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'Pink slime' forces beef processor into bankruptcy

AFA Foods says it will have to sell assets, blames negative media coverage

Ground beef processor AFA Foods filed for bankruptcy protection on Monday and said it plans to sell some or all of its assets, citing the impact of media coverage related to a meat filler critics have dubbed "pink slime."

Meat processors have faced a backlash over the use of an ammonia-treated beef filler they call "finely textured beef." Food activists have campaigned to have it banned arguing the product was unappetizing, but supporters say the product is safe to eat.

AFA is one of the largest ground beef processors in the United States and produces more than 500 million pounds of ground beef products annually, the company said in documents filed in U.S. Bankruptcy Court in Wilmington, Delaware.

The company sells its retail products, which include frozen hamburgers, ready ground beef and beef skillet mix, under the brand names "Moran's" and "Miller Quality Meats."

The media backlash over "pink slime" has prompted companies such as Beef Products Inc (BPI) to halt production at some of its plants and has led some big U.S. supermarket operators, including Safeway Inc and Supervalu Inc, to say they will stop buying the ammonia-treated beef.

Full Article:
http://www.msnbc.msn.com/id/46926159/ns/business-us_business/#.T3pLetXAPjA