McDonald’s Former Supplier was Punished for RMB25 Millions

Sunday, 09 October 2016 09:46

Shanghai Municipal Food and Drug Administration recently made the huge punishment on Shanghai Husi Food Co., Ltd and its mother company OSI Investment (China) Co., Ltd. for selling the expired chicken and beef to Chinese branches of McDonald’s and KFC.


Shanghai Husi Food Co., Ltd was a subsidiary of the U.S.A. based food supplier OSI Group but it was shut down in the Year 2014 due to its illegal activity. In this July, the final sentence was made by Shanghai Municipal Court that Shanghai Husi Food and OSI Group was guilty of producing and selling the expired products and having been punished for RMB24.285 millions. Its food producing license was also revoked. Further, its senior management personnel had been put on the blacklist.


Dongjin comments:

  1. Food safety is a hot but crucial topic in China. The Chinese government is taking efforts to complete the food regulatory system and make more officers to check onsite the relevant enterprises. If the company conducted any illegal activities, it will be made more penalties.
  2. The WOFE involving in the food industry should improve its legal control and strictly check its supplier’s qualification as well as the contract from time to time. The complete due diligence on the supplier is also very important, especially whether it had any bad record.


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