Costco, in the midst of developing its own poultry processing plant to go with an already substantial company-owned beef supply operation, has set out new standards and monitoring requirements for antibiotic use in animal agriculture, making it one of the largest food retailers to take on the issue.
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Sanderson Farms has been a tireless defender of antibiotics in poultry production and hasn't been afraid to run counter to prevailing practice in the industry. The company has sponsored advertising campaignscalling antibiotic-free labeling claims "marketing gimmicks designed to mislead consumers and sell products at a higher price."
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Sanderson is the only large U.S. chicken producer that has not committed to curbing the use of the drugs. It had urged investors to vote no on the proposal filed by the non-profits As You Sow and supported by charity Oxfam America.
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“All indications are that demand is increasing,” said Austin Wilson, program manager for activist group As You Sow, which is pushing Sanderson to stop using certain antibiotics.
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As You Sow, an environmental health watchdog group, and members of the Interfaith Center on Corporate Responsibility (ICCR), recently withdrew the proposal following “productive discussions” with the restaurant company.
“This policy is good news for modern medicine and for long-term shareholder value,” said Austin Wilson, environmental health program manager at As You Sow.
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The proposal was brought about by As You Sow, a group that promotes corporate accountability on the environment, on behalf of the Gun Denhart Living Trust and other investors.
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The non-binding proposal submitted by activist group As You Sow on behalf of the Gun Denhart Living Trust and other investors received the support of 30 percent of votes cast, Sanderson Chief Financial Officer Mike Cockrell told Reuters.
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RBI has been on the receiving end of pressure from major investors and Oakland-based shareholder advocacy group As You Sow to curb the use of medically important antibiotics in their livestock supply chains.
Noting McDonald’s and other companies have already “taken action” on antibiotics, As You Sow in 2016 put forward a shareholder resolution for RBI to adopt an “enterprise-wide” policy on phasing out use of antibiotics in its meat supply chains for any reasons other than therapeutic use or “non-routine disease control.”
As You Sow in March agreed to withdraw the resolution, after RBI agreed to “make disclosures” on its website in calendar 2016 about its policies on antibiotic use in livestock, covering its beef, pork and poultry supply chains.
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Austin Wilson, environmental health program manager for As You Sow, said the company’s new plan represented progress. Still, he said it was “disappointing, since it is weaker than the standards set in the last year or two by Tyson, McDonald’s and Wendy’s”.
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The sisters are part of the Interfaith Center on Corporate Responsibility (ICCR), which along with ShareAction, Farm Animal Investment Risk & Return (FAIRR) Initiative and As You Sow, also are targeting companies such as Sanderson Farms (SAFM.O) and Yum Brands Inc (YUM.N) with similar campaigns aimed at preserving the efficacy of antibiotics.
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22% of McDonalds shareholders recently voted in favour of a shareholder proposal coordinated by US shareholder activism groups As You Sow and ICCR, which called for an end to the routine use of medically important antibiotics. So far the company has failed to provide a meaningful response to that suggestion.
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As per federal government guidance, KFC does not allow the use of such antibiotics for growth promotion. Medical experts warn that the routine use of antibiotics to promote growth and prevent illness in healthy farm animals contributes to the rise of drug-resistant “superbug” infections that kill at least 23,000 Americans each year and represent a “catastrophic threat” to global health.
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The proposal from shareholder activists As You Sow, of Oakland, California, and the Sisters of St. Francis of Philadelphia comes as KFC lags rivals McDonald’s Corp (MCD.N), Chick-fil-A, Subway and Wendy’s Co (WEN.O) in setting policies to curb the routine use of antibiotics in chicken production.
“Yum Brands’ silence in the face of this looming antibiotic resistance crisis is bad for business,” said Austin Wilson, As You Sow’s environmental health program manager.
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● Yum Brands investors on Tuesday filed a shareholder proposal requesting that it quickly phase out harmful antibiotic use in its meat supply, taking aim at the practices of the company’s KFC fried chicken chain. The plan from shareholder activists As You Sow of Oakland, Calif., and the Sisters of St. Francis of Philadelphia comes as KFC lags rivals McDonald’s Corp., Chick-fil-A, Subway and Wendy’s Co. in setting policies to curb antibiotic use.
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Anne Temple, mother and midwest leader of Moms Across America representing John Harrington of Harrington Investments, went to the meeting with Rachel Parent, 16-year-old and founder of Kids Right to Know from Canada who representing Moms Across America, and Beth Savitt, grandmother and president of the Shaka Movement of Maui representing and As You Sow.
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