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The Supply Chain's Role in Improving Animal Welfare.

Harvey D, Hubbard C - Animals (Basel) (2013)

Bottom Line: Supply chains are already incorporating citizen/consumer demands for improved animal welfare, especially through product differentiation and the associated segmentation of markets.This citizen-consumer gap has significant consequences on the supply chain, although there is limited literature on the capacity and willingness of supply chains to deliver what the consumer wants and is willing to pay for.This paper outlines an economic analysis of supply chain delivery of improved standards for farm animal welfare in the EU and illustrates the possible consequences of improving animal welfare standards for the supply chain using a prototype belief network analysis.

View Article: PubMed Central - PubMed

Affiliation: School of Agriculture, Food and Rural Development, and Centre for Rural Economy, Newcastle University, Newcastle upon Tyne, NE1 7RU, UK. david.harvey@ncl.ac.uk.

ABSTRACT
Supply chains are already incorporating citizen/consumer demands for improved animal welfare, especially through product differentiation and the associated segmentation of markets. Nonetheless, the ability of the chain to deliver high(er) levels and standards of animal welfare is subject to two critical conditions: (a) the innovative and adaptive capacity of the chain to respond to society's demands; (b) the extent to which consumers actually purchase animal-friendly products. Despite a substantial literature reporting estimates of willingness to pay (WTP) for animal welfare, there is a belief that in practice people vote for substantially more and better animal welfare as citizens than they are willing to pay for as consumers. This citizen-consumer gap has significant consequences on the supply chain, although there is limited literature on the capacity and willingness of supply chains to deliver what the consumer wants and is willing to pay for. This paper outlines an economic analysis of supply chain delivery of improved standards for farm animal welfare in the EU and illustrates the possible consequences of improving animal welfare standards for the supply chain using a prototype belief network analysis.

No MeSH data available.


Related in: MedlinePlus

Network consequences of Improved Standards.
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animals-03-00767-f005: Network consequences of Improved Standards.

Mentions: The calibration of the network with the set of 82 more or less different beliefs about the current states of each of the major factors (variables) allows the software [21] to construct a set of conditional probabilities which are implied by these different cases. As a result, it is now possible to use the network to illustrate the consequences of changing the state of the major drivers of animal welfare. For instance, Figure 5 shows the same network except that the state of standards is reset from the calibrated 65.8% strong to 100% strong. The consequences, according to the conditional probabilities implied by our respondents’ beliefs about the state of animal welfare and its major drivers in the EU, are that animal welfare actually declines marginally from being 20.8% good to 20.2% good, while supply chain competitiveness is slightly improved from 54.7% strong to 57.6% strong. This follows from associated improvements in supply chain capacity (from 45.3% to 51% strong) and labelling effectiveness (from 31.5% to 42.5%), and thus in consumer demand (from 45.1% strong to 46.6% strong). Hence, although the underlying conception of the behavior of the chain, which informs the structure of the belief network, might suggest that tighter/stronger standards would (other things equal) tend to reduce the competitiveness of the supply chains, the network captures at least some of the consequences of improved standards, which are that other things do not remain equal when changing one variable in a complex system. At least according to this network, however, improving standards is not sufficient to improve animal welfare on its own, since the positive effects via labeling and consumer demand are more than offset by an apparent negative consequence of improving supply chain capacity (see below).


The Supply Chain's Role in Improving Animal Welfare.

Harvey D, Hubbard C - Animals (Basel) (2013)

Network consequences of Improved Standards.
© Copyright Policy - open-access
Related In: Results  -  Collection

License
Show All Figures
getmorefigures.php?uid=PMC4494447&req=5

animals-03-00767-f005: Network consequences of Improved Standards.
Mentions: The calibration of the network with the set of 82 more or less different beliefs about the current states of each of the major factors (variables) allows the software [21] to construct a set of conditional probabilities which are implied by these different cases. As a result, it is now possible to use the network to illustrate the consequences of changing the state of the major drivers of animal welfare. For instance, Figure 5 shows the same network except that the state of standards is reset from the calibrated 65.8% strong to 100% strong. The consequences, according to the conditional probabilities implied by our respondents’ beliefs about the state of animal welfare and its major drivers in the EU, are that animal welfare actually declines marginally from being 20.8% good to 20.2% good, while supply chain competitiveness is slightly improved from 54.7% strong to 57.6% strong. This follows from associated improvements in supply chain capacity (from 45.3% to 51% strong) and labelling effectiveness (from 31.5% to 42.5%), and thus in consumer demand (from 45.1% strong to 46.6% strong). Hence, although the underlying conception of the behavior of the chain, which informs the structure of the belief network, might suggest that tighter/stronger standards would (other things equal) tend to reduce the competitiveness of the supply chains, the network captures at least some of the consequences of improved standards, which are that other things do not remain equal when changing one variable in a complex system. At least according to this network, however, improving standards is not sufficient to improve animal welfare on its own, since the positive effects via labeling and consumer demand are more than offset by an apparent negative consequence of improving supply chain capacity (see below).

Bottom Line: Supply chains are already incorporating citizen/consumer demands for improved animal welfare, especially through product differentiation and the associated segmentation of markets.This citizen-consumer gap has significant consequences on the supply chain, although there is limited literature on the capacity and willingness of supply chains to deliver what the consumer wants and is willing to pay for.This paper outlines an economic analysis of supply chain delivery of improved standards for farm animal welfare in the EU and illustrates the possible consequences of improving animal welfare standards for the supply chain using a prototype belief network analysis.

View Article: PubMed Central - PubMed

Affiliation: School of Agriculture, Food and Rural Development, and Centre for Rural Economy, Newcastle University, Newcastle upon Tyne, NE1 7RU, UK. david.harvey@ncl.ac.uk.

ABSTRACT
Supply chains are already incorporating citizen/consumer demands for improved animal welfare, especially through product differentiation and the associated segmentation of markets. Nonetheless, the ability of the chain to deliver high(er) levels and standards of animal welfare is subject to two critical conditions: (a) the innovative and adaptive capacity of the chain to respond to society's demands; (b) the extent to which consumers actually purchase animal-friendly products. Despite a substantial literature reporting estimates of willingness to pay (WTP) for animal welfare, there is a belief that in practice people vote for substantially more and better animal welfare as citizens than they are willing to pay for as consumers. This citizen-consumer gap has significant consequences on the supply chain, although there is limited literature on the capacity and willingness of supply chains to deliver what the consumer wants and is willing to pay for. This paper outlines an economic analysis of supply chain delivery of improved standards for farm animal welfare in the EU and illustrates the possible consequences of improving animal welfare standards for the supply chain using a prototype belief network analysis.

No MeSH data available.


Related in: MedlinePlus