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ACKNOWLEDGEMENTS
This fabulous work would not have been possible without the guidance and the
help of several individuals who in one way or another contributed and extended
their valuable assistance in the preparation and completion of this business plan.
First and foremost, our most gratitude to Sir Ali Razaq and whose sincerity
and encouragement we will never forget.
We offer our regards and blessings to all of those who supported us in any respect
during the completion of this Research Report.
Last but not the least, our families and the one above all of us, the omnipresent
Allah, for answering our prayers for giving us the strength to plod on despite our
constitution wanting to give up and throw in the towel.
Table of Contents
Executive Summary....................................................................................................................................... 4
Introduction .................................................................................................................................................. 5
Literature review........................................................................................................................................... 6
Food supply chain of beef products.......................................................................................................... 6
The Companies Involved in Horse meat Scandal ...................................................................................... 6
Source of meat in Tesco: ........................................................................................................................... 9
The ABP and Comigel Connections: .......................................................................................................... 9
Reputational Damages to the Food Industry: ......................................................................................... 10
Important News Summary: ......................................................................................................................... 11
(Brussels, 2014) ...................................................................................................................................... 11
(Horse meat Impact on frozen food Sale , 2013) .................................................................................... 11
(Uk Horse Meat Scandal, 2013) .............................................................................................................. 12
Conclusion: .................................................................................................................................................. 13
Recommendation:....................................................................................................................................... 14
Bibliography ................................................................................................................................................ 15
Executive Summary
In Feb 2013 a customer violation has surrounded the western world in sense of company
adulterate horse meat to beef product in number of countries from frozen meals that is highly
served in school, universities, offices, home without the awareness of the consumers. This meat
corruption became a highly talkative phenomenon of that year. Due to this horse meat
adulteration it actually directly impact on the faith of customer and disobey the religious of
customer.
Europe countries are highly integrated with each other so thats why the food supply chain of
Europe is also highly connected and make a vicious circle that started from order and completed
on order fulfillment. The European supply chain move around some countries like United
Kingdom, France, Cyprus, Netherlands and Romania and at the end again reached in United
Kingdom. The horse meat scandal has been happened Due to this highly complicated food
supply chain of Europe.
When horse meat scandal is happened no one know exact which company is liable for this
scandal even that is it fault of retailer or supplier or manufacturer but when investigation has
started a number of companies are involve in this scandal. The most convicted companies are
Silvercrest food; Liffey meats, Comigel, ABP, and LJ potter, Draap trading Ltd and Spanghero.
The horse meat scandal hardly destructs Tesco retailing business. The early day mostly people
thought it all adulterated by the Tesco but after that Tesco withdrew al their product from super
markets. The Tesco scientists executed test and found up to 60% horse meat in their product.
They initially shocked and said it was critical breach of trust and it caused only due to sloppy
supplier who were involved to making high profit.
This scandal imposes a negative impact on consumer as well as on food industry peoples trust
on food industry and food controlling agencies is greatly disturbed. After that scandal the Europe
frozen meat demand has declined 11% as compare to 2012.
Introduction
In early 2013, a moment of consumer violation has extended the Western world in term of
company adding horse meat to beef products in multiple countries from frozen meals that is
served in school canteens, without the awareness of the consumers. This issue of meat corruption
by most people known as the Horse Meat Scandal Horse meat scandal has had not only direct
impact on the meat industry, but the impression of consumer faith in products offered by
companies was put out of balance as a result of its secondary effects. Decrease in consumer faith
is closely related to ethical, legal, health and in some cases religious issues that Horse Meat
Scandal brought about. (LenkaHudakovo, 2013)
The first case of meat corruption happened on January 15th2013, when the testing of selected
beef products presented by major retail companies in United Kingdom (UK) and Ireland exposed
shocking news. The food Safety Authority of Ireland tested a kind of frozen beef burgers
from supermarkets for the appearance of DNA from other species which were unexposed. It
contains horse DNA in over one-third of the beef burger samples, and pig in 85% of them. The
majority of the beef ready meals also had pig DNA but not horse. One beef burger sample from
Tesco has contained 29% horse meat other than beef.
On 15 January the Irish and UK supermarket supply chains are highly united. FSAI says it warn
the UK Food Standards Agency in November since what was on sale in Ireland would also be on
sale in the UK; the FSA told MPs that it only found out in January. No one knows how long the
contamination has gone on. (Lawrence, 2013)
Literature review
Food supply chain of beef products
The Food supply chain of Europe is highly integrated. Firstly Comigel in Metz northern France
take order meat from Spanghero in southern France when Spanghero received contract then
further give it contract to a subcontractor in Cyprus so after that Cypriot subcontractor give that
contract to a trader in Netherlands.
The Dutch trader is further contracts with abattoir and butcher in Romania. The Romania skips
the other trader or subcontractors and directly supplies meat to Spanghero in southern France.
When Spanghero received the meat and send to Tavola a subsidiary of Comigel in Luxembourg
and finally product go to Findus and retailers in UK and across Europe. So that is the whole meat
supply chain of Europe. (Paris, 2013)
charged by ABP food group for selling them Raided by police and FSA on the 12 feb, all
polish meat in good faith
2. Rangeland food
Was suspended after the Irish department of Raided by police and the FSA on the 12 feb, all
agriculture confirmed that 75% equine DNA meat was seized and operations suspended.
was found in raw Elements.
3. Silvercrest Food
Found to be supplying beef burgers having Six of the eight horses slaughtered in the UK
evidence of horse DNA to super market by the have been found to contain traces of bute. They
food safety authority of Ireland.
4. Dalepak
One of the plants named by the food safety Two horses slaughtered at high peak meat
authority of Ireland as having supplied beef exports ltd were found to have traces of bute in
burgers to retailers that having evidence of the FSAs recent testing, but the meat did not
horse and pig DNA
5. Liffey meats
Also found to be supplying product to Jan fesen, a director of draap trading LTD is at
supermarket with traces of horse DNA
6. Comigel
Findus withdrew their beef lasagna products One of the companies delivered meat by draap
after its fresh supplier, Comigel, raised trading Ltd which then supplied the meat to
concerns about the type of meat used in the Comigel. Spanghero insisted the meat arrived
lasagna. The Findus UK beef lasagnas were labeled beef originating in EU.
found to contain up to 100% horse meat. The
French company also supplied to Aldi.
7. Freeza meats
Fasen says Spanghero and French manufacturers were in cheating from the Starting. (Fasen,
2013)
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Conclusion:
Actually the basic reason behind this scandal is complexity of the food industry's supply chains
across Europe Because the food and retail industries have become highly concentrated and
globalised in recent decades As I described the meat supply chain of Europe that shows the
complex relationship of Retailer and supplier. A number of supplier and sub contractor make this
supply chain harder. They have developed very long supply chains particularly for their economy
lines which empower them to buy the ingredients for processed foods from wherever they are
cheapest at any point. When many supermarket chains have withdrawn all frozen beef meals
made by Findus and Comigel an starting investigation has shows that horsemeat sold as beef
originated from Romanian slaughterhouses before being sold to a Dutch food trader then on to a
Cypriot trader and on again to a French firm.
In Nestls case the Swiss-based firm has stopped deliveries of products having meat from a
German supplier.
The basic reason to adulterate horse meat with beef is to financial gain trough misleading
because horsemeat is cheaper than other meats in some countries. Some analyst say that profit
margins have been jammed by supermarkets and it is understandable that people might cut
corners but on the Continent the price of horsemeat is much higher as "viande de cheval" is a
famous dish in France. Horsemeat is eaten in Italy and also used in large quantities in China.
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Recommendation:
European Government should make some strict rules regarding licensed slaughter houses that
include stopping the slaughter of horses. It should be provide regulatory authority to the food
standards agencies that can be fully check and balance on food standards.
The Polish and Romanian governments have not only protested their innocence of exporting
horse as beef but also pointed out that their horse slaughtering industries are not large enough to
account for the scale of adulteration that is emerging. Respected animal welfare organizations
should warned governments to save the horses and prevent adulteration.
Now a days every organization is engaged to provide low price product to customer and it can
only happened when organization get cheapest raw material and profit margins have been
squeezed by supermarkets and it is understandable that people might "cut corners" So the
supplier move toward adulteration in raw material.
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Bibliography
Belfast, C. E. (2013, Feb 5). Uk Northern Ireland. Retrieved Oct 29, 2014, from BBC News:
http://www.bbc.com/news/uk-northern-ireland-21334722
Brussels, B. w. (2014, Jan 14). New horse meat scandal hits Holland. Retrieved Oct 29, 2014, from The
Telegraph: http://www.telegraph.co.uk/news/10571612/New-horse-meat-scandal-hits-Holland.html
Casril, A. &. (2013). The Tesco Horse Meat Scandal. p. 1.
Chaffin, J. (n.d.).
Fasen, J. (2013, Feb 15). Horse Meat Scandal. Retrieved Oct 30, 2014, from The Guardian:
http://www.theguardian.com/uk/2013/feb/15/horsemeat-scandal-the-essential-guide
Horse meat Impact on frozen food Sale . (2013, Dec 20). Retrieved Oct 29, 2014, from Kantar
Worldpanel: http://uk.kantar.com/consumer/shoppers/horsemeat-scandal-impact-on-frozen-foodsales-july-2013/
Horse meat scandal essential Guide. (2013, Feb 15). Retrieved Oct 30, 2014, from The Guardian:
http://www.theguardian.com
Lawrence, F. (2013, feb 15). Horse meat scandal the essential guide. Retrieved Oct 30, 2014, from The
Guardian: http://www.theguardian.com/uk/2013/feb/15/horse-meat-scandal-the-essential-guide
LenkaHudakovo. (2013). Corporate analysis of Tesco image restoration strategies and sustomer reaction
in the United Kingdom and the Czech Republic. Denmark: Aalborg University.
Paris, J. C. (2013, Mar 14). Ft. Retrieved Oct 30, 2014, from http://www.ft.com
Uk Horse Meat Scandal. (2013, Apr 10). Retrieved Oct 28, 2014, from BBC News:
http://www.bbc.com/news/uk-21335872
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