OSI (China) Holding Co., Ltd lost nearly 6 billion yuan (about 970 million U.S. dollars) following a food scandal in China last year, the company said Tuesday [30 June 2015]. On July 20, Shanghai Husi Food Co., Ltd, a subsidiary of the global food processor OSI Group, was revealed to be supplying out-of-date meat labeled with phony expiration dates to a string of fast food chains and restaurants across China. Six senior executives were arrested after the company was investigated, and the group has stopped all operations at Shanghai Husi…Full Article: ECNS.cn July 2015

Key Point

  • In June 2015, OSI China invited the media to visit its meat processing factory in in Xihua County of Zhoukou City, Henan province. The factory, a meat supplier of McDonald’s, can process up to 165,000 MTs of chicken/beef per year.

ChinaAg Comments

  • In January 2015, 1,415 cases of expired OSI meat was destroyed in Shanghai (last of the tainted meat). OSI tainted meat products were destroyed and disposed of in Beijing and Shanghai, as well as in the provinces of Liaoning, Henan, Sichuan and Shandong.
  • In September 2014, the Shanghai Food and Drug Administration notified OSI China that it was fully responsible for the tainted meat produced by Shanghai Husi. In addition, 340 Husi employees and contractors were officially laid off.
  • In August 2014, McDonald’s in Hong Kong stopped selling fresh corn cups, green salad and fresh lemon tea as these items were primarily sourced from OSI processors in Hebei and Gaungzhou.
  • In July 2014, Shanghai Husi, a division of US-based OSI Group LLC, was found to have sold expired meat to McDonald’s, Pizza Hut, Papa John’s, Seven-Eleven and FamilyMart (Japan-based convenience store).

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