Day 066 - 14 Dec 94 - Page 41


     
     1        A.  That is correct.
     2
     3   Q.   What chance do you think, from your experience of
     4        McDonald's business, there is that your supplies could be
     5        cheating you and using imported beef?
     6        A.  None.
     7
     8   Q.   Why are you so confident?
     9        A.  Because we have had a very good relationship, very
    10        unique relationship, with our suppliers in the US.  They
    11        have grown with us.  They have plants throughout the world
    12        that are exclusively producing products for us.  They would
    13        not risk that kind of relationship to save a few bucks.
    14        They have a billion dollar business to risk and they will
    15        not do that.
    16
    17   Q.   Is there any problem in obtaining supplies of beef of the
    18        right quality and at a reasonable price in the United
    19        States itself?
    20        A.  Is there any problem?  No.
    21
    22   Q.   Would you have any incentive to import quantities of cheap
    23        beef from abroad?
    24        A.  You might say that there is, you might be tempted.
    25        There are some countries, for example, Australia that at
    26        one point in time throughout the year are definitely
    27        cheaper than the sources of kilos we can get in the United
    28        States.  In fact, I have seen that evidence recently.  Yes,
    29        there are some countries that can produce acceptable
    30        quality raw materials for us to use, but we do not use
    31        them.
    32
    33   Q.   After all, I do not know, Australia has significant
    34        quantities of rainforest, what would be the reason for not
    35        taking good Australian beef at a cheaper price?
    36        A.  Because we have an internal policy that we will source
    37        our products from the local markets as much as we can.
    38
    39   Q.   For what reason?
    40        A.  For consumers reasons.  For two reasons, when we go
    41        into a new country as part of the agreements with the
    42        countries, that we will bring and will have an economic
    43        impact in that particular country, but most importantly in
    44        the United States we do it because our customers, that is
    45        what they want.
    46
    47   Q.   Dr. Gomez Gonzales -- I will at least mend my ways to that
    48        extent, if I may -- do you personally know the people that
    49        run Procarne in Guatemala?
    50        A.  Yes, I do. 
    51 
    52   Q.   Do you know personally the people run Coope Montecillos in 
    53        Costa Rica?
    54        A.  Not any more.  Their management has been replaced.
    55
    56   Q.   How recently?
    57        A.  In the last year it has been replaced three years.
    58
    59   Q.   Sorry?
    60        A.  In the last year they have been replaced in their

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