For many years, health and other functional traits have been included as pa
rt of the Nordic breeding goal, mainly due to their cost-effectiveness but
also for their ethical worth, although this has never been expressed in ter
ms of economics. The main problem in improving animal welfare is the progre
ssively rising costs of higher desirable levels of additional animal welfar
e. The Nordic breeding goal is examined in the light of sustainability and
welfare criteria, and milk production is evaluated in terms of these criter
ia. The genetic response in Finnish dairy cattle is reviewed and compared t
o other breeding populations. Increased cooperation between countries would
minimize the risk and maximize the genetic response in the Nordic breeding
programmes. By improving the economic efficiency of Scandinavian red cattl
e populations, the possibility of economic production in the northern areas
of Europe is improved.