Pulse Brain · Growing Health Evidence Index
Tier 3 — Observational / field trialPeer-reviewedConventional

Is there any causal effect between animal welfare and farm economic performance? Evidence from Finnish dairy farms

Amer Ait Sidhoum; Jarkko K Niemi

Q Open · 2025

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Summary

This econometric study examined whether improvements in animal welfare causally improve farm economic performance among Finnish dairy farms. Using cross-sectional and fixed-effects panel regression on 2010–2017 data, the authors found that whilst cross-sectional analysis showed a negative association between poor welfare and milk revenue, this relationship weakened substantially and lost statistical significance once farm-specific fixed effects were included, suggesting the correlation reflects underlying management or structural differences rather than a direct causal link.

Regional applicability

The findings have potential relevance to United Kingdom dairy policy and farm management, particularly given both operate within European welfare standards and comparable market structures. However, direct applicability may be limited by differences in farm size, herd composition, regulatory environment, and milk price dynamics between Finland and the UK; further UK-specific analysis would strengthen evidence for policy application.

Key measures

Composite animal welfare index (animal-based indicators); milk revenue; farm-specific fixed effects; panel data analysis 2010–2017

Outcomes reported

The study examined the association between a composite animal welfare index (integrating multiple animal-based indicators) and milk revenue among Finnish dairy farms from 2010–2017. It assessed whether the observed correlation reflects a direct causal effect or structural/management differences using econometric methods.

Theme
Policy, governance & rights
Subject
Animal health & welfare
Study type
Research
Study design
Panel data regression with fixed effects; cross-sectional regression
Source type
Peer-reviewed study
Status
Published
Geography
Finland
System type
Dairy
DOI
10.1093/qopen/qoaf032
Catalogue ID
NRmu58s0es-004

Topic tags

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