000860 McDonald's to Farmers: "Be Kind to Hens"

Chicago, IL - McDonald's Corp. has a message for chicken farmers: be kind to your hens or the hamburger giant will not buy your eggs.

Oak Brook, Illinois-based McDonald's said it will no longer do business with farmers who withdraw food and water from the hens, a controversial practice used to increase egg production. The restaurant chain also said it will not buy eggs from suppliers who trim the birds' beaks to keep them from hurting each other.

The new guidelines, established in conjunction with the Animal Welfare Council, also require egg suppliers to double the living space for each caged hen to a minimum of 72 square inches per bird from a current industry average of about 40 square inches.

McDonald's, the first major U.S. restaurant chain to take such action, said the new directive was the result of increased concern among scientists and the public at large.

“(McDonald's Chairman and Chief Executive) Jack Greenberg is committed that McDonald's will be a leader in animal welfare,” McDonald's spokesman Walt Riker said.

“The bottom line is that when McDonald's speaks, people tend to listen because of our massive purchasing power,” he said. “Our suppliers understand where we're going with this and the ones who want to come along can come along. We suspect they will.”

He said McDonald's buys about 2 billion eggs annually to make such popular breakfast items as the Egg McMuffin and scrambled eggs. The company also uses eggs to make biscuits and other items.

Riker said McDonald's will “work with” its 26 suppliers on the increased cost associated with complying with the new guidelines.

Ken Klippen, executive director of government relations for Atlanta-based United Egg Producers, a cooperative of farmers representing about 80% of the eggs produced in the United States, said the industry does not mistreat hens.

“It is not cruel because science shows that it is healthier for the bird to be in a cage as opposed to running and stepping on its own droppings,” Klippen said.

He also said farmers trim beaks to help protect the chickens from hurting each other. In addition, he said hens naturally stay away from food and water periodically and go into a resting period in order to eventually strengthen their reproductive systems and produce higher quality eggs.

Even the White House is chiming in on the chicken controversy.

A White House spokeswoman said the U.S. Department of Agriculture is concerned about animal welfare and has set up a task force to focus on the issue.

McDonald's rival Burger King Corp., a unit of Britain's Diageo PLC(quote from Yahoo! UK & Ireland: DGE.L), issued a statement saying its egg suppliers meet existing guidelines set by the United Egg Producers.

Patrick Schumann, an analyst at Edward Jones who follows McDonald's, said financial impact from the change in guidelines is likely to be minimal on the fast-food giant.

“If there is an impact, McDonald's can absorb it and offset it in other purchasing synergies or cost saving initiatives,” he said.

Bruce Friedrich, the vegetarian campaign coordinator for People for the Ethical Treatment of Animals (PETA), praised McDonald's for making the move, but said there is still room for improvement.

“This is a bare minimum,” Friedrich said. “They need to take the hens out of cages. Even with the increased space, not one hen could spread one wing in those conditions.”

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