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Why is welfare pork so expensive?

J V Olsen1, T Christensen1, S Denver1

  • 1University of Copenhagen, Department of Food and Resource Economics, Rolighedsvej 23, 1958 Frederiksberg C, Denmark.

Animal : an International Journal of Animal Bioscience
|September 6, 2024
PubMed
Summary
This summary is machine-generated.

Niche pork products offer societal benefits but face cost challenges. Strategies like making niche pork the standard and improving carcass balance can reduce costs, enabling profitable sales of welfare pork.

Keywords:
Animal welfareAntibioticsCarcass balanceOrganicPig

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Area of Science:

  • Agricultural Economics
  • Animal Science
  • Supply Chain Management

Background:

  • Specialty pork products offer potential benefits like higher animal welfare and reduced antibiotic use.
  • These niche products present business opportunities but face challenges from higher production costs and consumer price sensitivity.
  • High substitutability with standard pork limits the market success of niche products.

Purpose of the Study:

  • To identify cost drivers within the pork value chain for niche products.
  • To explore strategies for reducing the costs associated with specialty pork production and sale.
  • To assess the economic viability of niche pork products in the Danish market.

Main Methods:

  • Analysis of cost drivers in the Danish pork value chain.
  • Modeling of pricing strategies and their impact on niche product costs.
  • Evaluation of carcass balance improvements on cost reduction.

Main Results:

  • Two key strategies identified: shifting to niche as the standard and improving carcass balance.
  • Improved carcass balance can potentially halve the required retail price increase.
  • These approaches can significantly reduce the cost premium for niche pork products.

Conclusions:

  • It is feasible to reduce costs across the entire value chain for niche pork.
  • Implementing strategic pricing and improving carcass balance can enable profitable production and sale of welfare pork.
  • Niche pork can become more competitive and widely available through cost optimization.