Beef Processor Files for Bankruptcy, Cites Pink Slime Controversy
While Beef Products, Inc. is still going forward with some of their beef manufacturing, it looks like the pink slime controversy has caused another processor, AFA Foods, to file for bankruptcy.
Reuters reports that the Pennsylvania-based ground beef processor says it plans to sell some or all of its assets, citing the backlash over "finely textured beef," or "pink slime."
AFA Foods is reportedly one of the largest ground beef processors in the United States, producing more than 500 million pounds of ground beef products a year. This includes frozen hamburgers and ground beef under the brand names Moran's and Miller Quality Meats.
Court papers show that AFA has $219 million in assets and $197 in liabities, while in December 2011 the company posted an annual revenue of $958 million.
The backlash against pink slime also forced Beef Products, Inc. to stop production in three of their factories, dropping finely textured beef production by 900,000 pounds. Defenders for pink slime say the product's ammonia treatment is necessary to stop food-borne illnesses.