Day 069 - 19 Dec 94 - Page 44
1 McDonald's just did not know about it; it is possible, is
2 it not?
3 A. It is possible. It depends what you mean by
4 "possible". The possibility is extremely small, so
5 I would have to say no. We control whether they export;
6 when it comes to McDonald's, we have absolute control as to
7 what countries they are going to export. The suppliers
8 know, and it is part of our agreement, that they have to
9 come to us and say, "We are going to export to your
10 suppliers. We want to export to another country besides
11 McDonald's." It is in their best interests to ask for
12 that. They continually ask for that. They know how big we
13 are; they know how fast we grow; they know what other
14 countries we are going to get into. They always constantly
15 telling us what are their intentions, they want. We always
16 have control over that.
17
18 The possibility that they will risk their business for a
19 very minute amount is extremely, extremely low. We are
20 talking billions of dollars of business just in the US
21 alone. For somebody to take a few pounds from Costa Rica,
22 it is absolutely pathetic. It is beyond anybody's
23 comprehension.
24
25 Q. But if they only supplied McDonald's in Costa Rica -- you
26 are saying they are not a major McDonald's supplier, in any
27 event, so they would not be risking ---
28 A. I am saying that on that part of the -----
29
30 Q. -- in the USA, they would not be risking the business if
31 they were actually supplying a supplier?
32 A. In the US, they will take a tremendous, incredible risk
33 that no man in their right mind would take, to import beef
34 from Costa Rica.
35
36 Q. I see. Are you talking about the suppliers taking a risk,
37 not Coope Montecillos?
38 A. Well, Coope Montecillos will not even take the risk,
39 because they know we are growing; they know we have plans
40 to expand even in Central America. They are currently
41 looking for that business. Why would they want to risk
42 anything outside when they can sell it to anybody else at a
43 better price? We pay less for the cost of raw materials
44 that they can sell it to. There is no incentive for them
45 to sell it to suppliers.
46
47 Q. Apart from any possible risks or otherwise, I presume you
48 are aware of the US beef labelling system?
49 A. Yes, I am.
50
51 Q. Are you aware that when beef is imported into America and
52 checked by the US DA, it is relabelled "US beef"?
53 A. I have never looked at the labelling that comes from
54 another country, because we do not import beef from
55 Latin America. That is not part of my business. I cannot
56 tell you that.
57
58 Q. I am not asking you whether you import; I am asking you
59 whether know the categorisation?
60 A. No. I do not know that side of the business. I said
