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Livestock Husbandry between Ethics and Economics: Finding a Feasible Way Out by Target Costing?

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  • Theuvsen, Ludwig
  • Essmann, Sandra
  • Brand-Sassen, Henning

Abstract

Livestock husbandry is a major line of conflict in many industrialized countries. Farmers are caught in a dilemma between ethical considerations imposed by, for instance, nongovernmental organizations and the wider public on the one hand and competitive and economic pressures on the other. In this paper we use a target-costing approach to determine whether it is possible to implement more animal-friendly husbandry conditions for turkey fattening in Germany without sacrificing competitiveness. Empirical results show that, at first glance, the willingness on the part of consumers to pay for more animal welfare exceeds the costs to farmers of more animal-friendly husbandry systems. A critical discussion reveals that this result may be flawed by methodological problems for which no solutions have yet been found.

Suggested Citation

  • Theuvsen, Ludwig & Essmann, Sandra & Brand-Sassen, Henning, 2005. "Livestock Husbandry between Ethics and Economics: Finding a Feasible Way Out by Target Costing?," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24598, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaae05:24598
    DOI: 10.22004/ag.econ.24598
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    References listed on IDEAS

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    1. Carlsson, Fredrik & Frykblom, Peter & Lagerkvist, Carl Johan, 2004. "Consumer willingness to pay for farm animal welfare - transportation of farm animals to slaughter versus the use of mobile abattoirs," Working Papers in Economics 149, University of Gothenburg, Department of Economics.
    2. Jayson L. Lusk & Darren Hudson, 2004. "Willingness-to-Pay Estimates and Their Relevance to Agribusiness Decision Making," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 26(2), pages 152-169.
    3. Andreoni, James, 1990. "Impure Altruism and Donations to Public Goods: A Theory of Warm-Glow Giving?," Economic Journal, Royal Economic Society, vol. 100(401), pages 464-477, June.
    4. Ulrich Enneking, 2004. "Willingness-to-pay for safety improvements in the German meat sector: the case of the Q&S label," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 31(2), pages 205-223, June.
    5. Dekker, Henri & Smidt, Peter, 2003. "A survey of the adoption and use of target costing in Dutch firms," International Journal of Production Economics, Elsevier, vol. 84(3), pages 293-305, June.
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    Cited by:

    1. Grethe, Harald, 2007. "High animal welfare standards in the EU and international trade - How to prevent potential `low animal welfare havens'?," Food Policy, Elsevier, vol. 32(3), pages 315-333, June.
    2. Makdisi, Fadi & Marggraf, Rainer, 2011. "Consumer Willingness-To-Pay For Farm Animal Welfare In Germany - The Case Of Broiler," 51st Annual Conference, Halle, Germany, September 28-30, 2011 115359, German Association of Agricultural Economists (GEWISOLA).
    3. Boecker, Andreas & Nocella, Giuseppe & Scarpa, Riccardo, 2006. "Do Consumers Want Public or Private Bodies to Monitor Animal Friendly Production and Marketing Schemes? And Does Trust Matter?," 99th Seminar, February 8-10, 2006, Bonn, Germany 7772, European Association of Agricultural Economists.

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    Livestock Production/Industries;

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