Economic Consequences of Upgrading Animal Welfare Standards in the European Union on the Example of the Ban on the Use of Farrowing Crates in Pig Production

The main objective of this study is to evaluate the economic effects of the proposed EU pig breeding ban on the usage of farrowing crates. Selected EU Member States' agricultural surveys and expert consultations served as the foundation for the impact evaluation. Four scenarios were used to further aggregate the data to determine the sectoral impact on the EU-27. Results indicate, that the EU's restriction on farrowing crates is predicted to have a negative impact on sow population and piglet output since it will increase the need for sow space, impair production efficiency, and require a substantial amount of investment. The switch to alternative farrowing systems will result in increased variable costs during the farrowing stage. The lower density, caused by the higher space allocation per sow in free farrowing systems (6.5m2 in free farrowing with temporary confinement and 7m2 in systems without confinement), will cause fixed expenses to rise proportionally to the drop in the sow herd. The installation of free farrowing and reconstruction of existing buildings. Depending on the scenario studied, investment costs range between EUR 3.5 and 6.2 billion, indicated in 2021 values.