Retailer: Reduce antibiotic farm uses

Wal-Mart makes pitch to suppliers

Wal-Mart Stores Inc. is asking grocery suppliers to improve animal-welfare practices and reduce the use of antibiotics in livestock that find their way as products onto the retailer's shelves.

New policies announced Friday by Wal-Mart, the nation's top seller among grocery chains, hit on two primary areas: humane treatment of farm animals and responsible use of antibiotics in farm animals. They fall in line with goals outlined by the company regarding safety and transparency in its food-supply chain. About 56 percent of Wal-Mart U.S.' $288 billion in annual revenue comes from grocery sales.

"Walmart is committed to selling products that sustain people and the environment," Kathleen McLaughlin, president of the Walmart Foundation and senior vice president of Wal-Mart sustainability, said in a statement. "We have listened to our customers, and are asking our suppliers to engage in improved reporting standards and transparency measures regarding the treatment of farm animals."

What effect, if any, the changes will have on consumers wasn't immediately known. Wal-Mart said it has a history of working with suppliers to ensure sustainable and healthy practices, while keeping customer costs low.

"Wal-Mart has many past examples of collaborating with our suppliers to drive innovation, such as sustainable packaging reduction, without increasing prices for customers," spokesman Kevin Gardner said. "We're committed to working with our suppliers on continuous improvement in how ... farm animals in our supply chain are grown and raised."

Representatives from the Humane Society of the United States referred to the new policies as "game-changing." Wal-Mart is using its scale to "send a clear signal" to suppliers that animal welfare is a priority, said Josh Balk, senior director of food policy for the Humane Society.

Wal-Mart has not set a timeline for the changes to be made and has not issued a formal demand that policies change, but Balk said the announcement still applies pressure to suppliers.

"Wal-Mart is being clear of the expectations that they have for suppliers: Treat animals better," Balk said. "They are being specific on the top issues. We do hope to work with Wal-Mart on creating timelines, but this is as clear of a signal that suppliers could possibly have that they have to change."

As part of its announcement Wal-Mart pledged support for the "Five Freedoms of Animal Welfare." Those include freedom from hunger and thirst; freedom from discomfort; freedom from pain, injury or disease; freedom to express normal behavior; and freedom from fear or distress.

Wal-Mart is asking suppliers to report and take disciplinary and corrective action when animal abuse occurs. It is urging suppliers to evaluate housing systems and the methods used to carry out what it describes as painful procedures and slaughter.

Suppliers are being asked to limit antibiotic treatment to animals that are ill or at risk and adopt and implement "Voluntary Guidance for Industry #209 from the Food and Drug Administration in their own operations and their industry producer programs, including eliminating growth promotion uses of medically important antibiotics." For years human antibiotics have been used by farmers not just for health reasons but also as a means of fattening animals.

Improving transparency and accountability in food sourcing were cited by Wal-Mart as part of its "Global Responsibility Report," released last month. Wal-Mart customers are "increasingly interested in understanding where their food comes from, what's in it and how it's made." Wal-Mart noted antibiotics and animal welfare are "more than buzzwords. They're critical issues that play into our ability to influence a sustainable future for people and the planet."

Wal-Mart created the new policies after taking into account customer preference and conversations with suppliers, veterinarians and animal-welfare organizations. It didn't cite specific partners in developing the new policy, but the Humane Society of the United States and the National Pork Producers Council were among the organizations that applauded the announcement.

Tyson Foods of Springdale recently announced changes to its policies regarding antibiotic use in its broiler-chicken flocks and is a large supplier to Wal-Mart. During the 2014 fiscal year, 14.6 percent of Tyson's $37.6 billion in annual sales came from Wal-Mart.

Spokesman Gary Mickelson said the two companies are closely aligned in their views on animal welfare. Tyson, which will eliminate the use of human antibiotics in U.S. broiler-chicken flocks by September 2017, uses third-party auditors to evaluate well-being of livestock and poultry grown by its suppliers.

Additionally, Tyson has plans for working groups of independent beef, turkey and pork farmers to discuss the best ways to reduce human antibiotics. Farmer have used human antibiotics as a means of keeping livestock healthier but also as a means to grow larger animals.

"One of the most important aspects of animal health is the care they receive from farmers, and we believe the family farmers who supply us share our commitment to proper animal treatment and desire for continued improvement," Mickelson said. "Based on today's announcement, we believe Wal-Mart's priorities align with ours."

Customers surveyed by Wal-Mart overwhelmingly supported the idea of treating animals better, the retailer said. Surveys conducted through Walmart Global Customer Insights revealed that 77 percent of customers will "increase their trust" and 66 percent will "increase their likelihood to shop from a retailer that ensures humane treatment of livestock."

Wal-Mart U.S. CEO Greg Foran has pointed to improved grocery quality -- particularly fresh products such as produce, meat and eggs -- as a top priority for the retailer. Improving transparency and safety in the food chain were among four major goals outlined by Wal-Mart in October 2014.

"This announcement is another step in continuously improving the sustainability of our products, specifically the food we sell in the U.S. coming from fresh and frozen meat, seafood, dairy, deli and egg suppliers," Gardner said.

Business on 05/23/2015

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