As we enter the 21(st) century, the sustainability of modern agricultural farming systems is being questioned. Historically, sustainability has been defined primarily in terms of profit, with less emphasis placed on ethical and environmental issues. It is increasingly apparent that for modern farming systems to be sustainable into the next century, they must not only be profitable, but also both ethically and environmentally sound. As a consequence of this shift in emphasis, the quality of products arising from the farming of animals is being more closely scrutinised by consumers. In recent years, the definition of quality has widened beyond purely physicochemical/organoleptic factors to now include such factors as hygiene/safety, nutrition, traceability and quality of the production environment. The welfare of the production animal is an increasingly important factor in the quality equation. We are beginning to question more openly what is fair and reasonable in the way we derive benefit from animals. Suboptimal animal welfare can detrimentally affect the quality of products either directly, or indirectly through consumer's perception of animal well-being. Animals living in harmony with their environment may give rise to products of higher quality, on health, nutritional and organoleptic criteria, than those under "stressful" conditions. Such products will probably also have a better "image", enhancing marketability. For example, in red meat-producing animals, high levels of stress and exertion are known to produce meat which is tough, dark in colour, and more prone to microbial spoilage, whereas calm animals are much more likely to provide high-quality meat. Constraints that we may impose on the management of production animals due to ethical considerations can also have consequences for product characteristics. This relationship may often be positive, but can also have adverse implications. The provision of greater space and freedom for interaction for egg-producing birds, may, for example, necessitate greater care in some systems in avoiding the spread of potential zoonotic agents such as salmonellosis. This chapter examines the relationship between animal welfare and product quality within the context of the need for sustainable agricultural systems. It discusses the impacts of animal welfare on the quality of animal products, including meat, milk and fibre quality, and outlines some of the challenges facing producers, consumers, researchers and policy makers as we move into the 21(st) century.