The decision taken this year by some of the largest food processing, restaurant and retail companies in the US to phase out meat, eggs and other foods sourced from produce adulterated with antibiotics has been described as a ‘game-changer’ by industry watchers. The reason; shoppers are increasingly interested in the food they are eating and the conditions in which it is produced. They will be quick to show their dissatisfaction or doubts about what they are consuming by withholding their dollars, something that the notoriously low profit margin consumer and retail sector is aware of. In any case these companies will pass off any additional costs involved in supplying unadulterated produce to their suppliers, making it a cost free option.
In March 2015, McDonald’s, the world’s largest restaurant chain, announced they will cease using chickens reared with (‘dual use’) antibiotics important to humans by 2017. The accompanying statement highlighted the company’s ‘People First’ approach, prohibiting the use of antimicrobials/antibiotics in all food animals (beef, poultry, pork and dairy) supplied to McDonald’s and instead relying on improved husbandry practices to prevent diseases.
A similar commitment was announced in the same month by Costco, the third-largest retailer in the US whose meat, produce, deli and bakery items accounted for 13% of its $110 billion net sales in 2014. They will eliminate the sale of chicken and meat raised with shared-use antibiotics within two years.
At the end of April, Tyson Foods, the largest poultry producer in the US and a major supplier of chicken to McDonald’s, revealed plans to eliminate dual use antibiotics in its chicken flocks by September 2017. Alternatives that the company is considering to protect birds include the use of probiotics and essential oils derived from plant extracts.
Wal-Mart’s move in May 2015 went further. The company asked its suppliers to stop using antibiotics for promoting growth in livestock and to publicly disclose their use of antibiotics and treatment on an annual basis. As the largest retailer in the US with 25% of the grocery market, Wal-Mart has unmatched influence in the sector and its decision is expected to influence the workings of the entire food chain, as well as compelling competitors to follow suit.
Neem – A Sustainable Alternative to Antibiotic Use in Agriculture
An obvious beneficiary of this shake-up is neem, an organic and sustainable alternative to chemical antibiotic use in livestock. Demonstrating antimicrobial activity when used as an additive to livestock feed, neem cake reduces protein deficiencies in affected animals and offers protection against various insects and pests. For more information, see our previous newsletter – Shedding Light on Neem’s Medicinal and Agricultural Applications.
As dozens of hospitals, health systems, pharmaceutical companies and clinical organizations commit to the fight against antibiotic resistance, the recent moves by food retailers adds a new dimension to the discussion – consumer preference. In America today, nearly half of the population actively seek out organic foodstuffs. Organic products are now available in nearly 20,000 exclusively natural food stores on top of three out of every four conventional grocery stores nationwide. The US organics market reached $35 billion in 2013, having increased by 11% on the previous year, and has a forecast CAGR of 14% to 2018. This is occurring despite the 10-30% increase in price compared with non-organic foods, and there is even potential for much more growth. Organics are only just reaching a 2% share of the global food market.
The consumer will always be King. With large retailers bowing to the preferences of their consumers and encouraging a healthier supply chain, suppliers will be pressured to adopt more organic standards of practice. Alongside the overarching threat of antibiotic resistance, which by 2050 is expected to kill 10 million people every year and cost $100 trillion in lost economic output, this will be a tremendous catalyst of growth for the organics sector.
For more information on the threat of antibiotic resistance, see our newsletter – Antibiotic Resistance Will Be More Deadly than Cancer.