Another meat supply scandal has hit the China food industry. Shanghai authorities are now testing mislabeled mutton from a wholesaler that was initially rumored to supply Yum! Brands' Little Sheep hot pot chain. However, Yum! said on Monday that its Little Sheep restaurants were not involved in the investigation.

According to Reuters, food safety inspectors in the city inspected a wholesale market last week, discovering packages labeled as New Zealand mutton that had no production date or ingredient list.

The meat is being tested and results are expected to come with in the week.

The inspection came on the heels of an uncovered crime ring that found more than $1 million in rat and other small mammal meat mislabeled as mutton.

Yum! is still navigating a crisis from earlier this year involving high antibiotic levels in its chicken supply chain, as well as consumer fears about the Avian flu and its potential effects on the chicken industry. The company predicts sales recovery from these two incidents to take six to nine months.

Read more about supply chain news.

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