The differential valuation of farm animal welfare benefits

Ariane Kehlbacher, R.M. Bennett, K.G. Balcombe

University of Reading, UK

Funding provided by the Economic and Social Research Council and the Department of Environment,

Food and Rural Affairs, UK

BackgroundBackground

Public concern about farm animal welfare

Consumers

Society

What are the benefits of farm animal welfare improvements?

1) different species

2) value different levels of animal welfare improvement

3) consumer benefits and benefits to society

AimAim

To value improvements in the welfare of different farm animal species, with particular consideration of consumer benefits and benefits to society in general.

Welfare scoreWelfare score Welfare QualityWelfare Quality Index Index combines on-farm welfare assessment

with a product label classifies farms into four welfare classes

Welfare score in this studyWelfare score in this study

beef cattle, pigs, broiler chicken

Welfare Quality® Index Welfare score

Welfare class 3 81-100

Welfare class 2 61-80

Welfare class 1 41-60

Welfare class 0 0-40

Choice experiment - meatChoice experiment - meat

Attribute Levels

Beef 40, 50, 60, 70, 90

Pork 40, 50, 60, 70, 90

Chicken 40, 50, 60, 70, 90

Increase in monthly meat expenditure (£)

0, 6, 8, 12, 16, 24

consumer benefits

Choice card – meatChoice card – meat

6 choice sets Which attributes did you consider?

Choice experiment – welfare Choice experiment – welfare legislationlegislation

Attribute Levels

Beef cattle welfare 40, 50, 60, 70, 90

Pig welfare 40, 50, 60, 70, 90

Broiler chicken welfare 40, 50, 60, 70, 90

Increase in annual tax (£) 0, 70, 110, 150, 190, 240

consumer benefits + social animal welfare benefits

Choice card – welfare legislationChoice card – welfare legislation

6 choice sets6 choice sets Which attributes did you consider?Which attributes did you consider?

Data collectionData collection

5 questionnaire versions

phone-mail/email-phone (n = 301)

stratified according to SEG and age

response rate 12%

Model SpecificationModel Specification Indirect utility function

Utility function

random parameters

ResultsResults(n=282)

(n=291)

WTP estimatesWTP estimates

MeatMeat

Welfare legislationWelfare legislation

Attribute Increase in annual meat expenditure for a 10 pt welfare increase (£)

Beef 60.00

Pork 42.00

Chicken 50.40

Attribute Increase in annual tax for a 10 pt welfare increase (£)

Beef cattle welfare 26.20

Pig welfare 19.20

Chicken welfare 17.80

DiscussionDiscussion WTPlegislation < WTPmeat

Possible reasons PV bias

“I object to paying more tax” , 25% strongly agree, 15% agree

lost option value

consumers’ freedom of choice = public good

WTPlegislation = consumption benefits + social animal welfare benefits - freedom of choice

WTPmeat = consumption benefits

Interpretation of the valuation scenario

did not consider consumer benefits

ConclusionConclusion welfare score is a useful concept in the

valuation of farm animal welfare

improving beef cattle welfare yields the largest benefits

benefits to consumers exceed benefits to society in general

policy makers should consider the introduction of a welfare labelling scheme before introducing any further legislation