See "What's Wrong with Factory Farming?" (2015) for an updated treatment of these issues.

Animal welfare is emerging as one of the most controversial issues in modern livestock agriculture. Although consumers can buy free range products in niche markets, some have argued that existing markets cannot solve the animal welfare dilemma because there are individuals who care about animal well-being who do not eat animal products. This paper proposes a market-based solution to at least partially manage animal welfare externalities. After discussing the current lack of market incentives to promote farm animal well-being, a potential (...) scheme to quantify and trade units of farm animal well-being is proposed. The potential merits and efficacy of an animal welfare market are also discussed. (shrink)

Consumers are becoming increasingly interested in how their food is produced. Many studies have focused on consumers’ preferences and willingness-to-pay for specific production-related claims on food products. However, few studies have asked consumers to rank the importance of different production claims. In this study, we use a best-worst scaling approach to have consumers rank the importance of seven common production claims used on food products. Rankings are obtained across four product types: beef, milk, chicken, and eggs. Results of the study (...) show that consumers often prefer specific components of more encompassing claims as opposed to the broader, more encompassing claim itself. The majority of preference shares were captured by the top three claims, though the order of these preferences appears to vary for meat and non-meat animals. (shrink)