You can now read 10 articles in a month for free on BostonGlobe.com. Read as much as you want anywhere and anytime for just 99¢.

The Boston Globe

Business

Meat supplier in China scandal has global reach

Five workers at the Shanghai Husi Food Co. were detained Wednesday after reports that the company repackaged old beef and chicken. Husi is owned by OSI Group, which supplies meat to McDonald’s, KFC, and other major food purveyors.

Pei Xin/Xinhua via Associated Press

Five workers at the Shanghai Husi Food Co. were detained Wednesday after reports that the company repackaged old beef and chicken. Husi is owned by OSI Group, which supplies meat to McDonald’s, KFC, and other major food purveyors.

NEW YORK — It isn’t a household name, but the company at the center of a food scandal in China helps make some of the world’s most popular foods, including the Big Macs and Quarter Pounders served at McDonald’s locations.

OSI Group, a privately held company based in Aurora, Ill., was thrust into the spotlight this weekend when a Chinese television station reported that one of its Shanghai plants repackaged old beef and chicken and slapped new expiration dates on them. The scare has ensnared chains including McDonald’s, KFC, Burger King, and Starbucks, all of which got ingredients from a unit of OSI in the region called Husi Food Co.

Continue reading below

The controversy deepened Wednesday when five workers for Husi, were detained by police. An official with China’s food safety regulator told the Xinhua News Agency that some of the illegal conduct it uncovered was an arrangement ‘‘organized’’ by Husi.

None of OSI’s more than 50 other plants around the world have been implicated and chief executive Sheldon Lavin noted in a statement that authorities in China have inspected and found no issues at its other facilities. He called what happened at the Shanghai location ‘‘completely unacceptable.’’

The scandal is a blemish for OSI, which began as a family-run meat market in 1909 and prides itself on its high standards. The company notes on its website that it has a ‘‘strong heritage of quality and service’’ and that food safety and quality assurance are ‘‘guiding principles.’’

Its business took off after Ray Kroc tapped it in the 1950s to be a beef supplier for McDonald’s Corp. OSI grew alongside McDonald’s as the hamburger chain expanded around the world, and even helped create the McRib.

OSI doesn’t have to report financial information, but according to PrivCo, which researches privately held companies, it had $6.13 billion in sales last year. OSI does not publicly disclose all of its clients either, but it supplies numerous big-name chains, including Chipotle Mexican Grill Inc., for which it cooks some beans and carnitas and barbacoa meats.

In the United States, OSI has said it has systems in place to ensure products can be located and taken out of the system within two hours if any issues arise. Executives have said they work with an outside public relations agency to periodically stage mock crises to be prepared for real-life controversies.

Richard Adams, a former owner of McDonald’s restaurants in Southern California who now runs a consulting firm for franchisees, said OSI closely oversees its production process in the United States and that he did not know how the lapses in China occurred.

‘‘They wouldn’t be a McDonald’s vendor if they weren’t producing quality products,’’ Adams said.

The company is already dealing with fallout from the controversy at its Shanghai plant.

Yum Brands Inc., which owns KFC, Pizza Hut, and Taco Bell, said Wednesday that OSI wasn’t a major supplier for its restaurants in any region of the world but that it was terminating all agreements with the company, including in Australia and the United States.

Loading comments...

You have reached the limit of 10 free articles in a month

Stay informed with unlimited access to Boston’s trusted news source.

  • High-quality journalism from the region’s largest newsroom
  • Convenient access across all of your devices
  • Today’s Headlines daily newsletter
  • Subscriber-only access to exclusive offers, events, contests, eBooks, and more
  • Less than 25¢ a week