Meat supplier OSI says six China workers arrested

OSI Group LLC, the U.S. meat supplier ditched by Yum! Brands Inc. in China last month for selling out-of-date products, said six employees of its Shanghai unit were arrested.
OSI, owned by Sheldon Lavin, confirmed the arrests in a statement Friday. Executives at OSI’s Shanghai Husi Food Co., including Hu Jun, were arrested for the suspected production and sale of shoddy products, the Shanghai People’s Procuratorate said Friday in a separate statement.
Production at Shanghai Husi’s plant was suspended in July after workers were caught repackaging and selling chicken and beef past its sell-by date. McDonald’s stopped using OSI in China after the discovery while Burger King has said it will do the same.
The safety scare is just one of many in recent years in China, where consumers have become increasingly concerned about food standards. Six years ago, toxic milk killed six infants and sickened 300,000. Earlier this month, Heinz recalled some batches of flour in the country after one was found to contain high levels of lead.
Earlier this week, U.S. private-equity firm KKR & Co. agreed to acquire an 18 percent stake in Fujian Sunner Development Co., China’s largest chicken breeder and processor, for about USD400 million. Fujian Sunner said Aug. 26 the companies will form a partnership to expand its operations to provide meat that’s safe to eat.
OSI, which is based in Aurora, Illinois, reported Aug. 4 that the Public Security Bureau had detained six Shanghai Husi employees. OSI said Friday it will continue to cooperate fully with Chinese authorities and that it supports the government’s “consistent application of the country’s food quality and safety laws.” Bloomberg

Tim Loh