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The Distributional Implications for Higher Farm Animal Welfare in New Zealand

  • Bicknell, Kathryn
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    Over the past few decades the relative price of eggs has fallen dramatically in New Zealand. This has been made possible, at least in part, by the application of increasingly intensive agricultural practices. However, there is also growing pressure from consumers and animal rights groups around the world to ban the use of conventional/barren cages for egg production on animal welfare grounds. In this paper a simple partial equilibrium model is used to provide a preliminary estimate of the welfare effects of moving to alternative housing systems for egg laying hens in New Zealand. Results indicate that in a market where demand is relatively inelastic and trade is restricted for sanitary reasons, the cost of improving hen welfare will be born largely by consumers. This raises difficult distributional issues, as market research indicates that nearly 80% of the eggs currently sold in New Zealand supermarkets are cage eggs, and the heaviest purchasers of eggs are those with large families and limited budgets.

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    File URL: http://purl.umn.edu/115418
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    Paper provided by New Zealand Agricultural and Resource Economics Society in its series 2011 Conference, August 25-26, 2011, Nelson, New Zealand with number 115418.

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    Date of creation: 2011
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    Handle: RePEc:ags:nzar11:115418
    Contact details of provider: Web page: http://www.nzares.org.nz/

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    1. Alston, Julian M., 1986. "Consequences of Deregulation in the Victorian Egg Industry," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 54(01), April.
    2. Terry L. Kastens & Gary W. Brester, 1996. "Model Selection and Forecasting Ability of Theory-Constrained Food Demand Systems," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(2), pages 301-312.
    3. Huang, Kuo S. & Lin, Biing-Hwan, 2000. "Estimation of Food Demand Nutrient Elasticities from household Survey Data," Technical Bulletins 184370, United States Department of Agriculture, Economic Research Service.
    4. Huang, Kuo S. & Lin, Biing-Hwan, 2000. "Estimation Of Food Demand And Nutrient Elasticities From Household Survey Data," Technical Bulletins 33579, United States Department of Agriculture, Economic Research Service.
    5. Rezitis, Anthony N. & Stavropoulos, Konstantinos S., 2009. "Modeling Pork Supply Response and Price Volatility: The Case of Greece," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 41(01), April.
    6. Alston, Julian M., 1986. "Consequences of Deregulation in Victorian Egg Industry: a reply," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 54(03), December.
    7. Tonsor, Glynn T. & Olynk, Nicole J. & Wolf, Christopher A., 2009. "Consumer Preferences for Animal Welfare Attributes: The Case of Gestation Crates," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 41(03), December.
    8. Trewin, Ray & Bhati, U.N., 1986. "Consequences of Deregulation in Victorian Egg Industry: a comment," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 54(03), December.
    9. Carolina Liljenstolpe, 2008. "Evaluating animal welfare with choice experiments: an application to Swedish pig production," Agribusiness, John Wiley & Sons, Ltd., vol. 24(1), pages 67-84.
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