This report examines the implications for food and feed supply-chains of the decision in June of 2003 by the single largest buyer of meat in the U.S., the McDonald's Corporation, to require its meat suppliers to phase out the use of certain antibiotics for animal growth promotion. The report explores the consequences and impacts of this decision for the feed, food, and livestock industries, within the larger context of scientific and economic issues associated with antibiotic and synthetically-produced antimicrobial use in beef, chicken and pork production.

Key questions to be answered:

• How will McDonald's policies affect the beef, pork, and chicken industries? How will the differences in industry structure among these three industries affect implementation strategies?
  
  
• Will other companies follow McDonald's lead in promulgating new purchasing practices to voluntarily reduce antibiotics use? Where are the "tipping points" at which these decisions begin to redefine standard practices in beef, chicken, and pork production?
  
  
• Will buyers' specifications on antibiotic use lead to further market segmentation and price differentiation in the meat industry?
  
  
• What are the implications of these policies for identity preservation and traceability in meat supply chains?

Who will benefit from this research?

• Executives involved in feed and food supply chains
  
  
• Beef, pork and chicken farmers and processors
  
  
• Food service executives
  
  
• Public health officials
  
  
• Advertising and public relations executives
  
  
• Advocates working on antibiotic resistance issues
  
  
• Federal, state and international agencies involved in legislating, regulating and enforcing food supply and antibiotic use regulations

Contents:

ANTIBIOTIC USE IN THE LIVESTOCK INDUSTRY	5
THE DEBATE OVER HUMAN HEALTH RISKS ASSOCIATED WITH CURRENT PRACTICES	7
ECONOMIC AND STRATEGIC IMPLICATIONS FOR THE LIVESTOCK INDUSTRY	9
LOOKING FORWARD: MOVING TOWARD A TIPPING POINT?	17

Excerpt from the Executive Summary

McDonald's Corporation's recent decision to require its meat suppliers to phase out the use of certain antibiotics for animal growth promotion is a watershed event for the meat production industry. McDonald's, the largest single buyer of meat in the U.S., and much of the world, is using its buying power to manage a growing array of attributes linked to its products and brand identity including consumer "intangibles" related to social responsibility, sustainable food supply, animal welfare, and human health. Other companies, both in the fast food industry and in grocery stores, are likely to...

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