Farm animal welfare is an increasingly important factor in food purchasing decisions and the obstacles to consumer action are rapidly being addressed by forward-thinking food businesses

Animal welfare is often cited as an important consumer concern, with several recent surveys suggesting that over 70% of consumers in the UK, the US and Australia are concerned about farm animal welfare.

While some commentators remain sceptical about the depth of consumer concern and whether this will translate into purchasing behaviour, it is clear that there has been a real and sustained change in purchasing practices. For example, in the UK, consumer spend on Freedom Food certified products increased from £28m in 2007 to £127m in 2010.

In France, higher welfare chicken – including Label Rouge and organic – consistently holds the majority of the whole chicken market share, and in the Netherlands, sales of Beter Leven (Better Life) certified products doubled in 2009.

Commitment maintained

What is striking is that consumer commitment to higher welfare products has been maintained even as the global financial crisis continues to squeeze household incomes.

Despite the progress that has been made, there are obstacles to consumer action. The most significant of these relate to consumer knowledge, the pricing of higher welfare products and inconsistent product labelling.

In relation to consumer knowledge, the reality is that consumer understanding of farm animal welfare differs between species. For instance, while the welfare issues associated with laying hensand barren battery cages – arguably the most iconic symbols of the farm animal welfare movement – are widely recognised, consumers remain relatively uninformed about the welfare issues associated with intensive pig and dairy production.

There are, however, signs of change. Recent UK media coverage of plans for US-style mega-dairies prompted consumer concern about the intensification of dairy farming and the related impacts on the environment and on the welfare of dairy cows.

Higher welfare standards

Campaigning NGOs such as Compassion in World Farming and the World Society for the Protection of Animals have invested time and resources in raising public awareness of the welfare implications of modern farming practices, and in encouraging consumers to seek out higher welfare alternatives.

The pricing issue has three different elements: the actual (and sometimes perceived) higher cost of producing higher animal welfare products; the reality that higher welfare products have only recently started to reach the level of sales that enable real economies of scale; and the higher margins applied to these products due to their characteristics (improved quality, nutrition and food safety, reduced environmental impact, etc).

Retailers and producers recognise that these are related. Reducing prices (or margins) can stimulate sales. This, in turn, provides the basis for delivering economies of scale and for encouraging research into more economic ways of producing higher welfare animals.

The variety of animal welfare-related claims on food packaging has led to confusion, with many consumers expressing dissatisfaction with the current state of voluntary labelling schemes. Evidence suggests that well-designed, credible labelling schemes are welcomed by consumers and can influence behaviour. For example, EU labelling requirements for eggs offer consistent, clear messaging that consumers are able to understand.

Successful labelling

Since mandatory labels were introduced in the EU in 2004, the market share of cage-free eggs in the UK has risen from 34% (in Q2, 2004) to 51% (in Q2, 2012) highlighting the positive impact that method of production labelling can have on consumer behaviour.

Research suggests that almost 70% of UK citizens believe that labelling rules should be extended to products containing eggs, and there is increasing demand for mandatory labelling across other species and markets.

Forward-thinking businesses are responding. For example, Sainsbury’s uses only cage-free eggs across its entire supply chain. Wal-Mart (the world’s largest grocery retailer) uses only cage-free shell eggs in its own-label supply. And companies such as Unilever and Ikea are rolling out higher animal welfare policies across their global brand and market portfolios.

The actions of these, and other large food businesses, signals a fundamental change in the terms of the debate. Farm animal welfare cannot simply be dismissed as a niche ethical issue. It is, in fact, now a core business issue for companies across the food sector.

Mia Fernyhough works in the food business team at Compassion in World Farming, engaging with leading food retailers to drive improvements in farm animal welfare in their supply chains.

Nicky Amos is the project director of the Business Benchmark on Farm Animal Welfare. She has over 20 years’ experience in managing and directing corporate responsibility in global companies, including the Body Shop International. 

Dr Rory Sullivan is an expert adviser to the Business Benchmark on Farm Animal Welfare.  He is strategic adviser, Ethix SRI Advisers, a senior research fellow at the University of Leeds and a member of the Ethical Corporation Advisory Board.

This article is based on a briefing paper, Farm Animal Welfare and the Consumer, published by the Business Benchmark on Farm Animal Welfare (a joint initiative of Compassion in World Farming and the World Society for the Protection of Animals).