Inquiries are centred on meat at an abattoir which until last week was part of the Chitty Food Group, whose headquarters is in Lakesmere Road, Horndean.
Police and Trading Standards officers are examining whether meat from the abattoir, in Guildfo
rd, Surrey, was mislabelled as organic, which carries 30 to 40 per cent mark-up compared with conventionally produced meat.
Chitty's Guildford abattoir and boning plant was acquired last week by Anglo Beef Processors as part of its expansion into the south of England. A spokesman for ABP said that it first became aware of the allegations during negotiations to purchase the abattoir and boning plant.
Tesco confirmed it had received supplies of beef from Chitty Food Group.
A spokesman said: 'Following allegations of fraud made against one of its meat suppliers Tesco decided to notify the Food Standards Agency who have subsequently called in the police to investigate. We are co-operating fully with the investigation and pending the outcome have ceased trading with the company.'
He said customers should be reassured that this is not a food safety issue and the affected product had been withdrawn from sale.
Surrey Police confirmed it was working with officials from the Food Standards Agency and the Department for Environment, Food and Rural Affairs in an investigation of meat mislabelling at an abattoir. Chitty Food Group, run by Andrew Chitty, was started in 1910 and has grown from family butcher to large-scale manufacturer.
In a statement the company said: 'We have yet to have any contact from any investigator. If we do then it is the company's intention to co-operate in full should there be an inquiry.'
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