The animal welfare act sets essential but not unsurmountable limits to animal production operations. Its rules are valid for live animals, for developmental stages of animal live before birth and in the future also in case live animals should be brought forth. Biotechnical methods for objectifying or improving management practices could be most useful for careful balancing the animals' need of protection and the permissible restrictions. Animal experiments on the animal's hereditary material, which could be linked with pains, suffering or injuries, are subject to approval. Breeding of transgenic animals is from the point of view of animal welfare justifiable only if the animal's health and behavioural pattern are expected not to be injured. The German animal welfare act is founded on ethical principles, however above all on the principles of avoiding pains, suffering and injuries. There is no other principle which could be taken as basis for judging biotechnology in an animal production context. With the man's right to use the animal he assumes simultaneously the responsibility for the animals kept and used by him. He must also question himself whether an immoderate optimization of animal production efficiency by increasing the animal's performance is allowed. The potential consequences of what is planned to be done with or on the animals must in any case be carefully balanced. According to the animal welfare act the animals must be treated as a fellow-creature.