Compromise

• Living conditions: cats being sold for meat should have their most basic needs met and be provided adequate food, water, shelter, and medical care.
• Source of animals: cat meat consumption should be regulated especially in regards to where these animals came from to avoid the illegal practice of stealing pets.
• Slaughter of animals: the slaughtering of cats for consumption should be as humane as possible (ie. quick and painless). 

All these steps could be accomplished with the establishment of an official regulating body that oversees the industry (like USDA). I believe the main problem is that this trade is unregulated, which leads to inhumane practices.