Day 069 - 19 Dec 94 - Page 46


     
     1   MR. MORRIS:  Do you know of any changes that have been made?
     2        A.  To that?
     3
     4   Q.   To the US beef categorisation?
     5        A.  No.
     6
     7   Q.   Your knowledge of that industry extends back to how long?
     8        A.  To the industry?  Beef industry, you mean?
     9
    10   Q.   Yes.
    11        A.  Back -- I finished with my BSc degree in 1979.
    12        I worked in the industry prior to that.  My family was
    13        involved in ranches.  So I have been involved for a long
    14        time in Mexico.  I moved in 1980 to the US.
    15
    16   Q.   In your recollection since, say, 1979, there have been no
    17        changes to that categorisation?
    18        A.  No.  In 1979 -- you have to keep in mind I was a
    19        professional as well as a student when I went to pursue a
    20        Masters Science Degree.  At that time I cannot say that
    21        I knew everything relating to the regulations.
    22
    23   Q.   So when can you say, with your hand on your heart, that you
    24        know from that time there have been no changes?
    25        A.  As far as I can remember, as far as I have been
    26        involved in the industry, there have not been any changes
    27        relating to the use of US domestic beef.
    28
    29   Q.   And the labelling of it?
    30        A.  The labelling has been changed, but not directly to
    31        that claim or use of domestic beef.
    32
    33   Q.   So when you say, "We started that process of the US beef
    34        categorisation", what have you heard on that?
    35        A.  I heard from -- I will tell you.  The first time
    36        I heard about McDonald's was in 1980.  During those days,
    37        early 80s, I remember seeing commercials that are claiming
    38        that we only used 100 per cent beef.  At that time, there
    39        should have been a law.  I do not know how far, though,
    40        when we started making that claim.
    41
    42   Q.   Just one further question on this:  when did McDonald's
    43        start asking their suppliers for written guarantees -- in
    44        the US, sorry, the US suppliers -- for written guarantees
    45        on the "only domestic beef" policy?
    46        A.  It is in our very first spec, that it was written
    47        around 1960, plus or minus a couple of years; but it is
    48        since the very first product specification, it says that.
    49
    50   Q.   I think you said last week you have seen those documents? 
    51        A.  Yes, I have. 
    52 
    53   Q.   But strictly asking for signed guarantees, when did that
    54        start?
    55        A.  At the same time.  When we issue a spec, the suppliers
    56        will respond fairly quickly, let us say, within a few
    57        months; most of them, it is within a month.
    58
    59   Q.   That would be the processors, would it not?
    60        A.  Yes.

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