Why and how to regulate animal production and consumption in the EU?

Abstract

Throughout the world, animal production faces huge sustainability challenges. The latter are exacerbated in the European Union (EU) where issues related to climate change, the environment, human health and animal welfare are the subject of intense debates. Besides negative impacts, it is important to recall that animal production and consumption have also economic, territorial and nutritional benefits. In addition, some livestock systems, notably grass-based systems, may also provide positive climatic and environmental services. Animal production is highly regulated in the EU, whereas the consumption of animal products is not (or very slightly) regulated. Numerous negative and positive impacts of animal production and consumption are public goods that are not well taken into account by private actors and markets. As a result, there is legitimacy and scope for public policies aimed at reducing the damage and increasing the benefits of animal production and consumption. The last part of the paper explains how this could be achieved in the EU through a significantly revised and extended Common Agricultural Policy (CAP) that more closely follows the principles of public economics.