ABSTRACT
This chapter outlines the economic basis and implications of welfare standards. Programmes setting standards for farm animal welfare have increased markedly in recent years, varying in strength from cosmetic to demanding, and in the agencies establishing them from individual farmers to intergovernmental organizations. The main motivation is increasing public concern for farm animal welfare, which overlaps with other concerns for food hygiene and environmental protection. Increasing competition may prevent or weaken creation of standards in future, but the impetus for high food quality continue to increase worldwide, thus requiring any further freeing-up of trade to be compatible with continuing standards for farm animal welfare and other aspects of food production. Some producers also addresses consumer concerns about production methods by developing niche markets, obtaining higher selling prices to offset their higher production costs, if, indeed, their production costs are really higher, which is often a matter of debate.
