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McDonald’s halts Liuhe supply

(Global Times)

08:57, December 28, 2012

US fast food chain McDonald's Corp told the Global Times Wednesday that it has stopped sourcing chicken from beleaguered Shandong-based Liuhe Group Co, one of the largest chicken suppliers in China, after a Liuhe factory was shut down for selling chickens with excessive antibiotic residues.

"Liuhe is a secondary supplier to McDonald's (in China). As our responsibility to consumers, McDonald's has temporarily stopped using raw chicken materials from Liuhe Group starting December 18. No chicken product sold in McDonald's restaurants is tied to Liuhe now," the company said in an e-mail response to the Global Times' inquiries.

The chain restaurant operator said that it maintains a strict supply chain management system and standards to ensure food safety, but stopped short of elaborating how it tests for drug residues in its products or who is responsible for the testing.

McDonald's did not mention which company has replaced Liuhe as its chicken supplier.

McDonald's buys processed chicken materials from primary suppliers in China, mainly Shenzhen-based McKey Food Services and the Shanghai-based China branch of OSI Group, the biggest McDonald's food supplier in the world. McKey Food is a joint venture between US-based Keystone Foods, under Marfrig Group, State-owned food producer COFCO, and McDonald's.

A report Wednesday said that McDonald's food quality control is administered by its primary suppliers, citing an unnamed PR manager at McDonald's China headquarters.

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