Your industrial farming comparison assumes that there would be as many households consuming chicken at a household production level as there currently are with industrial farming.

A better comparison of waste levels would be industrial farming at high quantities and household production at lower quantities; more waste per chicken but fewer chickens consumed. People would consume fewer chickens under household production because they would be more expensive (higher opportunity cost).

Looked at this way it is unclear which system generates more waste. However, it is still clear that industrial farming generates more output for consumption.

The question is: is the additional output of chickens worth the possible overall increase in waste?

This is not an easy question to answer since the people receiving the benefits of more chickens are not always paying the total cost of the increase in waste. E.g. chicken waste run-off in rivers.

Your industrial farming comparison assumes that there would be as many households consuming chicken at a household production level as there currently are with industrial farming.

A better comparison of waste levels would be industrial farming at high quantities and household production at lower quantities; more waste per chicken but fewer chickens consumed. People would consume fewer chickens under household production because they would be more expensive (higher opportunity cost).

Looked at this way it is unclear which system generates more waste. However, it is still clear that industrial farming generates more output for consumption.

The question is: is the additional output of chickens worth the possible overall increase in waste?

This is not an easy question to answer since the people receiving the benefits of more chickens are not always paying the total cost of the increase in waste. E.g. chicken waste run-off in rivers.

Well we’re all supposed to be vegetarians anyway, right? Then I’m sure your argument falls apart like an overripe tomato.

/sarcasm