Day 064 - 08 Dec 94 - Page 11

     
     1        that McDonald's in the UK are supplying generally would not
     2        be able to produce the products that they want locally
     3        economically.
     4
     5   Q.   Right.  So it is not that they would not be able to produce
     6        them at all, it is just that they would not be as cheap as
     7        getting them from Britain?
     8        A.  Or the quality standard might not be as good.
     9
    10   Q.   Say beef, for example.  Are you saying that other countries
    11        might not be able to produce beef to such good standard as
    12        British beef?
    13        A.  Definitely.
    14
    15   Q.   You would say that would be true for chickens as well?
    16        A.  Chicken is a different situation.  They are less likely
    17        to have the processing equipment for chicken in smaller
    18        countries.
    19
    20   Q.   Can I just ask, why do you think that the beef in other
         countries would not be up to acceptable standards or
    22        whatever it was that you were describing it as?
    23        A.  I will give you an example of Belgium.  Belgium many
    24        years ago had its own beef supplier to McDonald's.  But the
    25        standards of the hamburgers supplied were very inconsistent
    26        in their quality in terms of taste and the quality of the
    27        raw material itself, and for that reason we made a change.
    28
    29   Q.   What about the other countries in Europe then?
    30        A.  Well, we are not supplying all the other countries in
    31        Europe.  From memory, we are supplying Belgium, Holland,
    32        Denmark -- I think that is it now.  We have supplied other
    33        countries from time to time but we are not currently.
    34
    35   Q.   That was with beef, yes?
    36        A.  With beef, yes.
    37
    38   Q.   Right.  Is that with the actual patties or is that, you
    39        know, the -----
    40        A.  That is the actual patties, yes.
    41
    42   Q.   You say that is because the quality was not good enough in
    43        those countries?
    44        A.  At that time.
    45
    46   Q.   What about the ones you are supplying now?
    47        A.  What about them?
    48
    49   Q.   Are you saying that the reasons you are supplying those
    50        countries ----- 
    51 
    52   MR. JUSTICE BELL:  Where are we going?  Just tell me what topic 
    53        this relates to, Ms. Steel.
    54
    55   MS. STEEL:   It relates to the local sourcing of beef and the
    56        company's policy statement.
    57
    58   MR. JUSTICE BELL:  What does that relate to, what issue in the
    59        case?
    60