Final Report. Part 1 Synthesis Report

Transcription

1 I European Commission Directorate General for Health and Consumers Study and economic analysis of the costs and benefits of ending surgical castration of pigs Framework Contract for evaluation and evaluation related services - Lot 3: Food Chain Final Report Part 1 Synthesis Report Submitted by: Food Chain Evaluation Consortium (FCEC) Civic Consulting - Agra CEAS Consulting - Van Dijk Management Consultants - Arcadia International Project Leader: Civic Consulting European Commission DG SANCO Rue de la Loi Brussels

2 Contact for this assignment: Dr Frank Alleweldt Civic Consulting Study and economic analysis of the costs and benefits of ending surgical castration of pigs Final Report Part 1 Synthesis report Prepared by the Food Chain Evaluation Consortium (FCEC) Civic Consulting Agra CEAS Consulting Van Dijk Management Consultants Arcadia International Project Leader: Civic Consulting Food Chain Evaluation Consortium c/o Civic Consulting Potsdamer Strasse 150 D Berlin-Germany Telephone: Fax: alleweldt@civic-consulting.de

3 Expert Team Civic Consulting: Dr Frank Alleweldt (Project director) Dr Senda Kara Rémi Béteille Dr Kees de Roest Prof. Richard Bennett Dr Philip Cain Prof. Ludwig Theuvsen Prof. Eberhard H. von Borell Prof. José Gil Dr. Hanne Maribo Dr. Armelle Prunier Agra CEAS Consulting: Conrad Caspari John Nganga Maria Garrone Arcadia International: Daniel Traon fcec Food Chain Evaluation Consortium Civic Consulting Agra CEAS Consulting Van Dijk Management Consultants Arcadia International

4 Content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ood Chain Evaluation Consortium 4

5 Executive summary Animal welfare is a core principle for the EU, and the European Commission has been developing animal welfare legislation for more than 30 years. Legislation has been adjusted since Council Directive 91/630/EEC, laying down minimum standards for the protection of pigs. It is stated in Annex I, Chapter II of the Directive that piglets over four weeks of age cannot be surgically castrated without anaesthetic and only by a veterinarian or qualified person. This was improved by Directive 2008/120/EC laying down minimum standards for the protection of pigs which provides that castration of male pigs shall only be carried out by trained persons under hygienic conditions, and if done after seven days of age, only under anaesthetic and additional analgesia administered by a veterinarian. In 2010, representatives of several actors in the European pig sector met in Brussels to discuss the issue of pig castration and its possible alternatives, and endorsed the European Declaration on alternatives to surgical castration of pigs. The Declaration is a voluntary initiative aimed at stopping surgical castration of male pigs by 1 January In the short term, from 1 January 2012, surgical castration of male pigs, when carried out, shall be performed with prolonged analgesia and/or anaesthesia by mutually recognised methods. To ensure a sustainable and competitive pig meat chain in the EU, the Declaration foresees the establishment of a European partnership on pig castration in order to develop the necessary tools for a possible end of surgical castration on male pigs by 1 January The European partnership envisaged to launch several studies, including a cost/benefit analysis on the consequences of ending surgical castration of male pigs. It is against this background that the Directorate General for Health and Consumers (DG SANCO) of the European Commission has commissioned the Food Chain Evaluation Consortium (FCEC) to carry out a study and economic analysis on the costs and benefits of ending surgical castration of pigs. The study was conducted by Civic Consulting of the FCEC, with inputs from Consortium partners Agra CEAS Consulting and Arcadia International. According to the Terms of Reference (TOR), the main objectives of the study are to identify, analyse and compare the costs and benefits of three options for producing pig meat in the EU: Option 1: Production of pig meat from surgically castrated male pigs - Sub-option 1a: when surgical castration of male piglets less than 7 days old is performed without anaesthesia or analgesia - Sub-option 1b: when surgical castration of male pigs at any age is performed with analgesia and/or anaesthesia Option 2: Production of pig meat from entire male pigs taking into account their final weight at slaughter Option 3: Production of pig meat from vaccinated male pigs against boar taint taking into account their final weight at slaughter Food Chain Evaluation Consortium 5

6 Covering the whole pig meat chain in the EU, the study aims to compare the costs and benefits for each option. In addition, the study provides an estimation of the costs and benefits of ending surgical castration on different percentages of male piglets' population in the EU by 1 January The study is based on in-depth desk research, interviews with key stakeholders and experts, an EU-27 stakeholder survey, case studies in ten MS, complementary interviews in six third countries, and a cost-benefit analysis covering costs and benefits of the three options (including a valuation of the animal welfare improvements of these options in economic terms). Description of the alternatives to surgical castration of male pigs Surgical castration without the use of analgesia or anaesthesia (option 1a) Surgical castration of male pigs is practiced to avoid boar taint (the undesirable sexual odour which may develop when cooking pig meat obtained from certain males that have reached puberty) and undesirable aggressive behaviour of male pigs in farms. This practice is painful for the male pigs involved. Therefore, three alternatives to surgical castration without analgesia or anaesthesia have been proposed so far. The first is to continue castration while using analgesia and/or anaesthesia to reduce the pain and stress of the procedure (option 1b). The second option is to raise entire male pigs (option 2). The third option is that of vaccinating male pigs against boar taint, which is an immunological approach that temporarily stops testicular function (immunocastration, option 3). Surgical castration with the use of analgesia and/or anaesthesia (option 1b) Surgical castration may be performed with analgesia or anaesthesia or both analgesia and anaesthesia to reduce the pain related to the surgical castration. Anaesthesia may be general or local. Different methods to anaesthetise male pigs before castration are used in case study countries. These include general anaesthesia via inhalation of CO 2 /O 2 or a mixture of Isoflurane in oxygen and general anaesthesia via injection of Ketamine and Azaperone. Raising entire male pigs (option 2) The positive effects of raising entire male pigs in terms of animal welfare at the farm are relatively clear in terms of absence of pain and complications due to surgery. The welfare implications are not completely one-sided, however. Researchers have pointed out that castration may have a welfare benefit as surgically castrated male pigs are less aggressive. Fighting has negative effects on the quality of the meat. Not only does fighting lead to skin lesions and injury, but fighting also causes an increase in the levels of testosterone in males, which is associated with higher levels of androstenone, causing higher levels of boar taint. Food Chain Evaluation Consortium 6

7 Several strategies are used by the actors of the pig meat supply chain to reduce or control the occurrence of boar taint in carcasses of entire male pigs and in the meat sourced from these types of carcasses. Live animal strategies to reduce boar taint prevalence include breeding, feeding and management techniques. Limits on live weights at slaughter may also be applied. Control of boar taint post-mortem at the slaughtering stage may be done through screening carcasses of entire male pigs for boar taint on the slaughter line. The most common method applied in case study countries to detect boar taint in carcasses of entire male pigs is the method of the human nose. According to this method, a small part of the carcass is heated and the released vapours are smelled by assessors who assess the odour. Pig meat may also be processed in a way that masks the effects of boar taint compounds. Though products such as ham and salami are less likely to be adversely affected by boar taint as they are usually not cooked before being consumed, the production of some cured products with the use of carcasses of entire male pigs may not be possible due to the characteristics of these carcasses. 1 Immunocastration of male pigs (option 3) Immunocastration is the vaccination (by active immunisation) of the male pig against the hypothalamic hormone GnRH (Gonadotropin Releasing Hormone). The immunocastration inhibits the function of the testes and thus the production of androstenone and the accumulation of skatole, which are boar taint-causing compounds. The vaccine against boar taint ( Improvac ) is registered in the EU since Male pigs are required to be vaccinated twice in order to successfully control boar taint. In terms of animal welfare, several stakeholders interviewed considered that immunocastration of male pigs leads to a reduction in aggressive behaviour after the second injection of the vaccine against boar taint, when compared to the behaviour of entire male pigs. Several stakeholders also indicated that the vaccine against boar taint does not fully eliminate the risk of boar taint in carcasses of male pigs and, as a result, the need to screen these carcasses on the slaughter line. Use of surgical castration and its alternatives The table below summarises the data collected on the current use of the three production options (surgical castration of male pigs, raising entire male pigs, and immunocastration of male pigs). It provides an overview of the number of male pigs raised in each country in 2012 as well as the share of male pigs raised according to the three production options. Countries are ranked by decreasing order in terms of the share of male pigs surgically castrated (countries in which this practice is used the most are listed first). 1 This issue is addressed in the European Declaration on alternatives to surgical castration of pigs which states that However, in the case of pig meat registered under traditional specialties guaranteed or with geographical indications (Protected Geographical Indication (PGI) or Protected Designation of Origin (PDO)) and pig meat produced for traditional high quality products [ ], castration is unavoidable to meet the current quality standards. Food Chain Evaluation Consortium 7

8 Table 1: Use of surgical castration and its alternatives (2012) Country Number of male pigs raised (a) (in millions) Male pigs surgically castrated (b) In millions In % of male pigs population Entire male pigs (b) In millions In % of male pigs population Immunocastrated male pigs (b) In millions In % of male pigs population EU % % % PL* % % % IT* % % % AT* % % % SE % % % LT % % % LV (c) % % % LU (c) % % % EE (c) % % % SI % % % FI % % % FR* % % % CZ % % % EL % % % HU (c) % % % DK* %-99.0% %-2.0% % DE* %-98.0% % % SK (c) % % % BE* %-90.0% %-2.0% %-10% NL* % % % CY % % % RO % % % ES* % % % PT (c) % % % MT % % % UK* <1.0% % % IE (c) % % % BG 0.5 n.a. n.a. n.a n.a. n.a. n.a. CH % % % US % % % CA % % % BR % % % AU % % % NZ % % % Sources: (a) EU MS figures are based on data provided by the UECBV. It is assumed that male pigs represent half of total male pigs population in each country. (b) Stakeholder survey, interviews, and Fredriksen et al., When several survey responses have been received for a country, the median of the values provided by stakeholders in this country is considered. (c) As no answer to the stakeholder survey was received from Estonia, Hungary, Ireland, Luxembourg, Latvia, Portugal and Slovakia, data for these countries is based on the data collected by the PIGCAS project (see Fredriksen et al., 2009). According to the information collected, the vaccine against boar taint would not be used in these countries at the moment. The PIGCAS project did not collect data for Bulgaria and no responses from this country were received to our stakeholder survey, despite several reminders. Notes: Countries marked with * cover almost 90% of the total male pigs population in the EU. Case studies have been conducted in these countries; the results are presented in Part 2. Food Chain Evaluation Consortium 8

9 Use of option surgical castration of male pigs (option 1) Surgical castration of male pigs is the option that is most commonly used in the EU. About 71% of male pigs raised in the EU in 2012 were surgically castrated. More than 95% (and up to 100%) of male pigs are surgically castrated in more than half of the EU Member States (Austria, Germany, Denmark, France, Italy, Poland, the Czech Republic, Greece, Finland, Lithuania, Sweden, Slovenia, Estonia, Hungary, Luxembourg, Latvia). In Slovakia, it is estimated that about 91% of the male pigs population is surgically castrated while surgical castration is performed on about 85% to 90% of male pigs in Belgium. Surgical castration of male pigs is practiced to a lower extent in the Netherlands, Cyprus, Romania, Spain, and Portugal (where up to 50% of male pigs are surgically castrated). Surgical castration is not practiced in Ireland. In the United Kingdom less than 1% of male pigs are surgically castrated and in Malta surgical castration is practised on 6% of male pigs raised in this country, according to the information provided by stakeholders. Depending on the country, surgical castration of male pigs less than seven days of age may be performed with the use of analgesia or anaesthesia, with both analgesia and anaesthesia or simply by not applying any pain reduction method. According to the information provided by the survey respondents, neither analgesia nor anaesthesia is used for any of the surgical castrations performed on male pigs under seven days of age in the Czech Republic, Greece, Malta, Romania, and Slovenia. In Poland, Italy, and Lithuania (where all male pigs are surgically castrated), stakeholders indicated that between 80% and 99% of male pigs surgically castrated before seven days of age are not administered any analgesia or anaesthesia to reduce the pain related to the surgical castration, respectively. Similarly, about 90% of the surgical castrations performed on male pigs under seven days of age in Spain (where 16% of male pigs are surgically castrated) are done without any pain reduction method, according to the stakeholders interviewed in this country. In the other countries for which stakeholders provided data on the use of analgesia and/or anaesthesia, the share of male pigs surgically castrated without any pain reduction method are significantly lower. In Belgium, Denmark, and the Netherlands, surgical castration without the application of any pain reduction method was not believed to be performed or was said to be rarely performed by stakeholders in these countries. The use of analgesia for the surgical castration of male pigs less than seven days of age was reported to be a common practice by stakeholders in Austria, Belgium, Germany, Denmark, France, Finland and Sweden. In these countries, it is estimated that analgesia is administered to 87%-100% of the male pigs surgically castrated before seven days of age. The use of anaesthesia for the surgical castration of male pigs less than seven days of age is used in the Netherlands where all male pigs surgically castrated before this age are reportedly anaesthetised by farmers through the inhalation of a mixture of CO 2 /O 2. Male pigs surgically castrated with the use of anaesthesia in this country are generally not administered an analgesic in addition. Male pigs are administered both analgesia and anaesthesia when they are surgically castrated before seven days of age in the minority of EU Member States (including Germany, Lithuania, and Sweden). Food Chain Evaluation Consortium 9

10 Use of option raising entire males (option 2) In 2012, close to 100% of the male pigs raised in the United Kingdom and Ireland are raised as entire males, respectively. 80% or more of male pigs in Spain, Portugal and Malta are also raised as entire males. Entire male pigs are also raised in Slovakia, Cyprus, the Netherlands, and Romania but at a lower scale (up to 60% of male pigs raised in these countries in 2012). Finally, up to 5% of male pigs raised in Slovenia, Finland, France, Denmark, Belgium, Greece, Hungary, and Germany are entire males. This production option is not used in the other MS, according to the information collected. Use of option immunocastration of male pigs (option 3) According to the information collected, the vaccine against boar taint is used Spain, Belgium, Greece, the Czech Republic, Romania, and Cyprus but its use remains limited to a small share of the male pigs raised in these countries (up to 10% of the total male pigs population in 2012). The maps below provide an overview of the use of surgical castration of male pigs and its alternatives in the EU. Food Chain Evaluation Consortium 10

11 Figure 1: Overview of use of surgical castration and its alternatives in the EU (2012) Male pigs surgically castrated Male pigs raised as entire males Immunocastrated male pigs No data Not used >0-5% 6-50% 51-95% >95% Sources: Stakeholder survey, interviews, and Fredriksen et al., Food Chain Evaluation Consortium 11

12 Recent trends and outlook in EU countries The information collected in case study countries and complementary desk research indicates that: In Ireland, the United Kingdom, Spain and Portugal, surgical castration is not practised or practised to a relatively limited extent. In Ireland and the United Kingdom, surgical castration of male pigs is not practised (or practised for less than 1% of male pigs) and more than 80% of male pigs raised in Spain and Portugal are not surgically castrated. In the Netherlands and Belgium, the production of surgically castrated male pigs has decreased over recent years. This trend has been driven by the demand of retailers in these countries, influenced by organisations promoting animal welfare. In Germany, surgical castration of male pigs without the use of anaesthesia will be legally banned as of 2019 and as a result, the share of surgically castrated male pigs in this country is likely to decrease. In Denmark and France, raising entire male pigs is viewed as a possible alternative to surgical castration of male pigs. However, surgical castration with the use of analgesia will most probably continue to be used in these countries until a method for the detection of tainted carcasses of entire male pigs on the slaughter line is widely agreed upon (in this respect, the method of the human nose was not considered to be adequate by stakeholders interviewed in these countries). In Italy, heavy pigs constitute the predominant share of the market (90% of male pigs slaughtered in 2012) and these pigs are surgically castrated. Alternatives to the surgical castration of these male pigs were not considered to be adequate for the production of PDO cured products by stakeholders interviewed in this country. However, the production of immunocastrated male pigs could increase for the slow growing light pigs segment in Italy. In Austria and Poland, a reduction in the number of surgically castrated male pigs is unlikely to occur in the next five years, according to stakeholders interviewed in these countries. Recent trends and outlook in third countries Concerning the situation in third countries, close to 100% of the male pigs raised in Canada and the United States are surgically castrated without the use of analgesia or anaesthesia and stakeholders interviewed in these countries were of the opinion that the share of surgically castrated male pigs is unlikely to decrease significantly in the next five years. In Switzerland, nearly all male pigs are also surgically castrated, but always under anaesthesia and with an additional application of an analgesic. The evolution of the situation in this country is likely to be affected by the production options that will be adopted by the actors of the pig meat production chain in the EU MS. In Brazil, stakeholders interviewed were of the opinion that there may be a further significant increase in the percentage of immunocastrated male pigs (currently, 49% of male pigs raised in this country are vaccinated against boar taint, and the remaining are surgically castrated). This view was shared by stakeholders interviewed in Food Chain Evaluation Consortium 12

13 Australia and New Zealand, who also considered that the share of immunocastrated male pigs raised in their countries will continue to increase in the next years. Costs and benefits of surgical castration and its alternatives Animal welfare benefits for society The importance of valuating animal welfare improvements in economic terms is not to be underestimated. Indeed, if one were to not consider these in their entirety, one would significantly underestimate the real benefits of ending surgical castration of male pigs. Specifically, the benefits accruing from animal welfare improvements have the potential to create social benefit, insofar as many in society consider animal welfare to have a value in and of itself, as a public good, not unlike the amenity value of living in a clean global environment. In the context of this study, the social benefit of animal welfare arises in avoiding the pain that castrated piglets are subject to. People s willingness to pay (WTP) for animal welfare improvements can be used to determine the value they ascribe to these improvements. 2 Furthermore, the Welfare Quality Assessment Protocol for Pigs provides objective welfare scores related to surgical castration and several of its alternatives. The existence of such objective measures based on expert opinions is particularly important as European consumers are unlikely to be able to assess for themselves the welfare changes involved in the various production options. Hence, in order to adequately valuate differences in animal welfare in economic terms between the production options, we have combined these objective welfare scores with relevant data on European consumers appreciation for pigs welfare. To do so, we have used data from the Welfare Quality Assessment Protocol for Pigs for scoring management procedures and on WTP regarding pig welfare collected by the ALCASDE project, in all cases considering that management practices such as castration of piglets only constitute a small element of the overall animal welfare (see Annex 3 for a detailed description of the methodology employed). Based on our analysis, the use of analgesia and/or anaesthesia for the surgical castration of male pigs (option 1b) increases animal welfare benefits by 2.13 per carcass of a male pig, compared to a situation in which male pigs are surgically castrated without analgesia or anaesthesia (option 1a). Replacing the surgical castration of male pigs with the use of analgesia and/or anaesthesia (option 1b) with immunocastration (option 3) increases animal welfare benefit by 0.38 per carcass. This corresponds to an animal welfare benefit of 2.51 per carcass compared to a situation in which male pigs are surgically castrated without analgesia or anaesthesia. Raising entire male pigs is the production option (option 2) which creates the highest benefit in terms of animal welfare ( 2.81 per carcass). 2 In economics, the WTP is the maximum amount a consumer would be willing to pay in order to receive a good or to avoid an undesired outcome. WTP does not require an actual payment and consumers may therefore not take their budget constraint into consideration when providing such a value, depending on how the question is framed. Food Chain Evaluation Consortium 13

14 Costs and benefits of surgical castration of male pigs without analgesia or anaesthesia (option 1a) The assessment of the costs of surgical castration without analgesia or anaesthesia was carried out by collecting information in 10 EU case study countries (Austria, Belgium, Germany, Denmark, France, Italy, Netherlands, Poland, Spain and the United Kingdom) on the time necessary to catch, handle and castrate the male pigs. The results of the cost-benefit analysis show that surgical castration of male pigs without the use of analgesia or anaesthesia (option 1a) generates a cost of 0.19 per male pig if the surgical castration is performed by the farmer and 0.43 per male pig if it is done by a veterinarian. However, when taking animal welfare benefits into account, the surgical castration of male pigs without the use of analgesia or anaesthesia is the most costly of the production options analysed, as this production option does not create any animal welfare benefit for society. Costs and benefits of surgical castration of male pigs with analgesia and/or anaesthesia (option 1b) The costs and benefits of the use of analgesia and/or anaesthesia have been investigated taking the different alternative methods for reducing the pain associated to the surgical castration into consideration. The costs are related to the substances and the equipment used and the benefits are derived from the increase in animal welfare due to the use of a pain reduction method. The costs of the use of analgesia and/or anaesthesia are all generated during the pig growing phase, as further down in the pig meat chain, costs do not change, compared to the costs of surgical castration without analgesia or anaesthesia. Costs and benefits of option 1b (surgical castration of male pigs with the use of a pain reduction method) vary significantly depending on the method used. 3 Surgical castration with the application of an analgesic by the farmer is the least costly of the methods used to reduce the pain associated to the surgery ( 0.31 per male pig). If a veterinarian performs the surgical castration and applies the analgesic, the total cost of the surgical castration increases by 0.37 per male pig (total cost of 0.68 per male pig). In comparison, the surgical castration with anaesthesia via inhalation of CO 2 /O 2 administered by the farmer creates a cost of 0.46 per male pig. However, the benefits in terms of animal welfare related to the use of a pain reduction method ( 2.13 per male pig) more than compensate the costs of these three alternatives to the surgical castration of male pigs without analgesia or anaesthesia. The use of a pain reduction method actually creates net benefits for the three alternatives which are valued at 1.82 per male pig for the surgical castration with analgesia performed by a farmer, 1.45 per male pig for the surgical castration with analgesia performed by a veterinarian, and 1.66 per male pig for the surgical castration with anaesthesia via inhalation of CO 2 /O 2 administered by a farmer. 3 Methods used may differ in terms of their effectiveness in reducing the pain associated with the surgical castration. However, the available data did not allow for a quantification of the differences in animal welfare benefits in economic terms for the different pain reduction methods. Food Chain Evaluation Consortium 14

15 The two other pain reduction methods used in the case study countries (inhalation of Isoflurane or injection of Ketamine and Azaperone, and additional application of an analgesic) are significantly more costly ( 4.04 and 3.13 per male pig, respectively) and the costs of these methods are not fully offset by the animal welfare benefits that they generate (net costs of 1.91 and 1.00 per male pig, respectively). Costs and benefits of raising entire male pigs (option 2) The evaluation of the costs and benefits of raising entire male pigs is more complex than the analysis carried out for the surgical castration of male pigs with analgesia and/or anaesthesia, because more impacts have to be taken into account and raising entire male pigs is exerting its effects on several stages of the pig meat supply chain and not only at the pig farm level. Costs and benefits of option 2 (raising entire male pigs) vary depending on whether boar taint is found in the carcasses of these male pigs. However, taking the percentage of entire male pigs screened for boar taint on the slaughter line into account, the frequency of tainted carcasses of entire male pigs detected, and the animal welfare benefits for this production option ( 2.81 per male pig), the weighted average benefits of raising entire male pigs lies between 5.20 and per male pig (or net benefits between 2.39 and 7.96 per male pig, excluding animal welfare benefits). The high benefits obtained for this option are essentially explained by the better feed conversion rates of entire male pigs compared to those of surgically castrated male pigs. Costs and benefits of immunocastration of male pigs (option 3) Although smaller than those related to the production of entire male pigs (option 2), immunocastration of male pigs (option 3) also creates animal welfare benefits in economic terms ( 2.81 per male pig for option 2 versus 2.51 per male pig for option 3). Similar to the results obtained for the production of entire male pigs (option 2), costs and benefits of vaccinating male pigs against boar taint differ depending on whether boar taint is found in the carcasses of these male pigs. Considering the animal welfare benefits associated with the immunocastration of male pigs, as well as the percentage of these pigs screened for boar taint on the slaughter line and for which boar taint is detected, the weighted average benefits of immunocastration of male pigs lies between 1.56 and 6.14 per male pig (or between a net cost of 0.95 to a net benefit of 3.63, excluding animal welfare benefits). These results are essentially explained by two factors: the better feed conversion rates of entire male pigs compared to those of surgically castrated male pigs (but worse than those of entire male pigs) and the cost of the vaccination against boar taint ( 1.56 per dose). Comparison of costs and benefits of surgical castration of male pigs and its alternatives The comparison of the costs and benefits of the three production options shows that the immunocastration of male pigs (option 3) may not necessarily be more beneficial than the surgical castration of male pigs with analgesia administered by the farmer and the surgical castration of male pigs with anaesthesia via inhalation of CO 2 /O 2 administered by the farmer (see option 1b). Indeed, the minimum net benefit of the immunocastration is valued at 1.56 per male pig while the net benefit (including benefits in terms of animal welfare) of surgical castration of male pigs with analgesia administered by the farmer amounts to 1.82 per male Food Chain Evaluation Consortium 15

16 pig and the net benefit of surgical castration with the use of anaesthesia via inhalation of CO 2 /O 2 is 1.66 per male pig (see table below). Table 2: Overview of costs and benefits of production options (cost/benefit in /male pig) Cost of option (in /male pig) Animal welfare benefit for society (in /male pig) Net cost/benefit of option incl. animal welfare benefits (in /male pig) Surgical castration of male pigs with analgesia and/or anaesthesia (option 1a) Castration without analgesia or anaesthesia carried out by farmer Castration without analgesia or anaesthesia carried out by veterinarian Surgical castration of male pigs with analgesia and/or anaesthesia (option 1b) Castration with analgesia (only) by farmer Castration with analgesia (only) by veterinarian Castration with anaesthesia via inhalation of CO2/O2 administered by farmer Castration with anaesthesia via inhalation of Isoflurane and analgesia administered by veterinarian Castration with anaesthesia via injection of Ketamine and Azaperone administered by veterinarian Raising entire male pigs (option 2) Raising entire male pigs to (a) to Immunocastration of male pigs (option 3) Immunocastration of male pigs to (a) to Source: Civic Consulting. Note: (a) Including difference in prices received by farmer from slaughterhouse, difference in prices received by slaughterhouse from processor, and savings in feed costs for options 2 and 3 compared to option 1. Food Chain Evaluation Consortium 16

17 The results of the analysis of costs and benefits indicate that the range of the net benefits resulting from the production of immunocastrated male pigs is lower than the range of the net benefits generated by raising entire male pigs ( 1.56 to 6.14 per immunocastrated pig compared to 5.20 to per entire male pig). In other words, the range of net benefits is highest for option 2 (raising entire male pigs) compared to all other options analysed, including when compared to the surgical castration of male pigs without analgesia or anaesthesia (the most commonly used practice). It is notable that this result is independent of whether animal welfare benefits for society are considered, or not. Even when these benefits are not included in the calculation, raising entire males is associated with a higher range of benefits compared to any of the other options. Estimation of costs and benefits in 2018 Using the results of the cost and benefit analysis described above, the study has estimated the costs and benefits if surgical castration stops in the EU in different percentages of male pigs by 1 January The results are presented in the tables below. Table 3: Costs and benefits if surgical castration stops in the EU in 28%, 50%, 75% or 95 % of male pigs by 1 January 2018; excluding animal welfare benefits (in millions of Euro) Cost/benefit for producing surgically castrated male pigs (option 1) Cost/benefit for producing entire male pigs (a) (option 2) Cost/benefit for producing immunocastrated male pigs (a) (option 3) Total costs and benefits Scenario 1: Same situation as today on 1 January 2018 Scenario 2: 50% of male pigs are not surgically castrated on 1 January 2018 Scenario 3: 75% of male pigs are surgically not castrated on 1 January 2018 Scenario 4: 95% of male pigs are not surgically castrated on 1 January to to to to to to to to to to to to to to to to Source: Civic Consulting. Note: (a) Including difference in prices received by farmer from slaughterhouse, difference in prices received by slaughterhouse from processor, and savings in feed costs for options 2 and 3 compared to option 1. Food Chain Evaluation Consortium 17

18 The table above shows that if the share of non-surgically castrated male pigs remains the same as today on 1 January 2018 (28% of the EU total pigs population, scenario 1), the production of pig meat from male pigs may create costs related to castration practices of up to million Euro ranging to benefits of up to million Euro (excluding animal welfare benefits). If the share of male pigs which are not surgically castrated increases to 50% of the total male pigs population in 2018 (scenario 2), the production of pig meat from male pigs may generate costs related to castration practices of up to million Euro ranging to benefits of up to million Euro. When the share of male pigs which are not surgically castrated reaches 75% or more of the total male pigs population in 2018 (scenarios 3 and 4), only benefits are generated related to castration practices. The table below presents the costs and benefits if surgical castration stops in the EU in 28%, 50%, 75% or 95 % of male pigs by 1 January 2018 when animal welfare benefits are also considered. Table 4: Costs and benefits if surgical castration stops in the EU in 28%, 50%, 75% or 95 % of male pigs by 1 January 2018, including animal welfare benefits (in millions of Euro) Cost/benefit for producing surgically castrated male pigs (option 1) Cost/benefit for producing entire male pigs (a) (option 2) Cost/benefit for producing immunocastrated male pigs (a) (option 3) Total costs and benefits Scenario 1: Same situation as today on 1 January 2018 Scenario 2: 50% of male pigs are not surgically castrated on 1 January 2018 Scenario 3: 75% of male pigs are surgically not castrated on 1 January 2018 Scenario 4: 95% of male pigs are not surgically castrated on 1 January to to to to to to to to to to to to 1, to to 1, to to 1,306.2 Source: Civic Consulting. Note: (a) Including difference in prices received by farmer from slaughterhouse, difference in prices received by slaughterhouse from processor, and savings in feed costs for options 2 and 3 compared to option 1. Food Chain Evaluation Consortium 18

19 The table above shows that taking animal welfare benefits into consideration generate net benefits. Scenario 1 (i.e. on 1 January 2018 the share of non-surgically castrated male pigs remains the same as today) is the scenario which may generate the lowest net benefit related to castration practices (5.9 million Euro) when animal welfare benefits are included. Taking animal welfare benefits in scenario 2 into consideration (i.e. the share of male pigs which are not surgically castrated represent 50% of the total male pigs population in 2018) results in net benefits of to million Euro related to castration practices. Finally, the inclusion of animal welfare benefits in the calculation further increases the total net benefits related to castration practices for scenarios 3 and 4 (i.e. the share of male pigs which are not surgically castrated corresponds to 75% or more of the total male pigs population in 2018) which amount up to 1,080.5 and 1,306.2 million Euro in the respective scenario. Food Chain Evaluation Consortium 19

20 1. Introduction Policy context and legislative framework Animal welfare is a core principle for the EU, and the European Commission has been developing animal welfare legislation for more than 30 years. Provisions for animal welfare in the EU are laid down in the European Treaties, in Article 37 of the amended Treaty of Rome, and emphasised in Article 13 of the Lisbon Treaty, which states that in formulating agricultural policies, the Union and the Member States shall, since animals are sentient beings, pay full regard to the welfare requirements of animals, while respecting the legislative or administrative provisions and customs of the Member States relating in particular to religious rites, cultural traditions, and regional heritage". 4 The Eurobarometer survey on attitudes of European citizens 5 towards welfare of farmed animals revealed, that although the majority of EU citizens believe that standards have improved over the last decade, 44% believed that the welfare of pigs was fairly bad or very bad, and 77% believe that further animal welfare improvements are necessary. In line with this demand, the Community Action Plan on the Protection and Welfare of Animals (Action Plan on Animal Welfare) had the upgrading of current standards for animal welfare and incorporating these into the EU s long-term strategies as a main priority. Legislation has been continuously adjusted since Council Directive 91/630/EEC, laying down minimum standards for the protection of pigs. It is stated in Annex I, Chapter II of the Directive that piglets over four weeks of age cannot be surgically castrated without anaesthetic and only by a veterinarian or qualified person. This was improved by Directive 2008/120/EC laying down minimum standards for the protection of pigs which provides that castration of male pigs shall only be carried out by trained persons under hygienic conditions, and if done after seven days of age, only under anaesthetic and additional analgesia administered by a veterinarian. In 2010, upon the invitation of the European Commission and the Belgian Presidency and following a workshop on alternatives to pig castration, representatives of several actors in the European pig sector met in Brussels to discuss the issue of pig castration and its possible alternatives, and endorsed the European Declaration on alternatives to surgical castration of pigs. 6 The Declaration is a voluntary initiative aimed at stopping surgical castration of male pigs by 1 January In the short term, from 1 January 2012, surgical castration of male pigs, when carried out, shall be performed with prolonged analgesia and/or anaesthesia by mutually recognised methods. To ensure a sustainable and competitive pig meat chain in the EU, the Declaration foresees the establishment of an European partnership on pig castration in order to develop the necessary tools for a possible end of surgical castration on male pigs by 1 January The Eurobarometer, 2007, Attitudes of consumers towards the welfare of farmed animals Wave 2, Food Chain Evaluation Consortium 20

21 European partnership envisaged to launch several studies, including a cost/benefit analysis on the consequences of ending surgical castration of male pigs. It is against this background that the Directorate General for Health and Consumers (DG SANCO) of the European commission has commissioned the Food Chain Evaluation Consortium (FCEC) to carry out a study and economic analysis on the costs and benefits of ending surgical castration of pigs. The study was conducted by Civic Consulting of the FCEC, with inputs from Consortium partners Agra CEAS Consulting and Arcadia International. Purpose and objectives of the study According to the Terms of Reference (TOR), the main objectives of the study are to identify, analyse and compare the costs and benefits of three options for producing pig meat in the EU: Option 1: Production of pig meat from surgically castrated male pigs - Sub-option 1a: when surgical castration of male piglets less than 7 days old is performed without anaesthesia or analgesia - Sub-option 1b: when surgical castration of male pigs at any age is performed with analgesia and/or anaesthesia Option 2: Production of pig meat from entire male pigs taking into account their final weight at slaughter Option 3: Production of pig meat from vaccinated male pigs against boar taint taking into account their final weight at slaughter Covering the whole pig meat chain in the EU, the study aims to compare the costs and benefits for each option. In addition, the study provides an estimation of the costs and benefits of ending surgical castration on different percentages of male piglets' population in the EU by 1 January Geographical coverage and time period All EU Member States (MS) are covered in the study. 7 Particular emphasis is placed on ten MS (Austria, Belgium, Germany, Denmark, France, Italy, Netherlands, Poland, Spain and the United Kingdom) which cover almost 90% of the total male pigs population in the EU. Several of these countries have already implemented alternatives to surgical castration and committed to the long-term phasing out of surgical castration of male pigs. Case studies have been conducted in these ten MS. In addition, the use of the three options for producing pig meat from male pigs is also examined in six third countries (Australia, Brazil, Canada, New Zealand, Switzerland and the United States). 7 As of January 2013 (Croatia is not covered). Food Chain Evaluation Consortium 21

22 The time period for which economic and other quantitative data was collected ranges from Scope The analysis of costs and benefits covers the whole pig meat chain in the EU from breeding and raising pigs to the consumption of pig meat. Methodology The main methodological tools employed in this study are in-depth desk research, interviews with key stakeholders and experts, an EU-27 stakeholder survey, case studies in ten MS, complementary interviews in six third countries, and a cost-benefit analysis covering costs and benefits of the three options (including a valuation of the animal welfare improvements of these options in economic terms). Structure of the report The report is divided into two main parts. Part 1 of this report presents the main findings from the study and is structured as follows: Section 1 (this section) contains an introduction to the study; Section 2 describes the alternatives to surgical castration of male pigs without analgesia or anaesthesia; Section 3 depicts the current use of surgical castration of male pigs and its two alternatives (raising entire male pigs and immunocastration of male pigs i.e. vaccination against boar taint) in the EU and in six third countries; Section 4 provides an overview of the uptake of the European Declaration on alternatives to surgical castration of pigs by the EU pig meat sector; and Section 5 presents the results of the cost and benefit analysis for each production option (surgical castration of male pigs, raising entire male pigs, and immunocastration of male pigs) and gives an estimation of the costs and benefits of ending surgical castration on different percentages of male pigs' population in the EU by 1 January Part 1 includes the following annexes: Annex 1 describes the calculations performed for the cost-benefit analyses; Annex 2 details the general methodological approach; Annex 3 presents the methodology used for the valuation of animal welfare improvements of these options in economic terms); and Annex 4 lists the literature reviewed. Part 2 of this report presents the results of the case studies conducted in 10 EU MS. Food Chain Evaluation Consortium 22

23 Acknowledgments The FCEC would like to express its gratitude towards all supporters, without them this study would not have been possible. We would like to thank all organisations and experts that responded to our survey, as well as those who provided valuable input through interviews. In addition, we are very grateful for the support of EU associations which kindly distributed the survey to their members and provided key contacts and data. Finally, we thank the DG SANCO of the European Commission for their support. Food Chain Evaluation Consortium 23

24 2. Description of the alternatives to surgical castration of male pigs This section explains the animal welfare issues related to the surgical castration of male pigs without analgesia or anaesthesia and describes the alternatives to surgical castration. It also presents the view of stakeholders on these alternatives. Finally, consumer issues related to the surgical castration of male pigs and its alternatives are analysed Surgical castration of male pig (option 1) Surgical castration without the use of analgesia or anaesthesia (option 1 a) Though animal husbandry has changed beyond recognition since the times when pigs were first domesticated, the practice of surgical castration dates back to antiquity, with archaeological evidence dating from Neolithic times and it has been widely practiced in Europe for centuries. Castration can apply to males or females, but with a few exceptions, only male pigs are surgically castrated in the EU. Surgical castration of male pigs is practiced to avoid boar taint (the undesirable sexual odour which may develop when cooking pig meat obtained from certain males that have reached puberty) and undesirable aggressive behaviour of male pigs in farms. This practice is painful for the male pigs involved. Until recently it was thought that neonates did not suffer from pain because of the immaturity of their neural development, but a review of the research conducted in this area has shown that in fact pain is present and can be measured through endocrine and behavioural response, vocal response, and hormonal changes in blood plasma. 8 This review also notes that surgically castrated pigs spend less time at the mammary glands, remain more inactive, and show more pain-related behaviours. Another study reports that surgically castrated piglets seek more solitude and show more social desynchronisation. Finally, it was also found that surgical castration with or without analgesia and/or anaesthesia negatively affected the pigs immune system Surgical castration with the use of analgesia and/or anaesthesia (option 1 b) Surgical castration may be performed with analgesia or anaesthesia or both analgesia and anaesthesia to reduce the pain related to the surgical castration. Anaesthesia may be general or local. Different methods to anaesthetise male pigs before castration are used in case study countries. These include general anaesthesia via inhalation of CO 2 /O 2 or a mixture of Isoflurane in oxygen and general anaesthesia via injection of Ketamine and Azaperone. However, there are also caveats regarding the use of anaesthetics. For example, most anaesthetic procedures may induce stress due to the additional handling and recovery. Furthermore, neonatal animals are more vulnerable to hypothermia than adults, and their 8 EFSA, Merlot et al Food Chain Evaluation Consortium 24