The impact of animal welfare regulations on pork trade: evidence from European countries

Abstract

We analyse the impact of stricter national animal welfare (AW) regulations on imports and exports of pork between 13 European countries during the period 1991–2020, a period in which EU directives and national actions related to AW regulations significantly affected pig farming practices. We exploit the fact that some countries have stronger AW regulations for pigs compared with EU’s regulations and other countries’ regulations. Our analyses utilize a new detailed dataset capturing the dynamics of pig AW regulations over time for several EU member states, taking into account multiple aspects of pig AW that can have significant cost impacts for pork producers. We focus on countries with relatively stringent AW legislation for pigs and countries that are major pork producers. Using panel regression, long-differenced IV, and event study approaches, we find that an increase in the relative stringency of pig AW regulations in a country is associated with a reduction in pork exports. We find mixed evidence suggesting that stricter AW regulations for pigs reduced pork imports. Our results have important implications for other jurisdictions that plan to mandate AW regulations for pigs in the near future.