Rashida YosufzaiAAP

HYSTERIA over animal cruelty could actually compromise animal welfare standards while raising the risk of exposure to diseases such as bird flu, an industry think tank says.

The Australian Farm Institute says subjectivity and anthropomorphism is clouding judgment on animal welfare policy, which could lead to poorer welfare outcomes for animals in the long-term.

Farmers are often presented in the media as ruthless businessman who mistreat their animals, but in reality it's in their best interests to care for their livestock.

Animal activists are in constant campaign mode to improve welfare conditions but some of the knee-jerk reactions to their concerns, such as the suspension of live exports in 2011, often does not lead to good outcomes for either farmers or activists, it says.

The result is the animal welfare debate is a purely emotion-driven and subjective.

"That doesn't necessarily create good or consistent policy for either side," institute executive director Mick Keogh told AAP.

"Not all so-called animal welfare measures necessarily improve animal welfare."

For example, the Australian pig industry will phase out the use of sow stalls after lobbying from animal activists, but there are concerns it won't lead to a "net animal welfare gain".

While activists may be horrified by the use of sows stalls, it's been shown to reduce the number of piglets that get killed.

Meanwhile, consumer-driven moves by supermarkets such as Coles and Woolworths to introduce cage-free eggs could elevate the risk of disease such as bird-flu spreading.

Mr Keogh cited the 2013 case of a NSW poultry production facility where vets discovered an outbreak of bird flu in free-range chickens exposed to affected wild ducks and water birds.

In a free-range system it's almost impossible to restrict contact with wild water birds, elevating the risk of diseases being spread.

"A lot of consumers don't understand the level of disease risk associated with free-range production systems," Mr Keogh said.

He has called for Canberra to develop a national animal welfare policy that takes an objective and science-based approach.

Originally published asAnimal welfare debate needs rethink