Tyson enters another poultry j.v. in China
September 11, 2008
by FoodBusinessNews.net Staff
SPRINGDALE, ARK. — Tyson Foods, Inc. has finalized a joint venture agreement with Shandong Xinchang Group for poultry operations in China.
The venture will be called Shandong Tyson Xinchang Foods Company, Ltd., and after regulatory approvals Tyson will have 60% ownership in poultry operations. The ownership includes Xinchang’s assets and the acquisition of a new poultry processing complex in the Shandong province.
"Poultry is the second leading meat protein source in China behind pork and continues to make significant gains in consumption," said Rick Greubel, group vice-president and international president for Tyson Foods. "This joint venture will enable us to help meet China’s appetite for poultry, which has been growing faster than the existing domestic supply."
Shandong Xinchang has estimated 2009 sales of $345 million, and its business includes chicken and duck breeder and broiler farms, feed mills and hatcheries. Its business has the capacity of processing three million chickens per week and 350,000 ducks per week.
"It’s own intent to expand the production and sales of these operations and use our extensive experience in the food industry to serve the rapidly growing quick service restaurant and modern retail food business in China," Mr. Greubel said.
Tyson has two other joint venture poultry operations in China.