Consumers and Antibiotics. Funded by the Beef Checkoff.
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1 Consumers and Antibiotics Funded by the Beef Checkoff.
2 Overall Perceptions of Beef Beef Product How Cattle Are Raised Bucket 1 Positives strongly outweigh negatives Bucket 2 Positives somewhat outweigh negatives Bucket 3 Negatives somewhat outweigh positives Bucket 4 Negatives strongly outweigh positives 52% 44% 27% 26% 15% 19% 5% 79% 8% point difference 71% 11% Chicken 73% Q.12/13: Considering all you know about beef, would you say? Q.21/22: Thinking specifically about how cattle are raised for food in the U.S., do you believe that? Source: 2016 CII Sources: October 2016 Consumer Image Index, July 2016 Consumer Beef Index 2
3 Consumer Perceptions of Production Importance Versus Performance Total Market 83% 82% 82% 64% 63% 60% 64% 59% 61% Science is Affecting Consumer Decisions in New Ways Extremely/Very Important Beef Performance Chicken Performance 78% 77% 51% 50% 46% 45% Follow strict sanitation guidelines Health and safety of people buying Are dedicated to keeping their animals healthy Responsible antibiotic use Openly share information Q.16: How important is it to you that U.S. meat industries? Q.23: Now, just thinking about chickens or cattle raised for food, how much do you agree or disagree with each of the following statements about each of these two industries in the U.S.? Source: 2016 CII
4 Antibiotic Resistance Opportunities Proactively inform the public using a progressive approach: Why Reasons why cattle require antibiotic treatment Human benefits associated with healthy livestock/cattle and food supply How Rigorous methods and precise, research-based application Collaborative and responsible process (everyone has a vested interest) Rarity of antibiotic resistance Impact Healthy, safe and sustainable food supply for consumers SOURCE: Antibiotic Resistance Heart & Mind Strategies October/December 2014
5 Knowledge around antibiotic use in animal production is low How familiar are you with the topic of antibiotic use in food production? 33% - Very/Extremely Familiar with How Cattle are Raised 22% - Very/Extremely Familiar with Antibiotics 76% - At Least Somewhat Concerned (USAGE) 77% at Least Somewhat Concerned (RESITANCE) Familiarity Antibiotics Consumer Exploration Summer 2016; Concern Consumer Image Index 2016
6 Brand announcements can influence 70% 67% 64% 70% T2B - Makes me feel much better about the restaurant/retailer B2B - Makes me feel much worse about the restaurant/retailer 6% 6% 7% 6% Statement 1 Statement 2 Statement 3 Statement 4 A B C D Antibiotics Consumer Exploration Summer 2016 Base Total Respondents (800) QM1 The following statements are claims that restaurants have made about the food they offer. Please rate how much better/worse each claim makes you feel using a scale of 1-5 where 1 means it makes me feel much worse and 5 means it makes me feel much better.
7 There is a negative connotation Promotion and Price The human experience: Lack of education: Antibiotics Consumer Exploration Summer
8 Safety and Animal Welfare are top of mind Animal welfare/inhumane treatment 15.6 Food Safety What cattle are fed 9.75 Hormones 9.19 Genetically Modified Organisms (GMOs) 8.22 Antibiotics 8.13 Sustainability 6.72 Most Concerned to Least Concerned Antibiotics Consumer Exploration Summer 2016
9 Concern around antibiotics stem focuses in a few main areas I fear it causes cancer in humans as well as other disease. Consuming toxins (the antibiotics themselves) That it is unnatural, we don't know the long term effects of antibiotic use in meat will have on people. Animal welfare Generally if they re using antibiotics on the animals because like it s a sick animal and they re trying to make the animal better which is generally an indication of how the animal is being treated. So they kind of go hand-inhand.. Resistance The antibiotics remain in the meat and then when consumed by humans, the bacteria and germs that usually are destroyed by these antibiotics will develop immunity! Antibiotics Consumer Exploration Summer 2016; Quotes reflect consumer perceptions on the content pieces tested, used for market research purposes only
10 Concerned with prevention To treat a sick animal Single one off cases Carefully administered doses To prevent sickness in animals that aren t at risk in the first place A tool to justify poor living conditions Whole herds usage in this way can reinforce perceptions that cattle are live in too close quarters Overmedicating by administering through water and feed which is perceived as unnecessarily When you deal with a living thing it doesn t matter what it is. It has the possibility for infection and all that kind of stuff. So if it s going to keep us healthy then I see it being good. Chicago G1 Okay, he needs to be slaughtered tomorrow. Inject him, inject him, inject him and take the chunks out. Chicago G2 Antibiotics Consumer Exploration Summer 2016; Quotes reflect consumer perceptions on the content pieces tested, used for market research purposes only
11 Willingness to pay does not match market dynamics Ground Beef $3.88/lb. $4.87/lb (Average for antibiotic-free ) 26% more $25/lb $5.20 Avg Price Per LB Steak $7.25/lb $7.56/lb (Average for antibiotic-free ) 4% more $25/lb $11.73 Avg Price Per LB Antibiotics Consumer Exploration Summer 2016
12 Price is still a factor For me, a lot of it comes down to price. If it is a significant difference, I probably won t go for it. But if it is 20 cents more for a non-gmo item or not, something that is organic versus not, I ll shell out the 20 cents, 30 cents, maybe a dollar depending on something. So I guess it is just the value It depends on when my paycheck is compared to when I'm shopping. Honestly, that's a huge thing. Sometimes, I'm like, "Well, I really need to get to get out of the store today for $50", and I'm going to go with this larger value pack that's not really specifically labeled Antibiotics Consumer Exploration Summer 2016; Quotes reflect consumer perceptions on the content pieces tested, used for market research purposes only
13 Topic areas that would make consumers feel better Knowing the beef industry...is taking action steps...works with Animal Health Professionals...has government oversight...invests in research...educates Cattlemen on use...self-polices Continuous Improvements List 52% 47% 43% 38% 31% 18% Antibiotics Consumer Exploration Summer 2016; Quotes reflect consumer perceptions on the content pieces tested, used for market research purposes only
14 People are happy to know that the beef industry is taking steps to improve It appears the beef industry is working hard to address this concern. The beef industry understands the concerns about antibiotic use in animals and is trying to educate the community on proper use of antibiotics while also reducing the usage I think they are moving in the right direction to make meats safer for us and relying less on drugs and chemicals. I feel better about the future in the meat industry reading this I really like what I just read, because providing information and education on the use of antibiotics in animals, it is good for all This makes me feel more comfortable with the direction the beef industry is going. I still prefer to eat antibiotic free meats though. I like that the industry is looking into alternatives. 14 Confidential & Proprietary. Not For Public Distribution. Do Not Copy. Antibiotics Consumer Exploration Summer 2016; Quotes reflect consumer perceptions on the content pieces tested, used for market research purposes only
15 Stewardship Content Evaluation Testing 6 pieces of content tested each one seen in an isolated form with each respondent only viewing one piece of content Sample Base Size Definition Gen Pop N=300 per Men and Women (50/50) who have eaten/considered beef in the past month Millennials N=200 per Age Millennials Parents N=75 per Age w/ child(ren) under 18 Concerned Target Group N= Very/Extremely concerned about topic area featured (post-exposure minus preexposure) Antibiotic Infographic Sustainability Video Concern Target Group *Quantitative Findings Source: MSW*ARS Research Stewardship Content Evaluation October December
16 Stewardship Content Evaluation Testing Sample Base Size Definition Gen Pop N=300 per Eaten/considered beef in the past month Millennials N=200 per Age Millennials Parents N=75 per Age w/ child(ren) under 18 Concerned Target Group N= Very/Extremely concerned about topic area featured Antibiotic Use It was from a credible source Shift in Concerned Target Group Infographic Video 74% 78% Source: MSW*ARS Research Stewardship Content Evaluation October December 2016
17 The infographic resonated very positively The vast majority of consumers like the infographic 84% T2B 57% 26% Enjoyment Reactions Playback Antibiotic Concerned Favorable Execution 54% Informational / Educational 12% Graphics/Images well put together 9% Too Busy 3% Source: MSW*ARS Research Stewardship Content Evaluation October December
18 Consumers - in their own words What do you like about the Infographic? just how easy it was too understand and read the clean information is so educational The images, and the colors, are striking, leads to want to read the information THE LAYOUT AND DESIGN MAKES YOU WANT TO READ MORE OF IT The facts outweigh what I've heard about antibiotics in beef It made me feel good knowing that the animals are being treated humanely and when sick not suffering. Everything! Everything I read taught me something that I had no idea about. I was completely wrong about antibiotics Source: MSW*ARS Research Stewardship Content Evaluation October December 2016; Quotes reflect consumer perceptions on the content pieces tested, used for market research purposes only 18
19 Sustainability/Feedyard Video Antibiotic Concerned (-12%) High level content that features the experts involved in the process have a strong halo impact on to many topics Shifts in very/extremely concerned Gen Pop Sustainability Concerned Use of other growth technologies What cattle are fed Animal abuse/inhumane treatment Use of chemicals at slaughter facilities Food safety/food borne illnesses (E. coli) Sustainable Practices Source: MSW*ARS Research Stewardship Content Evaluation October December
20 Shawn Darcy Director of Market Research NCBA Thank You!
21 Comfort - Continuous Improvements List Comfort - Continuous Improvements List Continuous Improvements List The Food and Drug Administration regulates the dosage and withdrawal time of antibiotics used in cattle raised for food. Farmers and ranchers who do not abide by the FDA guidelines with regard to antibiotic use, can be fined, go to jail and/or put on a widely circulated list that will negatively impact their business success moving forward. By the end of this year, the beef industry will no longer use antibiotics for growth purposes considered medically important to human medicine in feed and water in accordance with FDA Guidance. This also includes more veterinary oversite when antibiotics are used in beef production. The beef industry is continually looking for alternative solutions to antibiotics, such as probiotics, vaccines and general management practices to help reduce the use of antibiotics. The beef industry has a Beef Quality Assurance program that involves antibiotic stewardship training about the appropriate use and administration of pharmaceutical products including following withdrawal times, the prevention of environmental contamination, the need for good record keeping, and the importance of a valid veterinarian-client-patient relationship. The beef community contributed over $700,000 in 2015 alone for research to investigate the prevention of antibiotic resistance. There are more stringent standards in place for researching, testing and bringing a new antibiotic to market to be used in animals than there are in place for antibiotics used in humans. In fact, there has not been a new animal antibiotic brought to the market since the 1980s. Beef producers participate in education programs that include information about proper antibiotic use. 53% 46% 33% 29% 22% 18% 12% Base Continuous Improvements List (200) QC5 Thinking again about the statements below, which ones make you feel more comfortable about how antibiotics are used in raising cattle? 21 Confidential & Proprietary. Not For Public Distribution. Do Not Copy.
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