fast food monsters look to new zealand fer beef

[Guest guest]

ok..so..they want to buy leaner beef in nz..and then mix it with fat from beef

here..

colored me confused....

 

The Dominion, Wellington, New Zealand

4 April 2002

http://www.stuff.co.nz/inl/index/0,1008,1155790a13,FF.html

 

Enjoy a Big Mac - courtesy of NZ

04 April 2002

 

In a breakthrough deal akin to selling coals to Newcastle, New

Zealand beef exporters have gained their first foothold at the home

of hamburgers - McDonald's in the United States.

 

Facing a shortage of American beef both lean enough and cheap enough

for its burgers, McDonald's has joined Burger King, Wendy's and other

American fast-food chains in importing New Zealand and Australian

beef.

 

" McDonald's has always been a group that New Zealand exporters have

been keen to get on board, " Meat New Zealand's North American

regional manager Andrew Burtt said from Washington today.

 

" I'm sure it will be a good customer and a very demanding customer

but, as to how much they'll buy, we don't really know. "

 

McDonald's is trying New Zealand and Australian beef at about 400 of

its 13,000 US outlets - all in the southeast of the country. It gave

no details of the quantities involved.

 

The US is already a $1 billion-a-year market for New Zealand beef.

 

But even if the McDonald's trials lead to permanent contracts, New

Zealand cannot increase its beef exports to the US because they are

restricted by an annual quota of about 213,400 tonnes, which has been

filled easily in recent years.

 

Mr Burtt said the extra demand would help improve prices.

 

" It's premature to say what the outcome of their testing might be but

it's certainly a good opportunity for New Zealand, " he said. " It

would provide another buyer and another competitor in the market

buying New Zealand beef.

 

" I'm confident the New Zealand product will stack up well - and for

all the right reasons, not just because it's cheaper. "

 

Hamburger chains make their patties by mixing lean beef - normally

with less than 10 per cent fat - with low-cost fat trimmings from

packing plants. The combination is similar in fat content to ground

beef typically found in supermarkets.

 

New Zealand and Australian beef is generally leaner than that of the

US, because New Zealand cattle are fed grass rather than the grain

fed to US cattle. New Zealand beef generally sells for between US5

cents and US20 cents (NZ$11.5c to NZ45c) per pound (nearly 500 grams)

cheaper than US beef.

 

Despite the change, American hamburger junkies would not know the

difference, McDonald's insisted.

 

" We're running a small test and using some beef that is top quality, "

a spokesman said.

 

The good news for New Zealand is that there is no end in sight to the

shortage of American lean beef. After several years of strong beef

prices, US farmers are rebuilding their herds and keeping some of

their female calves for breeding rather than sending them to feedlots

to fatten for slaughter.

 

Fewer than five million cows are expected to be slaughtered in the US

this year, down from 7.3 million in 1996.

 

However, the powerful American farm lobby, which has criticised

McDonald's for resorting to imported beef, will oppose any moves to

increase import quotas to ease the tight supply of American beef.