Animal Welfare: Issues and Opportunities in the Meat, Poultry, and Egg Markets in the U.S.

CHAPTER 1 EXECUTIVE SUMMARY

ANIMAL WELFARE ISSUES

REGULATORY ENVIRONMENT

ANIMAL WELFARE ORGANIZATIONS

MARKETER ACTIONS

CONSUMER VIEWS

THE EMERGING ANIMAL WELFARE ENVIRONMENT

INSIGHTS AND OPPORTUNITIES

Opportunity 1—Marketing on animal-welfare related claims and attributes

Opportunity 2—Shoring up product claims and terminology

Opportunity 3—Leveraging the link between animal welfare and product healthfulness

Opportunity 4—Leveraging the link between animal welfare and product safety

Opportunity 5—Leveraging the link between animal welfare and sustainability

Opportunity 6—Incorporating animal welfare into corporate transparency practices

Opportunity 7—Catering to the flexitarian trend

Opportunity 8—M&As around animal welfare credentials

Opportunity 9—Responding to institutional investor pressures

Opportunity 10—Responding to influence of animal rights movement

CHAPTER 2 ANIMAL WELFARE ISSUES

KEY POINTS

ANIMAL WELFARE AND ANIMAL RIGHTS

OMNIVORE’S CHOICES

The Vegetarian/Vegan Option

Influence of Celebrities

The Media Environment

ANIMAL WELFARE AS HOT ISSUE

Animal Welfare Movement Reaching Critical Mass

Consumer Studies Confirm Growing Concerns

Is Organic Meat Healthier?

Packaged Facts Survey Data on Animal Welfare and Healthy Food Relationship

Consumer Questioning of Agricultural Product Safety

Figure 2-1 In the last few years, are you paying more attention to the product claims or nutritional information for any of the following? (percent of U.S. adult grocery shoppers)

Levels of Consumer Concern About Antibiotics, Growth Hormones, and GMOs

WORLD ORGANIZATION FOR ANIMAL HEALTH’S FIVE FREEDOMS

FOUR KEY AREAS OF CONCERN

HANDLING

Slaughter

Beak Trimming and/or Debeaking

Disbudding

Castration

Transportation

Litter Management

Sleep Periods

Other Issues

FEEDING FARM ANIMALS

Grazing/Free-Range/Grass-Fed

Illustration 2-1 Proliferation of Grass-Fed Beef Brands

HOUSING

Group Housing Alternative

Poultry Housing

Cage-Free

Free-Range Facing Challenges

Cage-Free a Top Animal Welfare Trend

Illustration 2-2 Proliferation of Egg Brands Highlighting “Cage-Free”

Illustration 2-3 Proliferation of Egg Brands Highlighting “Free Range”

ANTIBIOTICS AND OTHER DRUGS

School Food Focus Certified Responsible Antibiotic Use (CRAU)

Illustration 2-4 Proliferation of No Antibiotics Ever Chicken Brands

Chain Reaction II Report

ANIMAL WELFARE AND SUSTAINABILITY

Sustainability a Top Issue for 2017

Definition of Sustainability

Developing “Regenerative Agriculture”

CHAPTER 3 REGULATORY ENVIRONMENT

KEY POINTS

U.S. REGULATORY FRAMEWORK

UNITED STATES DEPARTMENT OF AGRICULTURE (USDA)

Agricultural Marketing Service (AMS)

National Organic Program (NOP)

USDA Process Verified Program (PVP)

Illustration 3-1 USDA Process Verified Shield

New GMO Labeling Law Exempts Foods from Animals

Animal and Plant Health Inspection Service (APHIS)

USDA Animal Care

Food Safety and Inspection Service (FSIS)

Humane Methods of Slaughter Act

New Poultry Inspection System and Good Commercial Practices

Food and Drug Administration (FDA)

FDA Requires rbST Claims to Be Accompanied by Disclaimers

Agencies With Regulatory Functions Related to FDA’s

RECENT ANIMAL-WELFARE ACTIVITIES BY FEDERAL AGENCIES

Humane Handling

ANTIBIOTIC USE

FDA Completes Voluntary Phase-out of Antibiotic Use in Food Production

GAO Calls for More Oversight of Antibiotic Use in Food Animals

Recommended Actions

Illustration 3-2 Antibiotic Resistance, from the Farm to the Table

VERIFICATION, STANDARDS, AND COMPLIANCE

USDA Rule Fortifies Welfare Standards for Organic Livestock and Poultry

Illustration 3-3 Organic Livestock and Poultry Practices Rule: Provisions, Costs, Benefits, and Timeline

ISO’s New Animal Welfare Management Specs Streamline Global Trade

New USDA Accreditation Program Will Ease Transition to Organic

FSIS Issues Guidelines for Making Animal Raising Label Claims

Animal Protection Group Derides FSIS Label Standards as Deceptive, “Industry-Friendly”

USDA Upgrades PVP to Reinforce Transparency, Accountability

Illustration 3-4 USDA Process Verified Program, from Farm to Market

LITIGATION

Court Rejects Lawsuit Seeking “Production Method” Labeling on Egg Cartons

Animal Rights Advocates Argue Label Reform Is in the Public Interest

Agencies Cite Insufficient Evidence as a Factor in Denying Labeling Petition

Animal Welfare Institute Sues USDA for Non-Response to Rulemaking Petition

RECENT ANIMAL-WELFARE ACTIVITIES BY U.S. STATES

Groundbreaking Massachusetts Referendum Opposing Extreme Confinement Passes by 3-1 Margin

Facilitates Legal Action Against Whistleblowers

Oklahoma Voters Reject “Right to Farm” Amendment to State Constitution

Federal Judge Rules Idaho “Ag-Gag” Law Unconstitutional

CHAPTER 4 ANIMAL WELFARE ORGANIZATIONS

KEY POINTS

ADVOCACY AND WATCHDOG GROUPS

American Humane (www.americanhumane.org)

American Society for the Prevention of Cruelty to Animals (www.aspca.org)

Animal Protection and Rescue League (www.aprl.org)

Animal Welfare Institute (www.awionline.org)

Compassion in World Farming (www.ciwf.com)

Compassion Over Killing (www.cok.net)

Cornucopia Institute (www.cornucopia.org)

Farm Animal Rights Movement (farmusa.org)

Farm Sanctuary (www.farmsanctuary.org)

Faunalytics (https://faunalytics.org)

Food Animal Concerns Trust (foodanimalconcerns.org)

Humane Society of the United States (www.humanesociety.org)

Last Chance for Animals (www.lcanimal.org)

Mercy for Animals (www.mercyforanimals.org)

National Animal Interest Alliance (www.naiaonline.org)

People for the Ethical Treatment of Animals (www.peta.org)

United Poultry Concerns (www.upc-online.org)

CERTIFYING ORGANIZATIONS

Benefits of Certification

Certification Process

Farm Animal Welfare Certification Guide

Animal Welfare Approved (animalwelfareapproved.us)

Illustration 4-1 American Welfare Approved Logo

Illustration 4-2 Certified Grassfed by AGW Logo

Illustration 4-3 Certified Non-GMO by AGW Logo

Certified Humane Raised and Handled (certifiedhumane.org)

Illustration 4-4 Certified Humane Raised & Handled Logo

Animal Welfare: Issues and Opportunities in the Meat, Poultry, and Egg Markets in the U.S.

April 2017 © Packaged Facts v

Global Animal Partnership (www.globalanimalpartnership.org)

Illustration 4-5 Global Animal Partnership Logo

Illustration 4-6 Certification Requirements of Global Animal Partnership’s 5-Step Animal Welfare Rating

Program for Selected Species

American Grassfed Association (www.americangrassfed.org)

Illustration 4-7 American Grassfed Certification Logo

American Humane Certified

Illustration 4-8 American Humane Certified Logo

Marine Stewardship Council (https://www.msc.org)

Illustration 4-9 Certified Sustainable Seafood MSC Logo

Illustration 4-10 MSC Fisheries Standard

Illustration 4-11 MSC Chain of Custody Standard

FOOD INDUSTRY ASSOCIATIONS

American Association of Meat Processors (www.aamp.com)

National Cattlemen's Beef Association (www.beefusa.org)

National Chicken Council (www.nationalchickencouncil.org)

U.S. Poultry & Egg Association (www.uspoultry.org)

CHAPTER 5 MARKETER ACTIONS

KEY POINTS

Business Benchmark on Farm Animal Welfare

Food Marketing Institute

National Council of Chain Restaurants

FOOD MANUFACTURERS

AyrshireFarm (www.ayrshirefarm.com)

Campbell Soup

Illustration 5-1 Campbell’s Well Yes Chicken Noodle Soup

Cargill

Conagra Brands

Country Archer

Illustration 5-2 Country Archer Meat Sticks

Dean Foods

General Mills

Grupo Bimbo

Hillandale Farms

Hip Chick Farms

Illustration 5-3 Hip Chick Farms Organic and Gluten Free Chicken Meatballs

Hormel Foods

Kellogg

Kraft Heinz

LonoLife

Ilustration 5-4 LonoLife K-Cup Beef Bone Broth

Lorissa’s Kitchen

Illustration 5-5 Lorissa’s Kitchen Products

LoveTheWild

Illustration 5-6 LoveTheWild Barramundi with Mango Sriracha Chutney

Lower Foods

Maple Hill Creamery

Maple Leaf Foods

Mars

Mondelez Foods

Nestlé

Niman Ranch

No Evil Foods

Illustration 5-7 No Evil Foods Vegan Meat Alternatives

Perdue Farms

Perky Jerky

Illustration 5-8 Perky Jerky Black Label 100% Grassfed and Antibiotic-Free Beef Jerky

Pilgrim’s Pride

Ritter Sport

Illustration 5-9 Ritter Sport Vegan Chocolate Bars

Smithfield

Snacklins

Teton Waters Ranch

Illustration 5-10 Teton Waters 100% Grassfed Beef Franfurters

Thanasi Foods

Illustration 5-11 Duke’s New Brisket and Steak Meat Snacks

The New Primal

Illustration 5-12 The New Primal Snack Mates

Tyson Foods

Illustration 5-13 Tyson Foods Open Prairie Natural Angus and Natural Pork

Unilever

Illustration 5-14 Breyers Non-Dairy Frozen Desserts

Illustration 5-15 Ben & Jerry’s Non-Dairy Frozen Desserts

Verde Farms

Illustration 5-16 Verde Farms Grassfed Beef Ribeye Steak

West Liberty Foods

White Oak Pastures

Wild Zora Foods

Illustration 5-17 Wild Zora Pork and Vegetable Bars

FOODSERVICE

A&W Food Services of Canada

Arby’s

Blossom Du Jour

Boston Market

BurgerFi

Chick-fil-A

Chili’s

Chipotle Mexican Grill

Dairy Queen

Darden Restaurants (Olive Garden)

Denny’s

DineEquity, Inc.

Domino’s Pizza

Dunkin’ Donuts

Einstein Bros. Bagels

Jack in the Box

Little Caesars

McDonald’s

Panera Bread

Illustration 5-18 Panera Bread Advertisement for “Food You Can Trust”

Papa John’s

Pizza Pizza

Illustration 5-19 Pizza Pizza Chicken Products Raised Without Antibiotics

Quiznos

Restaurant Brands International (Burger King/Tim Hortons)

SeaWorld

Sonic Corp.

Starbucks

Subway

Wendy’s

Yum! Brands

RETAILERS

Albertsons

Costco

Food Fight!

Kroger

Publix

Rabbit Food Grocery

Safeway

Target

Trader Joe's

Walmart

Whole Foods

Farmers Markets and Online Sales

FOOD AND INGREDIENT SUPPLIERS

Aramark

Brandt Beef

Compass Group

Essentia

Impossible Foods

Ocean Harvest Technology

Sodexo

Sysco Corporation

FACILITATORS

ADVERTISING ANIMAL WELFARE ACTIONS

Illustration 5-21 Hardee’s/Carl’s Jr. Grassfed Hamburger Television Ad

CHAPTER 6 CONSUMER VIEWS

KEY POINTS

ASPCA Survey Shows Substantial Consumer Concern About Animal Welfare

American Humane Society Also Shows Major Consumer Concern

Cargill Survey Shows Consumer Concerns Over Pig Diets

SIMMONS DATA ON THE VEGETARIAN CONSUMER

Vegetarians Still a Small Minority of Consumers

Income and Education Influence Vegetarianism More Than Gender

Foodies and Budget Watchers Have Higher Vegetarian, Meat Alternatives Propensity

PACKAGED FACTS SURVEY DATA ON CONSUMER ATTITUDES AND PURCHASING PATTERNS RELATED TO ANIMAL WELFARE ISSUES

Over a Third of Consumers Buying Organic and Natural Products

Figure 6-1 In the last 30 days, have you bought packaged food and beverage products with any of the

following product claims?, 2017 (percent of U.S. grocery shoppers)

Figure 6-2 In the last 30 days, have you bought packaged food and beverage products with any of the

following product claims?, 2017 (percent of U.S. grocery shoppers)

Understanding of Key Animal Welfare Terms Is Mixed

Figure 6-3 How clear to you is the meaning of the following product claims?, 2017 [selected claims/attributes related to animal welfare issues] (percent of U.S. grocery shoppers)

Few Avoid Meat, Poultry, or Eggs

Figure 6-4 Do you avoid eating any of the following?, 2017 (percent of U.S. adults)

Figure 6-5 In the last few years, have you cut back on eating any of the following?, 2017 (percent of U.S. adults)

Protein Most Important Ingredient Looked for on Nutrition Panel

Figure 6-6 When choosing meat or poultry products to buy, is any of the following nutritional panel information most important to you?, 2017 (percent of U.S. grocery shoppers)

Significant Increases for Plant-Based Alternatives

Figure 6-7 In the last few years, are you eating more of any of the following?, 2017 (percent of U.S. adults)

Half of Consumers Confident About Standards for Food Animal Treatment

Majority See Humane Treatment of Food Animals as Issue for Society

Animal Welfare Concerns Are Important to Many Meat and Poultry Shoppers

Figure 6-8 Have you purchased any of these types of red meat items in the past 30 Days?, 2017(percent of shoppers who purchased red meat within last 30 days)

Figure 6-9 When you buy grass-fed/pasture-raised beef, what product characteristics are mostimportant to you?, 2017 (percent of shoppers who purchased grass-fed/pasture-rasied beef within last 30 days)

Figure 6-10 Have you purchased any of these types of chicken products in the past 30 Days?, 2017(percent of shoppers who purchased fresh chicken in last 30 days)

Figure 6-11 When you buy cage-free/free-range/pasture-raised chicken, what product characteristics are most important to you?, 2017 (percent of shoppers who purchased cage-free/free-range/pastureraised

chicken within last 30 days)

Local Sourcing an Important Factor in Animal Welfare Related Purchases

Consumers Will Pay More for Humane, Safe, Healthy Meat, Poultry

Animal Welfare Attributes in Purchasing of Fresh Eggs

Figure 6-12 Within the last 30 days, have you bought any of the following type of eggs products?,2017 (percent of grocery shoppers who purchased fresh eggs within last 30 days)

Figure 6-13 When you buy cage-free, free-range, or pasture-raised eggs, what product characteristics are most important to you?, 2017 (percent of shoppers who purchased cage-free/free-range/pastureraised eggs within last 30 days)

CHAPTER 7 THE EMERGING ANIMAL WELFARE ENVIRONMENT

KEY POINTS

CONSUMERS, MARKETERS, REGULATORS, AND ENVIRONMENT ALL PLAY A ROLE

It’s the 21st Century

Conflating Animal and Human Health

The Expanding Consumer Base

M&A to Advance Animal Welfare

Investors Exert Pressure

The Demand for Transparency

FACTORS THAT COULD RESTRAIN HUMANE PRODUCT MARKET

Rise of Plant-Based Protein

Impact of Climate

Reduced Government Support

LONG RANGE PROSPECTS

Animal Welfare Areas in Need of More Attention

Tremendous Growth of Organic Expected to Continue

Animal Protein Companies Address Sustainability

Meat From the Laboratory

Search for an exact word or phrase by placing the word or phrase in quotation marks ("market trend"). Search for different versions or tenses of a word by placing an asterisk at the end of the word (pharma*).

Please note that your term must be at least three characters long and numbers will be blocked by the # sign.