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Mexico to become top year round supplier

Greenhouse vegetables
Mexico to become top year round supplier

Mexico is well on its way to becoming the number one, year round supplier of greenhouse vegetables for the North American market. The technical, capabilities and ambitions of the Mexican growers are increasingly important. Nowadays it is hard to find a difference between a Mexican tomato versus a U.S. or Canadian grown piece of fruit. If it is up to Fried de Schouwer of GPC, Mexico will become the most important supplier on a year round basis for North America. “Our growers have become fully dedicated to delivering high quality produce, year round.”

Almost 10 years ago, Fried de Schouwer was one of the founders of Greenhouse Produce Company LLC (GPC); a joint effort by Mexican growers that was created in order to achieve a stronger sales organization and create better access to the market. By combining their unique strengths and neutralizing each others’ weaknesses, GPC is a more successful grower coalition which can better respond to US retailer’s demands.

“Thanks to the cooperation between smaller and larger growers, we are able to streamline the marketing of smaller Mexican growers”, Fried tells us when explaining the activities of GPC. “We work as a collective group; from selecting the right varieties to packing and shipping, all of our growers work closely together and benefit from each others excellence and expertise.”


Central packing warehouse

As an example, Fried tells us about the packing and shipping from the smaller growers. “We have growers that only produce a few pallets a day, but thanks to our logistical network, one truck can pick up several pallets from smaller growers and consolidate them at our central packing and coldstore facility in Celaya. This enables us to improve the quality of the pack.”

200 hectare

GPC currently has around 200 hectares divided over 25 growers. “We grow the full range of greenhouse vegetables in  both high tech and medium tech greenhouses; tomatoes, bell peppers and cucumbers. Around 15 percent of our current export is certified organic.”

According to Fried, the medium tech growers are able to grow a very good quality crop within a shorter season. “They are mostly located in a moderate micro climate where they simply do not need any high tech requirements such as glass greenhouses or full time heating. They are dedicated to certain production periods; for example 3 months of harvest in the spring and 3 months of harvest in advance of the colder winter period. In these seasons they are very successful. In the periods when it is too hot or too cold, the high tech growers are filling the gaps. That enables us to supply a consistent quality throughout the entire year.”


Top left: the team of GPC at the Expo AgroAlimentaria in Mexico last month. Bottom left and right side : At the show a large number of mid tech cultivations were on display. The quality of these crops was phenomenal.

Marketing niche: the medium to smaller retailer

GPC specializes in marketing  produce as a ’boutique’ like operator. “We try to add value through service by giving medium size growers market transparency and access to certain beneficial markets. We try not to compete with the larger produce marketing companies from Canada or the US and their affiliate seasonal Mexican growers. We are more committed to the Mexican growers wellbeing on a full-time basis.

The strategy that GPC applies has proven to be successful: everyday, 3-4 trucks collect small batches of produce at local growers, GPC packs and sorts the product at a central Mexican location prior to being shipped to a secondary quality control border warehouse either in Nogales, Arizona or McAllen, Texas, USA. All of the product gets a final packing, sorting and quality check before it is being shipped on to the final receiving customer.

Flexibility

The customers of GPC are all kinds of retailers; from national supermarkets, club stores, regional super markets to smaller super market chains with less than 50 stores. Regardless of the chainstore; the focus remains on consistency of quality produce.

According to Fried, the biggest advantage for retailers to buy from a small company like GPC is the personal touch. “We are a small player in the market who is able to add value through flexibility and personal attention. A retailer requires full attention from its suppliers, a personal touch combined with the necessary flexibility to facility the just in time delivery.  At GPC we are able to deliver the much needed flexibility by running the extra mile. In most cases, larger suppliers are not interested in fulfilling this need. Each supplier big or small needs to find its niche.”

For more information:
Greenhouse Produce Company
Fried de Schouwer (e-mail)
www.greenhouseproduce.net

Publication date: 12/8/2014
Author: Boy de Nijs
Copyright: www.freshplaza.com


FreshPlaza.com

Mexico to become top year round supplier

Greenhouse vegetables
Mexico to become top year round supplier

Mexico is well on its way to becoming the number one, year round supplier of greenhouse vegetables for the North American market. The technical, capabilities and ambitions of the Mexican growers are increasingly important. Nowadays it is hard to find a difference between a Mexican tomato versus a U.S. or Canadian grown piece of fruit. If it is up to Fried de Schouwer of GPC, Mexico will become the most important supplier on a year round basis for North America. “Our growers have become fully dedicated to delivering high quality produce, year round.”

Almost 10 years ago, Fried de Schouwer was one of the founders of Greenhouse Produce Company LLC (GPC); a joint effort by Mexican growers that was created in order to achieve a stronger sales organization and create better access to the market. By combining their unique strengths and neutralizing each others’ weaknesses, GPC is a more successful grower coalition which can better respond to US retailer’s demands.

“Thanks to the cooperation between smaller and larger growers, we are able to streamline the marketing of smaller Mexican growers”, Fried tells us when explaining the activities of GPC. “We work as a collective group; from selecting the right varieties to packing and shipping, all of our growers work closely together and benefit from each others excellence and expertise.”


Central packing warehouse

As an example, Fried tells us about the packing and shipping from the smaller growers. “We have growers that only produce a few pallets a day, but thanks to our logistical network, one truck can pick up several pallets from smaller growers and consolidate them at our central packing and coldstore facility in Celaya. This enables us to improve the quality of the pack.”

200 hectare

GPC currently has around 200 hectares divided over 25 growers. “We grow the full range of greenhouse vegetables in  both high tech and medium tech greenhouses; tomatoes, bell peppers and cucumbers. Around 15 percent of our current export is certified organic.”

According to Fried, the medium tech growers are able to grow a very good quality crop within a shorter season. “They are mostly located in a moderate micro climate where they simply do not need any high tech requirements such as glass greenhouses or full time heating. They are dedicated to certain production periods; for example 3 months of harvest in the spring and 3 months of harvest in advance of the colder winter period. In these seasons they are very successful. In the periods when it is too hot or too cold, the high tech growers are filling the gaps. That enables us to supply a consistent quality throughout the entire year.”


Top left: the team of GPC at the Expo AgroAlimentaria in Mexico last month. Bottom left and right side : At the show a large number of mid tech cultivations were on display. The quality of these crops was phenomenal.

Marketing niche: the medium to smaller retailer

GPC specializes in marketing  produce as a ’boutique’ like operator. “We try to add value through service by giving medium size growers market transparency and access to certain beneficial markets. We try not to compete with the larger produce marketing companies from Canada or the US and their affiliate seasonal Mexican growers. We are more committed to the Mexican growers wellbeing on a full-time basis.

The strategy that GPC applies has proven to be successful: everyday, 3-4 trucks collect small batches of produce at local growers, GPC packs and sorts the product at a central Mexican location prior to being shipped to a secondary quality control border warehouse either in Nogales, Arizona or McAllen, Texas, USA. All of the product gets a final packing, sorting and quality check before it is being shipped on to the final receiving customer.

Flexibility

The customers of GPC are all kinds of retailers; from national supermarkets, club stores, regional super markets to smaller super market chains with less than 50 stores. Regardless of the chainstore; the focus remains on consistency of quality produce.

According to Fried, the biggest advantage for retailers to buy from a small company like GPC is the personal touch. “We are a small player in the market who is able to add value through flexibility and personal attention. A retailer requires full attention from its suppliers, a personal touch combined with the necessary flexibility to facility the just in time delivery.  At GPC we are able to deliver the much needed flexibility by running the extra mile. In most cases, larger suppliers are not interested in fulfilling this need. Each supplier big or small needs to find its niche.”

For more information:
Greenhouse Produce Company
Fried de Schouwer (e-mail)
www.greenhouseproduce.net

Publication date: 12/8/2014
Author: Boy de Nijs
Copyright: www.freshplaza.com


FreshPlaza.com

Mexico to become top year round supplier

Greenhouse vegetables
Mexico to become top year round supplier

Mexico is well on its way to becoming the number one, year round supplier of greenhouse vegetables for the North American market. The technical, capabilities and ambitions of the Mexican growers are increasingly important. Nowadays it is hard to find a difference between a Mexican tomato versus a U.S. or Canadian grown piece of fruit. If it is up to Fried de Schouwer of GPC, Mexico will become the most important supplier on a year round basis for North America. “Our growers have become fully dedicated to delivering high quality produce, year round.”

Almost 10 years ago, Fried de Schouwer was one of the founders of Greenhouse Produce Company LLC (GPC); a joint effort by Mexican growers that was created in order to achieve a stronger sales organization and create better access to the market. By combining their unique strengths and neutralizing each others’ weaknesses, GPC is a more successful grower coalition which can better respond to US retailer’s demands.

“Thanks to the cooperation between smaller and larger growers, we are able to streamline the marketing of smaller Mexican growers”, Fried tells us when explaining the activities of GPC. “We work as a collective group; from selecting the right varieties to packing and shipping, all of our growers work closely together and benefit from each others excellence and expertise.”


Central packing warehouse

As an example, Fried tells us about the packing and shipping from the smaller growers. “We have growers that only produce a few pallets a day, but thanks to our logistical network, one truck can pick up several pallets from smaller growers and consolidate them at our central packing and coldstore facility in Celaya. This enables us to improve the quality of the pack.”

200 hectare

GPC currently has around 200 hectares divided over 25 growers. “We grow the full range of greenhouse vegetables in  both high tech and medium tech greenhouses; tomatoes, bell peppers and cucumbers. Around 15 percent of our current export is certified organic.”

According to Fried, the medium tech growers are able to grow a very good quality crop within a shorter season. “They are mostly located in a moderate micro climate where they simply do not need any high tech requirements such as glass greenhouses or full time heating. They are dedicated to certain production periods; for example 3 months of harvest in the spring and 3 months of harvest in advance of the colder winter period. In these seasons they are very successful. In the periods when it is too hot or too cold, the high tech growers are filling the gaps. That enables us to supply a consistent quality throughout the entire year.”


Top left: the team of GPC at the Expo AgroAlimentaria in Mexico last month. Bottom left and right side : At the show a large number of mid tech cultivations were on display. The quality of these crops was phenomenal.

Marketing niche: the medium to smaller retailer

GPC specializes in marketing  produce as a ’boutique’ like operator. “We try to add value through service by giving medium size growers market transparency and access to certain beneficial markets. We try not to compete with the larger produce marketing companies from Canada or the US and their affiliate seasonal Mexican growers. We are more committed to the Mexican growers wellbeing on a full-time basis.

The strategy that GPC applies has proven to be successful: everyday, 3-4 trucks collect small batches of produce at local growers, GPC packs and sorts the product at a central Mexican location prior to being shipped to a secondary quality control border warehouse either in Nogales, Arizona or McAllen, Texas, USA. All of the product gets a final packing, sorting and quality check before it is being shipped on to the final receiving customer.

Flexibility

The customers of GPC are all kinds of retailers; from national supermarkets, club stores, regional super markets to smaller super market chains with less than 50 stores. Regardless of the chainstore; the focus remains on consistency of quality produce.

According to Fried, the biggest advantage for retailers to buy from a small company like GPC is the personal touch. “We are a small player in the market who is able to add value through flexibility and personal attention. A retailer requires full attention from its suppliers, a personal touch combined with the necessary flexibility to facility the just in time delivery.  At GPC we are able to deliver the much needed flexibility by running the extra mile. In most cases, larger suppliers are not interested in fulfilling this need. Each supplier big or small needs to find its niche.”

For more information:
Greenhouse Produce Company
Fried de Schouwer (e-mail)
www.greenhouseproduce.net

Publication date: 12/8/2014
Author: Boy de Nijs
Copyright: www.freshplaza.com


FreshPlaza.com

Dr Pepper Snapple Group: 2014 Supplier Leadership Award winner for Collaboration

With two out of three 7-Eleven customers purchasing something to drink, the c-store chain is always on the lookout for new and exclusive beverages. So when market data indicated that lemonade consumption was on the rise, 7-Eleven brand marketers took to social media to investigate the trend. “Users told us that it wasn’t just lemonade that they were drinking, but blended flavors. That armed us with the right information to go and talk about this to Dr Pepper Snapple,” said …

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Supermarket News

Spain is the EU’s largest pepper supplier

Spain is the EU’s largest pepper supplier

During the first six months of 2014, the European Union (EU) has purchased a total of 650.02 million kilos of fresh and refrigerated peppers, paying around 13.87% lower prices than in the same period last year, according to data from the statistical service Euroestacom (Icex-Eurostat). 

Within the period at hand, the volumes purchased have dropped by 4.89% compared to the same period in 2013. 

The EU countries paid a total of 971.47 million Euro; a 17.84% drop compared to the previous year.

Spain is the leading pepper trade in the EU market, with a total of 302.03 million kilos; 46.46% of the total, followed by the Netherlands with 156.93 and Morocco with 52.44 million kilos. Regarding the Spanish exports, Almeria is the largest exporter with 71.05% of the domestic total, followed by Murcia (12.65%) and Alicante, which carried out 6.71% of all Spanish pepper exports to the EU. The province of Almeria’s exports accounted for 171.74% more than the total sold by the Netherlands.

The fourth largest pepper supplier to the EU is Israel (41.97), followed by Germany (22.87), France (14.77), Turkey (14.59), Belgium (8.60) Greece (6.65) and Slovenia, which closes the Top 10 with 6.02 million kilos.

Source: Hortoinfo

Publication date: 9/5/2014


FreshPlaza.com

Chinese TV Report Prompts McDonald’s and KFC to Drop U.S.-Owned Supplier

China’s Dragon TV has thrust a Chicago-area meat supplier into the arms of its crisis communications team with public apologies and promises for quick corrective action. But Aurora, IL-based OSI Group could not act fast enough to stop McDonald’s and Yum! Brands Inc.’s KFC from cutting business ties with its Shanghai Husi Food Co. Ltd.

Late Sunday, the Shanghai Municipal Food and Drug Administration shut Shanghai Husi down.

Dragon TV’s aired report purportedly shows workers at Shanghai Husi picking up meat from the factory floor as well as mixing meat beyond its expiration date with fresh meat. Workers were also recorded as saying that customers would not buy the company’s products if they knew what was going on.

Both McDonald’s and KFC used Shanghai Husi as a meat supplier.

OSI, with a presence in 10 cities in China, issued a statement on its website saying that it was “appalled by the report” and promising to deal with the issue “directly and quickly.” It also noted that food safety is “the cornerstone of our company and our guiding principal.”

The company, formed more than a century ago as a Chicago meat market, promised to conduct its own investigation and to share results with the public.

The new food safety scare caused both McDonald’s and Yum! Brands to drop Shanghai as a meat supplier. Shanghai Husi Food Co. Ltd. is a major supplier to Shanghai-area restaurants, according to the two U.S.-based companies.

Yum! Brands said it will not tolerate any supplier violating government laws or regulations and that all of its KFCs and Pizza Hut restaurants in China were under orders to seal up and stop using any product from Shanghai Husi.

The practices show in the Dragon TV report “are completely unacceptable to McDonald’s anywhere in the world,” a spokesman said. McDonalds was supplied with chicken, beef and lettuce from Shanghai Husi. China is the fast-food chain’s third-largest market in the world.

The U.S. companies were on the rebound from recent food safety scandals, including 2012 disclosures about excessive antibiotic use by companies contracted to supply chicken.

Both New York Stock Exchange companies saw market declines on Monday, with Yum! shares down 3.5 percent to $ 74.72 and McDonald’s shares down 0.9 percent to $ 98.13.

Food Safety News

Chinese TV Report Prompts McDonald’s and KFC to Drop U.S.-Owned Supplier

China’s Dragon TV has thrust a Chicago-area meat supplier into the arms of its crisis communications team with public apologies and promises for quick corrective action. But Aurora, IL-based OSI Group could not act fast enough to stop McDonald’s and Yum! Brands Inc.’s KFC from cutting business ties with its Shanghai Husi Food Co. Ltd.

Late Sunday, the Shanghai Municipal Food and Drug Administration shut Shanghai Husi down.

Dragon TV’s aired report purportedly shows workers at Shanghai Husi picking up meat from the factory floor as well as mixing meat beyond its expiration date with fresh meat. Workers were also recorded as saying that customers would not buy the company’s products if they knew what was going on.

Both McDonald’s and KFC used Shanghai Husi as a meat supplier.

OSI, with a presence in 10 cities in China, issued a statement on its website saying that it was “appalled by the report” and promising to deal with the issue “directly and quickly.” It also noted that food safety is “the cornerstone of our company and our guiding principal.”

The company, formed more than a century ago as a Chicago meat market, promised to conduct its own investigation and to share results with the public.

The new food safety scare caused both McDonald’s and Yum! Brands to drop Shanghai as a meat supplier. Shanghai Husi Food Co. Ltd. is a major supplier to Shanghai-area restaurants, according to the two U.S.-based companies.

Yum! Brands said it will not tolerate any supplier violating government laws or regulations and that all of its KFCs and Pizza Hut restaurants in China were under orders to seal up and stop using any product from Shanghai Husi.

The practices show in the Dragon TV report “are completely unacceptable to McDonald’s anywhere in the world,” a spokesman said. McDonalds was supplied with chicken, beef and lettuce from Shanghai Husi. China is the fast-food chain’s third-largest market in the world.

The U.S. companies were on the rebound from recent food safety scandals, including 2012 disclosures about excessive antibiotic use by companies contracted to supply chicken.

Both New York Stock Exchange companies saw market declines on Monday, with Yum! shares down 3.5 percent to $ 74.72 and McDonald’s shares down 0.9 percent to $ 98.13.

Food Safety News

Chinese TV Report Prompts McDonald’s and KFC to Drop U.S.-Owned Supplier

China’s Dragon TV has thrust a Chicago-area meat supplier into the arms of its crisis communications team with public apologies and promises for quick corrective action. But Aurora, IL-based OSI Group could not act fast enough to stop McDonald’s and Yum! Brands Inc.’s KFC from cutting business ties with its Shanghai Husi Food Co. Ltd.

Late Sunday, the Shanghai Municipal Food and Drug Administration shut Shanghai Husi down.

Dragon TV’s aired report purportedly shows workers at Shanghai Husi picking up meat from the factory floor as well as mixing meat beyond its expiration date with fresh meat. Workers were also recorded as saying that customers would not buy the company’s products if they knew what was going on.

Both McDonald’s and KFC used Shanghai Husi as a meat supplier.

OSI, with a presence in 10 cities in China, issued a statement on its website saying that it was “appalled by the report” and promising to deal with the issue “directly and quickly.” It also noted that food safety is “the cornerstone of our company and our guiding principal.”

The company, formed more than a century ago as a Chicago meat market, promised to conduct its own investigation and to share results with the public.

The new food safety scare caused both McDonald’s and Yum! Brands to drop Shanghai as a meat supplier. Shanghai Husi Food Co. Ltd. is a major supplier to Shanghai-area restaurants, according to the two U.S.-based companies.

Yum! Brands said it will not tolerate any supplier violating government laws or regulations and that all of its KFCs and Pizza Hut restaurants in China were under orders to seal up and stop using any product from Shanghai Husi.

The practices show in the Dragon TV report “are completely unacceptable to McDonald’s anywhere in the world,” a spokesman said. McDonalds was supplied with chicken, beef and lettuce from Shanghai Husi. China is the fast-food chain’s third-largest market in the world.

The U.S. companies were on the rebound from recent food safety scandals, including 2012 disclosures about excessive antibiotic use by companies contracted to supply chicken.

Both New York Stock Exchange companies saw market declines on Monday, with Yum! shares down 3.5 percent to $ 74.72 and McDonald’s shares down 0.9 percent to $ 98.13.

Food Safety News

Chinese TV Report Prompts McDonald’s and KFC to Drop U.S.-Owned Supplier

China’s Dragon TV has thrust a Chicago-area meat supplier into the arms of its crisis communications team with public apologies and promises for quick corrective action. But Aurora, IL-based OSI Group could not act fast enough to stop McDonald’s and Yum! Brands Inc.’s KFC from cutting business ties with its Shanghai Husi Food Co. Ltd.

Late Sunday, the Shanghai Municipal Food and Drug Administration shut Shanghai Husi down.

Dragon TV’s aired report purportedly shows workers at Shanghai Husi picking up meat from the factory floor as well as mixing meat beyond its expiration date with fresh meat. Workers were also recorded as saying that customers would not buy the company’s products if they knew what was going on.

Both McDonald’s and KFC used Shanghai Husi as a meat supplier.

OSI, with a presence in 10 cities in China, issued a statement on its website saying that it was “appalled by the report” and promising to deal with the issue “directly and quickly.” It also noted that food safety is “the cornerstone of our company and our guiding principal.”

The company, formed more than a century ago as a Chicago meat market, promised to conduct its own investigation and to share results with the public.

The new food safety scare caused both McDonald’s and Yum! Brands to drop Shanghai as a meat supplier. Shanghai Husi Food Co. Ltd. is a major supplier to Shanghai-area restaurants, according to the two U.S.-based companies.

Yum! Brands said it will not tolerate any supplier violating government laws or regulations and that all of its KFCs and Pizza Hut restaurants in China were under orders to seal up and stop using any product from Shanghai Husi.

The practices show in the Dragon TV report “are completely unacceptable to McDonald’s anywhere in the world,” a spokesman said. McDonalds was supplied with chicken, beef and lettuce from Shanghai Husi. China is the fast-food chain’s third-largest market in the world.

The U.S. companies were on the rebound from recent food safety scandals, including 2012 disclosures about excessive antibiotic use by companies contracted to supply chicken.

Both New York Stock Exchange companies saw market declines on Monday, with Yum! shares down 3.5 percent to $ 74.72 and McDonald’s shares down 0.9 percent to $ 98.13.

Food Safety News

Chinese TV Report Prompts McDonald’s and KFC to Drop U.S.-Owned Supplier

China’s Dragon TV has thrust a Chicago-area meat supplier into the arms of its crisis communications team with public apologies and promises for quick corrective action. But Aurora, IL-based OSI Group could not act fast enough to stop McDonald’s and Yum! Brands Inc.’s KFC from cutting business ties with its Shanghai Husi Food Co. Ltd.

Late Sunday, the Shanghai Municipal Food and Drug Administration shut Shanghai Husi down.

Dragon TV’s aired report purportedly shows workers at Shanghai Husi picking up meat from the factory floor as well as mixing meat beyond its expiration date with fresh meat. Workers were also recorded as saying that customers would not buy the company’s products if they knew what was going on.

Both McDonald’s and KFC used Shanghai Husi as a meat supplier.

OSI, with a presence in 10 cities in China, issued a statement on its website saying that it was “appalled by the report” and promising to deal with the issue “directly and quickly.” It also noted that food safety is “the cornerstone of our company and our guiding principal.”

The company, formed more than a century ago as a Chicago meat market, promised to conduct its own investigation and to share results with the public.

The new food safety scare caused both McDonald’s and Yum! Brands to drop Shanghai as a meat supplier. Shanghai Husi Food Co. Ltd. is a major supplier to Shanghai-area restaurants, according to the two U.S.-based companies.

Yum! Brands said it will not tolerate any supplier violating government laws or regulations and that all of its KFCs and Pizza Hut restaurants in China were under orders to seal up and stop using any product from Shanghai Husi.

The practices show in the Dragon TV report “are completely unacceptable to McDonald’s anywhere in the world,” a spokesman said. McDonalds was supplied with chicken, beef and lettuce from Shanghai Husi. China is the fast-food chain’s third-largest market in the world.

The U.S. companies were on the rebound from recent food safety scandals, including 2012 disclosures about excessive antibiotic use by companies contracted to supply chicken.

Both New York Stock Exchange companies saw market declines on Monday, with Yum! shares down 3.5 percent to $ 74.72 and McDonald’s shares down 0.9 percent to $ 98.13.

Food Safety News

Chinese TV Report Prompts McDonald’s and KFC to Drop U.S.-Owned Supplier

China’s Dragon TV has thrust a Chicago-area meat supplier into the arms of its crisis communications team with public apologies and promises for quick corrective action. But Aurora, IL-based OSI Group could not act fast enough to stop McDonald’s and Yum! Brands Inc.’s KFC from cutting business ties with its Shanghai Husi Food Co. Ltd.

Late Sunday, the Shanghai Municipal Food and Drug Administration shut Shanghai Husi down.

Dragon TV’s aired report purportedly shows workers at Shanghai Husi picking up meat from the factory floor as well as mixing meat beyond its expiration date with fresh meat. Workers were also recorded as saying that customers would not buy the company’s products if they knew what was going on.

Both McDonald’s and KFC used Shanghai Husi as a meat supplier.

OSI, with a presence in 10 cities in China, issued a statement on its website saying that it was “appalled by the report” and promising to deal with the issue “directly and quickly.” It also noted that food safety is “the cornerstone of our company and our guiding principal.”

The company, formed more than a century ago as a Chicago meat market, promised to conduct its own investigation and to share results with the public.

The new food safety scare caused both McDonald’s and Yum! Brands to drop Shanghai as a meat supplier. Shanghai Husi Food Co. Ltd. is a major supplier to Shanghai-area restaurants, according to the two U.S.-based companies.

Yum! Brands said it will not tolerate any supplier violating government laws or regulations and that all of its KFCs and Pizza Hut restaurants in China were under orders to seal up and stop using any product from Shanghai Husi.

The practices show in the Dragon TV report “are completely unacceptable to McDonald’s anywhere in the world,” a spokesman said. McDonalds was supplied with chicken, beef and lettuce from Shanghai Husi. China is the fast-food chain’s third-largest market in the world.

The U.S. companies were on the rebound from recent food safety scandals, including 2012 disclosures about excessive antibiotic use by companies contracted to supply chicken.

Both New York Stock Exchange companies saw market declines on Monday, with Yum! shares down 3.5 percent to $ 74.72 and McDonald’s shares down 0.9 percent to $ 98.13.

Food Safety News

Chinese TV Report Prompts McDonald’s and KFC to Drop U.S.-Owned Supplier

China’s Dragon TV has thrust a Chicago-area meat supplier into the arms of its crisis communications team with public apologies and promises for quick corrective action. But Aurora, IL-based OSI Group could not act fast enough to stop McDonald’s and Yum! Brands Inc.’s KFC from cutting business ties with its Shanghai Husi Food Co. Ltd.

Late Sunday, the Shanghai Municipal Food and Drug Administration shut Shanghai Husi down.

Dragon TV’s aired report purportedly shows workers at Shanghai Husi picking up meat from the factory floor as well as mixing meat beyond its expiration date with fresh meat. Workers were also recorded as saying that customers would not buy the company’s products if they knew what was going on.

Both McDonald’s and KFC used Shanghai Husi as a meat supplier.

OSI, with a presence in 10 cities in China, issued a statement on its website saying that it was “appalled by the report” and promising to deal with the issue “directly and quickly.” It also noted that food safety is “the cornerstone of our company and our guiding principal.”

The company, formed more than a century ago as a Chicago meat market, promised to conduct its own investigation and to share results with the public.

The new food safety scare caused both McDonald’s and Yum! Brands to drop Shanghai as a meat supplier. Shanghai Husi Food Co. Ltd. is a major supplier to Shanghai-area restaurants, according to the two U.S.-based companies.

Yum! Brands said it will not tolerate any supplier violating government laws or regulations and that all of its KFCs and Pizza Hut restaurants in China were under orders to seal up and stop using any product from Shanghai Husi.

The practices show in the Dragon TV report “are completely unacceptable to McDonald’s anywhere in the world,” a spokesman said. McDonalds was supplied with chicken, beef and lettuce from Shanghai Husi. China is the fast-food chain’s third-largest market in the world.

The U.S. companies were on the rebound from recent food safety scandals, including 2012 disclosures about excessive antibiotic use by companies contracted to supply chicken.

Both New York Stock Exchange companies saw market declines on Monday, with Yum! shares down 3.5 percent to $ 74.72 and McDonald’s shares down 0.9 percent to $ 98.13.

Food Safety News

Chinese TV Report Prompts McDonald’s and KFC to Drop U.S.-Owned Supplier

China’s Dragon TV has thrust a Chicago-area meat supplier into the arms of its crisis communications team with public apologies and promises for quick corrective action. But Aurora, IL-based OSI Group could not act fast enough to stop McDonald’s and Yum! Brands Inc.’s KFC from cutting business ties with its Shanghai Husi Food Co. Ltd.

Late Sunday, the Shanghai Municipal Food and Drug Administration shut Shanghai Husi down.

Dragon TV’s aired report purportedly shows workers at Shanghai Husi picking up meat from the factory floor as well as mixing meat beyond its expiration date with fresh meat. Workers were also recorded as saying that customers would not buy the company’s products if they knew what was going on.

Both McDonald’s and KFC used Shanghai Husi as a meat supplier.

OSI, with a presence in 10 cities in China, issued a statement on its website saying that it was “appalled by the report” and promising to deal with the issue “directly and quickly.” It also noted that food safety is “the cornerstone of our company and our guiding principal.”

The company, formed more than a century ago as a Chicago meat market, promised to conduct its own investigation and to share results with the public.

The new food safety scare caused both McDonald’s and Yum! Brands to drop Shanghai as a meat supplier. Shanghai Husi Food Co. Ltd. is a major supplier to Shanghai-area restaurants, according to the two U.S.-based companies.

Yum! Brands said it will not tolerate any supplier violating government laws or regulations and that all of its KFCs and Pizza Hut restaurants in China were under orders to seal up and stop using any product from Shanghai Husi.

The practices show in the Dragon TV report “are completely unacceptable to McDonald’s anywhere in the world,” a spokesman said. McDonalds was supplied with chicken, beef and lettuce from Shanghai Husi. China is the fast-food chain’s third-largest market in the world.

The U.S. companies were on the rebound from recent food safety scandals, including 2012 disclosures about excessive antibiotic use by companies contracted to supply chicken.

Both New York Stock Exchange companies saw market declines on Monday, with Yum! shares down 3.5 percent to $ 74.72 and McDonald’s shares down 0.9 percent to $ 98.13.

Food Safety News