Sustainability : an opportunity for poultry production. Christine AGNES Elanco Food Chain Leader EMEA
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1 Sustainability : an opportunity for poultry production Christine AGNES Elanco Food Chain Leader EMEA agnes_montagu_christine@elanco.com 2015, Elanco Animal Health, a division of Eli Lilly and Company 1
2 2017 Eli Lilly and Company, its subsidiaries or affiliates. 2
3 2017 Eli Lilly and Company, its subsidiaries or affiliates. 3
4 Agenda More pressure on the food industry Conflicting goals 2015, Elanco Animal Health, a division of Eli Lilly and Company 4
5 The Confused Consumer 8 in 10 consumers find conflicting advice about what to eat or avoid, with many of them doubting their food choices 72% 52% Source: International Food Information Council Foundation 2017 Food & Health Safety Q: Do you agree or disagree with the following statements? There is a lot of conflicting information about what foods I should eat or avoid. (n=1,002) The conflicting information about what I should be eating makes me doubt the choices I make. (Of those who agree about conflicting information, n=775) 2017 Eli Lilly and Company, its subsidiaries or affiliates. 5
6 ANTIMICROBIAL RESISTANCE (AMR) There are public concerns that people may acquire food-borne illnesses that cannot be appropriately treated with antibiotics as a result of antibiotic-resistant bacteria that are derived from food animals that have been treated with antibiotics Wording warning : Antibiotic resistance is a global issue, not antibiotics 2017 Eli Lilly and Company, its subsidiaries or affiliates. 6
7 Production practices used for marketing and appearing on the label 1. Eroding consumer confidence 2. Confusion 3. Add cost, inefficiency and threaten animal welfare 2017 Eli Lilly and Company, its subsidiaries or affiliates. 7
8 Antibiotic free labels Which consumer understanding? WEU (n=1206) (2) There are antibiotics in other milk and meat, but not in this product 24% 38% Creates doubts on main stream production (1) That meat producing animal was raised without any antibiotics in their lifetime 66% 63% (3) Sick animals weren t treated with antibiotics 21% 22% Means something else 5% 3% Question on what we do with sick animals I DK what it means 10% 6% Q5: Below are some keywords or claims that you may or may not see on food packaging for example at the grocery store or in other channels. For each of these, choose what statements best describe what you think that label means. Base: WEU (n=1206) respondents 2017 Eli Lilly and Company, its subsidiaries or affiliates. Kynetec for Elanco-Food myth research November 2016
9 Consumers & industry disconnect YOU SAY We use antibiotics to be more efficient We use antibiotics to keep animals animals healthy Regulatory agencies review have have approved antibiotics as safe safe after rigorous review processes THEY HEAR Because you only care about making money You HAVE to use antibiotics because animals are kept in poor poor conditions We don t know if it s safe for the long-term. They ve been wrong before There are rules that dictate maximum residue levels allowed in in animals There is no evidence that use of antibiotics in animals causes resistance in humans ZABRDFVC00002 How can we be sure ANY residue is safe? Yea right. We re using so many, that has to be part of the reason 2017 Eli Lilly and Company, its subsidiaries or affiliates. 9
10 Consumer & industry reconnect LANGUAGE TO LOSE Animals have never been healthier and food has never been safer There is no public health risk to antibiotic use in animals on the farm Antibiotics are essential for prevention and control of disease Medically important Don t work in humans Not safe in humans Non-medically important LANGUAGE TO USE Antibiotic resistance is a concern for everyone People rightly want to understand how food is produced Consumers are concerned about antibiotic use in animals and the meat they eat. We need to answer those concerns. Antibiotics used in humans and animals Animal-only antibiotics or Animal-only antimicrobials Antibiotics not (or rarely) used in human medicine ZABRDFVC Eli Lilly and Company, its subsidiaries or affiliates. 10
11 Common challenges, different answers France : Market segmentation and positive communication USA : Antibiotics & hormone free 2017 Eli Lilly and Company, its subsidiaries or affiliates. 11
12 France Consumer choice : A highly segmented market Conventional Slow growing Broiler Conventional Nouvelle Agriculture Market share (estimate retail market) Rearing period (in days) (1) In/outdoor (1) Density (birds/m²) (1) External certification (1) Certified Free Range (Label Rouge) Organic 53 % NEW 13 % 28 % 6 % Indoor Indoor Indoor 81 (minimum) Outdoor. 2m²/bird minimum 81 (minimum) Outdoor 4m²/bird minimum No No Yes Yes Yes P , Elanco Animal Health, a division of Eli Lilly and Company (1)
13 France Positive Communication Restore the pride of the broiler industry by positioning conventional broiler in the scope of sustainability Develop a science based communication, hiting consumer s emotions 2015, Elanco Animal Health, a division of Eli Lilly and Company 13
14 Antibiotic free chicken: Disconnect between Consumer & Producer Dynamics 60% 50% At What Cost? 40% 30% 20% 10% 0% To What Benefit? Nov 2017 Forward Forecasted % broilers Raised without antibiotics in production, only 8% sold Volume Sold NAE Volume Produced NAE Scholer, ExpressMarketsInc, Nov , Elanco Animal Health, a division of Eli Lilly and Company
15 Raised without antibiotics Impact on animal health and welfare 1 Tyson Food : «more necrotic enteritis with vaccines and chemical anticoccidials compared to ionophores» , Elanco Animal Health, a division of Eli Lilly and Company 15 1 Salois et al ( lien ) 2 Scott Gustin from TYSON. General Assembly Syndicat National des Accouveurs (France octobre 2017)
16 Address the poultry industry challenges Some ideas Be proud of what you do Communicate on the great things done at farm level Choose your words to be heard Empower your employees to communicate on social media Acknowledge when there is an issue (Antibiotic resistance, animal welfare, environment impact ) Put in place tools to improve those points Consider Sustainability as a platform to leverage your practices and your messages 2015, Elanco Animal Health, a division of Eli Lilly and Company 16
17 Christine AGNES Elanco Food Chain Leader EMEA #proudofmyjob Along with farmers, Elanco is involved in sustainable farming 2017 Eli Lilly and Company, its subsidiaries or affiliates. 17
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