ABC News report Pink slime

1 abc news report

1.1 industry response
1.2 market response
1.3 government response
1.4 school lunches
1.5 bpi lawsuit

abc news report

an 11-segment series of reports in march 2012 abc news brought widespread public attention , raised consumer concerns product. product described scrap meat pieces compressed , treated antibacterial agent . lean finely textured beef (lftb) referred unappetizing example of industrialized food production . product has been characterized unappetizing, perhaps not more other things routinely part of hamburger sarah klein, attorney food safety program @ center science in public interest. nutritionist andy bellatti has referred product 1 of many symptoms of broken food system . food policy writer tom laskawy noted ammonium hydroxide 1 of several chemicals routinely added industrially produced meat in united states.

it reported @ time 70% of ground beef sold in supermarkets contained additive, , usda considered meat. usda issued statement lftb safe , had been included in consumer products time, , under secretary of agriculture food safety elisabeth a. hagen stated process used produce lftb safe , has been used long time. , adding lftb ground beef not make ground beef less safe consume .

industry response

manufacturer beef products inc. (bpi) , meat industry organizations addressed public concerns stating additive, though processed, lean beef not able reclaimed through traditional slaughterhouse practices until newer technologies became available approximately 20 years ago. regard concerns on use of ammonium hydroxide, bpi noted use anti-microbial agent approved food , drug administration. use of ammonium hydroxide included on fda s list of gras (generally recognized safe) procedures, , used in similar applications numerous other food products, including puddings , baked goods.

market response

several u.s. food manufacturers publicly stated did not use product in wares, including conagra foods inc., sara lee corporation , kraft foods inc. many meat retailers stated either did not use product, or cease using it.

many fast food chains stopped use of product after controversy arose, or stated had not used product before. in april 2012 concord monitor reported increased business in small neighborhood markets product s use less likely, due consumer concerns additive.

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 .

government response

following suspension of operations @ 3 out of 4 bpi plants, members of media , leaders invited iowa governor terry branstad tour bpi facility remained open in south sioux city, nebraska. founders of bpi gave campaign contributions branstad in 2010, , other candidates campaigns. branstad stated abc news contributions not factor in decision regarding having event. texas governor rick perry, nebraska lieutenant governor rick sheehy, kansas governor sam brownback, , south dakota lieutenant governor matt michels, toured south sioux city, nebraska, plant in attempt allay inaccurate information stated having caused unnecessary panic among consumers . publicity tour emerged promotional slogan, dude, s beef! news reporters not allowed ask employees @ bpi questions during tour. bpi asserts social media , abc news grossly misrepresented product. bpi sued abc news defamation. on march 28, 2012, branstad stated, problem is, take off market, end fatter product s going cost more , s going increase obesity problem in country . safeway , other retailers have removed product shelves or product lines have stated not raise price of beef. branstad stated recommend iowa state public schools continue use ground beef contains product, , stated plans send letter state s public schools, encouraging them continue buy lftb .

on march 22, 2012, 41 democrats in congress, led representative chellie pingree of maine, wrote letter united states secretary of agriculture tom vilsack, head of usda, creating two-tiered school lunch program kids in less affluent communities served low-grade slurry wrong , urged elimination public-school lunches. senator jon tester of montana issued news release in march 2012 urging agriculture secretary vilsack remove pink slime school lunches , replace high-quality montana beef . tester stated planned include provisions in upcoming farm bill allow schools more flexibility in using usda commodity funds, increase options in purchasing locally grown , produced foods.

school lunches

the reaction against product has been partially credited change.org petition has landed on quarter million signatures ban in school lunches. after parents , consumer advocates insisted product removed public schools, usda indicated, beginning in fall 2012, give school districts choice between ground beef or without lftb. cbs news reported chicago public schools may have served pink slime in school lunches.

while school districts have own suppliers, many school districts purchase beef directly usda , not know in beef. year 2012, usda planned on purchasing 7 million pounds of lean beef trimmings u.s. national school lunch program. usda spokesman mike jarvis stated of 117 million pounds of beef ordered nationally school lunch program in past year, 6% lftb. analysis of california department of education data indicated anywhere none 3 million pounds of beef usda served in california schools last year have contained lean finely textured beef . according usda, cost differential between ground beef , without additive has been estimated @ approximately 3%.

bpi lawsuit

on september 13, 2012, bpi announced filed $1.2 billion lawsuit, beef products, inc. v. american broadcasting companies, inc., against abc news; 3 reporters (diane sawyer, jim avila , david kerley) , others, claiming abc news made 200 false, misleading , defamatory statements, repeated continuously during month-long disinformation campaign , engaged in product , food disparagement, , tortious interference business relationships . bpi called abc news series concerted disinformation campaign against lftb.

abc news denied bpi s claims, , called lawsuit without merit. abc news sought have case removed south dakota state court federal court. in june 2013, federal judge sent lawsuit state court. on march 27, 2014, south dakota state court judge cheryle gering rejected abc s motion dismiss, , allowed defamation suit move forward. diane sawyer s motion summary judgment granted , dismissed.

the trial of case began june 5, 2017 in elk point, south dakota. trial, in courthouse remodeled occasion, expected take 8 weeks, settled after 3 weeks. court ruled bpi public figure; thus, proof of actual malice required support verdict of defamation. abc represented williams & connolly, bpi winston & strawn. south dakota has food disparagement law may have permitted triple damages $5.7 billion had there been verdict plaintiff.

on june 28, 2017, abc , bpi reached settlement, ending suit. terms of settlement not disclosed.