Amid growing health concerns, investors are pressuring food companies to minimize antibiotic use in agriculture. This move is part of a larger effort to combat rising antimicrobial resistance (AMR), a major global health threat.
- Approximately 70% of antibiotics are utilized by animals, elevating the risk of AMR and catalyzing investor activism.
- With a $71 trillion backing, the Fairr initiative targets 12 major North American fast-food chains to reduce antibiotic use.
- Major brands like McDonald’s and Restaurant Brands International are already taking steps towards sustainable antibiotic practices.
- Animal welfare issues and a push for local farming support intensify the call for reduced antibiotic reliance in the food supply chain.
The increasing use of antibiotics in agriculture is becoming a significant concern, especially as investors urge food companies to reduce this practice. Reportedly, about 70% of antibiotics are consumed by animals, primarily to prevent disease. Campaigners highlight the urgent need to address antimicrobial resistance (AMR), which is regarded as a substantial threat to global health, comparable to the implications of climate change. AMR is linked to nearly 5 million deaths globally each year and has resulted in a staggering $100 trillion in economic losses worldwide, according to the World Health Organisation.
To address these concerns, an investor network, the Fairr initiative, was established, focusing on the risks associated with intensive livestock rearing. This initiative, supported by approximately 370 investors, possesses assets totaling $71 trillion. Fairr is exerting pressure on 12 major North American fast-food entities, including influential brands like McDonald’s, Yum Brands, which owns KFC and Pizza Hut, as well as Restaurant Brands International, the parent company of Burger King.
In response to these pressures, McDonald’s has declared its determination to minimize antibiotic use within its supply chain. The company has prohibited the routine use of medically important antibiotics in livestock farming. Similarly, Restaurant Brands International has conveyed its commitment to responsible, sustainable sourcing, expressing considerable progress in this area. Dame Sally Davies, the UK’s government special envoy on antimicrobial resistance, emphasized the influential role of investors, stating, “Politicians and policy can do a lot, but investors are very powerful.”
From an investment analysis perspective, Sophie Deleuze, lead ESG analyst at Candriam, shared insights into how companies involved in livestock production are evaluated. The focus is on their policies and positions concerning antibiotic reduction. Furthermore, Deleuze scrutinizes the degree to which companies incentivize or assist their suppliers to adopt more sustainable antibiotic use methodologies, actively seeking alternatives to combat AMR.
The call for reduced antibiotic use is further intensified by animal welfare advocates who recently exposed concerning conditions at farms supplying to Co-op. Hidden camera footage revealed chickens in distressing states, fueling demands for changes in antibiotic usage practices. Concurrently, there are growing appeals for supermarkets to bolster UK farmers by incorporating ‘Buy British’ sections on their online platforms, supporting local agriculture.
The proactive stance of investors highlights the critical need to address antibiotic use in agriculture to mitigate public health risks.
