Day 067 - 15 Dec 94 - Page 25


     
     1        A.  Yes, they do.
     2
     3   Q.   Roughly, how many are we talking about?
     4        A.  Suppliers, slaughterhouses?
     5
     6   Q.   Slaughterhouses, yes.
     7        A.  Probably between 50 and 80.  I am not sure about the
     8        number.
     9
    10   Q.   Between 50 and 80 in the whole of the USA?
    11        A.  The suppliers that will supply us.  We have -- let me
    12        give you an example, two years ago we used 74 suppliers of
    13        raw materials.
    14
    15   Q.   When you say "suppliers" are you talking about
    16        slaughterhouses?
    17        A.  The slaughterhouses and deboning houses.  In the US
    18        they could be combined, just like where we saw on that
    19        design in the plant, they could be separate where there is
    20        one that does the slaughter and there is a totally
    21        different facility away from the that facility that will
    22        debone the meat.
    23
    24   Q.   So some of your meat comes from deboning plants?
    25        A.  That is correct.  The total of those numbers two years
    26        ago was 74 -- 72 or 74.
    27
    28   Q.   Right?
    29        A.  In an attempt to better develop our ability to trace
    30        the meat back to the farm, we have reduced those numbers.
    31
    32   Q.   To what now?
    33        A.  I am not sure about the extent today.  If need be,
    34        I can provide you with that information pretty soon.
    35
    36   Q.   Is that process of using less slaughterhouses and deboning
    37        plants something that was started in the last few years or
    38        was that something going back further than that?
    39        A.  We have probably maintained a range.  In most
    40        countries, including the US, the supplier of beef will
    41        change throughout the year.  It will change from year to
    42        year.  It will go in cycles.  Today there is a, or this
    43        year, there is an over abundance, over supply, of beef so
    44        there is not a need for us to increase our number of
    45        slaughterhouses or deboning facilities that can supply us.
    46
    47        There have been times where there is a drought or there are
    48        less animals that are being fed, that there is a shortage
    49        of beef.  The current slaughterhouses that will produce it
    50        will not have enough capacity to supply with enough beef 
    51        for our needs, so we have to rely on other slaughterhouses, 
    52        so that the number of slaughterhouses that we work with 
    53        that will supply our suppliers, that will supply
    54        McDonald's, will change from year to year and it will
    55        change from quarter to quarter.
    56
    57   Q.   But you said that in the last few years you have reduced
    58        the number of slaughterhouses and deboning plants that
    59        supply you so that you can ---
    60        A.  We have reduced -----

Prev Next Index