Day 067 - 15 Dec 94 - Page 07


     
     1
     2        Once the selection, then make a decision who they should be
     3        working with, or who could be a potential supplier for us.
     4        Once the decision is made, they contact the corporate
     5        offices and ask assistance for technical expert in that
     6        particular field, whether it is beef, chicken, potatoes,
     7        lettuce, ketchup, and one of our experts, or one of our
     8        international suppliers, will visit the plant to evaluate
     9        the people, the plant and the processes.
    10
    11        We work with them for a number of months.  Then we reach a
    12        decision if we feel there is a potential for them to become
    13        a supplier.
    14
    15   Q.   So if, say, they do not initially meet your specifications
    16        you would still take them on?
    17        A.  If they do not meet, do not meet our specifications,
    18        then we make a decision, are they capable of meeting our
    19        specifications, do they have the potential?  We know we
    20        look very -- we do not pay a whole lot of attention about
    21        the kind of equipment that they currently have.  We know we
    22        can transfer technology.  The most important things that we
    23        look for is attitude of the people, the quality of the
    24        people, their education of the people.  And once we make a
    25        decision, we do not approve a supplier until they meet our
    26        specifications, but we always work with them -----
    27
    28   Q.   Not at all?
    29        A.  Excuse me?
    30
    31   Q.   Not at all?
    32        A.  Not at all, that is correct.
    33
    34   Q.   What about, for example, I think you were talking about the
    35        slaughter operation in Moscow that did not provide water or
    36        something like that?
    37        A.  I did not say they do not provide water.
    38
    39   Q.   The form did;  we can look at that later anyway, but that
    40        was just an example.
    41
    42   MR. JUSTICE BELL:  You said that there was something to be
    43        desired about the attitude to animal welfare in both Russia
    44        and China, for instance?
    45        A.  OK.  When we start, we usually start with, let us say
    46         -- I do not want to mention any specific country unless
    47        I am requested to, but we usually start with where the
    48        imported product in many countries, then we try to develop
    49        the industry.  There always will be opportunities even in
    50        the best countries.  We work, we take that assumption and 
    51        we work with them so we can develop, help develop, the 
    52        industry within the country.  There will be instances in 
    53        which, like in this particular case that you mention, they
    54        are not perfect.  We understand that, but we know we have
    55        the potential that some day in the near future we will be
    56        able to make some significant improvements.
    57
    58   MS. STEEL:   Are you saying that provision of water for animals
    59        is not part of your specification?
    60        A.  The welfare of animals, it is part of our

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