McDonald’s Corporation (NYSE:MCD) is suffering from a lack of supply of meat in China amid the latest food safety scandal the company is facing, Eunice Yoon said in a recent CNBC report.
The latest development comes as McDonald’s Corporation (NYSE:MCD) and Yum! Brands, Inc. (NYSE:YUM) are battling a food safety scandal in China after an investigative report aired by a Chinese state media television network. In the report, a reporter revealed that after going undercover at a facility of one of the suppliers of both companies, he found malpractice such as passing off expired meat as still viable via plain repackaging and changing the date of expiration.
That company, the reporter noted, was Shanghai Husi, a company owned by OSI Group, LLC, an Aurora, Illinois-based company which specializes in supply chain solutions for the food industry.
According to Yoon, OSI has sent a team comprised of its top brass to China to inspect their facilities. The company, the reporter added, said that they have found substandard processes and vowed to implement sweeping changes in order to remediate these. OSI also said that they will review all of their factories in China.
The company, Yoon noted, has suffered from withdrawal of orders and up to cutting of ties by companies such as McDonald’s Corporation (NYSE:MCD) because of the food safety scandal.
According to Yoon, McDonald’s Corporation (NYSE:MCD) in particular has said that this suspension of meat from OSI Group, LLC has created a problem for the company. It said, Yoon added, that McDonald’s Corporation (NYSE:MCD) is now suffering from a meat shortage due to the recent development. The company is said to be notifying customers that this shortage may be experienced this week through to the first weeks of August.
Watch the report below.
Countries That Consume The Most Meat