AMR poses a systemic threat to public health and the economy. When the efficacy and availability of life-saving drugs are compromised, the entire economy suffers. And when the economy suffers, investors lose. By 2050, AMR could cause $100 trillion in lost global production,3 thus lowering the economy’s intrinsic value.

While Hormel says it is reducing antibiotic use,4 its actions diverge from the WHO Guidelines, which recommend that “farmers and the food industry stop using antibiotics routinely to promote growth and prevent disease in healthy animals” and provide evidence-based recommendations and best practices. Despite Hormel’s assertion that “there is no daylight between good citizenship and good business,” it deviates from the WHO Guidelines that would protect against AMR’s global risk. As another company with a meat supply chain explained, it is “difficult to pursue AMR mitigation while remaining competitive on costs.”5 But for diversified investors, the portfolio-wide costs associated with AMR are paramount.

Hormel’s decision not to prioritize broad AMR risks does not account for its diversified owners’ interests in optimizing public health, the economy, and their long-term portfolio returns. By using medically important drugs beyond WHO Guidelines, Hormel adds to the economic threat AMR poses to its diversified shareholders: reducing the economy’s intrinsic value will directly reduce diversified portfolios’ long-term returns.6 Hormel’s profit gain that comes at the expense of public health is a bad trade for Hormel’s diversified shareholders, who rely on broad economic growth to achieve their financial objectives.

By changing its policies and adhering to the WHO Guidelines, Hormel could save lives, contribute to a more resilient economy, and protect its diversified investors’ portfolios.