The Canadian arm of US fastfood chain McDonald's has announced that it is converting its beef supply to 100% Canadian beef to show its support for the country's troubled beef industry.

McDonald's Canada, which is the largest purchaser of Canadian beef in the restaurant industry, said it has worked closely with its Canadian beef supplier to begin the conversion process immediately.

"We fully understand the devastating impact of the recent BSE situation on the beef industry here in Canada," said Bill Johnson, chairman, president and CEO of McDonald's Canada.

The company said that prior to the announcement, 70-80% of the beef purchased for use in its more than 1,300 Canadian restaurants had been sourced from Canada. Since 2001, the remainder of McDonald's Canada's beef supply was supplemented by Australia and New Zealand.