(Reuters) - Ground beef processor AFA Foods filed for bankruptcy protection on Monday, citing the impact of the uproar over a meat filler dubbed "pink slime" by critics.
Meat processors have faced a backlash over the use of an ammonia-treated beef filler they call "finely textured beef." Food activists have campaigned to have it banned, but supporters say the product is safe to eat.
AFA is one of the largest ground beef processors in the United States and produces more than 500 million pounds of ground beef products annually, the company said in documents filed in U.S. Bankruptcy Court in Wilmington, Delaware.
In filing for bankruptcy, it cited "recent changes in the market" for its products and media coverage related to the filler, and said it was seeking a sale of some or all of its assets. AFA owner Yucaipa Companies, the investment firm founded by Ron Burkle, could not immediately be reached for comment.
The backlash over "pink slime" has prompted companies such as Beef Products Inc (BPI) to halt production at some of its plants and has led some big U.S. supermarket operators, including Safeway Inc and Supervalu Inc, to say they will stop buying the ammonia-treated beef.
Meat processors have faced a backlash over the use of an ammonia-treated beef filler they call "finely textured beef." Food activists have campaigned to have it banned, but supporters say the product is safe to eat.
AFA is one of the largest ground beef processors in the United States and produces more than 500 million pounds of ground beef products annually, the company said in documents filed in U.S. Bankruptcy Court in Wilmington, Delaware.
In filing for bankruptcy, it cited "recent changes in the market" for its products and media coverage related to the filler, and said it was seeking a sale of some or all of its assets. AFA owner Yucaipa Companies, the investment firm founded by Ron Burkle, could not immediately be reached for comment.
The backlash over "pink slime" has prompted companies such as Beef Products Inc (BPI) to halt production at some of its plants and has led some big U.S. supermarket operators, including Safeway Inc and Supervalu Inc, to say they will stop buying the ammonia-treated beef.
Pink slime, referred to by manufacturers as lean finely textured beef (LFTB) or boneless lean beef trimmings (BLBT), is a beef-based food additive that may be added to ground beef and beef-based processed meats as an inexpensive filler in the United States. (Although legal and classified as "safe" by the United States Department of Agriculture (USDA), pink slime is not legal as a food additive in Canada and the United Kingdom.)
Abstention and product divestment of 'pink slime'
Food manufacturers
"Several U.S. food manufacturers have publicly stated that they do not use pink slime in their products, including ConAgra Foods Inc., Sara Lee Corporation and Kraft Foods Inc."
Grocery retailers
"Costco Wholesale Corporation stated that they do not use beef containing pink slime because it is not up to their "standards." Publix, Whole Foods Market, H-E-B and Fresh and Easy also have stated they do not sell products containing pink slime."
"Gerrity’s Supermarkets stated that it never knowingly sold pink slime but that it had amended its policy to demand its suppliers certify their meat as pink slime free."
"In 2012, food distributors Safeway, the second-largest in the nation, halted the sale of beef containing the additive at its Safeway, Carrs, Dominick's, Genuardi's, Randall's, Tom Thumb, Simon David, Pak'nSave, Vons, and Pavilions stores."
"Supervalu, the third-largest in the nation, stopped selling products containing the additive at its SuperValu, Lucky, Acme, Farm Fresh, Cub Foods, Hornbacher's, Save-A-Lot, Shaw's, Jewel-Osco, Shop 'n Save, The Market, Shoppers Food, and Albertsons stores due to "considerable customer concern."
"Kroger, America's largest supermarket chain, also stopped selling beef with pink slime in it."
"Food Lion and its subsidiaries Harveys Supermarkets, Bloom, and Bottom Dollar Food have also banned the product. Meijer, Bi-Lo, and Winn-Dixie also announced that they would no longer sell products containing pink slime. Ahold's grocery stores, Giant-Carlisle and Giant-Landover, stopped selling items containing LFTB on March 22, 2012, based on customer concerns."
"Giant Eagle also eliminated the product describing "questions, confusion, and a decline in consumer confidence in the product" as its rationale."
"In April 2012 Shaw's and Star Market, Market Basket, Hannaford Bros. Co., and Target all reported they would stop selling beef with the product."
"Wegmans will continue selling the item until it can procure pink slime-free ground beef and has promised to phase the ground beef with the filler out."
"Wal-Mart and its subsidiary Sam's Club announced they will soon offer pink slime-free ground beef as an option but will continue to also sell the item with the substance."
"It has been reported that Waldbaum's does not sell pink slime-infused products."
Lowes Foods also joined the majority of grocers in no longer selling products containing pink slime, which was only in ten percent of the meat offered at the time.
Fast food restaurants
"McDonald's, Burger King, Jack in the Box, and Taco Bell announced they would discontinue the use of BPI products in their food."
"Wendy's ran full-page advertisements in eight major newspapers (including the New York Times, USA Today, and Los Angeles Times), stating that it has never used pink slime. A Wendy's spokesperson told Reuters news agency, "We have never used lean finely textured beef (pink slime) because it doesn't meet our high quality standards."
"Five Guys confirmed that "We do not have pink slime in our ground beef. We use 80/20 ground chuck. Our manufactures do not use ammoniated procedures."
Public schools
After parents and consumer advocates insisted pink slime be removed from public schools, the United States Department of Agriculture (USDA) indicated that it would give school districts the option of choosing between ground beef containing pink slime or ground beef without the additive.
The USDA stated in March 2012 that beginning in fall 2012, the U.S. National School Lunch Program will allow school districts to decide whether or not to purchase ground beef containing pink slime.
On March 22, 2012, 41 Democrats in Congress, led by Representative Chellie Pingree of Maine, wrote a letter to Agriculture Secretary Tom Vilsack, writing that "creating a two-tiered school lunch program where kids in less affluent communities get served this low-grade slurry is wrong" and urging the elimination of pink slime from all public-school lunches.
Following the USDA announcement, many school districts have stated they will opt-out of serving ground beef with the filler.
http://en.wikipedia.org/wiki/Pink_sl...uct_divestment
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