020407 McDonald's Begins Test of Imported Beef

Chicago - McDonald's Corp. has begun its first test of imported beef in a small amount of its U.S. stores.

The test, which is taking place in some McDonald's restaurants in the Southeast, is necessary because of the shortage of lean domestic beef available, said the spokesman, Walt Riker. The beef will come from Australia and New Zealand.

"No decisions have been made and nobody should jump to any conclusions," Riker said of the company's permanent plans for beef sourcing. "Everything we serve will be 100-percent USDA inspected."

Riker said the test was "pretty new" but he declined to provide further details, citing McDonald's policy to protect competitive information.

The decision to use imported beef comes at a time of growing concern about global beef safety.

McDonald's profits have been hurt for more than a year after consumer demand for its hamburgers in several international markets weakened amid concerns about mad cow disease, a fatal cattle disorder. A similar disease in humans is believed to be contracted by eating tainted beef.

No cases of the disease have been linked to McDonald's hamburgers. The company operates some 30,000 stores worldwide, with more than 13,000 in the United States.

The U.S. beef test was first reported by beef trade industry publication Cattle Buyers Weekly, in a story released on its Web site Friday.

McDonald's is believed to be contracting the patties for the test from a plant operated by Golden State Foods located in Conyers, Georgia, the publication said.

Riker said that several of McDonald's competitors already use a percentage of imported beef.

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