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

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