% for a large welfare increase. The cost of banning gestation crates measured by this study is lower than the consumer willingness-to-pay from other studies.