McDonald's, KFC owners in trouble in China again after food supplier suspended

By Daniel S Levine,

McDonald’s Corp and KFC owners Yum Brands are now facing another controversy in China, one of the largest fast food markets in the world. Their meat supplier in the country has been suspended after concerns were raised over the safety of its product and now the companies have to find another way to get their meat.

The food and drug administration in Shanghai said that Shanghai Husi Food Co., Ltd meat must be removed from circulation, reports Xinhua. The company is accused of selling stale meat to McDonald’s, KFC and Pizza Hut chains.

After reporters got into a Husi plant and saw that stale beef and chicken was entering the supply, officials went to the plant to see it for themselves. They were actually stopped by security guards and had to call police before they could conduct an investigation.

Reuters reports that both McDonald’s and Yum have said they will no longer use Husi. The companies both lead the $174 billion fast food industry in China, which is also Yum’s top market in the world. Both were also involved in a 2012 scare, in which chicken with too much antibiotics were in circulation. Yum was particularly hurt in that scandal and is still trying to recover.

Husi is owned by OSI Group LLC, a U.S. based company.



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