MEAT ATLAS Facts and fi gures about the animals we eat - Heinrich-Böll-Stiftung
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Zoom Fit Width Search TOC 2-pages Full-Screen-Mode MEAT ATLAS Facts and figures about the animals we eat
Zoom Fit Width Search TOC 2-pages Full-Screen-Mode IMPRINT/IMPRESSUM The MEAT ATLAS is jointly published by the Heinrich Böll Foundation, Berlin, Germany, and Friends of the Earth Europe, Brussels, Belgium Executive editors: Christine Chemnitz, Heinrich Böll Foundation Stanka Becheva, Friends of the Earth Europe Managing editor: Dietmar Bartz Art director: Ellen Stockmar English editor: Paul Mundy Copy editor: Elisabeth Schmidt-Landenberger Proofreader: Maria Lanman Research editors: Bernd Cornely, Stefan Mahlke Contributors: Michael Álvarez Kalverkamp, Wolfgang Bayer, Stanka Becheva, Reinhild Benning, Stephan Börnecke, Christine Chemnitz, Karen Hansen-Kuhn, Patrick Holden, Ursula Hudson, Annette Jensen, Evelyn Mathias, Heike Moldenhauer, Carlo Petrini, Tobias Reichert, Marcel Sebastian, Shefali Sharma, Ruth Shave, Ann Waters-Bayer, Kathy Jo Wetter, Sascha Zastiral Editorial responsibility (V. i. S. d. P.): Annette Maennel, Heinrich Böll Foundation This publication is written in International English. First Edition, January 2014 Production manager: Elke Paul, Heinrich Böll Foundation Printed by möller druck, Ahrensfelde, Germany Climate-neutral printing on 100 percent recycled paper. Except for the copyrighted work indicated on pp.64–65, this material is licensed under Creative Commons “Attribution-ShareAlike 3.0 Unported“ (CC BY-SA 3.0). For the licence agreement, see http://creativecommons.org/licenses/by-sa/3.0/legalcode, and a summary (not a substitute) at http://creativecommons.org/licenses/by-sa/3.0/deed.en. This publication has been produced with the financial assistance of the Development Fields project, funded by the European Commission. The contents of this report are the sole responsibility of Friends of the Earth Europe and the Heinrich Boell Foundation and can under no circumstances be regarded as reflecting the position of the European Commission. For orders and download Heinrich Böll Foundation, Schumannstr. 8, 10117 Berlin, Germany, www.boell.de/fleischatlas Friends of the Earth Europe, www.foeeurope.org/meat-atlas
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MEAT ATLAS
Facts and figures about the animals we eat
2014
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TABLE OF Contents
2 IMPRINT 22 wHY FaRMS KIll FISH:
BIodIVERSITY loSS oN laNd
6 INTRodUCTIoN aNd IN waTER
Overfertilization harms plants and
8 lESSoNS To lEaRN animals and damages ecosystems worldwide.
Nitrates in groundwater can cause
10 THE RISE oF THE GloBal MaRKET cancer. In coastal waters, they can result in
The developed world has fewer and fewer oxygen-starved “dead zones”.
farmers, but they are keeping more
and more animals. Instead of producing 24 a SPECIES-PooR PlaNET
for the local market, they supply The genetic basis of livestock is getting ever
distant supermarkets. This same shift is narrower. We are relying on a few,
now transforming livestock specialized breeds of animals, such as the
production in the developing world. black-and-white Holstein-Friesian dairy cattle
that are raised in over 130 countries. A few
12 CoNCENTRaTIoN: ECoNoMIES high-yielding strains also dominate the
oF SCalE BUT lESS dIVERSITY production of chickens, goats, pigs and sheep.
Economic imperatives are the driving
force behind the consolidation of the global 26 aNTIBIoTICS: BREEdING SUPERBUGS
meat industry. This may mean more Industrial producers use large amounts
efficient production, but it also concentrates of pharmaceuticals to prevent diseases from
market power in the hands of just a few, spreading like wildfire among animals
much to the detriment of smallholders. And on huge factory farms, and to promote faster
it may be risky for consumers, too. growth. But this is dangerous: bacteria
are developing resistance to drugs that are
14 MaKING PRodUCTS FRoM aNIMalS: vital to treat diseases in humans.
THE SlaUGHTER INdUSTRY
To get from steer to steak, the steer has to die. 28 wHEN THE TaNK IS RUNNING dRY
Today, slaughtering is highly industrialized. The growth of the world’s livestock industry
Abattoirs are production lines with semi- will worsen the overuse of rivers and
skilled workers toiling in poor conditions. The lakes. It’s not that animals are particularly
industry has moved out of cities, hidden from thirsty; but a lot of water is needed
view. Animal-rights groups are questioning to grow the fodder they eat, and dung from
the ethics of the slaughter industry. factory farms pollutes the groundwater
with nitrates and antibiotic residues.
16 BRIGHT PINK IN THE Cold CaBINET
It’s goodbye to the neighbourhood 30 THE GRaIN IN THE FEEd TRoUGH
butcher and hello to supermarket chains. The Ruminants and people do not have to
shift to Big Retail is now washing over compete over food. But producing more meat
developing countries. The demands of the requires ever more grain to feed to animals
rising middle classes are setting the agenda. as concentrates. If we cannot grow enough at
home, we have to import it from abroad.
18 FREE TRadE VERSUS SaFE Food
The Transatlantic Trade and Investment 32 THE EMERGENCE oF a laTIN
Partnership agreement currently aMERICaN SoY EMPIRE
being negotiated between the United States In Argentina, the world boom in soy prices
and the European Union promises to has given rise to a new breed of farmers,
boost trade and jobs. But it may also weaken along with a huge increase in tax revenues
existing consumer-protection laws for the government. The structural
on both sides of the Atlantic. changes in farming have led to serious social
and ecological effects.
20 THE HIddEN CoSTS oF STEaK
The price tag on a package of meat does not 34 THE ClIMaTE CoST oF CaTTlE
reflect the true cost of producing the Livestock directly or indirectly produce nearly
contents: the hidden costs to the environment one-third of the world’s greenhouse gas
and the taxpayer are much higher. If emissions. But farmers and scientists say that
these costs are included, livestock raising with the right type of management, livestock
would probably make a net loss. do not have to be a burden on the climate.
4 MEAT ATLAS
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36 RaNCHERS IN THE RaINFoREST 50 URBaN lIVESToCK KEEPING
In Brazil’s Amazon region, the world’s For many, urban livestock is a
second-largest herd of cattle meets the contradiction in terms. Isn’t livestock-raising
world’s biggest rainforest. This is bad news a rural activity, and don’t cities ban
for the forest. First come the loggers, livestock because of the smell, noise and
then come the ranchers. pollution? Yet urban livestock are
crucial for the livelihoods of many poor city
38 THE GlYPHoSaTE IN YoUR BURGER dwellers. And they provide nutritious
If pesticides, herbicides or medicines leave food at lower prices than their country cousins.
unwanted residues in meat, milk and
eggs, we end up consuming them too. Gaps 52 TURNING SCRUB INTo PRoTEIN
in research leave uncertainty about Much of the world’s livestock, and much of its
what glyphosate – a weedkiller used when meat, milk and eggs, are raised by
growing genetically modified soybeans – non-industrial producers. Many of them
does to our bodies. Legal loopholes mean we manage their animals on land that is
may be eating it without knowing it. unsuited for crops, optimizing the use of
local resources. But the existence of
40 a PlETHoRa oF PoUlTRY: CHICKENS these producers is under increasing threat.
TaKE THE lEad
In developed countries, consumption 54 IN SEaRCH oF Good Food
of chicken is surpassing that of beef, Concerned consumers in the rich world face
and chicken production is now a dilemma. They want good-quality meat
highly industrialized. Demand in Asia is that is produced in an environmentally
rising fast, and people who refuse friendly, ethical manner. How best to ensure
pork and beef are happy to eat chicken. this? Here we look at some alternatives.
42 wHERE KEEPING CHICKENS 56 VEGETaRIaNISM: MaNY RooTS,
IS woMEN’S woRK MaNY SHooTS
Many women in Africa and Asia are forced Only a small percentage of the population
to be dependent on their husbands for big in the industrialized world describe
decisions. A few hens, chicks and eggs can themselves as vegetarians or vegans. Such
build their confidence and self-reliance. lifestyles are more common in parts
Their contribution to the meat supply is often of the world where religions play a major
underestimated. role. In most faiths, followers are
expected to abstain from meat in one way
44 IMPoRTEd CHICKEN wINGS dESTRoY or another.
wEST aFRICaN BUSINESSES
European poultry firms are not permitted 58 wHaT To do aNd How To do IT:
to turn slaughter by-products into animal INdIVIdUalS aNd GRoUPS
feed. So they export them to developing Given all the problems with livestock
26 topics
countries and sell them cheap. Broiler farms production and meat consumption, and 80 graphics
in Ghana and Benin have gone bankrupt. is there anything that normal people can on how we produce
do? Yes: individuals can make and consume
46 dISQUIET IN THE dEVEloPEd woRld choices about their consumption patterns, meat
Demand for meat in the developed world and groups can push for change.
has peaked, and is beginning to decline
slowly. Consumers’ worries about food safety 60 a GREENER PolICY FoR EURoPE
are reinforced by scandals in the The EU’s Common Agricultural Policy (CAP)
industry. The industry is trying to improve has for decades supported, and distorted,
its image with marketing ploys, but farm production. It has evolved from
consumers are confused and the product is supporting large-scale production to taking
not necessarily any better. the environment increasingly into
account. But problems remain. A greener
48 HalF a BIllIoN NEw MIddlE- CAP could promote socially and ecologically
ClaSS CoNSUMERS FRoM RIo To sound livestock production.
SHaNGHaI
Brazil, Russia, India, China and South 62 aUTHoRS aNd SoURCES
Africa – the BRICS – are five big developing FoR daTa aNd GRaPHICS
countries that are setting out from
different starting points. They may not 64 RESoURCES
end up with the food consumption patterns
of the industrialized West. 66 aBoUT US
MEAT ATLAS 5Zoom Fit Width Search TOC 2-pages Full-Screen-Mode
INTRODUCTION
F
ood is very personal. It is not just a need. Food One in every seven people in the world does
often embodies certain feelings: familiarity, not have adequate access to food. We are a long
relaxation, routine, or even stress. We eat in way from realizing the internationally recognized
different types of situations and have our own, right to quantitatively and qualitatively sufficient
very personal preferences. food. On the contrary, almost a billion people in
At the same time, however, we are more and the world go hungry, largely because the middle
more alienated from what is on our plates, on the classes’ craving for meat creates large-scale, inten-
table and in our hands. Do you sometimes wonder sive livestock and food industries.
where the steak, sausage or burger you are eating In many countries, consumers are fed up with
comes from? Personal satisfaction reflects ethical being deluded by the agribusiness. Instead of us-
decisions, and private concerns can be very po- ing public money to subsidize factory farms – as
litical in nature. Each of us ought to decide what in the United States and European Union – con-
we want to eat. But responsible consumption is sumers want reasonable policies that promote
something that an increasing number of people ecologically, socially and ethically sound livestock
demand. Then again, they need information on production. As a result, a central concern of the
which to base their decisions. Heinrich Böll Foundation is to provide informa-
How can normal consumers understand the tion about the effects of meat production and to
global impact caused by their meat consumption? offer alternatives.
How many people realize that our demand for
W
meat is directly responsible for clearing the Ama- hile governments in the developed world
zon rainforest? Who is aware of the consequences have to radically change course and strug-
of industrial livestock production for poverty and gle against the power of the agricultural
hunger, displacement and migration, animal wel- lobby, developing countries can avoid repeating
fare, or on climate change and biodiversity? the mistakes made elsewhere. If they know about
the effects of intensive meat production, they can
N
one of these concerns are visible on the plan for a future-oriented form of production that
meat and sausage packages in the super- is socially, ethically and environmentally respon-
market. On the contrary, big agribusinesses sible. Instead of trying to export their failed model,
try to play down the adverse effects of our high Europe and the United States should attempt to
meat consumption. Advertising and packaging show that change is both necessary and possible.
in developed countries convey an image of happy There are alternatives. Meat can be produced
animals on happy farms. In reality, the suffering by keeping animals on pasture instead of in build-
the animals endure, the ecological damage and ings, and by producing feed locally rather than
the social impacts are swept under the carpet. shipping it thousands of kilometres. Manure does
not have to burden nature and the health of the
local population; it can be spread on the farmer’s
own fields to enrich the soil.
Our atlas invites you to take a trip around the
„
world. It gives you insights into the global connec-
There are alternatives tions made when we eat meat. Only informed, crit-
ical consumers can make the right decisions and
demand the political changes needed.
In many countries, consumers are
fed up with being deluded by the
agribusiness. Instead of using public Barbara Unmüßig
President, Heinrich Böll Foundation
money to subsidize factory farms – as in
the United States and European Union –,
consumers want reasonable policies
that promote ecologically, socially and
ethically sound livestock production.
6 MEAT ATLASZoom Fit Width Search TOC 2-pages Full-Screen-Mode
„
Catalyzing the debate
The current industrialized and
corporate-led system is doomed
F
ood is a necessity, an art, an indulgence. to fail. We need a radical overhaul of
But the global system for producing food is
food and farming if we want to feed a
broken. While people in some parts of the
world do not have enough to eat, others suffer
growing world population without
from obesity. Millions of tonnes of food are wasted destroying the planet.
and thrown away, and perversely, crops are con-
verted into biofuels to feed cars in Europe and the
Americas.
At the same time, the natural world upon and chemicals. Sustainable farming exists in
which we all depend is being damaged and de- which farmers produce meat and dairy products
stroyed. Ecological limits are being stretched as from numerous smaller farms, grow their own
our demand for ever more resources takes prec- crops to feed their animals, and allow animals to
edence over the need to protect biodiversity and graze freely.
the Earth’s vital ecosystems. Forests and precious There are millions of local markets, and nu-
habitats are being cleared to make way for vast merous small, innovative food companies. There
monocultures to supply industrialized countries. is huge public support for sustainable farming:
Farming is being intensified and wildlife wiped people are building an alternative global food sys-
out at unprecedented rates. tem that is based on food sovereignty, and ensures
everyone’s right to safe, nutritious, sustainable
O
ver the past 50 years, the global food sys- and culturally appropriate food.
tem has become heavily dependent on There is increasing international recognition
cheap resources, chemical sprays and that the current industrialized and corporate-led
drugs. It is increasingly controlled by a handful of system is unsustainable and doomed to fail. We
multinational corporations. The social impacts of need a radical overhaul of food and farming if we
this system are devastating: small-scale farmers want to feed a growing world population without
worldwide are driven off their land, both obesity destroying the planet. This system needs to have
and food poverty are rife, and taxpayers and citi- food sovereignty at its heart.
zens are increasingly footing the bill for one food
T
crisis after another. In this corporate-controlled his publication sheds light on the impacts
food system, profits always come before people of meat and dairy production, and aims to
and planet. catalyse the debate over the need for better,
Nothing epitomizes what is wrong with our safer and more sustainable food and farming. We
food and farming more than the livestock sector hope to inspire people to look at their own con-
and the quest for cheap and plentiful meat. Many sumption, and politicians at all levels to take ac-
of the world’s health pandemics in the past years tion to support those farmers, processors, retailers
have stemmed from factory farms. Livestock rais- and networks who are working to achieve change.
ing is one of the biggest greenhouse gas emitters, As a species, we need to be smarter. It is time to
and is responsible for the use of huge amounts of acknowledge that the corporate-controlled food
the world’s grain and water. Worldwide, livestock system is broken. It is time to curtail the power of
are increasingly raised in cruel, cramped condi- those vested interests that want to keep it. Revolu-
tions, where animals spend their short lives un- tionizing the way we produce and consume meat
der artificial light, pumped full of antibiotics and is just the start. We need to create a world where
growth hormones, until the day they are slaugh- we use natural resources in a more efficient way.
tered. We need to ensure these resources are fairly dis-
What is truly scandalous is that it doesn’t have tributed, and that everyone on this planet, both
to be like this. We produce enough calories in the today and tomorrow, has access to safe, sufficient,
world to feed everyone, even with an increasing sustainable and nutritious food.
global population. We know how to farm with-
out destroying the environment and without im-
posing cruel conditions on the animals we breed, Magda Stoczkiewicz
without corporate-owned and controlled seeds Director, Friends of the Earth Europe
MEAT ATLAS 7Zoom Fit Width Search TOC 2-pages Full-Screen-Mode
Lessons to learn
About Meat and THe World
Diet is not just a
1 private matter. Each meal
has very real effects on the lives of
people around the world, on the
environment, biodiversity and the
climate that are not taken into
account when tucking into a piece
of meat.
Water, forests, land use, climate and biodiversity:
2 The environment could easily be protected
by eating less meat, produced in a different way.
The middle classes around
3 the world eat too much meat.
Not only in America and Europe, but
increasingly in China, India and other
4
emerging countries as well.
High meat consumption
leads to industrialized
agriculture. A few
international corporations
benefit and further
expand their market 5
power.
Consumption is rising mainly because
city dwellers are eating
more meat. Population growth
plays a minor role.
8 MEAT ATLASZoom Fit Width Search TOC 2-pages Full-Screen-Mode
Compared to other agricultural
sectors, poultry production has
the strongest international links, is
most dominated by large producers,
and has the highest growth rates. 7 Intensively produced meat
small-scale producers, is not healthy – through the
the poultry and the use of antibiotics and
environment suffer. hormones, as well
as the overuse of
6 agrochemicals in
feed production.
Urban and small-scale rural
livestock can make an important
8
contribution to poverty
reduction, gender equality 9
and a healthy diet – not
only in developing countries.
Eating meat does not have to damage
the climate and the environment. On
the contrary, the appropriate use of agricultural land by
10 animals may even have environmental benefits.
Alternatives exist. Many existing
initiatives and certification 11
schemes show what
a different type Change is possible. Some
of meat production say that meat consumption patterns
cannot be changed. But a whole
might look like – one
movement of people are now eating
that respects environmental
less meat, or no meat at all. To
and health considerations
them it is not a sacrifice; it is part
provides appropriate
conditions for animals. ofhealthy living and
a modern lifestyle.
MEAT ATLAS 9Zoom Fit Width Search TOC 2-pages Full-Screen-Mode
THE RISE OF THE GLOBAL MARKET
The developed world has fewer and fewer farmers, but they are keeping more
and more animals. Instead of producing for the local market, they supply
distant supermarkets. This same shift is now transforming livestock production
in the developing world.
O
verall, the global demand for meat is grow- supermarket, in which town, and with what type
ing, but at different rates in different re- of marketing its pork chops will be sold.
gions. In Europe and the United States, the But the production conditions are now very
biggest meat producers in the 20th century, con- different from before. Industrial livestock pro-
sumption is growing slowly, or is even stagnating. duction in Europe and the USA began when feed,
On the other hand, the booming economies in energy and land were inexpensive. Nowadays, all
Asia and elsewhere, will see around 80 percent of three are scarce and costs have gone up. As a re-
the growth in the meat sector by 2022. The biggest sult, total meat production is growing less quickly
growth will be in China and India because of huge than before. The market is growing only for pigs
demand from their new middle classes. and poultry. Both species utilize feed well and can
The pattern of production is following suit. be kept in a confined space. This means that they
South and East Asia are undergoing the same rap- can be used to supply the insatiable demand for
id transformation that occurred in many indus- cheap meat. By 2022, almost half the additional
Pig and poultry
trialized countries several decades ago. In the meat consumed will come from poultry.
markets are 1960s in Europe and the USA, many animals Beef production, on the other hand, is scarcely
growing; beef and were kept in small or medium-sized herds on growing. The USA remains the world’s largest beef
sheep markets are grazing land. They were slaughtered and pro- producer, but the meat industry describes the sit-
stagnating cessed on the farm or in an abattoir nearby. uation there as dramatic. For 2013, it expects a fall
Meat and sausage were produced in the same lo- of 4-6 percent compared to 2012 and predicts the
cality or region. Today, this mode of livestock pro- decline to continue in 2014. In other traditional
duction has almost died out. In the USA, the num- producing regions including Brazil, Canada and
ber of pig raisers fell by 70 percent between 1992 Europe, production is stagnating or falling.
and 2009, while the pig population remained the The star of the day is India, thanks to its buffalo
same. During the same period, the number of meat production, which nearly doubled between
pigs sold by a farm rose from 945 to 8,400 a year. 2010 and 2013. India is forcing its way onto the
And the slaughter weight of an animal has gone world market, where 25 percent of the beef is in
up from 67 kilograms in the 1970s, to around 100 fact now buffalo meat from the subcontinent. Ac-
kilograms today. cording to the US Department of Agriculture, In-
In China, more than half the pigs are still pro- dia became the world’s biggest exporter of beef in
duced by smallholders. This is changing fast. The 2012 – just ahead of Brazil. Buffaloes are inexpen-
same technologies and capital investments that sive to keep. This makes their meat a dollar a kilo
dominate livestock production in the developed cheaper than beef from cattle. In addition, the
world are penetrating developing countries – and Indian government has invested heavily in abat-
they are integrated in global value chains. When toirs. Faced with the high price of feed, Brazilian
a piglet is born, its fate is already sealed: in which cattle-raisers are switching to growing soybeans.
Production Trade Trade Consumption
World, forecast 2013, World, forecast 2013, World, forecast 2013, World, per capita,
FAO
FAO
FAO
FAO
million tonnes million tonnes percent forecast 2013, kg per year
13.8 0.9 9.9
68.1 8.6
7.2 33.3
114.2 308.2 30.2 100 43.1
106.4 13.3 90.1 79.3
beef, veal pigs other beef, veal pigs other domestic consumption developed world
poultry sheep, goats poultry sheep, goats export developing
10 MEAT ATLASZoom Fit Width Search TOC 2-pages Full-Screen-Mode
Worldwide meat production
FAO
50.4
23.0 3.2
2.5 17.1
19.2 2.1
12.4 0.6 1.7
11.4 0.9 0.2 6.5
1.4 8.1 0.4 1.4
1.2 Russia 4.1
1.3
10.2 Ukraine 0.5
1.0
Canada
1.6 1.7 1.0
0.1 EU 0.5
13.1 0.2 0.3 0.4 Japan
0.3
USA 0.7
9.7
0.3 Turkey
Iran 2.9 2.9 Korea
0.1 0.2 China
0.8 0.5 0.3
3.3 Algeria 0.9
2.8
1.8 0.7 0.1 Saudi Arabia 1.7
India
Egypt 1.5 0.7
1.5 0.8
1.2 0.2 0.5 0.1
0.1 0.5
Pakistan Malaysia Indonesia
Mexico 0.2
0.1 0.2 0.2
Brazil 0.3 Bangladesh 2.1
1.0
0.9 1.5
0.3
2.6 0.2 0.6
0.6
0.5 beef, veal
0.5 South Africa Australia
1.8 pigs
0.2
Uruguay poultry
0.3 0.6 0.5
Chile Million tonnes, average 2010-2012, sheep, goats
0.1 0.2
data for 2012 are estimated
Argentina New Zealand
This presents an opportunity – albeit a small one – Whereas the developed world still dominates,
for Indian buffalo-meat exporters. growth now relies on the developing countries.
Africans are also starting to eat more meat, Nevertheless, only one-tenth of the world’s meat
though both supply and demand are still not is traded internationally. This is because meat can
growing as fast as in other parts of the world. Pro- only be exported if it meets and can document
duction has risen in many countries in Africa, but the quality requirements of the importing coun-
significantly only in populous South Africa, Egypt, tries. Importers and consumers fear diseases such
Nigeria, Morocco and Ethiopia. A typical African as mad cow disease, foot-and-mouth disease and
eats only 20 kilograms of meat a year – well below avian flu. The temporary interruption of the poul-
the world average. Imports of cheap poultry meat try market in Southeast Asia and the complete
have increased, though often at the expense of lo- collapse of British beef exports have shown how
cal producers. international trade can dry up overnight.
Small animals in big groups – poultry take off A stable outlook – only if speculation is limited
Meat production, trends and forecast, in million tonnes Real meat prices, trends and forecast, in dollars per tonne
OECD/FAO
OECD/FAO
beef, veal pigs beef, veal pigs
poultry sheep, goats poultry sheep, goats
140 5,000
120
4,000
100
80 3,000
60 2,000
40
1,000
20
0 0
1995 1999 2003 2007 2011 2015 2019 2021 1991 1996 2001 2006 2011 2016 2021
MEAT ATLAS 11Zoom Fit Width Search TOC 2-pages Full-Screen-Mode
CONCENTRATION: ECONOMIES
OF SCALE BUT LESS DIVERSITY
Economic imperatives are the driving force behind the consolidation of the
global meat industry. This may mean more efficient production, but it also
concentrates market power in the hands of just a few, much to the detriment
of smallholders. And it may be risky for consumers, too.
I
n September 2013, Shuanghui International ground or at the slaughterhouse: its worldwide
Holdings Ltd. – the largest shareholder of Chi- capacities can slaughter 85,000 head of cattle,
na’s biggest meat processor – completed a 7.1 70,000 pigs, and 12 million birds. Every day. The
billion-dollar purchase of US-based Smithfield meat is distributed in 150 countries as soon as the
Foods, Inc., the world’s biggest pork producer. The carcasses are “disassembled” , i.e. when the flesh is
sale exemplifies a new kind of consolidation that is separated from the bone.
happening across borders. The direction of invest- Because profit margins are tight in the meat
ment is changing: it is now heading North from business, companies chase after economies of
the global South. This reflects related shifts in scale. This means that they try to produce more
economic growth, consumer demand, manage- with greater efficiency and at a lower cost. For this
Tight margins ment skills and corporate assertiveness over the reason, the meat sector is concentrating in two
expose the business last two decades. senses. Companies are getting bigger through
to volatile market JBS SA, a beef company based in Brazil, set mergers and acquisitions – expanding across bor-
prices and trade the stage in the late 2000s, when it acquired ders and across species. And meat production is
meat companies and poultry producers in the intensifying, so that more animals are housed to-
tensions
United States, Australia and Europe, as well as gether and are processed more quickly and with
in Brazil. JBS is now the world’s biggest producer less waste. However, some market analysts point
of beef. With its 2013 acquisition of Seara Brasil, out that the meat business is inherently risky and
a unit of rival company Marfrig Alimentos SA, it that, based on recent financial performance, the
is also the world’s largest chicken producer. JBS is multi-species strategy may be backfiring due to
among the world’s top ten international food and different cultures and processes that pose chal-
beverage companies, with food sales amounting lenges to newcomers. In other words, knowing
to 38.7 billion dollars in 2012. how to grow, slaughter, process and transport cat-
It also has business units in leather, pet prod- tle may not translate easily into managing poultry
ucts, collagen and biodiesel. Though JBS is not a operations.
household name, its annual food revenues are Volatile feed-grain prices add to the financial
higher than those of major global food players risk in the meat sector: higher-priced feed means
such as Unilever, Cargill and Danone. These fig- higher production costs and lower profits. With
ures give us an idea of what JBS’s size means on the the deregulation of commodity markets at the
World meat prices compared World food prices compared
Indices, 2002–4 = 100 Indices, 2002–4 = 100
FAO
FAO
beef, veal pigs
FAO
poultry sheep, goats
220 220
190 190
160 160
meat
130 130 dairy products
food
100 100
70 70
2007 2008 2009 2010 2011 2012 2013 2006 2008 2009 2010 2011 2012 2013
12 MEAT ATLASZoom Fit Width Search TOC 2-pages Full-Screen-Mode
The Top Ten of the international meat industry
Companies by total food sales (2011–13), billion dollars
Leatherhead/ETC
7
Smithfield Foods.
3 Founded in 1936; 2012 revenues:
13.1 billion dollars. Largest pork 9
Cargill. Founded 1865,
producer and processor in the USA. Danish Crown AmbA.
33 family-owned business. 2013
Sold to Chinese Shuanghui Founded 1998 after several
revenues: 32.5 billion dollars.
International Holdings Ltd., with mergers. 2012 revenues:
22 percent share in the US meat
revenue of 6.2 billion dollars, 10.3 billion dollars. Major
market, biggest single
33 exporter in Argentina, in 2013
13 10 Danish Crown AmbA
subsidiaries in USA, Poland and
Sweden. Europe’s largest meat
worldwide operations
Vion producer, world’s biggest
9 pork exporter
Cargill 13 5 13
5
Smithfield Foods Nippon Meat Packers
3 Vion. Founded in 2003
after several mergers.
Tyson Foods 7 6
2011 revenues: 13.2 billion
8 Hormel Foods dollars. Largest meat processor
2 37 in Europe, rapid growth
10 (2002: 1 billion
dollars)
2
TysonFood. 6
Founded 1935; 2012 revenues: Nippon Meat Packers.
33.3 billion dollars. World’s Founded in 1949;
largest meat producer and 1 2013 revenues: 12.8 billlion
15 JBS
second-largest processor of dollars. Commonly known as
JBS. Founded in 1953;
chicken, beef Nippon Ham. Operations in
BRF 2012 revenues:
and pork 59 locations in 12 countries,
13 1 38.7 billion dollars. World’s largest
mostly in Asia and
10 4 food-processing company, leader
Marfrig Australia
in slaughter capacity. Recently
Hormel Foods.
acquired Smithfield Foods’ beef
Founded 1891; 2012 revenues:
8 4 business and Malfrig’s poultry
8.2 billion dollars.
and pork units 8
40 manufacturing and distribution BRF. Founded in 2009 as
facilities. Owner of “Spam”, a Brasil Foods after a merger Marfrig. Founded
precooked meat product; of Sadia and Perdigão. 2012 in 2000 after several mergers.
focusing on ethnic food revenues: 14.9 billion dollars. 2012 revenues: 12.8 billion dollars.
60 plants in Brazil, present Company units in 22 countries.
in 110 countries World’s fourth largest beef
producer. In 2013, sold poultry
and pork units to JBS
turn of the 21st century, feed prices have become (including antibiotic resistance), food safety, ani-
less dependent on supply and demand, and more mal welfare, the environment, water security, la-
dependent on the speculative market manipula- bour security and innovation.
tions that create price spikes. Add to that the role Extreme efficiency itself also carries a risk. One
biofuels have had on prices for soy and maize, and cattle feedlot operator in the United States says
the volatility in the price of fertilizers. Goldman that he is unsure where the economies of scale
Sachs, an investment bank and titan of commodity end, because 100,000-head feedlots for cattle are
trading, was ever-present in the Shuanghui-Smith- now possible. Several exist in the United States
Consumers
field deal. It had been hired to advise Smithfield on and their production costs are lower than for
any potential sale, and it owns a 5 percent stake in smaller feedlots. Logistics in large production may get lower
Shuanghui. In 2012, Goldman made an estimated units are manageable nowadays, but the larg- prices, but the
1.25 billion dollars from commodity trading. er the system, the more vulnerable it is. In an in- risks to society
Why does size matter? The implications of the tensified environment, for example, pathogens are higher
meat industry’s two-tiered concentration – corpo- can spread more quickly and easily from one
rate consolidation and the intensification of meat animal to another, both on the feedlot and during
production – are wide-ranging. It is virtually im- transport. The same is true for the slaughterhouse
possible for the consolidated industry to coexist as the speed of processing increases. Furthermore,
with small producers. These multinational struc- in the event of a disaster, such as a flood, the sys-
tures both wipe out a critical source of income tem will not be able to maintain its capacity. And if
for the global poor, and they radically diminish consumer demand declines, companies run with
consumer choices. Through economies of scale, a low margin of safety may risk collapse. There-
concentration offers greater profit potential for fore, insurance companies with custom-tailored
stockholders and financiers; for other stakehold- risk assessments are becoming an important part
ers, however, it increases risks to human health of the modern meat business.
MEAT ATLAS 13Zoom Fit Width Search TOC 2-pages Full-Screen-Mode
MAKING PRODUCTS FROM ANIMALS:
THE SLAUGHTER INDUSTRY
To get from steer to steak, the steer has to die. Today, slaughtering is highly
industrialized. Abattoirs are production lines with semi-skilled workers toiling
in poor conditions. The industry has moved out of cities, hidden from view.
Animal-rights groups are questioning the ethics of the slaughter industry.
A
t the start of the 20th century, Chicago was In poorer countries, the introduction of public
the cradle of the slaughter industry. Using or private slaughterhouses is the first step towards
moving production lines, it took just 15 the processing of animals in a hygienic way. At the
minutes for a cow to be killed, fully eviscerated other end of this transformation, the efficient fac-
and cut up. Up to 12 million animals were slaugh- tories that are standard in industrial countries are
tered annually in the city: this method was so effi- now spreading in the developing world. In these
cient that Henry Ford adopted the production-line facilities, periodic food scandals are forcing strict-
process to make cars. er, costlier hygiene measures.
With industrialization, the slaughter pro- The battle for the lowest prices is therefore be-
cess has become centralized worldwide. Dur- ing fought on the workers’ backs. Millions of peo-
ing the Great Depression of the twenties, several ple worldwide work in slaughterhouses; no one
dominant conglomerates emerged in the United knows exactly how many. Their work is regarded
Abattoir States, followed by a long period of deconsoli- as “dirty”. Especially in Western industrialized
dation. But with the deregulation and stock nations, they get little social recognition and are
workers have low market boom of the 1970s, the sector again even shunned. Low wages and terrible working
status, endure poor concentrated rapidly. Between 1967 and conditions are the rule rather than the excep-
conditions, and 2010, the number of slaughterhouses in the tion. High-speed, monotonous work, the risk of
earn little United States fell from almost 10,000 to less accidents with dangerous equipment and chemi-
than 3,000. cals, or strained backs and limbs all make for a
Today, ten corporations slaughter 88 percent highly stressful combination. Other factors are
of the total number of pigs. The global capacity of heat or cold, constant noise, a risk of infectious
the companies is hard to believe: Tyson Foods, a diseases, and early or late shifts, depending on
US firm that is second only to the Brazilian com- the type of work. Plus, the handling and slaughter
pany JBS, slaughters 42 million chickens, 170,000 of animals can add to the workers’ stress. Many
cattle and 350,000 pigs – every week. These ani- workers say they have to be especially “hard” to
mals come from the company’s own breeding do their work.
units, and are processed in its own factories and With industrialization, the process of deskill-
often sold under its own brand. This strategy aims ing and mechanization also set in. Today’s slaugh-
to extract as much profit as possible from the terhouse workers need few of their traditional
value chain “from field to fork”. In addition, the skills and craft knowledge. Instead, companies
slaughterhouse may process animals from other hire cheap, semi-skilled workers. Migrants from
companies too. Mexico to North America, and from Eastern to
Slaughterhouses and market concentration in the USA
Number of slaughter establishments Market share of four firms in slaughter of cattle and pigs, percent
Denny
12,000 80
70
10,000
60
8,000
50
6,000 40
cattle
30
4,000 pigs
20
2,000
10
0 0
1967 1977 1987 1997 2007 1965 1975 1985 1995 2005
14 MEAT ATLASZoom Fit Width Search TOC 2-pages Full-Screen-Mode
animals slaughtered worldwide
Official and estimated data, 2011, heads
517 58 110
1 383 000 000
000 000
296
000 000
24 000 000 000 000
430 654
000 000
2 817
buffaloes chickens 000 000
cattle ducks
goats turkeys
sheep geese and
pigs guinea fowl
000 000
Slaughter by countries, four most important, 2011, heads
649
35 108 100 8 954 959 000
46 193 000
USa cattle and USa 11 080 000 000
China
buffaloes China
21 490 000
India 5 370 102 000
poultry 2 049 445 000 000 000
39 100 000 Indonesia
Brazil
Brazil
59 735 680 273 080 000
110 956 304 Germany 661 702 976 84 110 000 China
USa China India
38 600 000
44 270 000 28 980 000
pigs sheep and Nigeria
Vietnam Bangladesh
goats
FAOSTAT
Western Europe work in the slaughterhouses for is only a vacuum-packed meat product on a su-
short periods, and are largely defenceless against permarket shelf.
the companies’ demands. Back in the 1960s, la- Finally, the treatment of animals in slaughter-
bour unions in the meat industry were still strong; houses is subject to criticism on two fronts. The
in the last two decades they have had a much animal welfare movement objects to frequent
harder time. Workers have little say in their work violations of regulations and cruelty to animals,
conditions, and collective wage agreements are such as long transports, inadequate anaesthesia,
unknown in most parts of the world. or the beating of animals when they are driven
in the slaughterhouse.
we severed
In most industrial countries, the slaughter-
houses have been relocated from the cities to the The animal rights movement, on the other the link between
rural periphery. The cruelty of slaughtering and hand, criticizes the mass-slaughter of animals living animals and
images of blood and squealing animals have to as a matter of principle: it says that meat pro- the packaged
be hidden from consumers’ eyes and ears. This re- duction is always associated with violence products
flects a modern social norm: violence is banished against animals. Animal rights activists do not
from public view. Slaughtering and butchery are want to reform slaughter; they want to abolish
made invisible for the majority. The connection it altogether. They say that the meat industry re-
between the meat and the living animal that is gards animals as mere products, whereas society
trucked to town and dies in the slaughterhouse should recognize their individuality and capacity
has been severed. What most consumers now see for suffering.
MEaT aTlaS 15Zoom Fit Width Search TOC 2-pages Full-Screen-Mode
BRIGHT PINK IN THE COLD CABINET
It’s goodbye to the neighbourhood butcher and hello to supermarket
chains. The shift to Big Retail is now washing over developing countries.
The demands of the rising middle classes are setting the agenda.
R
emember those butchers who cut up sides ket share of supermarkets in these countries rose
of beef or pork in a tiled back room, and from 10, to 50 or 60 percent. The second wave, in
sold joints and sausages to customers over a the mid-to-late 1990s, focused on Central America
marble counter in a room out front? In nearly all and Southeast Asia. By 2005, supermarkets ac-
the developed world, they have been consigned counted for 30–50 percent of the market share
to history. Meat today, pre-cooled to 0–4°C, is there. The third wave began in 2000 and washed
delivered to supermarkets from the wholesaler over China and India, as well as big latecomers
or direct from the abattoir. All the supermarket such as Vietnam. In only a few years, supermarket
staff have to do is put the goods in refrigerated sales in these countries were growing by 30 to 50
“Food deserts”: display cabinets, and customers can choose the percent a year.
ready-packaged items themselves directly from Why this huge shift? It is not only due to the
where convenience the shelves. To keep self-service items looking rising purchasing power of the middle classes,
stores and fast-food fresh for days on end, pork chops and chicken but also to more fundamental changes in society.
outlets are the only breasts are vacuum-packed in an environment In Pakistan, for example, cities are expanding so
source of food that is as kept as germ-free as possible. The quickly that traditional methods of supplying
packaging is then filled with an oxygen-rich gas. meat and dairy products cannot keep up with the
This gives beef and pork a red colour and suggests demand. The city of Lahore is growing by 300,000
freshness – even though they may already have people a year. The result is product shortages and
been in storage for several days. poor quality, factors that drive the middle classes
Meat, a luxury in many parts of the world only into the supermarkets, says the Express Tribune,
10 or 20 years ago, is now a part of the daily diet for a Pakistani daily. Working women, who are still
a growing number of people in developing coun- responsible for cooking for their families, have no
tries. Big supermarket chains such as Walmart time to go from shop to shop to check the meat
from the USA, France’s Carrefour, the UK’s Tesco quality or haggle over prices.
and Germany’s Metro are conquering the globe. Investing in spacious stores is worthwhile in
Their expansion has sparked huge investments places with thousands of potential customers. In
by domestic supermarket companies. The process locations where mobility is high, such as the car-
has been well researched. The first wave began in friendly suburbs of US cities, poor people cannot
the early 1990s in South America, in East Asian ti- find a grocery store within walking distance that
ger economies like South Korea and Taiwan, and sells fresh produce they can prepare themselves.
South Africa. Between 1990 and 2005, the mar- The only food they can buy is ready-to-eat meals
Slowing down in China Expansion mode in India
Annual percentage change in store growth, 2010–14, and market shares, 2012, percent Food retail chains, stores and planned additions
Business Standard
Euromonitor
12 existing, 2012/13
11 6.5 planned, 2013/14
10
9 2.3
84.1 1.5 + 125 + 250
8
0.6
7 0.4 602
0.3
6 4.3 500
5
4
+38–50
independent
3
Yum!* Hua Lai Shi 166
chain
2 McDonald’s Shigemitsu
1 Ting Hsin Kungfu Domino’s McDonald’s Yum!*
0 other fast-food chains
2010 2011 2012 2013 2014 independent fast food *Kentucky Fried Chicken, Pizza Hut, Taco Bell
(estimate)
16 MEAT ATLASZoom Fit Width Search TOC 2-pages Full-Screen-Mode
from fast-food outlets. Researchers call these areas Growth in the supermarket fridges
“food deserts”. At the same time, the contents of
shoppers’ trolleys come from further and further Retail value, 2012/13, million dollars, by country
Euromonitor
away. Products come from central warehouses
and big abattoirs that supply all the retail branches 600 + 150–299 no growth
in a region or even a whole country. The huge vol- 300–599 0.1–149 negative growth
umes and secure cold chains ensure that the items
are usually fresh, despite long transport distances.
Selling standardized products simplifies ad- CA
vertising and gives the supermarket chains enor- UK CN
DE
mous market power, enabling them to dictate US
prices to their suppliers. At the same time, the su- canned/preserved meat products
permarket chains compete with each other. This
pushes prices down, and means that locally pro-
duced products are relegated to particular niches.
With the opening of global markets, millions of
small-scale retailers have gone under because RU
they do not handle the volumes needed to justify US TR IR
suitable cold rooms or to ensure the continuous CN
cooling of meat, eggs and milk. chilled processed meat
Price wars and price dumping result in peri-
odic scandals involving meat that is sold past its AR
sell-by date, produced using hormones, or misla-
belled. Global supply chains are particularly com-
RU
plex for processed products. They have resulted
UK DE UA
in donkey, water buffalo and goat meat ending
US IR
up on plates instead of beef in South Africa, and FR
TR
horsemeat being sold as beef in Europe. In India, MX VE SA cheese
NG
meat labelled as buffalo in fact came from the il- BR
legal slaughter of cattle.
In China, the world’s biggest producer and AR
consumer of meat, pork is the most popular type
of meat. Most pigs are still raised by smallholders RU
DE
rather than in intensive factory farms, although US
IR CN
this is changing and the government is pushing FR
IN
hard for intensive pig-raising. Big abattoirs are drinking milk products MX VE NG
ID
still rare. Most slaughterhouses continue to use
manual or semi-mechanical methods, and hy- BR ZA
AR
AU
giene conditions are seldom checked. Many places
lack a functioning cold chain, so most meat is sold
RU
to consumers already cooked. But the demand for
UK DE
meat from supermarkets is growing, and it now US CN
accounts for 10 percent of total meat sales. Such FR
TR IR
products are seen as “Western” and are growing frozen processed poultry
in popularity because they are cheap and associ-
ated with freshness, hygiene and comfort.
International fast food chains like McDon-
ald’s and Kentucky Fried Chicken (KFC) open new
RU
branches in China every day: McDonald’s cur- UK
rently has around 1,700 restaurants, and KFC, the FR
US
IR
market leader, has announced its 4,500th outlet.
Customers are familiar with pledges made by ready meals (with/without meat) DZ
these chains, ensuring that their suppliers are con-
BR
stantly certified and monitored. However, eaters’
appetites have repeatedly been spoiled by food
scandals. In late 2012 and early 2013, KFC had to
grapple with two separate cases of poultry meat AR Argentina DE Germany IR Iran
AU Australia DZ Algeria MX Mexico
contaminated by antibiotics. Its business fell by
BR Brazil FR France NG Nigeria TR Turkey US USA
10 percent and had still not yet recovered by the CA Canada ID Indonesia RU Russia UA Ukraine VE Venezuela
autumn of 2013. McDonald’s was pulled into the CN China IN India SA Saudi Arabia UK United Kingdom ZA South Africa
mire: its sales also declined. Retailers must fear
consumers – even in China.
MEAT ATLAS 17Zoom Fit Width Search TOC 2-pages Full-Screen-Mode
FREE TRadE VERSUS SaFE Food
The Transatlantic Trade and Investment Partnership agreement currently being
negotiated between the United States and the European Union promises to boost
trade and jobs. But it may also weaken existing consumer-protection laws on both
sides of the Atlantic.
I
n theory, liberalizing trade should increase eco- Transatlantic Trade and Investment Partnership
nomic activity and lift all boats, creating jobs (TTIP) in 2013. Intended to bolster their fragile
and economic growth for all. But reality can be economies, this could become the biggest bilat-
quite different. Free-trade deals are no longer only eral free-trade agreement in history. The United
about quotas and tariffs. They can have a sizeable States is the EU’s biggest market for agricultural
impact on the ability of governments to set stand- exports, and the EU is the United States’ fifth-larg-
ards for meat production and to regulate the est trading partner for agricultural goods. Power-
officials discuss global meat industry – from animal welfare, ful interest groups on both sides of the Atlantic,
lower barriers for health, labelling and environmental protec- including the farm, feed and chemicals indus-
pharmaceuticals tion to the industry’s corporate legal rights. tries, are pushing hard for an agreement that dis-
behind But approaches to food safety often differ mantles barriers to trade in agriculture, including
from country to country. The European Union the meat subsector.
closed doors
bases its safety rules for food and chemicals on Such an agreement could result in drastic
the “precautionary principle”. This cornerstone changes in standards on the use of antibiotics in
of Union law permits the EU to provisionally re- meat production, genetically modified organ-
strict imports that might carry a human or envi- isms, animal welfare, and other issues. “Regulato-
ronmental risk where the science is not definitive. ry coherence” to expand trade between the Unit-
The United States states that it makes decisions ed States and the EU sounds good in principle. But
based on “sound science” and cost-benefit analy- the issues are complex. Consumers on both sides
sis, which in the case of GMOs has been based on of the Atlantic should be concerned that the TTIP
industry supplied data. could derail attempts to strengthen food safety
Despite their different food-safety regimes and animal welfare in the meat industry. Industry
and consumer preferences, the European Union on both sides of the Atlantic will seek to lock in the
and the United States started negotiations for a lowest standards in order to expand its markets.
winners and losers from transatlantic trade talks
Percentage expected gains and losses in real per capita income as a result of tougher competition in core markets.
IFO
Assumes that tariffs and non-tariff barriers are abolished, and other trade regimes remain unchanged.
7.3
Sweden 6.2
9.7 Finland
Canada UK
-9.5 6.9
Ireland
13.4 6.6
USa Spain
Mexico
-7.2
-9.5–-6.1
-6.0–-3.1
-3.0–0.0
0.1–3.0 australia
3.1–6.0 -7.4
6.1–13.4
no data
18 MEaT aTlaSZoom Fit Width Search TOC 2-pages Full-Screen-Mode
The United States has for years tried to repulse Meat trade between the USA and the EU
EU restrictions on genetically modified organ-
isms and the use of controversial food and feed Imports and exports, million dollars
USDA ERS
additives. There is the case of ractopamine, used
2010 2011 2012
in the United States as a feed additive to increase
lean meat production in pork and beef. Its use is
banned in 160 countries, including the European 946 1,154 988
Union, largely because of the lack of independent
scientific studies assessing its safety for human total meat trade
health. Currently the United States is not allowed
to export meat from animals treated with ractopa-
mine to the EU. American agribusiness and meat- 1,652 2,031 2,154
processing companies want the EU to lift this ban
and include the issue in the TTIP negotiations. USA EU
After several years of relative quiet, an old
trade dispute has been reopened. Under the TTIP, beef, veal 136 231 223
the USA is once again seeking approval of peroxy-
acid, a substance with antimicrobial properties 298 326 355 pork
commonly used in the USA to clean raw poultry
after slaughter. In the EU, using peroxyacid is seen poultry, eggs 219 218 199
as contrary to the “farm to fork” concept of mini-
mizing the use of chemicals, allowing only hot
water for decontaminating poultry. 741 868 845 cheese
Also, the TTIP presents an opportunity for
multinational corporations to bypass European
citizens’ opposition to genetically modified foods,
many of which are prohibited in the EU. The US
government and food companies have chal- and health aspects of industrial animal produc-
lenged these rules as unfair “technical barriers” to tion. Instead of driving standards to the bottom,
trade. Now, through closed and non-transparent consumers and activists in the United States and
negotiations, the fear is that the EU will use the the EU should demand that governments use the
TTIP negotiations as a reason to lower standards opportunity of the TTIP to raise standards and
on the use of genetically modified organisms. rigorously regulate the meat industry. Or they
The EU, for its part, is seeking to overturn the should abandon the talks altogether.
US ban on beef imports from the EU. The United
States prohibits the use or import of feed ingre-
dients that are known to transmit bovine spongi- Feed trade between the USA and the EU
form encephalopathy (BSE, or “mad cow disease”).
Food-safety advocates in the USA are concerned Imports and exports, million dollars
USDA ERS
that EU policies governing the use of feed ad- 2010 2011 2012
ditives made from ruminants are not strong
enough to prevent contamination. Since the EU corn (maize) 43 239 18
is currently considering relaxing the standards
that regulate the use of feed additives made from sorghum 38 239 1
ruminants, the risk of trade in beef contaminated
with BSE would increase. feed and
Moreover, food-safety measures that seek to 320 492 265
fodder
eliminate health and environmental impacts of
the meat industry could be challenged under USA EU
the “investor-state dispute settlement” mecha-
nism. This clause present in many trade agree- oil seeds 2,072 1,632 2,676
ments allows companies to sue governments for
compensation over rules that affect their profits. soy 1,108 795 1,481
Agribusiness firms are lobbying to make food-
safety standards “fully enforceable” through the feed and
217 270 265
investor-state mechanism in the TTIP. Since this fodder
mechanism gives international investors the legal
right to “stable investment conditions”, making
872 928 1,016 oil seeds
changes in environmental or animal health law
would be much more difficult. 847 897 976 olive oil
The TTIP could also make it much more diffi-
cult to address the negative environmental, social
MEAT ATLAS 19Zoom Fit Width Search TOC 2-pages Full-Screen-Mode
THE HIDDEN COSTS OF STEAK
The price tag on a package of meat does not reflect the true cost of producing the
contents: the hidden costs to the environment and the taxpayer are much higher.
If these costs are included, livestock raising would probably make a net loss.
A
round 1.3 billion people worldwide live countants have developed their own “environ-
from animal husbandry – most of them in mental-economic accounting” that estimates
developing countries. The majority graze damage to nature in monetary terms. It covers the
their animals on land around the village, some costs of factory farming that do not appear on the
move from place to place with their herds, and company’s balance sheet, such as money saved by
others keep a few chickens, cattle or pigs near keeping the animals in appalling conditions. Costs
their homes. In the developed world and rap- to nature are incurred by over-fertilization caused
idly growing economies, the number of livestock by spreading manure and slurry on the land and
keepers is falling. The livestock sector is becoming applying fertilizers to grow fodder maize and oth-
industrialized and meat producing companies er crops. If the quality of water in a well declines
Damage
are expanding. because of high nitrate content, the costs are
to nature is The profits of these companies are not hard to calculate: they often are only recognized
hard to measure just a result of their own efforts. They are also when the well has to be capped and drinking wa-
in monetary built on the environmental damage caused by ter shipped in from somewhere else. Other exter-
terms factory farming and the use of livestock feed – nalities – costs that do not appear in the consumer
costs that the companies do not have to pay. In price – arise if over-fertilization means the soil can
addition, they receive subsidies from the state. no longer function as a filter for rainwater, if ero-
These subsidies are often distributed true to the sion carries it away, if biodiversity declines, or if
motto: the bigger the company, the higher the algal blooms kill fish and deter tourists.
subsidy. No consolidated economic and ecologi- However, for the majority, the most extensive
cal accounting has yet been done, but we can dis- damage occurs further away from the cause. In-
cern its broad outlines. When an animal product tensive livestock production releases nitrogen
is purchased, three prices have to be paid: one by compounds such as ammonia into the atmos-
the consumer, one by the taxpayer and one by phere, contributing markedly to climate change.
nature. The consumer uses the first price to judge According to the European Nitrogen Assessment
the item’s value. The other two prices represent in 2011, this damage amounted to some 70 to 320
hidden subsidies to the people who produce and billion euros in Europe. The authors of this study
merchandise it. concluded that this sum could exceed all the prof-
The costs borne by the environment are prob- its made in the continent’s agricultural sector.
ably the biggest, but they are hard to calculate. If this were counted, the sector as a whole would
Over the last three decades, economists and ac- make a loss.
Different regions, different levels of support
Percentage of gross farm
OECD
receipts from government
for livestock, by region,
24.3
classification by OECD,
2010–12
12.5 Commonwealth of
Independent States
4.8 Europe
14.4
North America
Asia
2.61
Southern hemisphere
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