Entering the ‘Raised Without Antibiotics’ Market

Internationally, at this year’s World Economic Forum in Davos, Switzerland, more than 80 companies, including international pharmaceutical, biotech, diagnostic, and generic drug companies, have signed a declaration supporting continued work to reduce unnecessary and inappropriate use of antibiotics in both human medicine and in livestock, in order to preserve the long-term effectiveness of existing antibiotic drugs. These signatories commit themselves to the principle that such stewardship is essential to slow the rise of multidrug-resistant bacteria.

In response to growing consumer demand, many large-scale buyers are sourcing meat partially or exclusively from facilities which raise animals without antibiotics, including Whole Foods, Trader Joe’s, Publix, Stop & Shop, and Shaw’s grocery stores. Major restaurant chains, including Chipotle, Panera, McDonald’s, and Wendy’s, also feature, as a selling point, meat products derived from animals raised without antibiotics. Chick-fil-A, the largest U.S. chicken chain by domestic sales volume, has committed itself to serve only 100 percent antibiotic-free chicken by the year 2019.

Producers of meat and poultry raised without antibiotics enjoy a market advantage over their conventional counterparts, as demand for meat raised without antibiotics continues to increase even as overall U.S. market size for meat products shrinks. Traditionally, increased cost has been a concern for large-scale producers, but a Consumer Reports survey finds that more than 60 percent of consumers would be willing to pay at least $0.05 per pound more for meat raised without antibiotics, with 40 percent willing to pay $1 or more per pound. Additionally, actual transition costs are predicted to be very low. Denmark has nationally phased out the routine use of antibiotics in animal feed, and a World Health Organization analysis of pre- and post-ban poultry prices found no changes in net cost because the increased feed cost was offset by the cost savings of not purchasing growth-promoting antibiotics. The National Research Council estimates that if U.S. producers eliminated all non-therapeutic antibiotic use in meat production, the price increase would be as little as a dollar a month per person, far below the threshold Consumer Reports found customers are willing to pay.

A Change in the Process

The transition from traditional to RWA methods requires significant changes to fundamental production processes. Fixed transition costs predominantly arise from the initial investments of modifying poultry houses, improving ventilation systems, and the adoption of more advanced vaccination technologies, as factors in reducing incidences of infections that would otherwise require antibiotics. A study of the removal of growth-promoting antibiotics from the feed of broiler chickens showed no reports of field outbreaks of dermatitis, necrotic enteritis, or dysbacteriosis. This finding was consistent with the finding of no significant differences in septicemia or inflammatory process in the plant with birds not fed these antibiotics compared to those given antibiotics. Total farm condemnations were not affected by removal of growth-promoting antibiotics. During such transition periods from the regular use of medicated feed, or other growth-promoting or prophylactic antibiotic products, to a process of raising animals without antibiotics, antibiotic-testing kits and consulting services can be particularly helpful to ensure the integrity of the production process and aid in smoothing the transition.

Vigilant monitoring of production materials and processes in the supply chain is essential to ensure product quality and integrity, both during and after the transition period. Quality testing at various control points along the production process is essential (see Figure 1). This testing is highly critical to confirm the effective use of procedures and materials at each step. Essential testing measures include routine analysis of feed and drinking water supplies given to the animals to ensure that medicated feed or water stocks are not fed to RWA animals. This is especially important during the initial RWA conversion period, where both medicated and non-medicated materials are being stored and used on the same premises. Testing of feed supplies can be augmented by downstream “in-process” testing of flock/herd biofluids (such as blood and mucus), waste products (manure, urine), or environmental samples (soil, waste water). Lastly, since RWA labeling requirements apply to the final state of the meat and food products themselves, QC testing of food product outputs ensures that the final product conforms to labeling requirements.