Tyson Foods, Inc. TSN is reportedly reintroducing certain antibiotics, specifically ionophores, back into its chicken supply chain, applying to all fresh, frozen, and ready-made products under the Tyson brand by the end of the calendar year.
Tyson had pledged in 2017 to raise all chicken for its branded products without using antibiotics.
Tyson's shift from antibiotics was partly influenced by the belief that consumers would pay more for meat produced without the drugs.
However, reintroducing certain antibiotics could be cost-saving for Tyson, especially as consumers show less willingness to pay extra for antibiotic-free products.
Also Read: Tyson Foods To Cut 10% Corporate Jobs.
Tyson's decision may also improve the health of farmers' flocks and is seen as a positive for animal welfare.
Tyson will need to remove the "No Antibiotics Ever" label from the affected products, Wall Street Journal reported.
Ionophores, not considered medically important for treating human illnesses by the World Health Organization, are used to control a disease in poultry called coccidiosis.
Tyson, responsible for processing about one-fifth of all U.S. chicken, was the largest poultry processor to avoid using all antibiotics in its company-branded products.
Antibiotics have been used in the meat industry to treat illnesses, prevent disease outbreaks, and promote weight gain for decades.
The report further noted that the FDA supports limited antibiotic use in meat production, noting that antibiotics like ionophores represent a significantly lower risk of developing drug-resistant bacteria that threaten human health.
Sales of antimicrobial products to chicken producers have been down about 70% since 2016, according to a 2022 FDA report.
Price Action: TSN shares are up 0.37% at $51.23 during the premarket session on the last check Monday.
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