Jeff Kroll, a senior vice-president with McDonald’s Canada, told cattle producers at the Manitoba Cattle Producers Association’s annual general meeting that his company fully supports a traceability system in Canada.
But following Kroll’s 10 minute presentation at the Dec. 17 meeting in Brandon, Joe Bouchard, a cattle producer from Fisher Branch, Man., stepped up to the microphone to ask the $64 million question: will McDonald’s customers pay more for their burgers to cover the cost of a traceability system?
“We hear a lot more about how people are willing to pay more for traceability,” Bouchard asked.
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“Will the consumer pay more for traceable products?”
Kroll, who participated in a beef-marketing panel at the MCPA meeting, began his answer by referring to his former job as the global toy buyer for McDonald’s.
As the largest purchaser of toys in the world, Kroll explained the company spent a huge amount of money to ensure that its toys were safe. Similarly, it will pay to make sure that its burgers are safe but that cost will be factored into the price of a Big Mac.
“Whether it be food safety, food quality, sustainability standards, animal welfare, those are things we have a history of paying for and will continue to pay for. And ultimately, it does get passed on to the consumer,” said Kroll, who’s in charge of the national supply chain for McDonald’s Canada.
During his presentation, Kroll provided a few facts for the audience, noting that McDonald’s purchased 64 million lb.. of beef from Canadian suppliers last year and the restaurant chain serves 2.5 million Canadians every day.
Kroll said his company and the entire beef industry must find ways to maintain consumer trust.
“When we talk about marketing Canadian beef to Canadians, their trust and confidence in the product underpins all other considerations when it comes to purchase behaviour.”
Which is why his company backs the federal government’s plan to develop a Canadian traceability system.
Kroll was not available for questions following the panel discussion, but Ron Christianson, director of external communications for McDonald’s Canada, said the company isn’t focused on introducing a “sustainable” burger or “green” burger, to trumpet its food sourcing protocols.
“(But) national traceability can add another important layer to our already strict quality and safety controls,” he said in an e-mail.
Bouchard said McDonald’s operates on a margin and it must be competitive when it comes to the price of product. But if marketed properly, he agreed that consumers might be willing to pay slightly more for traceable beef.
