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

Prev Next Index