First Novartis goes GM-free, then Monsanto gives away patented info, and now
McDonald's goes for animal rights if not for unions.
  Cheers, Ken Hanly


Wednesday August 23 6:42 PM ET
McDonald's to Farmers: 'Be Kind to Hens'

By Meera Somasundaram

CHICAGO (Reuters) - McDonald's Corp. (NYSE:MCD - news) has a message for
chicken farmers: be kind to your hens or the hamburger giant will not buy
your eggs.

Oak Brook, Illinois-based McDonald's said it will no longer do business with
farmers who withdraw food and water from the hens, a controversial practice
used to increase egg production. The restaurant chain also said it will not
buy eggs from suppliers who trim the birds' beaks to keep them from hurting
each other.

The new guidelines, established in conjunction with the Animal Welfare
Council, also require egg suppliers to double the living space for each
caged hen to a minimum of 72 square inches per bird from a current industry
average of about 40 square inches.

McDonald's, the first major U.S. restaurant chain to take such action, said
the new directive was the result of increased concern among scientists and
the public at large.

``(McDonald's Chairman and Chief Executive) Jack Greenberg is committed that
McDonald's will be a leader in animal welfare,'' McDonald's spokesman Walt
Riker told Reuters.

``The bottom line is that when McDonald's speaks, people tend to listen
because of our massive purchasing power,'' he said. ``Our suppliers
understand where we're going with this and the ones who want to come along
can come along. We suspect they will.''

He said McDonald's buys about 2 billion eggs annually to make such popular
breakfast items as the Egg McMuffin and scrambled eggs. The company also
uses eggs to make biscuits and other items.

Riker said McDonald's will ``work with'' its 26 suppliers on the increased
cost associated with complying with the new guidelines.

Ken Klippen, executive director of government relations for Atlanta-based
United Egg Producers, a cooperative of farmers representing about 80 percent
of the eggs produced in the United States, said the industry does not
mistreat hens.

``It is not cruel because science shows that it is healthier for the bird to
be in a cage as opposed to running and stepping on its own droppings,''
Klippen said.

He also said farmers trim beaks to help protect the chickens from hurting
each other. In addition, he said hens naturally stay away from food and
water periodically and go into a resting period in order to eventually
strengthen their reproductive systems and produce higher quality eggs.

Even the White House is chiming in on the chicken controversy.

A White House spokeswoman said the U.S. Department of Agriculture is
concerned about animal welfare and has set up a task force to focus on the
issue.

McDonald's rival Burger King Corp., a unit of Britain's Diageo PLC(DGE.L),
issued a statement saying its egg suppliers meet existing guidelines set by
the United Egg Producers.

Patrick Schumann, an analyst at Edward Jones who follows McDonald's, said
financial impact from the change in guidelines is likely to be minimal on
the fast-food giant.

``If there is an impact, McDonald's can absorb it and offset it in other
purchasing synergies or cost saving initiatives,'' he said.

Bruce Friedrich, the vegetarian campaign coordinator for People for the
Ethical Treatment of Animals (PETA), praised McDonald's for making the move,
but said there is still room for improvement.

``This is a bare minimum,'' Friedrich said. ``They need to take the hens out
of cages. Even with the increased space, not one hen could spread one wing
in those conditions.''





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