Horsemeat Scandal Goes Global As World's Largest Food Maker Pulls Tainted Pasta From Spain And Italy

Tyler Durden's picture

First it was Ireland, then the entire UK, then Germany, and gradually it spread to all of Europe (except for France of course, where it was always a delicacy). But it was only once its finally crossed the Alps and made its way to the Swiss factories of Nestle, the world's largest food maker, did the horsemeat scandal truly go global. The FT reports that "the escalating horsemeat scandal has ensnared two of the biggest names in the food industry, Nestlé, the world’s number-one food maker, and JBS, the largest beef producer by sales. Switzerland-based Nestlé on Monday removed pasta meals from shelves in Italy and Spain and suspended deliveries of all processed products containing meat from German supplier, H.J. Schypke, after tests revealed traces of horse DNA above 1 per cent. Nestlé said it had informed the authorities....Nestlé withdrew two chilled pasta products, Buitoni Beef Ravioli and Beef Tortellini from sale in Italy and Spain. Lasagnes à la Bolognaise Gourmandes, a frozen meat product for catering businesses produced in France, will also be withdrawn."

And now we wait as the panic spreads across the Atlantic to the US, where every food purist, who until recently stuffed themselves full of pink slime and still eats bucketfulls of the mysterious "meat" known as KFC, will accuse their retailer of horseplay, and demand that every burger be triple tested at massive bottom line losses to already profit-strapped food producers everywhere (but will certainly help Madison Avenue as horse ads become the latest advertising meme).

From the FT:

“We are also enhancing our existing comprehensive quality assurance programme by adding new tests on beef for horse DNA prior to production in Europe,” said Nestlé, which just last week said products under its labels were not affected.

The European food industry has already been crippled as the horsemeat scandal unfolds:

Nielsen, the consumer research group, said sales of frozen burgers in the week to February 2 fell 40 per cent, and more than two-thirds of British adults said they would be less likely to buy frozen meat products in the future.


Two people who attended the meeting described it as “constructive”. However, the minister was challenged by several people on how quickly the Food Standards Agency and the Department of Environment acted on intelligence it had received on the food supply chain. One retailer also said an attack by David Cameron on the supermarkets on Friday “had not necessarily been helpful”.


The testing, which some supermarkets already carry out, will mean extra costs for retailers at a time of weak consumer confidence.


Suppliers reckon they will end up bearing the brunt of the cost – adding to the pressure on margins which, some say, caused the problem in the first place.


“The people who in the end will suffer are the food manufacturers, because they will be forced to undertake testing. And the people with the power in this relationship on the whole are the food retailers,” said one industry player.


Many believe equine testing is just the tip of the iceberg. “I am sure this will rapidly move on to other species,” said Adam Couch, chief executive of Cranswick, a meat and pastry goods supplier, which has not been implicated in the scandal.

This is good news for KFC, because once the testing spreads to Yum's restaurant chain, half the DNA that is consumed on the premises will be found to have no earthly basis, and thus, well, "you must acquit".

As for those who are still a lap behind the latest newsflow in the race for the horsemeat-free trifecta, the Guardian has conveniently released the definitive guide to the Equine scandal.

Horsemeat scandal: the essential guide

With the Europewide scandal over the contamination of meat products, from beefburgers to lasagne, showing no sign of abating, study the issue in depth and learn all you need to know about how it came to this with our essential guide.

1. Where did the horsemeat scandal begin?

The Food Safety Authority of Ireland tested a range of cheap frozen beefburgers and ready meals from supermarkets last November for the presence of DNA from other species which were undeclared. It found horse DNA in over one-third of the beefburger samples, and pig in 85% of them.

The majority of the beef ready meals also contained pig DNA but not horse. One beefburger sample from Tesco turned out to be 29% horse instead of beef. Until then supermarkets and enforcement bodies had not tested for horse in beef products, because no one expected it to be there.

There are conflicting reports as to whether the agency began its investigation as random surveillance or after having been tipped off. Because the findings were so serious and likely to do huge damage to commercial interests, the FSAI then spent two months retesting before announcing its findings on 15 January.

The Irish and UK supermarket supply chains are highly integrated. FSAI says it alerted 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 adulteration has gone on.

2. Where did the horse and pig found by the Irish in beef products come from?

The Irish survey identified three factories as the source of beef products that had been contaminated or adulterated: Silvercrest Foods in Ireland, Dalepak in Yorkshire and Liffey Meats in Ireland. Silvercrest and Dalepak are both subsidiaries of ABP Food Group, one of the largest beef processors in Europe.

ABP pointed the finger of blame at its continental suppliers, with the FSAI saying these were in the Netherlands and Spain. It later said the horsemeat had entered its chain through suppliers in Poland. The Polish government checked its horse slaughterhouses and found no irregularities in labelling. Five weeks into the scandal and the links in the Irish chain have still not been fully established.

Huge blocks of frozen meat at a cold store in Northern Ireland, Freeza Foods, which had been quarantined by officials suspicious of its labelling and state of packaging, were found to contain 80% horse. Freeza Foods said the meat blocks had been delivered to its store by meat broker McAdam Foods but that it had rejected them and only continued storing them as a "goodwill" measure for McAdam. McAdam said it in turn had been sold them by a meat trader in Hull, Flexi Foods, which imports from Poland and elsewhere. ABP confirmed it had been supplied materials by McAdam but the two companies have given conflicting accounts of what the deliveries have been.

ABP has also confirmed that it has been supplied with beef by Norwest Foods, based in Cheshire, with operations in Poland and Spain, which is now also part of FSA inquiries.

The first case of horsemeat being found in fresh beef surfaced this week, when Asda withdrew its fresh beef bolognese. Its supplier was the Irish company Greencore, which said it had in turn been supplied the meat by ABP.

3. Why did some products contain so much more horse than others?

Industry sources and food safety officials believe there are different types of adulteration taking place. Where trace levels of DNA of the wrong species, particularly pig, have been found in beef, the most likely explanation is that they have been contaminated either by failure to clean production lines thoroughly enough between different processing, or that the DNA is present in protein additives widely used in the industry to bulk out cheap so-called value or economy ranges. An economy beefburger can legally contain as little as 47% beef.

Manufacturers add other cheap ingredients including water and fat, and use concentrated proteins to bind the water and fat in. They may appear on labels as "seasoning". One of the cheapest sources of these protein additives is pork rind. It is possible that horse hide is now also being used. The widespread adulteration of cheap chicken breast with pig and beef proteins and water has been uncovered in previous scandals. The beef proteins were derived from hydrolysed cattle hides. It is not illegal to use these protein concentrates so long as they are identified correctly to the manufacturer.

Where horse has been found above trace levels, however, experts believe they are looking at fraudulent substitution of horse for beef. Where horse has been found in high concentrations, they say it suggests industrial scale adulteration.

4. How did the rest of Europe get involved?

Once the Irish authorities had reported their findings, the UK FSA asked industry to test all its beef products for horse. The next round of tests revealed that the "beef" in frozen lasagne and spaghetti bolognese made for Tesco, Aldi and Findus by a French manufacturer, Comigel, was up to 100% horse.

Comigel was making cheap beef meals for supermarkets and branded companies in 16 different countries so the scandal spread rapidly, with horsemeat meals being withdrawn in Germany, Sweden, Belgium, the Netherlands, Switzerland, as well as Ireland and the UK.

5. Is the source of the Irish horsemeat the same as the French one?

The trail of the French manufacturing scandal has taken a different route to the Irish/British one so far. Comigel had subcontracted its ready meal production to a factory in Luxembourg, Tavola. It was supplied with meat by a company called Spanghero. Spanghero had bought meat from a Dutch fraudster already convicted of passing horse off as beef, Jan Fasen.

The Dutch trader ran a company called Draap, which spelled backwards is paard or Dutch for horse. It was registered in Cyprus in 2008, with an offshore vehicle in the British Virgin Islands. It emerged during Fasen's trial in Holland that he had supplied French companies with horsemeat imported from South America and Mexico fraudulently labelled as Dutch and German "beef" going back to 2007.

The horsemeat found in the recent tests on ready meals exported from France was said to have been sourced by Draap from Romania. The Romanian government has said its meat was legally exported correctly labelled as horse. The French government said Spanghero was the first agent to stamp the horse as beef; Spanghero has denied doing so deliberately. Fasen says Spanghero and French manufacturers were in on the deception from the beginning.

6. Why are the supply chains so complex?

The food and retail industries have become highly concentrated and globalised in recent decades. A handful of key players dominate the beef processing and supermarket sectors across Europe. They have developed very long supply chains, particularly for their economy lines, which enable them to buy the ingredients for processed foods from wherever they are cheapest at any point, depending on exchange rates and prices on the global commodity markets. Networks of brokers, cold stores operators and subcontracted meat cutting plants have emerged to supply rapidly fluctuating orders "just in time". Management consultants KPMG estimate there are around 450 points at which the integrity of the chain can break down.

7. Why has it happenened?

Supermarket buyers and big brands have been driving down prices, seeking special offers on meat products as consumers cut back on their spending in the face of recession. The squeeze on prices has come at a time when manufacturers' costs have been soaring. Beef prices have been at record highs as has the price of grain needed to feed cattle. The cost of energy, heavily used in industrial processing and to fuel centralised distribution chains, has also soared. There has been a mistmatch between the cost of real beef and what companies are prepared to pay.

8. How is the meat industry regulated?

Licensed slaughterhouses across Europe are required to have an official vet in attendance when slaughtering takes place – in the UK most used to be directly employed by the government but many are now supplied under contract to the Food Standards Agency by the private company Eville & Jones. Plants over a certain size are also required to have a meat hygiene inspector. A trend to deregulate and leave industry to police itself, begun under the last government, has seen numbers of inspectors fall from 1,700 at the height of the BSE crisis to around 800 now. Smaller cutting plants are no longer subject to daily inspection. The Food Standards Agency has limited powers – it has depended on industry alerting it to the results of tests voluntarily. Enforcement largely falls to individual local authorities and their trading standards officers, and their budgets have been slashed.

9. What about industry claims that it has full traceability?

The industry has previously boasted that it has full traceability of its supply chain which it audits frequently. The current scandal shows that that traceability is not worth the paper it is generally written on. Most of the factories caught up in the scandal have accreditation with mainstream auditing schemes such as that run by the British Retail Consortium but it failed to spot the problem.

10. What happened to government control of food safety and standards?

The Food Standards Agency was set up in the wake of the BSE crisis when it became clear that one agency that co-ordinated all regulation on food safety and quality was needed. Political memories have been short, however. The coalition government broke up much of the FSA in its bonfire of the quangos, so that responsibility in the current scandal is split. The FSA is still in charge of food safety; the Department of Health is responsible for nutritional standards, and the Department for Environment, Food and Rural Affairs covers labelling and veterinary medicines.

11. Where do the horses come from?

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 organisations have warned governments for several years about the growing trade in knackered horses both between Ireland, the UK, France and Belgium, and between North and South America, and continental Europe. Much of the latter is landed via Belgium. The welfare charities have documented horses in the thousands that have been moved by networks of horse dealers without proper passports. They are a mixture of horses bred for racing and pets.

12. What part do UK horse abattoirs play?

There is an established transport corridor for horses for slaughter from Ireland through Scotland or Wales to England and on to Europe. Last week a horse abattoir in Yorkshire, Peter Boddy, was raided along with a Welsh meat trading company. Three men have been arrested on suspicion of offences under the Fraud Act. The Peter Boddy abattoir, now closed, was small, with official records showing it slaughtered 44 horses last year.

13. Why are governments talking about organised crime?

Previous convictions of dealers and traders along with intelligence suggest a link between the horse trade, meat laundering and various forms of trafficking. Lorries transporting horses have been used as cover for smuggling large quantities of cannabis between the UK and Northern Ireland and lorries transporting horsemeat to the continent are believed to be used for people smuggling on the return journey.

14. Is it a health problem?

The government said at first that there was no health risk from horsemeat, but a leading government public analyst pointed out that it could not be sure until it knew the source of the horsemeat. The latest advice from the chief medical officer is that there is a risk but that it is very low.

Horses are routinely treated with an anti-inflammatory drug called phenylbutazone, or "bute". Bute is banned from the human food chain, because it can in rare cases cause a potentially life threatening illness, aplastic anaemia, or bone marrow failure. Since it is not known what triggers the illness, it has not been possible to set any safe level for bute residues in human food. Doses from horsemeat are likely to be very low. Horse passports are supposed to record any bute administered so that animals can be excluded from going for food, but with large numbers of fake passports in circulation, some horses containing bute have been eaten.

Since the scandal the government has changed the rules so that horse carcasses may now only be released for consumption once they have been tested for bute. The first batch of tests found around 4% of horse testing positive. The horse trade from the Americas has similarly been bedevilled by problems with horse passports and drug contamination.

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john39's picture

Euthanized dogs and cats end up in pet food... The drugs make pets sick sometimes

Tijuana Donkey Show's picture

A chinese chicken has 4 legs, and goes "meow."

A chinese cow has 4 legs, and goes "woof."

A chinese pig has 2 legs and goes "mom."



Yen Cross's picture

 Long Horse shit> Is camel still on the menu?

TheFourthStooge-ing's picture

It's all on the menu at JKC*, the popular new Chinese citizenism fastfood franchise.


*Just killed cat

Parrotile's picture

"Anything with wings except an airplane, anything with legs except a table".

At the rate of current "progress" coming to a COUNTY near you any time soon . . . . . . .(along with such dishes as "genuine RATatouille", and the "new improved, Organic" version of pink slime - MRM Mouse!)

Longing for the old America's picture

Those suppliers are nothing but a bunch of whores (or is the plural horses?)

FreeMktFisherMN's picture

inflation here at Buffalo Joe's in the People's Republic of Evanston, too. Wings tiny (suicide sauce still good) w/hardly any meat, and price for a single order has jumped a ton. And a burger and waffle fries used to be 6.25 last spring; just got that same thing, now $6.99. A quick math calculation leads to .74/6.25 = 11.84% price increase. And Buff Joe's is all about low cost fare, greasy pit type, so they are not doing this because they 'all of a sudden' wanted to increase margins. They have to due to inflation.

FreeMktFisherMN's picture

I'm told the wings used to be awesome there, and not just because of the sauce. Now they are pathetic little drummies if that.

Atomizer's picture

Take school horsemeat and mix in 4 parts of pink slime to create a new government taxation revenue stream. The fears of US government being broke is quite transparent.

Mae Kadoodie's picture

N e s t l e s makes the very best-horsemeat.

Unprepared's picture

"Horse, the other red meat"

Hulk's picture

"Horse, its whats for dinner. whether you know it or not"...

Anusocracy's picture

Time for some re-branding and the introduction of Horseburger Helper.

bugs_'s picture

Consider the scale of this!  From Norway to the Falkland Islands the shelves are full of it.  This is not an isolated instance of a criminal trying to make a fast buck or a single criminal firm.  No my friends this is state sponsored food terrorism at a scale so large that only an economic superpower can possibly be behind it.

Hulk's picture

Damn! What if everyone gets mad horse disease ??? Can you imagine everyone running around Europe naked, and wanting to be mounted ???

Manic by Proxy's picture

You're describing Brussels, Amsterdam and San Francisco. Also, my living room.

espirit's picture

I think I'll quit buying that "corned beef" from Argentina, and maybe Brazil.

RideTheWalrus's picture

Soylent Brown is HORSE!!

oh, it gets worse than that....

Yen Cross's picture

  This is looking good.    Horse( Clyesdales) and beer .

Judge Crater's picture

Great story with graphics by the Financial Times on the horse meat food adulteration scandal.  The big unanswered question now is has the Food and Drug Administration in the USA done any DNA testing on beef hamburger imports for horse meat DNA?  This is the same FDA that went hogwild in 2008 over OSCS contaminated heparin distributed by Baxter International while ignoring the OSCS ccontaminated blood thinner Lovenox, an injectible drug used by hundreds of thousands of patients, in and out of hospitals.  The FDA, like the SEC, is a bought off regulatory agency which only targets outsiders and nobodies unless there is a big scandal.  So don't hold your breath waiting for the FDA to test TV dinners for signs of horse meat or donkey meat DNA or to test stuff like imported meat ravioli products from Italy.

Tijuana Donkey Show's picture

Wait till they test it for human DNA....  that's why the illegal workers at the beef plant never come home. The last tamale...................

NoDebt's picture

<gulp> Tastes just fine to me!

Imagine that.  The meat industry in the news for bad behavior.  Haven't we seen this movie before (like for the last 100 years)?

If you believe the paper labels on the "food" you buy, I have some nice paper currency you might be interested in.


Curiously_Crazy's picture

5 years ago it was about pies (containing to much soy as a filler) 10 years ago it was about fish being incorrectly labled (cheap fish like flake sold as snapper) but for fucks sake if people are eating it and not knowing the difference who is really at fault.

I'm sick and tired of all this nannying. Anyone with any common sense could figure it out and if they don't is it really such a loss?  Does it really matter if one buys a pie and it contains soy products? does it matter to society as a whole if one buys a fish labled as snapper when it's not - hey after all they seem to be happy shoving the deep fried shit down there gobs. And yes, does it really matter if a percentage of horse is in your bloody churned up manufactured artificial buger meat? People have eaten horses for eons. It was common even in the UK during the World wars because of other meat shortages.

But I guess it keeps the sheeple distracted from things like. Oh I dunno, the economy, illegal banking practices, destruction of countries..  silly stuff like that.

Rusty Trombone's picture

Looks like the Neighs have it by a furlong............

chump666's picture

First they watered down Heineken, next they tried to water down Makers Mark, now horse meat (Weimar style) goes global

Hyper inflation signs baby. 

fuu's picture

7,067,154,667 and counting.

After we eat all the horses do we start in on the wildebeasts?

Cabreado's picture

13. Why are governments talking about organised crime?

Is that a trick question?

ForWhomTheTollBuilds's picture

The Pink Slime debacle was enough to get me to make efforts to ensure the meat I was eating was as close to the cow as I could get it.  I guess I cannot be sure unless I kill it myself, but I am through with pre-packaged meat products.

<sarcasm>I bet Nestle and the Pink Slime people will receive a punishment that will truly make them regret defrauding the masses.  You can be sure that our regulators have our backs because they know the altarnative is a libertarian society where the products we buy could contain anything</sarcasm>



Piranhanoia's picture

Why do you figure it just started?  No one gets that the mad cow deal never got solved, just covered up, and that is why so many people are going wacko.  Now eating this crap isn't voluntary with spam and other organ meats from a variety of the animal kindom.  Have a zombie?

ForWhomTheTollBuilds's picture

"Why do you figure it just started?"


Excellent point.  I often have to remind myself not to confuse my belief that things are getting worse with what is really just a growing understanding of things the way they probably have always been.  It's so easy to confuse the two because the former is more exciting (it feels like Im "on the case" and that I can maybe help change the outcome when in reality I'm more like a cop arriving at the scene of a murder that occured in the past).

devo's picture

By the time Bernake is done with us we're going to be begging for horse meat.


And wash it down with some watered down Makers Mark. 

InTheLandOfTheBlind's picture

Makers have changed their stance but even at 42 it is higher than the likes of Templeton

booboo's picture

google up some pictures of starving Germans hacking meat off a dead horse in the street. Past is prologue 

malek's picture

Horse ads?

Such as "Don't change horses in midstream"?

A Lunatic's picture

Anyone else seeing these banner ads for Tijuana donkey ladies...........??

Tijuana Donkey Show's picture

PEOPLE KEEP CALLING MY NAME! The ladies are union, Teamster to be exact, and only take it with a sweet comp package. Package is code word for my ballls.

digalert's picture

While in the free USA, if you question whether your FDA approved meat is beef or horse, you will be NDAA'd.

Dr. Engali's picture

I always thought it was funny that people accepted the fact that the stuff they put in those products was meat to begin with.

Hulk's picture

I always just assumed potted meat was Horse anyway...

(and thinking about it, potted meat prepared us all so well for pink slime)

Catflappo's picture

Next we'll get incredible revelations such as discovering that Big Macs have shrunk again and again over the years,  packets of biscuits contain less biscuits than they used to (and they're smaller biscuits well), and that our coffee now costs the same or more but contains substandard beans.


All of which is fine because CPI ex-food, ex-auto, ex-fucking everything is ticking along comfortably at something point something percent.

Tijuana Donkey Show's picture

CPI Ex-horse! This is proof of how the CPI adjusts items based on price. One day horse, next day cat food. Cat food is actually eating cats for food. Ask Granny, she'll tell you about "short chicken.."

Teamtc321's picture

"13. Why are governments talking about organised crime?

Previous convictions of dealers and traders along with intelligence suggest a link between the horse trade, meat laundering and various forms of trafficking. Lorries transporting horses have been used as cover for smuggling large quantities of cannabis between the UK and Northern Ireland and lorries transporting horsemeat to the continent are believed to be used for people smuggling on the return journey."


Is anyone really fucking surprised by this #13?

Let me fix that subject heading real quick below then.  


Why are we just now talking about organised government crime?

Atlantis Consigliore's picture

its called Counterfeit,  like Gold/ tungsten,  and devalued paper script;   do you know whats in your wallet,  feed bowl?


angry? go take a Cruise on the FED Boat.   

razorthin's picture

I think I am going to start harvesting the rabbits and woodchucks on my property.

Yen Cross's picture

 I can't stop laughing. You guys are killing me!  I need a fucking nap, and you ZHedgers are keeping me awake!