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SHANGHAI authorities said they have detained five employees of Shanghai Husi Food Co. Ltd., the contract processor reported to have used expired meat in products intended for fast-food chains McDonald’s and Yum Brands in China. The Shanghai Public Security Bureau said on Wednesday that a Husi quality manager was among those detained, but did not name any of the five who have been brought in for questioning.
Husi, an affiliate of U.S. contract food processor OSI Group LLC, was ordered to stop production on Monday, July 21, and authorities confirmed that its facility engaged in illegal production procedures.The investigation stems from an Shanghai broadcaster Dragon TV report, which broadcasted video showing Husi using expired chicken to make nuggets and reworking expired beef to make hamburger patties, and fraudulently changing production dates. The report further claimed that during an audit and inspection of the premises by major customer McDonald’s, Husi hid expired materials from the fast-food company’s representatives.
In a statement, OSI Group said it takes the Dragon TV expose very seriously and that it is dealing with the issue and plans to cooperate with government inspections.
“What happened at Husi Shanghai is completely unacceptable,” stated Sheldon Lavin, chief executive of privately held OSI Group.
Yum, which owns KFC, Pizza Hut and Taco Bell, said Wednesday that it was terminating all agreements with the company, including in Australia and the U.S.
Husi's other customers in China included coffee chain Starbucks, Burger King, convenience stores 7-Eleven, and Papa John's Pizza, according to separate statements from the companies.
In Hong Kong, the Center for Food Safety said they would speak to a fast food operator which has imported from an OSI facility in China, without disclosing which company or other details.
Subway, the sandwich shop chain, meanwhile has prominent announcement on its website that its restaurants in Hong Kong do not serve products from Husi.
Scandal spreads to Japan
In Japan, the Family Mart convenience store chain has also stopped selling chicken nuggets made at the Shanghai Husi plant.
“I apologize for having betrayed the confidence of our customers,” Isamu Nakayama, Family Mart president, said on Wednesday in Tokyo.
Separately, McDonald's Japan president apologised to customers on Wednesday for the "extremely regrettable" incident after the fast food chain confirmed it sourced about 20% of its chicken-based McNuggets from the Shanghai factory.