Shanghai Municipal Food and Drug Administration on Monday [3 October 2016] ordered a major fast food chain supplier and its parent company to pay fines for producing and selling substandard products. According to the authority, Shanghai Husi Food Co and OSI Group’s China office were fined approximately 17 million yuan ($2.5 million) and 7.3 million yuan respectively…Full Article: China Daily Oct 2016

Key Point

  • In February 2016, a Shanghai court found 10 individuals from the Shanghai and Hebei branches of Husi Food guilty and were sentenced to jail. In addition, both branches had to pay fines.

ChinaAg Comments

  • In June 2016, the Shanghai Municipal Food and Drug Administration fined four companies over food safety violations. The food safety violations affected Jiuguang Department Store (e. coli in 20 packs of mustard green peas), Yihaodian.com (lead in preserved plums from Anhui Zhongjun), Shanghai Shenghua Food (sulfanilic amide in cooked chicken legs), and Shanghai Shaowansheng Food (bacteria in salted conch).
  • In December 2015, 10 individuals from the Shanghai and Hebei branches of Husi Food stood trial for selling tainted meat. As a result of the investigations following the scandal, six senior Husi Food executives were arrested.
  • In June 2015, it was reported that OSI Holding had lost approximately US$970 million as a result of the scandal.
  • 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. During the same month, KFC announced it would terminate its relationship with OSI.
  • 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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