Suppliers respond to demands of McDonald's shareholders

By DAVE WILKINS
Capital Press

Farmers who grow potatoes that end up as french fries at McDonald's and other fast food restaurants have begun taking surveys about how they produce the crop.

About a year ago, McDonald's bowed to pressure from activist shareholders and agreed to make an effort to cut pesticide usage on spuds used to make its famous french fries.

The fast food giant committed to survey its U.S. supplier base, compile a list of best management practices and communicate the findings to shareholders.

The J.R. Simplot Co., one of McDonald's largest french fry suppliers, took the survey out for a "test drive," this winter, said Dave Ingersoll, Simplot's senior manager for raw product.

Simplot surveyed about 10 to 15 growers in Idaho and the Columbia Basin of Oregon and Washington in December. Some of the company's growers in the Upper Midwest and Canada were also asked to complete the survey, Ingersoll said.

Ingersoll didn't reveal results, but he made it clear that some growers weren't excited about taking the survey.

"We've very aware of the concerns that came out of that survey," he told growers at the Idaho Potato Conference in January.

Growers expressed several concerns, including the increasing amount of time and money that it takes to satisfy higher compliance standards. Some also worry about what will happen to all the data they provide to McDonald's and its shareholders.

Simplot understands the concerns, Ingersoll said.

"At some point, are people going to be telling us -- or telling you -- how to raise your potatoes? That's a huge concern of ours," he said.

Ingersoll said Simplot is being "very cautious" about how the survey data is handled.

The processor isn't trying to micromanage growers, but is simply doing what is required by a major customer, he said.

"You guys are the professional farmers, not us," he told growers. "We don't want to be telling you how to farm. We want to document it."

The McDonald's survey is part of a growing trend toward more documentation in farming operations spurred by food safety concerns.

Nearly all food processors now require growers to comply with good agricultural practices as outlined in a USDA checklist. The checklist includes information about pesticide usage, crop rotation and storage practices.

Food processors have to meet good handling practice guidelines and other requirements tied to the increasing push for sustainability, Ingersoll said.

Simplot documents its manufacturing practices using third-party inspectors that conduct food safety audits, he said.

"The industry has continually ratcheted up their standards of what they expect us to deliver," he said.

Farmers may grumble about having to provide all the additional data, but they have little choice, said Dale Lathim, executive director of Potato Growers of Washington.

In business, "the customer is always right," and in this case, the customer wants more information, he said. But he also said growers are not happy to do all the extra paperwork.

"Their choice is to do it or not grow processing potatoes," he said. The drive toward more documentation and accountability isn't going away.

"There isn't one processor, there isn't one grower in North America who isn't dealing with this issue today," he said.