Tyson investing in Brazilian poultry industry
September 18, 2008
by FoodBusinessNews.net Staff
SAO PAULO, BRAZIL — Tyson Foods, Inc. is investing in the Brazilian poultry industry by reaching purchase agreements with three poultry companies in southern Brazil.
"Our investment in these companies is a key part of our international strategy, especially since Brazil is currently the world’s leading chicken exporter and third-largest chicken producer behind the U.S. and China," said Rick Greubel, group vice-president and international president for Tyson Foods. "The Brazilian population consumes about 37 kilos (81 lbs) of chicken per person per year compared to 45 kilos (99 lbs) in the U.S. With the economic stability and a growing middle class, the per capita consumption of chicken will continue to increase in Brazil. In addition, our Brazilian operations will give us greater access to markets that are currently buying little to no poultry from the U.S."
The companies to be acquired include Macedo Agroindustrial and Avicola Itaiopolis. In addition, Tyson initially will have 70% ownership of Frangobras, and the company expects to close on the transactions in the next 60 days.
Tyson expects to be able to double Macedo’s plant capacity in Sao Jose to 176,000 birds per day. Avicola Itaiopolis and Frangobras are relatively new companies, and Tyson expects to be able to increase daily chicken production at each company’s processing facility to 320,000 birds.