Day 276 - 09 Jul 96 - Page 10


     
     1   MR. JUSTICE BELL:  Yes, I have but I think the answer is there.
     2        Yes, thank you.
     3
     4   MS. STEEL:  Do you know how you came to -- well, do you recall
     5        how you came to be supplying beef to Mackies from Brazil?
     6        A.  No, I don't.
     7
     8   Q.   You do not remember that at all?
     9        A.  No.
    10
    11   Q.   Had you supplied beef to Mackies from this country prior to
    12        that?
    13        A.  Yes.
    14
    15   Q.   You had?
    16        A.  Yes.
    17
    18   Q.   Right.  And obviously David Walker you had known for a long
    19        time.  He used to work for Vesteys, I think?
    20        A.  Yes.
    21
    22   Q.   Right.  Can I just ask you one thing.  In the document that
    23        we have got there is a quote from Wedells about the price
    24        of beef from Brazil and it is 69 pence a pound.  Obviously,
    25        that was in 1983.  I think the UK price was 79 pence a
    26        pound, and I think the price from Australia was something
    27        like 90 pence.  How does Brazilian beef that has been
    28        imported into the UK get to be cheaper than the beef that
    29        is available in the UK, which you to not have to pay all
    30        the shipping costs for?
    31        A.  I don't know.
    32
    33   Q.   You do not know?
    34        A.  No.
    35
    36   Q.   Is it because the land is a lot cheaper in Brazil and the
    37        costs of rearing the cattle?
    38        A.  I don't know.
    39
    40   MR. JUSTICE BELL:  Well, it must, unless there is some great
    41        government subsidy out there it must be cheaper costs of
    42        production from whatever source or sources?
    43        A.  Yes, but I mean I do not know what the shipping costs
    44        are, the duty costs are, that is why I cannot say.  I am
    45        not an expert, my Lord.
    46
    47   Q.   No, I appreciate you would say that, but you know something
    48        about the meat business?
    49        A.  Yes.
    50
    51   Q.   And are there any obvious -- supposing that costs of
    52        shipping does exist, is there any obvious cause for a
    53        variation in price between Brazilian beef in this country
    54        and British beef in this country, other than costs of
    55        production?
    56        A.  Well, Brazilian beef would presumably be either chilled
    57        or frozen and that is cheaper than fresh beef.  People
    58        prefer fresh beef.  And we are subsidised in this country,
    59        as you know, to produce through the Common Market.
    60

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