By updating its animal antibiotics policy, Costco appears to be responding to a number of external pressures. The company wrote a long post outlining the financial and other risks it sees as part of the problem.
It was said by the company that failing to properly care for animals in Costco’s supply chain “could have significant negative effects on the business and operations of the company and its investors.”
A company called As You Sow had already asked Costco to stop using antibiotics that are medically important. The resolution said the company promised to do this for chicken in 2015, but they hadn’t given a date, an update, or said anything about antibiotic policies for beef and pork. That isnt the kind of publicity a well-known retailer in the competitive grocery industry relishes.
As You Sow has also introduced antibiotics-related shareholder resolutions to investors of McDonalds Corp. , Yum Brands and Sanderson Farms. And it has forced companies to make changes. Sanderson Farms, a vocal pro-antibiotics poultry producer, announced Nov. 30 that it would stop using two antibiotics that are medically important for humans to keep them from getting sick by March 1 of next year.
Costco stands to lose a great deal if it doesn’t listen to customers and investors and change its rules to match current trends. The public health implications alone could be alarming to consumers. The World Health Organization said that farming animals with too many antibiotics has created bacteria that are not easily killed with antibiotics. These bacteria could kill 10 million people every year by 2050.
Then there are also the business reasons. Costco recently decided to start raising chickens on its own land. Last year, the store sold about 87 million rotisserie chickens. It has kept them at a price of $4. 99 since 2009. The Nebraska plant that is currently being built will be able to process two million chickens every week. This could greatly increase Costco’s private-label stocks and its supply of the popular item, especially if the chickens are sold as not having been given antibiotics to help them grow or make the feed more efficient.
Other retailers have paved the way to make such changes. Whole Foods was an early adopter of a no-antibiotics-ever pledge. A. C. Gallo, the president and chief operating officer of the store, said in 2012 that the beef, pork, and chicken suppliers met the company’s rule that feed must not contain any antibiotics, growth hormones, or animal byproducts.
Bloomberg says that since Amazon bought Whole Foods last year, other chicken farmers who sell to the store have changed how they use antibiotics and other production rules to meet Whole Foods’ standards. Giant Food, which is part of Ahold Delhaize, started selling antibiotic-free pork in 2017. This was in addition to the antibiotic- and growth hormone-free turkeys it started selling the year before.
Also, retailers have a big reason to switch to antibiotic-free meat because sales of antibiotic-free meat have far surpassed sales of conventionally raised meat. People want it more and are willing to pay more for it, even if it’s more expensive in stores. This shows Costco and other stores that following the trend can be smart and profitable.
Correction: In a previous version of this article, Perdues antibiotics policy was mischaracterized. The company started converting to antibiotic free chicken in 2011, and eliminated antibiotics in 2016.
As a Costco member and beef lover I used to assume their beef was hormone free. After all, Costco promotes wholesome natural foods. However, a closer look reveals a more complex story. In this article, I’ll share what I’ve uncovered about Costco’s beef and hormone use so you can decide if it meets your standards.
First, let’s review some basics. Hormones are natural chemicals that exist in all living things. In beef cattle, anabolic hormones like estrogen, testosterone, and progesterone accelerate growth. The use of added or “synthetic” hormones in beef cattle has been controversial for years. Currently in the U.S., federal regulations prohibit their use in chicken and pork, but allow them in beef.
The concern is that added hormones may affect human health and children’s development. Research shows mixed results with no definitive answers yet However, consumer demand for hormone-free beef continues to grow
Costco’s Beef Supply Chain
Costco works with major beef suppliers like Tyson, Cargill, National, and Harris to source their fresh and frozen beef products. These companies operate large, conventional feedlots where hormones are commonly used.
However, Costco also partners with niche beef providers like Creekstone Farms that use no added hormones. So Costco’s beef comes from both conventional hormone-using operations and hormone-free farms.
This explains why Costco’s overall beef policy is not 100% hormone-free:
“Costco does not have a chainwide policy to limit the use of growth promotants (including hormones) in cattle production. However, a small percentage of the beef sold at Costco is ‘Natural’ or ‘Organic’ which means no growth promotants were administered.”
They go on to share that any added growth hormones used in their conventional beef comply with federal regulations. But these fine print admissions surprised me at first!
Labeling of Costco’s Beef
With this mix of sourcing, Costco does not label most beef cuts as hormone- or antibiotic-free. Look closely at the small print on their beef packages and you’ll see statements like:
“Minimally processed. No artificial ingredients.”
This leaves room for added hormone use in production. On Costco’s organic beef packaging, however, they can make hormone- and antibiotic-free claims certified by the USDA.
Some other key phrases to watch for:
- “USDA Organic” = no added hormones or antibiotics
- “Natural” or “Naturally raised” = no added growth hormones (antibiotic use can vary)
- “Grass fed” or “Grass finished” = may indicate no added hormones (but ask your local Costco)
- No claim = conventional beef production allowing hormone implants
This lack of clear labeling makes it tricky for customers wanting to avoid beef from hormone-treated cattle. Costco does not provide this info upfront on most packages. You have to read the fine print and know the buzzwords.
Why Isn’t All Costco Beef Hormone Free?
Given the concerns around added hormones, why doesn’t Costco make their entire beef supply hormone-free? There are some likely reasons:
- Cost – Conventional beef with growth hormones costs less to produce, keeping prices down. Organic and hormone-free beef costs more.
- Demand – Only a subset of shoppers actively seek out hormone-free beef. Costco has to balance preferences.
- Supply chain – Costco’s high volumes and consistent quality requirements rely on the major conventional suppliers. Going 100% hormone-free could impact their supply chain.
While many consumers, including myself, want hormone-free beef, it’s a complex issue involving trade-offs for a major retailer like Costco. For them, offering some organic/hormone-free beef covers the key customer bases.
How to Buy Hormone Free Beef at Costco
As a Costco customer seeking hormone-free beef, you have a few options:
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Look for organic – Choose USDA Certified Organic cuts to guarantee no added hormones or antibiotics. This comes at a higher price though.
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Seek out “Natural” – Costco carries some “Natural” beef including ground beef that may fit your needs. Confirm it’s 100% hormone-free at the store.
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Ask the meat department – Talk to the meat staff about their hormone-free offerings like grass-fed beef. Availability varies regionally.
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Try specialty suppliers – Creekstone Farms and Coleman Natural deliver hormone- and antibiotic-free beef to some Costco locations.
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Avoid enhancement labels – Steer clear of vague labels like “minimally processed” which likely indicates conventional beef production.
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Consider other stores – If you can’t find hormone-free options at your local Costco, shop at alternative grocers with clearly marked policies like Whole Foods.
What About Antibiotic Usage?
Along with added hormones, the use of antibiotics in beef cattle is another health concern for consumers. Unfortunately, Costco’s antibiotic usage policies appear similar.
While their organic beef must be antibiotic-free, Costco does not have a chainwide restriction on antibiotic use in their conventional beef. These cattle likely receive common antibiotics to prevent disease and promote growth.
Again, Costco aims to balance customer preferences with large-scale production needs. This leaves individuals to navigate the labels and ask questions if avoiding antibiotics matters to you.
Is Costco Still a Good Option?
Despite these downsides around beef additives, I still think Costco is one of the better mass retailers. Their commitment to quality and member satisfaction shows. The availability of organic, hormone-free beef gives consumers a choice, even at higher prices.
Ultimately, it comes down to researching and understanding Costco’s beef sourcing practices. While imperfect for some shoppers, Costco offers reasonable options to purchase beef raised without hormones or antibiotics if you take the time.
As a member, I will continue buying their organic poultry, pork and dairy products thanks to the guarantees against hormones and antibiotics. For beef, I have found some acceptable hormone-free options through trial and error. With smart shopping and questions, Costco can fit well for health and ethics-minded buyers.
The Bottom Line
Costco’s beef supply includes conventional, organic, grass-fed, and natural options with varying use of hormones and antibiotics. While they have some hormone-free beef, most cuts lack clear labeling. With member education and careful selection, Costco still offers quality meat for discerning shoppers. But you must read labels closely and ask questions to ensure you purchase beef meeting your standards.
What has been your experience with Costco’s beef? Do you look for hormone- and antibiotic-free options when shopping? Share your thoughts in the comments!
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The Costco Meat Myth & Why You Shouldn’t Believe It
FAQ
Does Costco meat have hormones?
Is Costco meat antibiotic free?
Who does Costco get their meat from?
Is Costco beef hormone free?
Yes, Costco’s beef products are hormone-free. The company follows strict animal welfare and food safety standards, which includes ensuring that the cattle are raised without the use of hormones. 3. Does Costco sell organic beef? Yes, Costco offers a selection of organic beef products.
Is Costco beef organic?
All the foreign beef is organic, grass-fed Costco requires all its beef to be free of antibiotics or added hormones. The animals must also be slaughtered and processed at USDA-inspected facilities compliant with the American Meat Institute’s recommended animal handling guidelines.
Does Costco have beef?
Costco sources its beef from a variety of cattle breeds, including Angus, Hereford, and Wagyu. The company values diversity in its beef products and offers a range of choices to its customers. 7. Does Costco offer grass-fed beef? Yes, Costco offers a selection of grass-fed beef products.
Does Costco eat organic meat?
The meat is United States Department of Agriculture (USDA) graded and certified. All suppliers must meet Costco’s third-party auditing standards, which include humane treatment of animals, food safety, and sustainable farming practices. The retail chain sources its organic beef from several California ranches.