January 28, 2013

In 2012, average cattle weights increased by approximately 19 pounds per head, or 2% over 2011 weights.  This increase was significant for the cattle industry when you consider that for the previous five years cattle weights had been flat, domestic consumption had fallen by 8% between 2002 and 2011, and 20% of feedlots had closed. The increase corresponds directly to the adoption of beta agonists by the cattle industry. Beta agonists are drugs used as weight-gaining supplements. Added to feed in the final weeks as the animal nears slaughter, beta agonists stimulate the growth of lean muscle instead of fat. There are two beta agonists used in the beef industry: Zilpaterol (Zilmax), manufactured by Merck & Co.; and Optaflexx, manufactured by Lilly.   Zilmax, (often called ‘Vitamin Z’) gained approval by the U.S. Food & Drug Administration (FDA) in 2006. It was originally an anti-asthma drug for human use, and only in recent years has been approved and used in cattle feed as a weight gaining additive.

As grain and feed prices have increased significantly, the use of these drugs has become more popular. According to the Livestock Marketing Information Center, July 2013 marked the 27^th consecutive month of losses for the cattle industry.  Feedlots lost $82 per head sold to meat companies. According to Merck beta agonists are now administered to 70% of cattle sold to slaughterhouses. Zilmax costs approximately $20 per head and can add between 20 and 33 pounds to an animal gaining $15 -$30 per head. Zilmax sales totaled $159 million in 2012 in the U.S. and Canada. 

This summer during the National Cattleman’s Beef Association summer meeting in Denver, video was presented by Dr. Lily Edwards-Callaway, head of animal welfare at JBS USA, during a panel discussion on the pros and cons of using beta agonists to add weight to cattle. In the video, recorded by remote cameras used to track animal welfare at JBS, cattle arriving at the facility that had been fed beta agonists can be seen unable to walk and displaying significant mobility problems. On the same day as Dr. Callaway’s video, the largest U.S. meat producer, Tyson Foods Inc., announced that as of September 6^th it would no longer accept animals that had been fed bet agonists at its facilities.

Tyson had also seen similar problems in cattle delivered to its slaughterhouses and noted that the problems were compounded in warmer weather. The decision to no longer accept beta agonist-fed animals is a sharp turn for Tyson Foods, as it was one of the first large-scale U.S. meat producers to advocate the use of the feed additive. Cargill had resisted acceptance of beta agonists-fed animals claiming the drug hurt the quality of the beef and only began accepting such animals in June 2012.  Merck & Co. has suspended sales of Zilmax in the U.S. and Canada while it investigates possible links between the drug and the lameness and mobility issues observed in cattle.  The company has also unveiled a five-part plan to re-certify every feedlot operator, animal nutritionist, and veterinarian that gives Zilmax to cattle. 

In developed countries, consumers are getting smarter, and their demands are changing. It could be argued that price is no longer the main consideration when consumers make purchase decisions at the supermarket. The liberalization of information, through the Internet and social media, has allowed consumers to become much more informed about the products they buy.  And, these new, savvy consumers are opting for higher value products that offer better quality, health benefits and safety. Consumers are acutely aware of how their food is raised, fed and processed, and technology has given them a means of organization. And with organization comes power.

Whether the issue is a real threat such as food contamination, or an industry practice that crosses a line of acceptance; consumers are increasingly involved in the food chain from farm to table. The tradeoffs are complex, but given the possible backlash both cultural and financial, instead of using drugs such as beta agonists to manipulate supply, agribusiness should strive toward creating the safe, healthy, high quality products that consumers demand and are willing to pay for.