Late September Marks End of Zilmax-Fed Cattle for Cargill

Late-September will mark the end, for now, of Zilmax-fed cattle for Cargill Inc.

"Cargill has told its cattle suppliers that it is suspending the purchase of cattle fed Zilmax, although we will allow those currently being fed Zilmax to cycle through the supply chain," said Mike Martin, Cargill spokesman. "We plan to harvest the last cattle fed Zilmax at our plants by the end of September," Mr. Martin said in an e-mail reply.

Zilmax is a beta-agonist additive that is given during the final few weeks that cattle are in feedlots, making the animals leaner and heavier at slaughter. The product is produced and marketed by Merck Animal Health. Merck (MRK) announced on Aug. 16 that it would halt the sale of Zilmax in the U.S. and Canada while it investigates problems of animal lameness and immobility that some companies are associating with the drug.

"We support Merck's decision to suspend sales of Zilmax pending further research regarding potential animal well-being issues that others have experienced," Mr. Martin said.

Tyson Foods Inc. (TSN) announced on Aug. 7 that it would suspend purchases of cattle fed Zilmax effective Sept. 6. due to concerns about animal well being. The company said it did not believe Zilmax causes any food-safety issues.

Many cattle feeders who have used Zilmax are switching to another beta-agonist product, Optaflexx, a brand of ractopamine made by Elanco Animal Health, a division of Eli Lilly and Co. (LLY). Some cattle feeders have expressed concerns about shortages or delays in shipments of Optaflexx.

Elanco is managing supplies and assessing demand over the next two weeks, Colleen Parr Dekker, spokeswoman with Elanco, told Dow Jones.

Write to Curt Thacker at [e-mail]

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