ESG ● GLOBAL
8 October 2018Key points 3
The problem and progress 5
What is the problem 5
Where is meat produced 8
Why and how are antibiotics
used in agriculture 9
How can antibiotic usage be reduced 9
What progress has been made 12
Company implications 17
European food retail 17
Latin America food retail 20
Meat processors 20
Chinese Dairy 23
Pharma 23
Restaurants 24
Traded meat commodities 25
Disclosure appendix 27
Disclaimer 30
ContentsESG ● GLOBAL
8 October 2018
Rising antibiotic resistance is a problem we must address (p.5)
“Increasingly, governments around the world are beginning to pay attention to a problem so
serious that it threatens the achievements of modern medicine. A post-antibiotic era—in which
common infections and minor injuries can kill—far from being an apocalyptic fantasy, is instead
a very real possibility for the 21st century.”
World Health Organisation (WHO), Antimicrobial Resistance – Global Report on Surveillance, 2014.
Antibiotic use in agriculture contributes to this (p.5-7)
Over 50% of antibiotics used globally are for use in agriculture (primarily meat production),
rather than human medicine.
This high usage is contributing to rising levels of antibiotic resistance in farm animal
bacteria, which can then transfer to antibiotic resistance in bacteria causing human disease,
via mechanisms such as horizontal gene transfer.
Where is meat produced and antibiotics used (p.8)
Per capita meat production has increased from 23kg per year in 1961 to 44kg in 2016, such
that there are now 83bn farm animals, 11 for every human in the world.
Antibiotic usage varies significantly between animals. Cattle which is 21% of global meat
production typically use 20-250 mg/kg antibiotics. Pork which is 36% of global production
use 150-400 mg/kg, and chickens are 32% of global production use 15-75 mg/kg.
Globally it is estimated that China accounts for 60% of antibiotics usage in agriculture, the
US 7%, EU 5% and Brazil 5%.
Importantly, antibiotics can be reduced commercially within agriculture through the use of
alternatives and improved farming practices. There are numerous examples where this has
been achieved.
There is building momentum to tackle overuse (p.12)
There is increasing action by governments around the world to reduce antibiotic usage in agriculture.
The most progressed is the EU with an upcoming package to ban mass preventative use. Other
regions are further behind, but starting to make progress. China has the highest use globally, but in
2016 introduced a five-year action plan to tackle antibiotic resistance. In the US progress is being
driven by rising consumer demand for antibiotic free meat.
Global company implications (p.17)
There are important implications for all companies producing, processing or selling meat-related
products. Reducing antibiotics in meat production takes time, therefore we prefer companies that
move ahead of being pushed by regulations or customer demand. This covers the following sectors:
food retail, restaurants, meat & dairy producers and pharma (animal health companies).
Key points
ESG ● GLOBAL
8 October 2018Source:Fromthe2015O’NeillReviewinturnsourcedfromEuropeanMedicinesAgency (2011)andthenationalgovernmentsoftheUS,AustraliaandNewZealand;SaveOurAntibioticsAlliance,
ComparisonofUKandUSantibioticusebyfarm-animalspecies
Antibioticsinagriculture: aglobalpicture
Over50%ofantibioticsusedgloballyareforuseinagricultureratherthanhumanmedicine.Thishighusageiscontributingtorisinglevelsofantibiotic
resistanceinfarmanimalbacteria,whichcantransfertoantibioticresistanceinbacteriacausinghumandisease:
Europeanfoodretail
UKsupermarketsaremost
progressed,weexpectmorepressure
oncontinentalpeerswithupcoming
EUregulation
Restaurants
Aslargeprocurersofmeattheyhave
comeunderpressurefromNGOs,
mostcompaniesaretakingaction,
thoughprogressisquitevaried
AsiaandAmericas
Meatproducersintheseregionsare
themostexposedcompaniesasmany
stillhavehighantibioticusage
Pharma
Majorityofantibioticsforagriculture
aresoldbyanimalhealthcompanies,
forwhichthereissignificantrisk
50%
23kg
Globalantibioticusage50%
70%NationalantibioticusageinUSagriculture30%
Globalmeatproduction
andantibioticusage(mg/kg)
Globalmeatproduction
percapita
Estimatedglobalusageof
antibioticsinagriculturebyweight
44kg36%
21%
foreveryhumanintheworld
19612016CattlePork
Thereare83bnfarmanimals,
whichmeansthereare
11animals
Implicationsandprogress
20-250
mg/kgofantibiotics
15-75
mg/kgofantibiotics
5%
EU
7%
US
5%
Brazil
150-400
mg/kgofantibiotics
32%
Chicken
60%
China。