"Pink slime" ire prompts key producer to close plants

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44. WSJ: 'Pink Slime' Controversy Hurting Beef Demand, Tyson Says

The controversy over a common ground-beef filler dubbed "pink slime" by critics has hurt short-term beef demand, a Tyson Foods Inc. TSN +0.15% executive said Tuesday.

Increased awareness and debate over the product has "put a fair amount of pressure on ground beef consumption," Tyson Chief Operating Officer Jim Lochner said at an investor presentation. The controversy prompted several grocery chains to announce they wouldn't carry beef containing the product because of consumer complaints.

Mr. Lochner framed the controversy as a "two-week event" and said that demand should "recover quite quickly."

Longer term, Mr. Lochner echoed concerns by other industry sources that elimination of the product will lead to tighter beef supplies and higher prices. "We'll probably see a 2% to 3% reduction in the available beef supply," Mr. Lochner said.

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