Kevin Hazelwood discussed antibiotic stewardship initiatives at Cactus Feeders yards including no antibiotics used for growth promotion, all yards being Beef Quality Assurance certified, requiring veterinary diagnosis and supervision for antibiotic treatment of pneumonia or infectious injuries, a respiratory observation program, a secure computerized pharmacy system, individually identifying and tracking all treated animals, prohibiting residue risks before shipping, researching replacement of Tylan in feed, and using electronic stethoscopes for advanced diagnosis. Hazelwood also listed beef industry challenges as the near term loss of control labels, the long term paradox of demand, long term export of productivity and import uncertainties, and the long term loss of technology and sustainability.
5. CONFIDENTIAL 5
Antibiotic Stewardship Initiatives
~ No A-B used for Growth Promotion
~ All Cactus Feeders yards are BQA Certified
~ Diagnosis Required for A-B Treatment:
for pneumonia, or infective injury; under supervision of
Veterinarian
~ Respiratory Observe Program: 5% / 1%
~ โCubexโ System: Secure, computerized Pharmacy
~ All Treated Animals: Individual ID & Tracked
~ Practice โResidue Prohibitionโ: Safe to Ship, QA Officer
~ Cactus Research Trial: Replacement of Tylan in Feed
~ Advanced Diagnosis: Electronic Stethoscope
6. CONFIDENTIAL 6
Beef Industry Challenges
Near Term: Loss of Control Label
Long Term: Paradox of Demand
Long Term: Export of Productivity & Import What??
Long Term: Loss of Technology &Sustainability
Editor's Notes
Cactus Feeders:
1) 500+ Employee, 1MM head annually, 10 Feedyard locations, headquartered in Amarillo, Texas
The context:
1) Average size yard = 50k head
2) Serves as the last step in the production process just before harvest: from 400-800#, finishing at 1,400#
3) Aggregates small groups of cattle (from cow-calf, grass stocker segments) from across the U.S.
4) To produce finished animals of similar size, weight and quality
5) Animals are housed in open air corrals; approximately 175 sq. feet per animal
The Company
Employees: Most are 1st or 2nd Generation Immigrants
100% Employee Owned Company: โFair Pay & Family Benefitsโ
Paid Twice the Minimum Wage
4) Paid Retirement
5) $125 Health Care w/ $500 deductible
POINT: If you want to see Immigration, Capitalism and Free Markets work, come to production Agriculture where we are building the middle class
Challenges
Disparate backgrounds & geography
Arriving & Departing Daily: 20,000 each week across the Company in groups from 50 to 500
At times, a large variation in animal origin, backgrounds, health status and herd immunities
~ Even within a single pen of animals
Animal Care & Handling
Everyday โ each animal โ is observed by a cowboy to determine health & welfare Status
90% of the cattle under our care do NOT receive medical treatment of any kind
Overall we experience 1.5% mortality
Antibiotic Stewardship begins Right Here
(with focus on not letting the animal get to the Hospital)
Low Stress Animal Handling
Appropriate Vaccination Process
Modified Live Program
Bacterins for Clostridials
Intra-nasal IBR Vacine
3) Must be willing to make the investment on: Facilities, Training, Feed & Water
4) Every Facility has been updated
Pharmacy on the Feedyard:
Separate Access Building
With climate control
Security: Automatic Camera activation & Thumbprint security for check out
Computer controlled inventory balanced to treatment records
Operating Philosophy:
โUse as Much as Necessary & As Little as Possibleโ
= Necessary & Judicious Use
Tylan:
1) Fed through ration for prevention of Liver Abscesses
2) In House Research on Replacement & Preventative Therapies
3) Fed for โreduction in incidence of Liver Abscessesโ at 8-01grams / ton
Advanced Diagnosis:
1) Need to better understand the etiology of the principal illnesses & disease we encounter
2) The effectiveness of Broad Spectrum AB has dis-incentivized this basic reasearch
Near Term Concerns:
Loss of โControl Labelโ for treatment of BRD prevention in newly arrived cattle
Lighter weights, travel or climate stressed animals with a pre-disposition for BRD outbreak
Represents 1-2% of all cattle received`
Must have the latitude as treatment and care professionals
Losing this necessary tool will result in the death of more animals
Long Term Concerns:
Most antibiotics build resistance over time
2) Consumer & regulatory stakeholders desire to lengthen this resistance curve
3) Therefore, pressure exists on the production segment to reduce antibiotic use
4) Despite Industryโs Compliance with all federal regโs & demonstration of โJudicious Useโ
Paradox of Demand: โWe Get What We Fear Mostโ
However, with a reduction in demand โ there is a corresponding reduction in innovation
A Paradox of Innovation: When we push use down, we slow innovationโฆ and lose the ability to respond when experience the inevitable curve of resistance
As evidenced by recent NIH report illustrating that 15 of 18 pharmaceutical companies have discontinued participation in the antibiotic segment.
We should instead focus on โNecessary Useโ Standards & Establishment of an โFood Animal Onlyโ Class of AB
in order to allow demand to spur innovation & superior product development
International Competition: โYou have to be protectionist to make arbitrary reduction of AB workโ
We export productivity (through the use of fewer technologies) & compete against markets that are are not constrained by limited AB use
And then.. What are we importing? What problems? What residues? What exposure of the product to bacteria?
Loss of Productivity:
1) Today each animal uses 1,950 fewer pounds of feed
and 1,200 fewer gallons to produce the same amount of Beef.
2) The restriction of technologies hampers our ability to produce sustainable beef