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Assignment On

NESTLE meat adulteration scandal


Submitted to : Md. Mesbah Uddin Lecturer Department of management studies University of Dhaka

Submitted by : Group no: 5 16th batch, section: B Department of Management Studies University of Dhaka
Group members name MithunMaitra Md.WahidudJamanTusher Ajit Chandra Barman NayanSaha Didarul Islam Bappy Faisal
Date of submission: Wednesday th February 2013

Class roll no. 144 147 121 151 160 170

NESTLE draws meat adulteration scandal

What is the horse meat scandal?


A number of frozen meals and food products at supermarkets across Europe have been found to contain high levels of horse DNAin some cases, as much as 100 percent of the meat was horse indicating that the meat being marketed as "beef"... isn't. A renown food manufacturing company NESTLE create mass discussion among the people all over the world by mixing the horse meat in their food item Burger while there should be the beef only. They didnt flash this matter of mixing before their items got tested. As a result they are facing a great criticism all over the world. Consumers around the world are pressuring the NESTLE to show cause over the sensitive issue. From the NESTLE side it has already said in a briefing that horse meat holds potential or protein as like the beef. But most the consumers are thinking that that it is mere excuse to tackle the situation and the consumers strongly believe that NESTLE is directly violating the right of consumers in the world and this should be thought seriously.The 2013 meat adulteration scandal is ongoing in Europe; foods advertised as containing beef were found to contain undeclared horse meat as much as 100% of the meat content in some cases, and other undeclared meats, such as pork. The issue came to light on 15 January 2013, when it was reported that horse DNA had been discovered in frozen beef burgers sold in several Irish and British supermarkets. While horse meat is not harmful to health and is eaten in many countries, it is considered a taboo food in many countries including the UK and Ireland, in addition to being a lower-cost ingredient than beef. The levels of horse DNA in the products were above the 1 percent threshold used by the British Food Standards Agency as an indicator of adulteration in testing being done by Britains food industry and therefore the products would be withdrawn, Nestl said in a statement. Investigations

by the Food Safety Authority of Ireland (FSAI) resulted in Ireland being the first EU state to report the presence of horse meat in beef and make public the results. On 15 January 2013, the FSAI advised the five retailers concerned, Tesco, Dunnes Stores, Aldi, Lidl and Iceland, of their findings; all these firms withdrew the offending products. The media and newspapers of the 16 January 2013 led with the story, focusing on the one burger which tested positive for 29% equine DNA. Of 27 beef burger products tested, 37% were positive for horse DNA, and 85% were positive for pig DNA. Of 31 beef meal products tested, 21 were positive for pig DNA but all were negative for horse DNA. Of the 37% of beef products tested positive for horse DNA, Tesco's inexpensive Everyday Value Beef Burgers tested at 29.1%. These products originated from Liffey Meats and Silvercrest Foods in Ireland and Dalepak Hambleton food processing plant in the United Kingdom. Trace amounts of horse DNA were also found in raw ingredients imported from Spain and the Netherlands.By 16 February 2013 four subsidiaries of ABP had been accused of supplying adulterated meat. They were Silvercrest in County Monaghan, Dalepak in North Yorkshire, Freshlink in Glasgow and ABP Nenagh in County Tipperary, Ireland.On 14 February 2013, the French government stated that French meat processing company la Table de Spanghero knowingly sold horse meat labelled as beef, and that their licence was suspended while an inquiry continues.The horse meat that was found in Comigel products originated at Doly Com a Romanianbased slaughterhouse. However, an inquiry undertaken by the French government has shown that "the meat had left Romania clearly and correctly labelled as horse. The company, based in Vevey, Switzerland, said in a statement late Monday that it withdrew some of its beef pasta ready meals from sale after tests conducted two days earlier detected horse DNA. Nestle said it increased its surveillance after reports emerged last month of mislabeled products being sold in Britain.It was afterwards that it was relabelled as beef. Horse meat found in Silvercrest products is thought to have originated in Poland. Nestle insisted that the Buitoni Beef Ravioli and Beef Tortellini meals sent to Italy and Spain, and frozen meat sold as Lasagnes la Bolognaise Gourmandes to catering businesses in France, were safe to consume. Different matters come to us regarding this issue and we see the consumer and the govt. also conscious about this matter in the affected area. They are conducting different tests and survey all over the world. Most of the renowned companies across the Europe are involve with this in anyhow. Today, European meat markets value horse meat at half the value of beef meat. More than 60,000 tonnes of horse meat were traded by European countries in 2012 and this includes horse-like animals, such as donkeys, mules, and asses. Different surveys are showing that horse meat has a negative effect on health and because it is assumed most of the

horses is drug affected. But companies accused are trying to convince consumers that horse meat is healthy and there is no negative effect of that. They added that it is just nutritious as like beef is. Nestl has apologized and is implementing new quality assurance tests for its beef. The company is also suspending deliveries of products that were made with beef supplied by the German firm H.J. Schypke, which was linked to the tainted meat.

Are the people who ate horse going to be okay?


They're going to turn... into... horses! No, they'll be fine. People across Europe eat horse, on purpose, and love it; celebrity chef Gordon Ramsay serves it at his restaurants in the U.K. Provided the horse is properly raised and slaughtered, there aren't any health risks to eating its meat. In this case, there is a minor health risk from the equine anti-inflammatory phenylbutazone, or "bute," which in extremely high doses can cause certain blood diseasesbut this is an issue caused and exacerbated by the much larger and more disturbing scandal of fraudulently and misleadingly labeled meat with unclear provenance.

Unclear provenance? How did the horse meat get into the food?
No one seems to know entirely. Yet. In Ireland and the U.K., the fraudulently-labeled beef sold by supermarket chain Tesco appears to have entered the supply chain through beef processing multinational ABP, two subsidiaries of which produced the contaminated meat. ABP claims to have traced the horse meat through the Netherlands to Poland; Polish authorities strenuously deny that their slaughterhouses are responsible, and have undertaken tests and found no horse DNA in samples. An entirely different horse meat supply chain emerged in France, through another food processing company, Comigel, which was tasked with supplying a beef lasagna dish to the frozen food company Findus; Comigelthrough a Luxembourgish subsidiaryordered beef from a Spanish company, which ordered it from a Cypriot trader, who outsourced the job to a Dutch tradera guy who'd already been convicted of selling horse meatwho (deep breath) finally placed the order to a Romanian slaughterhouse, where the horse meat originated. Sent back to Luxembourg through Spain, the horse meat was processed into the frozen lasagna dishes, ending up on shelves in the U.K., France and Sweden. No one knows how far up the chain the coverup went; the Dutch trader, Jan Fasen, has accused Comigel and its Spanish suppliers of being fully aware that they were passing off horse meat as beef.

Two different supply chains? How widespread is this?


It's hard to tell. Tens of millions of pounds of horse meat is processed and sold around Europe every year; beef is getting more and more expensive, and supply lines less and less direct; and with rolledback and under-funded food safety operations in the U.K. and elsewhere, it's harder to detect when meat is adulterated.

Let's say I want to try horse meat. Where can I find it?
The last restaurant we know of that tried to sell horse meat here in the states was the Queens restaurant M. Wells, which planned on serving a horse meat tartare with Canadian meat before it found itself subject to wide public outcry, and a last-minute change to U.S.D.A. regulations. For now, if you want to eat horse, your best bet is to hop over the border to Quebec, where it's still relatively widely consumed.

Handling the NESTLE situation as a Manager of NESTLE and Recommendations :NESTLE The largest food manufacturing company in the world, should take some diplomatic steps to control the situation. As a company NESTLE has got goodwill and this is not the fruit of one or two days and one or two scandals cannot make the company finished. But it is a fact by that company may lose their consumers and consumers will no longer believe the company. Because food is a sensitive issue and any scandal associated with it must bring negative feedback. Since it has already proved that NESTLE is involved with it but not intermittently and consumers of the modern world are more concerned about it, so they should come forward to solve the issue. First, they should find out the source from where it has been supplied or packaged. At first, the root of the problem has not been identified. People want to know where to point a finger, but "we can't say yetthat's what the investigation is for. If NESTLE is individually liable for it, they should flash the real matter and show cause why they did it. We think there is no scope for NESTLE to say that the horse meat is good, nutritious or something. What has occurred it is a fraudulent activity. So as a food manufacturer they should convince people saying that it is their liability and they are taking that. Second, In near future all of the product of them should carefully tested and the standard must maintain. If NESTLE want to run horse meat they should make the market survey and see in which country they should go for it. Because there is a religion based problem all over the world and we cannot do or serve whatever we want. If any country shows interest over it, they can go there. Third, In addition doing this NESTLE should remove all of the products reported negatively and they must create a handsome figure loss but to sustain in the market and to recover the lost status they must do it. Nestle should withdraw their two product that cause the anarchy and assembly a new product line or completely ban the products. It may cost them a fortune but a good reputation is worth die for. Fourth, Another thing they can do is to ensure the consumers that this will not happen again and advertising is a way to do it. Fifth, A proper investigation team can be created to monitor further occurrings. But one has to keep in mind that not all product consists of horse meat rather only two or three products. It is a crime not to inform the public what the product contain or its ingredients and that is one of the main reason why Nestle are failing to insure their reputation to the consumers. Sixth, Another recommendation is that they can go for Polycentric outlooks as a MNC in food industry and give importance to the local factors and cultural diversity that can affect their product. Like in Europe or America they can use pork meat instead of Beef. Seventh, They can create awareness about the horse meat and if they can prove that it is good, healthy as well as cheaper than beef, they may turn the situation. Market research can help them as well as R&D. If it is possible they can turn the whole situation into their benefit. But it is a long shot. They can launch the horse meat where it is eaten like Japan, Spain, Italy, France etc. Eighth, The European Union has also instructed member states to conduct random tests for horse meat and report the results. There is some difference between beef meat and horse meat. Where horse meat is leaner than beef, softer, and a bit sweet and gamey.

Ninth, Another recommendation is that Nestle depends on small or big slaughterhouse industries for meat supply and that is where the scandal started. So if they can avoid that and open their own cattle breeding and slaughterhouses with their own management like a cattle breading and rearing firm for meat supply in Australia or other country they can avoid such scandal. Finally, we want to say that as a business organizations not only NESTLE but also any others can make some innovation. But definitely it is not creating scandals. First it should be come in the market and will get flashed. If it get positive results, the companies go for forward decision. Our total human civilization is divided into different areas and each and every area holds different ideology, perceptions, thoughts, beliefs and all of these are based on their culture and we know culture is different because geologically they differ. So business decision should take based on the issues discussed above and Nestle should pointed out that society, government and businesses all need to be engaged in the efforts to improve issues in the food production industry in order to reach a solution.

Reference :http://www.foodpolitics.com/page/4/ http://news.yahoo.com/nestle-finds-horse-meat-beef-pasta-meals-110523900--finance.html http://news.nationalgeographic.com/news/2013/13/130212-horse-meat-beef-scandal-food-franceengland-europe-science-taboo-horsemeat/ http://www.guardian.co.uk/world/2013/feb/08/how-horsemeat-scandal-unfolded-timeline http://www.guardian.co.uk/uk/graphic/2013/feb/15/horsemeat-scandal-food-safety1# http://www.thenews.pl/1/12/Artykul/127247,Poland-refutes-horse-meat-allegations http://www.brandchannel.com/home/post/2013/02/28/Nestle-Sustainability-Horsemeat-022813.aspx http://www.salon.com/2013/02/20/5_things_you_should_know_about_the_horse_meat_scandal_part ner/

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