Nippon Meat Packers Inc. on Tuesday told the farm ministry that its founder, Yoshinori Okoso, will resign as chairman of the firm over a suspected beef-labeling scam, according to informed sources.

Japan’s largest sausage maker, better known as Nippon Ham, also told the Agriculture, Forestry and Fisheries Ministry that Okoso will assume an honorary post without representation on the firm’s board, the sources said.

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