The International Finance Corporation’s Dubious Defense of Factory Farming

The International Finance Corporation’s website brands many of the well-founded criticisms of industrial animal production as “myths.” This reflects the regrettably polarized debate between those who believe that industrial agriculture is needed to feed the growing world population and those who, like me, argue that a far-reaching transformation of our food system is needed.

The International Finance Corporation (IFC) website states that it is a myth that industrial animal production is bad for food security. The truth, however, is that factory farming diverts food away from people; it is dependent on feeding grain—corn, wheat, barley—to animals who convert these crops very inefficiently into meat and milk. For every 100 calories of human-edible cereals fed to animals, just 7-27 calories (depending on the species) enter the human food chain as meat. And for every 100 grams of protein in human-edible cereals fed to animals, only 13-37 grams of protein enter the human food chain as meat.

The scale of this is massive. International Grains Council data show that 45% of global grain production is used as animal feed, while 76% of world soy production is used to feed animals. The inefficiency of doing this is recognized by the United Nations Environment Program (UNEP), which states that it is “essential to fight food insecurity and malnutrition… Reducing the use of much of the world's grain production to feed animals and producing more food for direct human consumption can significantly contribute to this objective.” I calculate that if the use of cereals as animal feed were ended, an extra 2 billion people could be fed even allowing for the fact that if we reared fewer animals we would need to grow more crops for direct human consumption. My figure is very cautious; other studies calculate that ending the use of grains as animal feed would enable an extra 3.5-4 billion people to be fed. Moreover, industrial livestock’s huge demand for these cereals pushes up their price, potentially placing them out of reach of poor populations in the Global South. So, sorry IFC, but it really is not a myth to say that industrial animal production is bad for food security.

To dismiss the harsh suffering endured by industrially farmed animals as a myth is extraordinary

The IFC website dismisses as a myth the argument that industrial animal production is bad for the environment. However, factory farms disgorge large amounts of manure, slurry, and ammonia that pollute air and watercourses. When ammonia mixes with other gases it can form particulate matter; this is a key component of air pollution, which can lead to heart and pulmonary disease, respiratory problems including asthma, and lung cancer.

Industrial livestock’s huge demand for cereals as feed has been a key factor fuelling the intensification of crop production. This pivotal link between the livestock and arable sectors is often not recognized. With its monocultures and high use of chemical pesticides and nitrogen fertilizers, intensive crop production leads to soil degradation, biodiversity loss, and overuse and pollution of water. In short, it erodes the key fundamentals—soils, water, and biodiversity—on which our future ability to feed ourselves depends.

Arjem Hoekstra (2020) calculates that animals fed on cereals and soy (industrially farmed animals) use 43 times as much surface- and groundwater and are 61 times as polluting of water as animals fed on grass and other roughages. Its adherents claim that factory farming saves land by cramming animals into crowded sheds. But in reality it eats up huge amounts of cropland for feed. European Union studies show that feed production accounts for 99% of the land use of the pig and broiler sectors. It is feed production—not the tiny amount of space given to animals on the farm—that makes factory farming so land-hungry.

The contention that industrial systems undermine the socioeconomic potential of small-scale farmers in the developing world is also branded a myth by the IFC. The World Bank, however, takes a different view. Its 2024 report Recipe for a Liveable Planet states, “The global agrifood system disproportionately and detrimentally affects poor communities and smallholder farmers who cannot compete with industrial agriculture, thereby exacerbating rural poverty and increasing landlessness.” Instead of funding industrial agriculture the IFC should help small-scale farmers move to agroecology and regenerative farming which can boost yields, reduce the use of expensive inputs, and improve livelihoods.

Also swatted aside as a myth is the mountain of scientific evidence that industrial livestock production results in poor animal welfare. To dismiss the harsh suffering endured by industrially farmed animals as a myth is extraordinary. In its own Good Practice Note on animal welfare the IFC lists what are commonly recognized to be the key characteristics of factory farming—confinement in narrow stalls, overcrowding, barren environments, painful procedures, hunger, and breeding for high yields leading to health disorders—and identifies them as “welfare risks” that need to be tackled. But now, in a remarkable volte-face, the IFC airily dismisses these problems as a myth.

IFC’s position stands in sharp contrast to UNEP, which states that “intensive systems deprive animals of some of their most basic physical and psychological needs.” World Bank economist Berk Özler has written about the value of policies under which low-income countries can grow without causing massive increases in suffering among farmed animals. He writes, “Perhaps many low-income countries can leapfrog the stage of industrial animal farming, towards something more sensible.”

I urge the IFC to recognize that industrial animal agriculture is destructive—destructive of food security, the environment, small-scale farmer livelihoods, and the well-being of animals.