Assessing economic consequences of improved animal welfare in Swedish cattle fattening operations using a stochastic partial budgeting approach

•This paper uses stochastic partial budgeting analysis to examine the relationship between farm animal welfare (FAW) improvements and profitability in Swedish cattle fattening operations.•Increase in space allowance and forage to concentrate (FC) ratio are considered as FAW improving strategies.•An increase in space allowance of 1 m2/animal is associated with a decrease of 18.9 and 10.8% in beef and dairy breeds, respectively.•An increase in FC ratio (from 40:60 to 65:35) is associated with a decrease of about 21–34 and 17–53% in beef and dairy breeds, respectively.•The study only focuses on direct pecuniary effects of FAW and does not account for the non-use or ‘soft’ values associated with FAW.