Animal-sourced foods have long been central to human diets and economies, but their production today is dominated by industrial systems that externalize vast environmental, social, and ethical costs. This chapter reviews the limitations of neoclassical economic models in capturing these impacts and explores alternative valuation frameworks such as True Cost Accounting and Doughnut Economics. It then outlines a suite of policy reforms—including subsidy shifts, environmental regulation, financial disclosure standards, and animal welfare protections—that could realign food systems with ecological and ethical imperatives. By rethinking how we value and govern animal agriculture, we can move toward a more sustainable and humane future.