Industrial System

Industrial systems are primarily directed at producing high quality animal protein and other animal products for the urban markets. As a result of this market demand, intensive animal production and processing often takes place near urban areas, while primary feed production takes place in distant rural areas.

Industrial systems are generally considered modern and efficient, requiring a high level of knowledge and skill. Production techniques are more or less independent of the agro-ecological zone and of the climate and this explains the world-wide occurrence of the industrial system.

Industrial livestock production systems are associated with a concentration of animals into large units, generally concentrating on a single species. They produce large volumes of waste material, can lead to high animal and human health risks, and pay less attention to animal welfare. Industrial production also occurs in small units operated by specialised smallholders as part of the mixed farming system.

Industrial systems are generally stratified and different farms specialise in e.g. the production of parent animals, the production of young animals or in the fattening process. But integrated production also occurs. Products from the industrial system are mainly used for the urban market with a portion being traded internationally. Processing of the products takes place in separate enterprises (slaughterhouses, dairy plants and tanneries) and products have to comply with standardisation and specific quality criteria. The processing industry is considered as a separate system.

The system requires large areas of arable land to satisfy the requirements for high quality feed concentrates, however the system does have the potential to absorb large quantities of by- and waste products from the food processing industry.

Industrial systems can be broadly categorised as follows:

- Feed Supply
- Industrial animal production
- Processing animal products

Sub-systems within the Industrial Production System

Feed Supply | Industrial Animal Production | Processing animal products
Poultry production (broilers and layers) | Slaughterhouses
Pig production
Ruminant feedlot meat production | Tanneries
Large-scale (peri-)urban dairy production | Milk processing plants

Farm Animal Standards
Animal Welfare is of increasing concern and is an important consideration when formulating new or modified policies that have an impact on farmed livestock. Central to the welfare of farmed livestock are nationally recognised standards that may conform to either mandatory or voluntary codes of practice. For further information see: Setting Standards for Farm Animal Production

Organic Production
Increasingly, the production of livestock by Organic or Ecological farming methods - as opposed to the intensive industrial techniques referred to above - is becoming important. This is due to an increasing consumer demand for Organic / Ecological products and the rejection by consumers of products that include pesticides, anti-biotics, chemical additives and that are seen as being produced through the use of "unethical" production methods. Many of the problems referred to above are also relevant to Organic and Ecological Farming methods. However, a major difference between them is the extent to which Organic farming in particular has adopted certain techniques that respect natural ecological balances. These make it possible to avoid methods which are contrary to the principal aims of Organic farming and in general result in farming systems that are more environmentally sustainable.

Low-Cost Food Production ?
Modern farming techniques have resulted in food in abundance and at low cost, especially within the industrialised world. Or has it? Recent analysis indicates that this low cost is an illusion. A new analysis of British farming (reported in New Scientist 18 December 1999) suggests that the external costs of farming are far greater than have previously been thought. These external costs are those that result from the present farming systems but which are not borne by individual farmers (and are therefore not passed on to consumers). These include short term effects such as such as: the costs of cleaning up pollution of the water supply, damage to habitats, and the health effects of air pollution. Longer term effects include the impact of greenhouse gas emissions and resulting global warming.

For, example, in Britain, water supply companies spent £214 million in 1996 removing pesticides, nitrates and farm pathogens from drinking water. The annual UK costs resulting from greenhouse gas emissions are estimated at £1.1 billion.

These findings strongly suggest that pricing and cost-recovery policies for environmental services need to be adopted whereby producers internalise their environmental costs (the "polluter pays" principle). Similarly, there is also is a case for transitional subsidies to encourage the adoption of less environmentally damaging methods (see Regulatory Policies, Standards, Charges and Subsidies).

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