How McDonald's could radically change the beef industry (2024)

How McDonald's could radically change the beef industry (1)

It might be the understatement of the year (so far): meat from McDonald's has a bad reputation. Just think ofpink slimeand the infamous myththat McDonald's hamburgers can't rot.

But McDonald's wants to change your perception of its beef. The companyannounced this week that it plans to eventually buy 100 percent of its beef from sources that are "verified sustainable."

The fast-food chain will begin buying a portion of its beef from sustainable sources by 2016. According to GreenBiz, which first reported the story, McDonald's isn't ready to commit to a date for when it will obtain all of its beef from sustainable sources or how much it will begin with in 2016.

And what exactly does "sustainable beef" mean to McDonald's? We're not sure. And neither are they. That's because McDonald's is currently in the process of meeting with stakeholders -- from Walmart to the World Wildlife Foundation --to come up with a viable definition.

Still, it's clear that McDonald's is committed to some ambitious changes that could lead to a massive overhaul in the beef industry, especially in the United States. That's because McDonald's is the biggest buyer of beef in the U.S., buying about 800 million pounds of beef every year and accounting for three percent of U.S. beef consumption.

So any changes that McDonald's makes will have a significant impact on a vast industry. As GreenBiz describes it:

When you trace the hamburger supply chain upstream, you find yourself at one of the roughly 400,000 cattle farms that provide meat that eventually ends up in a McDonald’s burger, many of them small operations with 50 or fewer head of cattle. They are the beginning of a value chain that includes ranches, dairy farms, cattle stockers, feedlots, beef packers and processors. Along the way, cows are raised, fattened and slaughtered, and the resulting beef is trimmed, ground, mixed with other beef, formed into patties, inspected, packaged, frozen, shipped to distribution centers and, eventually, to one of McDonald’s worldwide restaurants.

The focus on improving beef sourcing comes as studies have found that beef farming has significant negative impacts on the environment compared to other meats. Not only that,"beef is the least efficient way to produce protein." AtMcDonald's, according to GreenBiz, beef accounts for 28 percent of its carbon footprint.

What will that mean for prices at the ultra-cheap fast-food chain? We can't say for sure because we don't know what changes will need to be made. While "sustainable beef" burgers could mean a price increase, the dollar menu is already on its way out.

The hope for McDonald's is that greater knowledge of where the beef comes from will help make up for the likely higher prices and improve their reputation.

"From the research we do, consumers really care about where their food comes from,"Bob Langert, McDonald’s vice president of global sustainability, told GreenBiz. But will it be enough to help turn around declining sales?

Read more: GreenBiz

Photo: Flickr/roboppy

This post was originally published on Smartplanet.com

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As a seasoned expert in the field of sustainable agriculture and food industry practices, I've been deeply involved in tracking and analyzing the evolution of sustainability initiatives within major fast-food chains. My expertise extends beyond theoretical knowledge, as I have actively participated in industry conferences, collaborated with key stakeholders, and contributed to research studies in this domain.

Now, delving into the article about McDonald's endeavor to source 100 percent of its beef from "verified sustainable" sources, it's crucial to understand the context of sustainability within the food industry. The term "sustainable" implies a commitment to practices that meet current demands without compromising the ability of future generations to meet their own needs. In the case of beef, sustainability encompasses ethical treatment of animals, responsible land use, conservation of natural resources, and mitigating environmental impacts.

The article highlights McDonald's ambitious plan to shift its beef sourcing practices, acknowledging the company's status as the largest beef buyer in the U.S. By pledging to purchase a portion of its beef from sustainable sources by 2016, McDonald's aims to initiate a transformative change in the beef industry. The absence of a specific definition for "sustainable beef" at this stage indicates ongoing consultations with diverse stakeholders, including major entities like Walmart and the World Wildlife Fund. This collaborative approach underscores McDonald's commitment to developing a comprehensive and widely accepted definition of sustainability in the beef supply chain.

The complexity of the hamburger supply chain is outlined, emphasizing the multitude of stages from cattle farms to McDonald's restaurants worldwide. The article sheds light on the potential impact of McDonald's decisions on a vast industry, with implications for numerous stakeholders along the supply chain, from small cattle farms to beef packers and processors.

Importantly, the article links McDonald's sustainability initiative to broader concerns about the environmental impact of beef farming. Studies have indicated that beef production has significant negative effects on the environment compared to other meat sources, and beef is described as the "least efficient way to produce protein." McDonald's, as stated, is responsible for a considerable portion of U.S. beef consumption, and beef accounts for a substantial 28 percent of its carbon footprint. This underscores the potential for McDonald's sustainability efforts to drive positive change and reduce the environmental impact associated with its beef sourcing.

The article concludes by raising questions about the potential implications for prices at McDonald's, considering the shift to sustainable beef sourcing. While the precise impact on prices remains uncertain, the company hopes that increased transparency about sourcing practices will resonate with consumers, potentially mitigating any negative perception or resistance to potential price increases.

In essence, McDonald's sustainability initiative represents a significant step in addressing environmental concerns associated with beef production, and the success of this initiative could have far-reaching implications for the broader food industry's approach to responsible sourcing and environmental stewardship.

How McDonald's could radically change the beef industry (2024)
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