ELAN - Feed That Reduces Methane From Cows Is Approved In U.S.

2024-05-30 09:55:24 ET

The U.S. Food and Drug Administration (FDA) has approved for sale a new feed product that claims to reduce methane emissions from dairy cows by 30%.

The feed, made by pharmaceutical company %ElancoAnimalHealth (NYSE: ), will go on sale throughout the U.S. in this year’s third quarter, said the company.

The new feed product is seen as a major development for both the agriculture sector and the environmental movement.

Agriculture is responsible for roughly 10% of U.S. greenhouse gas emissions that are believed to cause climate change.

Methane, a short-lived but potent gas, accounts for 40% of agricultural emissions and comes from the gas released by cows. Cattle emit methane by belching and in their manure.

Elanco said it has obtained rights to also market its methane-reducing cow feed in Canada and Mexico.

The pharmaceutical company claims that adding one tablespoon of its feed product, called “Bovaer,” to the feed given to lactating dairy cows can reduce methane emissions by 30%.

Each dairy cow in the U.S. produces an average of 7.7 gallons of milk per day, according to industry data.

The stock of Elanco Animal Health has risen 115% over the last 12 months and currently trades at $17.40 U.S. per share.