I bought half a pig some time ago; I have a copy of his (probably 'her'?) earmark here next to me on my desk. I get an invitation each year to go watch it when it goes out to pasture for the first time that year. I can choose to have the half delivered to me as a carcass, for me to do my own butchering, or I can choose to have it processed (and I can choose to give away the parts I'm not going to eat, like the blood sausage and the processed head, tails and ears (for which I don't know the English word - it's a grayish slab, often eaten on rye bread here in North-Western Europe; that is, when it's eaten at all, I don't know anyone under the age of 50 who eats it).
Anyway, my point is - it's very much possible to know exactly where meat comes from with small farmers/butchers, even for urban dwellers, to the point that I looked the animal that I ate a part of last night in its eyes several times.