In addition to human inflicted physical animal cruelty abuses, there are some genetic and housing problems which would fall under Category #1.
Gross overcrowding of pigs or chickens would constitute animal cruelty.
Genetic over-selection for rapid growth has caused bone breakage problems in some chickens. This would also constitute cruelty. Excessive genetic selection for lean pigs and cattle with rapid growth has resulted in some animals with an excitable temperament. These animals are more likely to panic and/or injure themselves when they are handled in auctions, feedlots, or slaughter plants. Excitable animals also have poorer meat quality.
Sloppy management of a dairy which results in high numbers of downer non-ambulatory cows would be considered cruelty. It is likely that 10% of the dairies are responsible for 90% of the downed crippled cattle. Most downers can be prevented by good management to prevent milk fever, calving paralysis, foot problems, etc.