April 26, 2024

Ikea Recalls Its Meatballs Horse Meat Is Detected

Ikea’s decision — which followed a recall by the Swiss food maker Nestlé last week — demonstrated that even closely guarded brand names have found themselves vulnerable.

In weeks of tracing the problem, European Union and national officials have conceded that their oversight had not been aimed at authenticating food products. Now that governments and companies have undertaken more extensive testing, the results appear to indicate that food adulteration may be more commonplace and widespread than previously believed.

“Clearly there has been fraud on a massive scale across multiple countries in the E.U.,” Simon Coveney, the agriculture minister for Ireland, which holds the union’s rotating presidency, told a news conference after a meeting with colleagues in Brussels on Monday.

Noting that “big brands and big names that people trust” have been caught up in the issue, Mr. Coveney said, “We are all eager to get to the bottom of this.”

The detection of horse meat, which began in Ireland and spread quickly, has raised questions about the quality and oversight of Europe’s complex chain of slaughterhouses, processed meat producers, distributors and retailers.

Already millions of products have been withdrawn, and new cases of adulteration are being discovered almost daily, involving some of the best-known food makers — including Findus and Iglo — and most prominent supermarket chains.

Ikea’s announcement underlined how few retailers can rest easy as more scrutiny is applied. The recall risks denting the homely Scandinavian image of Ikea, one of Sweden’s best-known companies.

A traditional part of Swedish cuisine, meatballs are consumed in huge quantities — 150 million a year, according to the company’s Web site — by customers in Ikea cafeterias and are also sold for consumption at home.

The company said its action concerned meatballs manufactured by one supplier in Sweden and applies to all European countries except Norway and Russia and to a limited number of products in Switzerland and Poland. The United States is not affected, the company said.

Clive Black, a retail analyst at Shore Capital, an investment banking company in London, said that Ikea’s announcement was “another left-field random outcome of the whole situation. Did Ikea want to sell horse meat? No. Have they been caught out by rogue elements? Yes.”

“The breadth with which contamination has been found clearly shows that there has been substantial rogue activity,” he added.

Ikea first said that it would not sell or serve any meatballs at its stores in Sweden after the Czech authorities detected horse meat in frozen meatballs that were labeled beef and pork, even though Ikea’s own tests two weeks ago had not detected horse DNA.

The company also said it was stopping sales in Slovakia, the Czech Republic, Hungary, France, Britain, Portugal, Italy, the Netherlands, Belgium, Spain, Greece, Cyprus and Ireland. The meatballs were produced by Ikea’s main supplier of the product, a Swedish company called Familjen Dafgard.

In a statement later in the day, Anders Lennartsson, a spokesman for Ikea Food Services, said, “We take seriously the test result from the Czech Republic authorities, indicating presence of horse meat in one batch of our meatballs.”

Results of DNA tests conducted by the food industry in Britain, released last week, showed that 1 percent of beef products were tainted with horse meat. But that news was offset by the discovery of tainted beef products destined for school meals in Scotland.

And, while the issue is primarily seen as one of fraud and mislabeling, there is concern that a powerful equine painkiller, phenylbutazone, or bute, may have entered the food chain.

Stephen Castle reported from London, and Andrew Higgins from Brussels.

Article source: http://www.nytimes.com/2013/02/26/world/europe/ikea-recalls-its-meatballs-horse-meat-is-detected.html?partner=rss&emc=rss

Response to Volatility in Silver Takes Hold

They didn’t realize it, but they were about to take the first step toward popping a bubble in global commodities prices.

Worried about the speculative run-up and the increased volatility of the silver market, the officials concluded that it was time to raise the amount of money that buyers and sellers had to put down as collateral to guarantee their trades. The first increase in so-called margin requirements took hold the next day, effectively making it more expensive for speculators and other kinds of traders to play in the market.

But the price kept going up, reaching nearly $50 a troy ounce on April 28. Over the next week or so, the exchange decided to raise collateral requirements even higher, in four more steps that would kick in every couple of days.

Silver prices finally halted their ascent — and went into free fall. Last Thursday, the rout spread to a wide range of commodities, including coffee, cotton and oil, as investors looked at silver’s plunge, as well as global interest rate trends and other economic news, and concluded that the yearlong boom in commodities prices was ending.

“The tremors felt in silver started reverberating throughout the entire commodity patch,” said Richard J. Feltes, vice president of research of R. J. O’Brien, a large commodities broker. Silver ended the week down 27 percent. Crude oil was down 15 percent, and most other commodities also fell significantly.

The futures exchanges have been struggling for months to cope with the challenges posed by rapid price increases and head-snapping volatility in many commodities. Those who rely on the commodity exchanges to hedge risks in their businesses, like farmers, food makers and mining companies, have complained that increased betting by speculators has made it much more difficult for them to use the markets.

Besides changing margin requirements, exchanges are taking other steps in reaction to the volatility. The InterContinental Exchange, a rival to the CME Group, is using computer programs to make the markets more efficient by better matching buy and sell orders in sugar and other commodities. It is also looking at strengthening various types of circuit breakers to halt or slow trading during volatile periods.

Some players in the markets say the exchanges use margin requirements to actively push down prices. But the exchanges say they are not price-setting tools.

Kimberly S. Taylor, president of CME Clearing, which processes transactions in silver futures and other commodities, said the recent margin changes in silver were intended to reduce risk for investors and the exchange.

The market’s measure of volatility in silver had been rising precipitously. “That is a very good indication that losses they will suffer day-to-day tomorrow are higher than losses they suffered in the past,” Ms. Taylor said.

As prices for commodities go up, exchanges routinely increase the margin requirements, which function as a deposit on contracts bought and sold. When prices move up or down quickly, it increases the possibility that some traders will have to put up more collateral unexpectedly. If they do not have the money, they have to sell their positions.

Silver, which is traded on the CME’s Comex unit in New York, is not the only market where margin requirements were increased recently. CME also raised margin requirements on corn, crude oil, ethanol and other products. The InterContinental Exchange increased cocoa margins in February, March and April, and cotton margins went up twice in February. Margins on the Brent crude oil contract, the benchmark oil traded in London, have increased eight times this year.

In sugar, however, where prices have declined for much of this year after last year’s sharp rise, margins were lowered in March.

CME says it makes margin changes regularly. Silver margins were raised five times and lowered once in 2010, for example. Corn margins were raised 36 percent in one day last October.

Edward Wyatt and Julie Creswell contributed reporting.

Article source: http://feeds.nytimes.com/click.phdo?i=957ccdd4a7053db27af3f2c4028ea6c8