Resumo

The field of animal welfare science has helped us understand how animals perceive the world and what motivates them. In recent years, this topic has gained much attention from Non-Governmental Organizations (NGOs) and regulators. In consequence of increased consumers and investors demand for more transparency and clarity in production processes, organizations now see animal welfare as a business issue that can either harm an organization's reputation or bring a competitive advantage for precursors.

The objective of this study was to do an exploratory research assessing risks and opportunities in the animal derived food industry by comparing financial indicators and animal welfare practices, depending on positions in the value chain, company regions and company sizes. We expect this analysis to help the animal derived food industry stakeholders’ better understand how animal welfare practices and standards can lead to a more sustainable and competitive industry.

The literature review shows how animal welfare can be a value driver in the animal derived food industry by outlining risks and opportunities. Omitting it presents a number of risks and opportunities for the animal derived food industry. In practice, most organizations continue to focus on intensive production methods underestimating the externalities caused by their operations. However, after successive environmental and food safety scandals that authorities, public opinion and the animal derived food industry have raised concerns about more sustainable production methods.

We selected 62 companies from different renowned rankings focusing on brand reputation, animal welfare and companies with broad impact in our day-to-day lives. We then analyzed if the position in the value chain, the region or the size of companies would have an impact on their financial indicators and their animal welfare incentives.

More and more, recurring media attention, increased consumer awareness and tighter regulations make animal welfare one of the leading topics of interest in the animal derived food industry. Companies even see it as a strategic business issue. Ultimately, we discuss a possible integrated competitive strategy taking advantage of opportunities while mitigating risks.

Our analysis point out striking differences among company positions in the value chain, geographic regions and company sizes. It also proposes an integrated competitive strategy among the animal derived food industry value chain. Producing, transporting and processing food companies could invest resources to improve infrastructures, technologies and processes related to improved animal welfare practices, while other stakeholders invests resources in auditing, communicating and promoting them.

For the literature review we have accessed 55 works : 25 academic papers, 22 technical reports, 5 textbooks and 3 rules and legislation.