Day 068 - 16 Dec 94 - Page 56


     
     1        A.  Deboned raw materials, that is a possibility, yes.
     2        Although I might add that it is highly unlikely because our
     3        sales in Brazil have been growing at a tremendous pace.  We
     4        have been having serious problems just meeting our needs.
     5        We are thinking of -- we are actually designing plants for
     6        a new processing facility just because they do not have the
     7        capacity.
     8
     9   Q.   So is that your only supplier in Brazil?
    10        A.  That is correct.
    11
    12   Q.   If we continue, K, I think this is Spain, is it not, the
    13        next one?
    14        A.  That is correct.
    15
    16   Q.   Do they get beef from Spain and Germany?
    17        A.  That is correct.
    18
    19   Q.   They export to Portugal McDonald's as well?
    20        A.  That is correct.
    21
    22   Q.   Is that L & O, is that L & O Fleischwaren, that is what it
    23        is called in Germany, yes?
    24        A.  L & O is a huge company.  It should have said there
    25        that L & O and then the particular country.  L & O is part
    26        of an ownership from several of our major suppliers,
    27        including OSI, and they have plants throughout the Europe,
    28        Asia and Latin America and, obviously, the US.
    29
    30   Q.   But there is an L & O based in Germany, is there not?
    31        A.  There is, yes, that is correct.
    32
    33   Q.   So that would be where they import from in that case?
    34        A.  That is correct.
    35
    36   Q.   How many stores do you have in Spain?
    37        A.  I am not sure.  I do not know.
    38
    39   Q.   If we continue with Taiwan -- is this Taiwan or is it Hong
    40        Kong?  Do you remember there was a bit of confusion on this
    41        one?  The fax is from Hong Kong but I think it applies to
    42        stores in Taiwan, does it?
    43        A.  Yes, I believe that the fax, Hong Kong is base of
    44        operations for Asia.  The people continually meet in that
    45        country.  We have our facilities there.  It is probable --
    46        what probably happened is that they faxed the information
    47        from there.
    48
    49   Q.   Can you explain again what the beef import and export
    50        information there says? 
    51        A.  That the products -- in Taiwan we have a facility.  The 
    52        raw materials come from --- 
    53
    54   Q.   Australia?
    55        A.  -- Australia, yes.  Taiwan is not self-sufficient in
    56        beef.
    57
    58   Q.   Right.
    59        A.  And so are most of the Asian countries.
    60

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