Allegations that a major chicken breeder whose customers include KFC, McDonalds and Dicos had illegally supplied sick chickens to some of its clients are being investigated by a Henan provincial government task force.
Dayoo Group was also accused of illegally processing chickens that had died of illnesses into other products instead of burying them, according to a report by the government-linked media outlet China.com.cn 
A Dayoo spokesman denied yesterday that any sick chickens had entered the food supply chain, Xinhua reported online.
Fast food chain operators are still working to regain consumers' confidence after state television's revelation last month that suppliers in Shandong province fed their chickens with excessive hormones and antibiotics.
One of the operators, Yum Brands, the parent company of the American fast-food chain KFC, later issued a public apology for its "shortcomings in self-checking processes" at suppliers.
China.com.cn  quoting claims by staff at two of Dayoo's breeding grounds in Hebi and Zhoukou cities, reported that the group had ordered the slaughtering of sick chickens without going through quarantine checks, after a massive number of deaths among the poultry in the breeding grounds.
But Hebi city's food safety authority said in a statement yesterday that a preliminary inspection of the breeding ground showed no evidence to support the report's allegations.
KFC China issued a statement on its official weibo yesterday that it would closely look into the matter. Dicos also said on its weibo that its chicken were sourced from its own meat plants.