EU states that continue to flout new welfare legislation introduced at the beginning of the month are being threatened with legal action by the European Commission.

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Three of Europe's largest producers – France, Spain and Germany – are amongst those facing legal action over their failure to introduce new legislation.

Use of gestation crates after the first four weeks of pregnancy is now banned across the bloc, but when the ban came into force at New Year, well over half of the EU's 27 member states were continuing to use the crates, raising pigs illegally. In all, 10 states met the January deadline.

Having been the subject of harsh criticism over its bungled handling of previous animal welfare legislation, the Welfare of Laying Hens Directive which came into force in January 2012, the European Commission has been quicker to act in 2013. The Commission this month threatened non-compliant states with legal action and suggested authorities in states breaching the new welfare laws close down whole farms until they can demonstrate compliance.

On 1st January 2012, when the Welfare of Laying Hens Directive entered into law across Europe, banning use of unenriched battery cages, 15 of the EU's 27 member states were not prepared. The UK was amongst this number. As was the case with this year's new law, the January 2012 deadline had been in place for 12 years prior to the introduction of the Laying Hens Directive.

EU sources estimate up to a quarter of the bloc's farms are still using the banned stalls. Nevertheless, despite having mooted the possibility of trade restrictions against states producing illegal pig meat, this course of action has now been abandoned by the Commission.

Commission sources said this is to do with traceability of pig meat, the source of which is especially hard to establish in processed goods such as sausage and cured meat products. However, export bans worked well in combating non-compliance following the introduction of the battery cage ban last year and the decision not to implement restrictions has incensed industry groups and government ministers across compliant countries.

The new welfare law is expected to lead to further contraction of EU pig production, with estimates suggesting between 1.5 and 4.5 percent decline in production by 2014. This is in line with EU figures for shrinking demand; in the EU, supply currently outweighs domestic demand, though exports are growing.

A formal announcement on the next steps for tacking non-compliance is expected from EU legislators next month, once legal cases against states in violation of the new law have been finalised.