LFTB: lawsuit filed

US lawyers have filed a US$1 billion + (NZ$1.2 billion+) defamation lawsuit, on behalf of South Dakota based Beef Products Inc, against the ABC News team for a series of comments made on the channel earlier this year about lean finely textured beef (LFTB) – sometimes pejoratively described as ‘pink slime’.

LFTB is lean beef that is separated in a manufacturing process from fatty beef trimmings, to reduce wastage. The process involves treating the LFTB with small amounts of ammonium hydroxide gas or citric acid to eliminate any harmful bacteria present. The process has been approved as safe by the US Department of Agriculture and it has been reported that over 70 percent of ground beef used in the US is believed to have incorporated LFTB as an ingredient.

However, a range of media commentators including ABC News and British celebrity chef Jamie Oliver, criticised the practice and the campaign spread through social media platforms. Despite statements by the USDA and meat industry bodies asserting that LFTB is safe for consumption, a number of major retailers and restaurant chains decided not to use LFTB as a result of considerable negative publicity against the product.

As a result of the campaign, sales dropped off dramatically for the company, which led to it closing three of its four plants in May. The American Meat Institute estimated that without LFTB, the industry would need 1.5 million additional head of cattle to make up the difference in beef supply.

The BPI lawsuit alleges the network’s coverage misled consumers to believe the company’s product was unhealthy and unsafe. News reports note that Walt Disney-owned ABC News has denied the claims and say it will contest them vigorously.

LFTB is not used in New Zealand, as the leaner, pasture-raised New Zealand beef does not produce the high fat trimmings that provide the raw ingredient for LFTB, the Meat Industry Association confirmed earlier this year.

Lessons learned from the LFTB saga were aired at last week’s Australian Meat Industry Council business conference. News reports suggest that various speakers warned that social media could pose a threat and the meat industry needs to be on the front foot when it comes to tackling misinformation.

More information about the BPI lawsuit …

Smol confirmed as permanent MBIE head

David Smol has been appointed as the first chief executive of the new Ministry of Business, Innovation and Employment (MBIE), it has been announced by the State Services Commissioner Iain Rennie.

Smol (pictured right) has been acting chief executive of the super ministry since April this year and prior to that he was the chief executive of the former Ministry of Economic Development. His new contract runs until June 2017.

The Government established MBIE on 1 July 2012, bringing together all the existing functions of the former Ministry of Economic Development, Ministry of Science and Innovation, Department of Labour and Department of Building and Housing.

The Commissioner says that Smol has the skills and experience to “step up” to successfully lead the transformational change required in MBIE.

Smol will lead approximately 3,500 staff located in offices throughout New Zealand and overseas. MBIE has an annual expenditure of around $660 million and administers non-departmental appropriations of $4 billion.