Day 067 - 15 Dec 94 - Page 54
1 Q. So they may be driven by demand. It is possible that a
2 slaughterhouse might be driven by demand to take animals
3 which were not as fit as they ought to be?
4 A. Let me just say that the animals that are not fit for
5 human consumption will never enter the supply chain; that
6 is regulated in most countries. In fact I do not know of
7 any country in a commercial slaughterhouse it is not
8 regulated. It is in the best interests of having healthy
9 animals. They do not pay for having unfit animals. They
10 do not have to pay for that. In many cases they are
11 subjected to demand as well as supply. If they do not have
12 a continuous supply of beef they can run out of business in
13 a few days. The profit margins of the slaughterhouses are
14 extremely low, so they have to run their operations, but
15 they have to run their operations according to the law
16 which requires that all they can process is healthy
17 animals, fit for human consumption.
18
19 MR. JUSTICE BELL: Thank you.
20
21 MR. MORRIS: Are there any countries, apart from the UK and the
22 US, where there is any monitoring of farms by
23 slaughterhouses or by McDonald's suppliers?
24 A. Germany. Germany has a monitoring programme where they
25 go and look at the farms. Our suppliers have the ability
26 to trace; this is only at the present time. We have
27 continuously made some improvements, but we have the
28 ability to trace 80 per cent of our animals back to the
29 farm. We have made tremendous improvements and additions,
30 changes to regulations, so that it is possible, so we have
31 that security. That would be your best example of a
32 country that is able to trace back to the farm.
33
34 Q. So apart from Germany, are there any countries that are
35 tracing on that kind of level?
36 A. Argentina also has the capability.
37
38 Q. When you say "capability", do they do it?
39 A. Yes, that is correct.
40
41 Q. Any other countries that do that?
42 A. We have in Brazil the ability to trace back to the
43 ranch or the farm. We have the capability in Costa Rica
44 and, basically, all the rainforest countries in which we
45 operate.
46
47 Q. When you say "ability", you mean you do that?
48 A. We do it, that is correct.
49
50 Q. McDonald's do it or the abattoirs?
51 A. McDonald's. I am including our suppliers too.
52
53 Q. So the process plants do it or the abattoirs do it?
54 A. That is correct, we do it too, because it goes into
55 our -- it is part of the labelling on the package that will
56 include the farm where it came from.
57
58 Q. When did they start doing that in Germany, tracing back to
59 farms?
60 A. I know they have been improving, they had to start from
