October 16, 2007

McDonald's UK raises payments for pork and beef

McDonald's in the UK has announced that it will raise the price it pays for beef and pork to help farmers tide over the current crisis caused by FMD outbreaks. 

The fast-food chain said it would pay 5 percent more for its beef and pork, benefiting the 6,300 farmers from which McDonald's sources its produce.

The company's UK branch serves only pork from England and Wales.

According to Matthew Howe, McDonald's senior vice-president for the supply chain, this is a voluntary move by the restaurant chain, which wants to see a sustainable livestock industry in Britain.

The company spends GBP 9 million (US$18.4 million) on pork and GBP 50 million (US$102.1 million) on beef in the UK yearly.

The move would cost the company GBP 2 million ((US$4.09 million) more a year.

The restaurant said there are no plans to pass on the increased costs to its customers at present.