Guiding Food Retailers in Nutritious & Humane Sourcing · Downer Dairy Cows Meatingplace Nov 2012...
Transcript of Guiding Food Retailers in Nutritious & Humane Sourcing · Downer Dairy Cows Meatingplace Nov 2012...
Janice Neitzel and Steve Weiffenbach
Sustainable Solutions Group
708-926-5569
Copyright 2013
NN
Guiding Food Retailers in
Nutritious & Humane Sourcing
Nutritious & Humane Sourcing
► Consumers and NGOs are demanding transparency in sourcing that requires TRACEABILITY.
► Demand for healthy, higher welfare animal proteins is greater than is supply and companies need a PLAN.
► Companies seek guidance from us to:
1. Risk Management
• Avoid supply chain disruption
• Avoid exposure in social media
2. Have Parity with Competitors
3. Gain Competitive Advantage
Agenda
1. What Industry Says
2. Animal Welfare Issues / Regulations
3. Keeping Antibiotics Working
4. Social Media & NGO Actions
5. Consumer Demand / Nutrition
6. Investor Sentiment
7. What Companies are Doing
8. Our Services
What Industry Says
2007
“Consumers will expand recognition of and
commitment to social responsibilities,
including the humane treatment of
animals.” 1 The Supermarket Guru, Phil Lempert’s 2011
Food Trends
1 Source: http://supermarketnews.com/blog/six-new-food-trends-watch-2011
Animal Welfare / Regulations
Farm Animal Welfare ► Welfare can be poor in any farming system if
stockmanship is poor
Stockman: owning or raising livestock
► Even with good stockmanship, welfare is likely to
be poor in farming systems that:
Severely restrict freedom of movement
Limit behavioral expression in barren overcrowded conditions
Compromise health
Pork: Breeding Pig Gestation Crates
“Gestation crates for pigs are a real problem ... I
mean basically you’re asking a sow to live in
an airline seat… The gestation stalls have
got to go.” Dr. Temple Grandin
Eggs: Battery Cages
1 Image Source: http://kunc.org/post/ex-foes-stage-coop-detat-egg-laying-chickens
1 Live Enriched Colony Cam: http://www.comfortcoopeggs.com/livecams_side.html
Enriched Colony
Cage-free
Battery Cages
1
Non-Battery Cages provide higher welfare
5.8
5.9
0.0 Battery Cage system
Barn system, no free range
Aviary system, semi-intensive, no free range
12 hen system 10.0
US Consumers Support UEP
Enriched Colony Federal Bill
► 2012 Bantam Group Survey
Respondents support the bill
4-to-1
► Transitions egg production
from the barren battery cages
to enriched colonies.
► Enriched colonies provide
more room per hen, perches,
nest boxes and scratch pads
2 Source: http://www.meatingplace.com/MembersOnly/webNews/details.aspx?item=30291
1 Image Source: http://kunc.org/post/ex-foes-stage-coop-detat-egg-laying-chickens
1 2
Crate and Cage Regulations (in Place or Soon)
► Gestation Crate Bans
– European Union (now)
– California, Florida, Arizona, Maine,
Oregon, Colorado, Michigan, Ohio,
Rhode Island
► Battery Cage Bans
– European Union (now)
– California (2015)
– Michigan
– Ohio (no new facilities)
Downer Dairy Cows Meatingplace Nov 2012
► “10% of the dairies are responsible for 90% of (downer cows).” They let (the cows) get too skinny. They let them get too sick. They just let their health deteriorate too much. Dr. Temple Grandin
► “There is certainly room for improvement in the way animals are cared for at various points to minimize…problems…” Chris Galen, Nat’l Milk Producers Federation
(NMPF)
► “The beef industry is…leaning on the dairy industry to do a better job of sending healthier cows (to prevent “downer” cows at slaughter)” Rita Jane Gabbett, Executive Editor,
Meatingplace
Source: Meatingplace,” Cull Cow Conundrum, “November 2012, pgs. 37-43
Downer Cow Regulation
► 2009: “Downer” Cows prohibited in food supply1
► Dairy Cows unable to stand up or walk still show up at slaughter
► Poor On-Farm Welfare increases likelihood of “Downer” Cows
► 2009: National Milk Producers Federation (NMPF)
Farmers Assuring Responsible Management
“What gets measured gets done”
1 Source: http://www.usda.gov/wps/portal/usda/usdahome?contentidonly=true&contentid=
2009/03/0060.xml
Poultry: Hybrid Breed ► Standard breed or Heritage Birds – traditional breeds
► Hybrid Birds: Bred for Fast Growth (36-47 days)
Problems with skeletal development1, heart and lung function1, and obesity2 due
to fast growth
“If a [person] grew as fast as a chicken, [he] would weigh 349 pounds at age 2.” 2
Hybrid birds cannot reproduce on their own
► Nutrition: Fast-growing hybrid chickens provide more calories from
fat than from protein3
► ASPCA is bringing light to this issue
► Animal Welfare Approved certification limits to breeds with a
maximum daily growth
1 Source: J.C. McKay, N.F. Barton, A.N.M. Koerhuis, and J. McAdam (2000). The Challenge of
Genetic Change in the Broiler Chicken. BSAS Occasional Publication: 1-7. 2 Source: University of Arkansas Division of Agriculture, Cooperative Extension Service 3 Source: Y. Wang et al. (2009). Modern Organic and Broiler Chickens Sold for Human
Consumption Provide More Energy from Fat Than Protein. Public Health Nutrition 13(3).
Recommend: Controlled Atmosphere Stunning (CAS) or
Low Atmospheric Pressure (LAPS)
► Required:
– No Dumping
– No Live Hanging of Birds
– No Live Throat Slitting
– No Scalding Alive
► Results in:
– Increased Meat Yield
– Improved Meat Quality
– Decreased Contamination
Poultry not covered in US Humane
Slaughter Act
Keeping Antibiotics Working
Why do people need Antibiotics?
1 Source: http://www.who.int/mediacentre/news/statements/2011/whd_20110407/en/index.html 2 Source: http://www.cnn.com/2012/09/19/politics/antibiotic-use/index.html
“The world is on the brink of losing these miracle cures. In the absence of urgent corrective and protective actions, the world is heading towards a post-antibiotic era in which many common infections will no longer have a cure and, once again, kill unabated” 1 Dr. Margaret Chan, Director-General, World Health Organization
► 100,000+ Americans die from bacterial infections acquired in hospitals
► 70% of the infections are resistant to drugs commonly used to treat them2
U.S. Antibiotic use in Healthy Animals
Source: http://www.pewhealth.org/reports-analysis/data-visualizations/record-high-antibiotic-sales-
for-meat-and-poultry-production-85899449165
► Antibiotics and
antimicrobials (non-
therapeutic) given to
healthy farm animals is
on the rise in the U.S.
► Healthy livestock receive
70% of antimicrobials in
the U.S.
Antibiotic-resistant Bacteria in Meat
► ~50% of U.S. supermarket meat (26 stores in 5 US cities)
contaminated with drug-resistant Staph bacteria 2
Oxford Journals, April 2011
► Organic chicken has less Salmonella and less
antibiotic resistance than conventional 3
Foodborne Pathogens and Disease Journal, Nov 2010
1 Source: http://www.fda.gov/animalveterinary/newsevents/cvmupdates/ucm335102.htm 2 Source: http://cid.oxfordjournals.org/content/early/2011/04/14/cid.cir181.full 3 Source: http://online.liebertpub.com/doi/abs/10.1089/fpd.2010.0566
► Antibiotic-resistant salmonella, e coli, and campylobacter bacteria found in
81% of ground turkey
69% of pork chops
55% of ground beef
39% of chicken1 2011 NARMS Retail Meat Report
European Actions
► 1990’s: Denmark bans non-therapeutic antibiotics
Brief spike in therapeutic antibiotics for pigs
1992-2008: pig farmers increased production by 40% and
decreased antibiotic use per pig by 50% 2
► “It is possible to cut antibiotic use on farms
without triggering financial disaster.” 3 Scientific American
1 Source: Cogliani, Carol, et al. “Restricting Antimicrobial Use in food Animals: Lessons from Europe.” Microbe
Vol 6, iss. 6 2011 2 Source: Aestrup, Frank, et al. “Changes in the use of antimicrobials and the effects on productivity of swine
farms in Denmark.” American Journal of Veterinary Research. Vol 71 iss 7.July 2010 3 Source: http://www.scientificamerican.com/article.cfm?id=our-big-pig-problem
► 1986: Sweden bans antibiotics for growth promotion
Immediate increase in livestock disease
Gov funds research and farmer assistance finds no decrease
in production 1
U.S. Initiatives
► Delivering Antibiotic Transparency in Animals
(DATA) Act in Congress: mandated data collection
on how many animals are given how much
► Preservation of Antibiotics for Medical Treatment
Act (PAMTA) introduced in Congress (again)
1 Source: http://www.cnn.com/2013/04/15/health/meat-drugs/index.html
► FDA recommends use of "medically important
antimicrobial drugs" in food-producing animals be
restricted to situations where necessary to ensure
animal health and under veterinary supervision. 1
Social Media & NGO Actions
Viral Videos on Social Media
► Video on web showing animal cruelty at suppliers with low or no auditable welfare criteria of nearly every species
► Covered by international media:
– The Associated Press, ABC News, CNN, etc.
NGO Actions
► NGO’s have been targeting food companies: – Cage-free eggs and Crate-free pork – Humanely slaughtered poultry – Downer Cows – No antimicrobials given to healthy animals
► Using: – Shareholder Resolutions – Action Alerts – Online Petitions – Demonstrations – Social Media
Consumer Demand / Nutrition
Demand for Grass-fed / Organic
2011 AMI/FMI Joint Study 2
Shows US consumer demand driving increased
sales of organic and all-natural meat and poultry
citing:
44% better health
37% better animal treatment 33% better nutrition, taste & freshness
2012 Hartman Group Report 1
Cites grass-fed meat, cage-free eggs, and heirloom marbled pork as growing US trends.
1 Source: http://www.foodnavigator-usa.com/On-your-radar/Sodium-reduction/Butter-portion-
control-tart-cherries-and-stevia.-Welcome-to-2012
2 Source: http://www.progressivegrocer.com/inprint/article/id2274/ground-rules/
How Americans See Modern Agriculture
1Source:http://www.feedstuffsfoodlink.com/ME2/dirmod.asp?sid=&nm=&type=news&mod=Ne
ws&mid=9A02E3B96F2A415ABC72CB5F516B4C10&tier=3&nid=175440CE192047159190C
24583EED5B7 2Source: http://feedstuffs.com/story-survey-finds-support-open-housing-sows-45-95856
► 2011 US Farmers & Ranchers Alliance Study
mass production,
subsidies,
chemicals,
factory farming,
and animal cruelty 1
► Facts are in 2012:
92% of US hens in battery cages
70% of US sows in gestation crates
53% of pork producers have some crate-free or plans to switch 2
Demand to Ensure High Welfare
2010 Demeter Communications Food Production Study 1
70% of US respondents want to know how producers are ensuring farmed animal care
1 Source: http://www.dairyherd.com/dairy-news/latest/research-outlines-consumer-perceptions-of-
food-production-113996864.html
2 Source: http://contextmarketing.com/sources/feb28-2010/ethicalfoodreport.pdf
2010 Context Marketing Study 2
70% of US consumers are willing to
pay more for “ethical” foods and 91% include animal welfare
Demand for Animal Welfare Labels
2011 Kansas University Study 1
Consumers will pay up to 20% more for
meat / eggs with a mandatory welfare label
consumers don't like gestation crates or hen battery cages.
1 Source: http://www.agmanager.info/livestock/marketing/AnimalWelfare/AW-
Labeling_FactSheet_07-19-11.pdf
2 Source: http://www.abc.net.au/news/2011-01-03/labelling-sees-free-range-egg-sales-soar/1892582
2010 Australia 2
After mandatory egg labeling of caged or un-caged
cage free eggs sales increased 90%
Battery-caged eggs sales fell 50%
Nutritional Benefits of Higher Welfare Foods
Source: Nutritional Benefits of Higher Welfare Foods, Compassion in World Farming, July
2012
Investor Sentiment
Investor Sentiment
Source: http://www.fool.com/investing/general/2011/02/08/seeking-more-humane-profits.aspx
Seeking More Humane Profits “In their search for truly ethical
companies, socially responsible
investors highly rank businesses
that work to eradicate cruelty
from their operations.” Motley Fool 2011
Investor Sentiment
Source: http://www.foodnavigator.com/Financial-Industry/Animal-welfare-concerns-grow-for-food-
industry-investors/?utm_source=newsletter_weekly&utm_medium=email&utm_campaign=
Newsletter%2BWeekly&c=3ReafH9inCoAL22leqA9Uw%3D%3D
“Investors are seeing animal welfare as a meaningful indication of a company’s ability to manage risk. Investors will see animal welfare as a risk issue and use their influence to encourage companies to manage the issue better” Rory Sullivan, Ethical Investment Consultant 2013
US Animal Welfare Market Leaders
► 2010 Stock up 157%
“Food with Integrity”
► 2010 Stock up 72%
Global Animal Partnership
5-step Program
What Companies are Doing
Grocery & Food companies Requiring
future Crate-Free
Smithfield and Hormel committed to 100% Crate-Free
for company-owned farms
Cargill has widely adopted group housing
► Whole Foods (required now)
► Costco ► Kroger ► Target ► Supervalu ► Safeway ► Harris Teeter
► Oscar Meyer ► Campbell Soup ► Heinz ► ConAgra ► General Mills ► Williams Sausage ► Bob Evans ► …and more
Source: http://www.humanesociety.org/issues/confinement_farm/timelines/timeline_farm_animal
_protection.html
Restaurant & Foodservice companies
Requiring future Crate-Free ► Chipotle (required
now) ► Bon Appétit (2015) ► McDonald’s ► Burger King ► Wendy’s ► Dunkin’ Brands ► Denny’s ► Arby’s ► Subway ► Sonic ► Cracker Barrel
► Wendy’s ► Chili’s ► Applebee’s ► Compass Group ► Aramark ► Sodexo ► Sysco ► Carnival Cruise ► Royal Carribean ► Marriott ► and more…
Source: http://www.humanesociety.org/issues/confinement_farm/timelines/timeline_farm_animal
_protection.html
Commitments to 100% Non-Battery
Caged Eggs
Subway and
Burger King are
committed to 100%
non-battery caged
eggs. Subway has
already done so in
the UK
Costco and
Trader Joe’s are
committed now to
100% non-battery
caged private
label eggs
Whole Foods is committed to only non-battery caged eggs now
throughout its stores
Compass Group,
Unilever,
Aramark, and
Sodexo are all
committed to 100%
non-battery caged
eggs
Source: http://www.humanesociety.org/issues/confinement_farm/timelines/timeline_farm_animal
_protection.html
Hyatt, Marriott, and Omni Hotels are committed to only non-
battery caged whole eggs
SustSolutions Services
SustSolutions Guides Food Companies
Level 3 Planning / Tracking
even with supply
lacking
Level 1 Business as Usual
Level 2 Taking Some Steps
Level 4 Leaders with
Comprehensive
Approach
Team
Dr. Temple Grandin, Advisor World-renowned expert on animal behavior and Professor of Animal Science at Colorado State University. 2010 Time Magazine’s 100 most influential people.
Vicki Gerberich, Certified Nutritionist Our Certified Nutritionist has served as Wellness Adviser at Whole Foods Market and is adjunct Professor at Roosevelt University for Sustainable Food courses.
Janice Neitzel, MBA, Principal & Founder Guides top food industry decision-makers to plan and implement responsible sourcing animal welfare improvements and CSR messaging.
Steve Weiffenbach, M.S., Principal & Advisor Animal Welfare and Food Safety expert with solid record of achievement and globally recognized results. 20+ years at Burger King and Hardee’s.
Jen Boyton, MBA, Certified GRI Specialist Certified Trainer in the Global Reporting Initiative's (GRI) sustainability reporting methodology and experienced sustainability consultant to Fortune 500.
SustSolutions Client Wins Award
Progressive Grocer awards 2012 Retailer of the Year to
our client $4B mid-Atlantic grocery chain
Source: http://www.progressivegrocer.com/top-stories/headlines/industry-
intelligence/id36070/pg-names-harris-teeter-as-2012-retailer-of-the-year/
Testimonials
Harris Teeter, Brad Graham,
GVP Purchasing
“Janice is a true professional! She has
provided timely detailed direction and is
a results driven expert that consistently
delivers a high level of detailed
knowledge on tough industry issues. “
Sonic Corp., Nancy Robertson,
SVP, Franchise HR Development
“Your working with us has been so
thought-provoking and helpful. Your help
in facilitating discussion on these
(animal welfare ) issues at Sonic has
been huge.”
McDonald’s, Kyle Schott,
Corporate Citizenship Manager
“Thanks for helping us to focus attention
on a much needed area. We have been
very tuned into how to communicate
social responsibility. The results you
provided added value to our CSR
reporting process.”
Unilever, Tina Seppalainen,
Sr. Systems Consultant
“Janice is an experienced facilitator
who is skillful at eliciting responses.
She works in a structured, logical
manner and has a broad management
skill set to drive each project to
success.”
Certified Nutrition
Wellness Adviser
Animal Welfare Policy
& Communication
Traceability & 3rd Party
Audit Evaluation
Meat, Dairy & Egg
Sourcing Assessment
NGO Relationship
Management
Services
Animal Welfare Policy & Communication
We guide you to develop
reasonable positions and policies.
► We understand:
Complex Animal Welfare Issues
Industry Positions
Limitations of Supply and Demand
► We guide you to Communicate with
Customers, Staff, Investors
► We guide you to effectively use the
Global Reporting Initiative (GRI)
framework to communicate
Meat, Dairy & Egg Sourcing Assessment
We measure widely-accepted animal
welfare criteria and deliver
recommendations that become your
Responsible Sourcing Roadmap.
Copyright Sustainable Solutions Group 2013
Criteria and Certifications must be:
► Transparent
► Scientifically-grounded
► Approved by Dr. Temple Grandin
Responsible Sourcing Roadmap
Copyright Sustainable Solutions Group 2013
NGO Relationship Management
We coach you to
communicate with NGO’s to
minimize being a target. We
advise you on actions and
communication content,
timing, and delivery to
minimize risk.
Certified Nutrition Wellness Adviser
Our Certified Nutritionist works with your
Registered Dietician(s) to provide nutritional
benefit marketing content for health and
wellness food categories with higher
sustainability or animal welfare criteria.
► Sustainable practices and higher animal
welfare, such as:
– reduced stress
– higher quality livestock feed
► Can increase the level of nourishment in
animal proteins.
Traceability & 3rd Party Audit Evaluation We understand the web of paperwork and data
collection needed to track animal protein
sourcing “Gate to Plate.” We provide 3rd Party
Audit Evaluation for the audits you receive to
ensure risk management. We facilitate
discussion of results and advise on policy
development.
Traceability provided for Critical Concerns, for example:
► Ensuring AMI’s humane handling guidelines during transport
► Ensuring animal welfare audit results at meat plant
► Tracking growth promoters (antibiotics, ractopamine, etc.)
► Tracking microbiological concerns (E. coli, Salmonella, etc.)
► Tracking cross-contamination of species (horsemeat in beef or traces
of pork or kangaroo in beef)
Questions??
Janice Neitzel
Principal & Founder
Sustainable Solutions Group
708-926-5569