News / Asia

McDonald's Meat Supplier Overhauls China Operations

McDonald's Hong Kong restaurants have taken chicken nuggets and chicken filet burgers off the menu following accusations of selling expired meat. A menu as of July 25, 2014.
McDonald's Hong Kong restaurants have taken chicken nuggets and chicken filet burgers off the menu following accusations of selling expired meat. A menu as of July 25, 2014.
Reuters

A leading U.S. meat supplier said a Chinese unit at the center of a food safety scandal had issues that were “absolutely inconsistent” with the group's high standards.

“This is my company and events like these have a personal toll. ... They simply don't represent the values I stand for or those of my company,” Sheldon Lavin, the millionaire chairman, CEO and owner of Illinois-based OSI Group LLC, said at a news conference Monday in Shanghai.

OSI said it was suspending operations at Shanghai Husi Food and would review all its China plants in an effort to limit further damage after losing two major customers.

KFC and Pizza Hut parent Yum Brands Inc. last week severed its ties with OSI, while the Japan and Hong Kong units of McDonald's Corp. said they were ending their relationship with the U.S. meat processor's Chinese unit following allegations it mixed expired meat with fresh produce.

Customers eat at a McDonald's restaurant in Hong Kong on July 25, 2014.Customers eat at a McDonald's restaurant in Hong Kong on July 25, 2014.
x
Customers eat at a McDonald's restaurant in Hong Kong on July 25, 2014.
Customers eat at a McDonald's restaurant in Hong Kong on July 25, 2014.

David McDonald, OSI's president and chief operating officer, said the group was making senior management changes in China and will set up a quality control center in Shanghai to better supervise its business. It also will bring in global experts to survey the China operations and improve auditing, including constant visual surveillance and extensive employee interviews.

In addition, it plans to spend 10 million yuan ($1.62 million) on a food safety education program in Shanghai.

McDonald's headquarters to take control

OSI, which ranks among the top few dozen U.S. private companies with annual revenue of close to $6 billion, said its China operations had a certain amount of autonomy. The group wanted a decentralized business model that allowed decisions to be made locally, although global standards were not meant to be broken. McDonald's said the China operations would come under the direct control of headquarters.

Shanghai Husi Food was accused earlier this month by a TV documentary of mixing expired meat with fresh product and forging production dates. Regulators in Shanghai said Husi had forged the dates on smoked beef patties and then sold them after they expired. Police have detained five people as part of their investigation. There have been no reports of any consumers falling sick.

“To date, we've found issues that are absolutely inconsistent with our internal requirements for the highest standards, processes and policies,” McDonald told a packed news conference at a Shanghai hotel, adding that all nine OSI food processing plants in China would be reviewed.

China is McDonald's third biggest market by outlets and Yum's largest, representing a big growth opportunity for foreign fast-food chains. But a series of damaging food safety scandals in recent years risks denting those prospects as many Chinese look to foreign restaurants for better quality.

Meat dishes off menu

McDonald's, which has more than 2,000 outlets in mainland China, took more meat dishes off its menus Monday as it sought to fill the supply gap after OSI withdrew all Shanghai Husi products from the market at the weekend.

At least three McDonald's outlets in Shanghai and Beijing, visited by Reuters reporters on Monday, had stopped selling all or most of their meat products. Outlets in cities such as Tianjin and Wuhan were also affected, according to microblog postings.

A spokeswoman at McDonald's in China said its beef, chicken and pork products were affected at outlets across the country, though the level of impact varied.

In an emailed statement, McDonald's said it had withdrawn all products from the Husi group in China since Friday. “As a result, we are now only offering a limited menu in our restaurants around the country.”

“We are leveraging our network of suppliers to resume our full menu offerings. Some restaurants will resume offering full menu in early August and some may take a little longer. We apologize to our customers for causing them such concern and inconvenience,” it added.

'Won't accept their apologies'

“I wanted to order chicken products today,” said Tan Qiang, 23, at one McDonald's outlet in central Shanghai. “But they only had one type of combo and nothing else. I was disappointed not being able to eat what I want.”

Outside another nearby McDonald's, an 18-year-old student who only gave her surname as Li, said: “For big companies like McDonald's, they should feel sorry for what they did to customers. I won't accept their apologies.”

Food safety is a big issue for Chinese consumers after dairy products tainted with the industrial chemical melamine led to the deaths of six infants in 2008 and left many thousands sick.    

You May Like

Photogallery Americans Celebrate Thanksgiving With Feasts, Festivities

Holiday traditions include turkey dinners, 'turkey trots,' American-style football and New York parade with giant balloons More

Video For Obama, Ferguson Violence is a Personal Issue

With two years left in term, analysts say, president has less to lose by taking conversation on race further More

Video Italian Espresso Expands Into Space

When Italian astronaut Samantha Cristoforetti headed for the ISS, her countrymen worried how she would survive six months drinking only instant coffee More

This forum has been closed.
Comment Sorting
Comments
     
by: Frankie Fook-lun Leung from: Los Angeles
July 28, 2014 11:08 PM
Speaking as a lawyer, the problem in China is not there are no rules and regulations. But the people who supposedly are hired to enforce the rules and regulations do not do a good job. There are many loopholes, including corruption and cultural attitude which defeats the purported enforcement of these rules and regulations.


by: timekeeper from: Florida
July 28, 2014 11:17 AM
To me the real issue is why we are buying meet from china instead of the US. do we not have meat processing is this country anymore. McDonalds could not open their own processing center in this country. you can set up all the standards in the world but it is hard to change culture. Many foreign cultures do not understand health proceedure's. China has had a bad track record so far on food including killing many pets with bad dog food.


by: Lesley from: Ontario, Canada
July 28, 2014 11:02 AM
It says in the article there have been no reports of people getting sick! Well I ate there in April of this year and noticed my double cheese burger tasted funny - but chalked it up to a different way of preparing it. Within hours I had severe food poising which lasted for 3 days! I could barely stomach any food for the rest of my trip. It was horrible - I was on a guided tour and missed 3 days of activities as I was in my room - I was SOOO sick! and I KNOW it was from that McDonald's burger in Shanghai!!

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
South Africa Sees Male Circumcision as Way to Reduce HIV Infectionsi
X
November 28, 2014 3:31 PM
South Africa remains plagued by AIDS despite massive government and NGO efforts on prevention and life-sustaining Anti-Retro-Viral programs. But the country has opened up another front to reduce new HIV infections: promoting circumcision. Emilie Iob reports for VOA News from a pioneering circumcision center in Orange Farm, Johannesburg.
Video

Video South Africa Sees Male Circumcision as Way to Reduce HIV Infections

South Africa remains plagued by AIDS despite massive government and NGO efforts on prevention and life-sustaining Anti-Retro-Viral programs. But the country has opened up another front to reduce new HIV infections: promoting circumcision. Emilie Iob reports for VOA News from a pioneering circumcision center in Orange Farm, Johannesburg.
Video

Video To Make A Living, Nairobi Street Vendors Face Legal Hurdles, Physical Violence

The Nairobi City Council has been accused of brutality in dealing with hawkers in the Central Business District - in order to stop them from illegally selling their wares on the streets. Lenny Ruvaga has more for VOA News from the Kenyan capital.
Video

Video For Obama, Ferguson Violence is a Personal Issue

Throughout the crisis in Ferguson, Missouri, President Barack Obama has urged calm, restraint and respect for the rule of law. But the events in Ferguson have prompted him to call — more openly than he has before — for profound changes to end the racism and distrust that he believes still exists between whites and blacks in the United States. VOA White House correspondent Luis Ramirez reports.
Video

Video Online Magazine Gets Kids Discussing Big Questions

Teen culture in America is often criticized for being superficial. But an online magazine has been encouraging some teenagers to explore deeper issues, and rewarding their efforts. VOA religion reporter Jerome Socolovsky went to this year’s Kidspirit awards ceremony in New York.
Video

Video US Community Kicks Off Thanksgiving With Parade

Thursday is Thanksgiving in the United States, a holiday whose roots go back to the country's earliest days as a British colony. One way Americans celebrate the occasion is with parades. Anush Avetisyan takes us to one such event on the day before Thanksgiving near Washington, where a community's diversity is on display. Joy Wagner narrates
Video

Video Aung San Suu Kyi: Myanmar Opposition to Keep Pushing for Constitutional Change

Myanmar opposition leader Aung San Suu Kyi says she and her supporters will continue pushing to amend a constitutional clause that bars her from running for president next year. VOA's Than Lwin Htun reports from the capital Naypyitaw in this report narrated by Colin Lovett.
Video

Video Mali Attempts to Shut Down Ebola Transmission Chain

Senegal and Nigeria were able to stop small Ebola outbreaks by closely monitoring those who had contact with the sick person and quickly isolating anyone with symptoms. Mali is now scrambling to do the same. VOA’s Anne Look reports from Mali on what the country is doing to shut down the chain of transmission.
Video

Video Ukraine Marks Anniversary of Deadly 1930s Famine

During a commemoration for millions who died of starvation in Ukraine in the early 1930s, President Petro Poroshenko lashed out at Soviet-era totalitarianism for causing the deaths and accused today’s Russian-backed rebels in the east of using similar tactics. VOA’s Daniel Shearf reports from Kyiv.
Video

Video Hong Kong Protests at a Crossroads

New public opinion polls in Hong Kong indicate declining support for pro-democracy demonstrations after weeks of street protests. VOA’s Bill Ide in Guangzhou and Pros Laput in Hong Kong spoke with protesters and observers about whether demonstrators have been too aggressive in pushing for change.
Video

Video US Immigration Relief Imminent for Mixed-Status Families

Tens of thousands of undocumented immigrants in the Washington, D.C., area may benefit from a controversial presidential order announced this week. It's not a path to citizenship, as some activists hoped. But it will allow more immigrants who arrived as children or who have citizen children, to avoid deportation and work legally. VOA's Victoria Macchi talks with one young man who benefited from an earlier presidential order, and whose parents may now benefit after years of living in fear.
Video

Video New Skateboard Defies Gravity

A futuristic dream only a couple of decades ago, the hoverboard – a skateboard that floats above the ground - has finally been made possible. While still not ready for mass production, it promises to become a cool mode of transport... at least over some surfaces. VOA’s George Putic reports.
Video

Video Falling Gas Prices Impact US Oil Extraction

With the price of oil now less than $80 a barrel, motorists throughout the United States are benefiting from gas prices below $3 a gallon. But as VOA’s Kane Farabaugh reports, the decreasing price of petroleum has a downside for the hydraulic fracturing industry in the United States.

All About America

AppleAndroid