Market response Pink slime

on march 25, 2012, bpi announced suspend operations @ 3 of 4 plants, being in crisis planning . 3 plants produced total of 900,000 pounds of product per day. bpi said lost contracts 72 customers, many on course of 1 weekend, , production decreased 5 million pounds of lftb per week below 1 million pounds week @ nadir (lowest point of production). effective may 25, 2012 bpi closed 3 of 4 plants, including 1 in garden city, kansas, lost more $400 million in sales, , laid off 700 workers. production decreased less 2 million pounds in 2013. cargill cut production of finely textured beef , in april 2012 warned [that] public s resistance filler lead higher hamburger prices barbecue season . 80% of sales of product evaporated overnight in 2012, per president of cargill beef. cargill stopped production in vernon, california , laid off 50 workers slowing production @ other plants including beef-processing plant in plainview, texas, 2,000 people laid off.

many grocery stores , supermarkets, including nation s 3 largest chains, announced in march 2012 no longer sell products containing additive. grocery companies, restaurants , school districts discontinued sale , provision of beef containing additive after media reports.

in april 2012, usda received requests beef processors allow voluntary labeling of products additive, , stated planned approve labeling after checks label accuracy. both bpi , cargill made plans label products contain additive alleviate these concerns , restore consumer confidence. following usda announcement allow choices in purchasing decisions ground beef, many school districts stated opt out of serving ground beef lftb. june 2012, 47 out of 50 u.s. states declined purchase of product 2012–2013 school year while south dakota department of education, nebraska, , iowa chose continue buying it.

on april 2, 2012 afa foods, ground-beef processor manufacturer of finely textured beef owned yucaipa companies filed chapter 11 bankruptcy citing ongoing media attention has dramatically reduced demand ground beef products . on april 3, 2012, u.s. cattle futures on chicago mercantile exchange @ 3.5-month low, partially attributed pink slime controversy. livestock traders stated that: has put dent in demand. bullish live cattle on long-term, short-term negative .