Day 066 - 14 Dec 94 - Page 41
1 A. That is correct.
2
3 Q. What chance do you think, from your experience of
4 McDonald's business, there is that your supplies could be
5 cheating you and using imported beef?
6 A. None.
7
8 Q. Why are you so confident?
9 A. Because we have had a very good relationship, very
10 unique relationship, with our suppliers in the US. They
11 have grown with us. They have plants throughout the world
12 that are exclusively producing products for us. They would
13 not risk that kind of relationship to save a few bucks.
14 They have a billion dollar business to risk and they will
15 not do that.
16
17 Q. Is there any problem in obtaining supplies of beef of the
18 right quality and at a reasonable price in the United
19 States itself?
20 A. Is there any problem? No.
21
22 Q. Would you have any incentive to import quantities of cheap
23 beef from abroad?
24 A. You might say that there is, you might be tempted.
25 There are some countries, for example, Australia that at
26 one point in time throughout the year are definitely
27 cheaper than the sources of kilos we can get in the United
28 States. In fact, I have seen that evidence recently. Yes,
29 there are some countries that can produce acceptable
30 quality raw materials for us to use, but we do not use
31 them.
32
33 Q. After all, I do not know, Australia has significant
34 quantities of rainforest, what would be the reason for not
35 taking good Australian beef at a cheaper price?
36 A. Because we have an internal policy that we will source
37 our products from the local markets as much as we can.
38
39 Q. For what reason?
40 A. For consumers reasons. For two reasons, when we go
41 into a new country as part of the agreements with the
42 countries, that we will bring and will have an economic
43 impact in that particular country, but most importantly in
44 the United States we do it because our customers, that is
45 what they want.
46
47 Q. Dr. Gomez Gonzales -- I will at least mend my ways to that
48 extent, if I may -- do you personally know the people that
49 run Procarne in Guatemala?
50 A. Yes, I do.
51
52 Q. Do you know personally the people run Coope Montecillos in
53 Costa Rica?
54 A. Not any more. Their management has been replaced.
55
56 Q. How recently?
57 A. In the last year it has been replaced three years.
58
59 Q. Sorry?
60 A. In the last year they have been replaced in their
