In many regions of the world, consumption patterns are changing from traditional foods to value-added and high-protein foods including livestock products. Economic incentives, sometimes enhanced by policy inducements, have been both increasing the output and intensity of livestock production in many regions. One result has been increased pressures on natural environments and water and atmospheric pollution from increased livestock production. Such environmental problems are projected to worsen in future in the absence of new environmental policies as demands for livestock products continue to grow. However, liberalization of international trade policies as in the Uruguay round Agreement are shown to have the effect of reducing livestock production in some densely-populate regions and hence improving environmental quality.