Day 064 - 08 Dec 94 - Page 10

     
     1
     2   Q.   OK.  Then below that paragraph about chicken, the sentence
     3        in the brackets that says:  "McDonald's is Britain's
     4        largest user of beef"; is that correct?
     5        A.  Of the specific cuts that were used, yes.
     6
     7   Q.   What does that mean?
     8        A.  Well, we only use two cuts of beef, forequarter and
     9        flank.  So as a single purpose user of those two cuts, we
    10        are the largest user.  Of beef generically, no, we would
    11        not be the largest user.
    12
    13   Q.   If you included all the bits that went to cat food and
    14        things like that?
    15        A.  Well, no, if we included all the hind quarter which
    16        goes into steaks and Sunday joints, that kind of thing,
    17        which would be probably greater than the forequarter which
    18        is the part we are using.
    19
    20   MR. JUSTICE BELL:  If the question were rephrased, that you were
         the largest single user of beef, would that be accurate?
    22        A.  No, I do not think so, my Lord.  It would be for the
    23        cuts that we use but not for beef generically.
    24
    25   MS. STEEL:   Do you know of any other company that sells more
    26        volume of beef than you in this country?
    27        A.  Oh, I would think the supermarket, big supermarket
    28        chains would, certainly, because they sell all the cuts and
    29        we do not.
    30
    31   MR. JUSTICE BELL:  If one picked any one of the big supermarket
    32        chains, you would expect them to?
    33        A.  Tesco and Sainsburys, certainly.
    34
    35   Q.   Individually?
    36        A.  Yes.
    37
    38   MS. STEEL:  Underneath that paragraph it says:  "Mr. Oakley says
    39        Britain should be supplying all McDonald's restaurants in
    40        Europe because it is cheapest for all but one of the
         chain's raw ingredients".  Did you say that?
    42        A.  Yes, I did.
    43
    44   Q.   So is that something you are trying to encourage, the
    45        British companies supplying all McDonald's stores in
    46        Europe?
    47        A.  We are as much as we possibly can, yes.  We cannot
    48        supply all because of legislation, but as much as we can,
    49        yes.
    50 
    51   Q.   What is one of the chains' raw ingredients that is not the 
    52        cheapest from Britain? 
    53        A.  Fish which is not dearer either -- it is the same cost.
    54
    55   Q.   So how would that tie in with McDonald's policy of sourcing
    56        all products locally, where possible, in the country of
    57        operation?
    58        A.  The local sourcing is an emotive issue.  Quite often,
    59        for example, countries will not have the ability to source
    60        or produce for themselves anyway, and the type of markets