Pink Slime Producer Goes Bankrupt

In Articles by DougG

Pink slime producer has filed for bankruptcy. Extensive media coverage sent sale soaring downward and as a result the producer is seeking protection through bankruptcy.

If you don’t believe anything can quickly change in the food industry, you might be surprised to learn a manufacturer of the ground-beef product called pink slime has filed for bankruptcy. The main cause was said to be extensive media coverage, which caused a dramatic drop in demand for the meat filler, which has been in many beef products on the market. 

“Ongoing media attention has called into question the wholesomeness” (of the meat) and dramatically reduced the demand for all ground beef products,” said AFA interim Chief Executive Officer Ron Allen, according to Bloomberg News. One of AFA’s competitors said it was scaling back production of the beef filler. It has been reported McDonald’s, Burger King and Taco Bell have all dropped it from their menu items.

Pink slime may be in beef products sold at grocery stores. It has been estimated seventy percent of ground beef could contain the beef filler, which is a blend of connective tissue and muscle. One of the initial sparks of the pink slime media furor was over the USDA’s purchase of millions of pounds of the stuff for lunches at public schools.

The way it is processed has caused concern it could harbor pathogens, such as E. coli or Salmonella and other bacteria. The meat industry tries to decrease the risk of beef filler containing such microorganisms by treating it with a gas made of ammonium hydroxide. (Grist pointed out ammonium hydroxide it as just one of chemicals used in meat processing consumers probably don’t know about.)

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