McDonald’s: No More Meat from Abusive Plant

by Alyssa Oursler | August 23, 2012 9:35 am

A slaughterhouse is under investigation following the release of a video showing lame and sick cows being beaten, kicked shot and shocked in order to get them to walk to slaughter. And McDonald’s (NYSE:MCD[1]), for one, isn’t putting up with it.

The fast food chain suspended purchases of meat[2] from the slaughterhouse, saying that the behaviors were unacceptable and beneath its standards.

The restaurant isn’t alone. Regional chain In-N-Out Burger, which got at least 20% of its meat[3] from the plant in question, and discount chain Costco (NASDAQ:COST[4]) also severed their ties.

And the USDA, which bought 21 million pounds of beef from the company last year — much of it for the U.S. school lunch program — did the same.

The effort to demand better quality from meat suppliers has been a recent trend. “Pink slime” caused a stir earlier this year and in the end both McDonald’s[5] and the school lunch program[6] suspended purchases of that meat as well.

On top of that, McDonald’s announced a plan to phase out inhumane hog crates[7] in the beginning of the summer, while Burger King (NYSE:BKC[8]) and Wendy’s (NASDAQ:WEN[9]) have made similar moves[10].

It is unknown how much beef McDonald’s had been purchasing from the abusive plant, but a spokesperson says the amount was in the single digits.

McDonald’s has also been pushing to offer more chicken[11] in its restaurants, especially as beef prices continue to shoot up[12] significantly in the wake of the drought. Between that trend and the small supply, it does not seem like the fast food chain should be affected all-that-much.

No evidence has surfaced yet to show that cows from either slaughterhouse were sick, but the plant has been closed pending further investigation.

Endnotes:

  1. MCD: http://studio-5.financialcontent.com/investplace/quote?Symbol=MCD
  2. suspended purchases of meat: http://www.usatoday.com/money/industries/food/story/2012-08-22/usda-mcdonalds-suspend-slaughterhouse-buys/57223840/1
  3. at least 20% of its meat: http://abcnews.go.com/Blotter/plant-closed-usda-supplied-beef-burger/story?id=17051866#.UDVpR6DdiDS
  4. COST: http://studio-5.financialcontent.com/investplace/quote?Symbol=COST
  5. McDonald’s: https://investorplace.com/2012/01/mcdonalds-cuts-pink-slime-off-menu-will-it-cut-profits/
  6. the school lunch program: https://investorplace.com/2012/06/most-school-districts-expel-pink-slime/
  7. inhumane hog crates: https://investorplace.com/2012/06/mcdonalds-to-phase-out-small-pen-pork/
  8. BKC: http://studio-5.financialcontent.com/investplace/quote?Symbol=BKC
  9. WEN: http://studio-5.financialcontent.com/investplace/quote?Symbol=WEN
  10. have made similar moves: https://investorplace.com/2012/04/burger-king-makes-cage-free-promise/
  11. offer more chicken: https://investorplace.com/2012/07/why-mcdonalds-plans-to-play-chicken/
  12. continue to shoot up: https://investorplace.com/2012/08/producer-prices-rise-more-than-expected-in-july/

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