Livestock farming is the most important sector of the German agriculture and food industry. With an overall share of 22 percent of the production value of agriculture, milk production is of particularly great economic im-portance and dairy cows are kept on every fifth farm. However, the husbandry practices for dairy cows in Germany are subject to increasing criticism. Insufficient space per animal or a lack of grazing possibilities are regular critiques. There is also scientific evidence of deficits in animal welfare in dairy farming. The legal framework for dairy farming in Germany is relatively unspecific. Whereas specific requirements are laid down in the Animal Welfare Husbandry Ordinance (German: Tierschutz-Nutztierhaltungsverordnung) for keeping poultry and pigs, these are lacking for dairy cattle farming. In addition, farm structures and husbandry conditions are highly heterogeneous. For example, on 24 percent of the farms – predominantly on very small farms – the dairy cows are kept in year-round tethered housing. From a professional, scientific perspective, these conditions lead to major restrictions on natural behaviour. However, deficits in animal welfare were also found on farms with loose housing, with a wide variation between farms. Various market participants have already established animal welfare programs in response to consumer demands for better animal welfare. These usually include a minimum level of resource-related requirements (e.g., space allowance, box length, etc.). However, the products produced in these animal welfare programs have only a small market share. This can be attributed to two main reasons: Firstly, the other market participants' counter-financing of the additional costs is not guaranteed. Secondly, studies show that many consumers do not accept high price premiums for a higher level of animal welfare, even though the issue of animal welfare is given high priority in opinion polls. Voluntary labels, therefore, do not consequently lead to a higher level of animal welfare. The German Federal Ministry of Agriculture appointed the Competence Network Livestock Husbandry (German: Kompetenznetzwerk Nutztierhaltung (KNW)) to solve this dilemma. The KNW presented its recommendations for the sector's future development in 2020. These include introducing three animal welfare levels with a simultaneous gradual increase in the legal requirements for farm animal husbandry. In order not to endanger the competitiveness of German livestock farming and to prevent migration of livestock farming to countries with lower animal welfare standards, the additional costs associated with implementing ...