Wal-Mart Stores, Inc. WMT, the largest grocery store in the U.S., has always made an effort to use its widespread retail chain to change the way products are manufactured and sold across the retail industry. Recently, this retail giant urged its food suppliers to follow stricter guidelines for animal welfare and reduce the use of antibiotics on animals, per The Associated Press.
Public health officials say the use of antibiotics leads to bacteria that are resistant to drugs. This makes people vulnerable to infections that are antibiotic-resistant and are therefore harder to treat.
In 2013, the Centers for Disease Control and Prevention released data that indicated that more than 23,000 people were dying each year from infections that are resistant to drugs.
Wal-Mart has thus asked meat producers and eggs suppliers to use antibiotics only for disease prevention or treatment, and not to fatten their animals, per reports. Also, per the animal welfare guidelines, Wal-Mart has urged suppliers to stop using pig gestation crates and avoid painful procedures like de-horning or castration without proper painkillers. The guidelines apply to fresh and frozen meat, dairy, eggs and deli meat.
Wal-Mart has also asked suppliers to give detailed reports related to antibiotic use and animal welfare every year. Wal-Mart also wants its suppliers to employ vets to make sure that antibiotics aren't administered to animals to fatten them.
The initiative taken by Wal-Mart is definitely expected to bring a change in the protection of farmed animals and could bring more awareness of animal welfare throughout the industry. Also, it can provide more information to its customers about where their food comes from and how healthy it is.
Other major companies, including McDonald's Corp. MCD, Nestle and Starbucks Corp. SBUX, have already pledged to reduce or eliminate the use of gestation crates for pregnant sows. Meat producer Tyson Foods Inc TSN said that it plans to eliminate the use of antibiotics medically important to humans in its U.S. broiler chicken flocks by the end of Sep 2017. The company has also stated that it is working on ways to curb the use of antibiotics in its beef and chicken.
Wal-Mart holds a Zacks Rank #4 (Sell).
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