Tyson Foods, Inc., along with its subsidiaries, operates as a food company globally. The company operates as the second-largest processor of chicken, beef, and pork in the US.
The company operates through four operating business segments namely: Beef, Pork, Chicken, and Prepared Foods
Beef: This segment includes operations related to processing fed cattle and fabricating dressed beef carcasses into primal and sub-primal meat cuts and case-ready products
Pork: This segment includes operations related to processing live market hogs and fabricating pork carcasses into primal and sub-primal cuts and case-ready products
Chicken: This segment includes the company’s domestic operations related to raising and processing live chickens into, and purchasing raw materials for, fresh, frozen and value-added chicken products. The value-added chicken products include breaded chicken strips, nuggets, patties, and other ready-to-fix or fully cooked chicken parts. It processes live fed cattle and lives market hogs; fabricates dressed beef and pork carcasses into primal and sub-primal meat cuts, as well as case ready beef and pork, and fully-cooked meats; and raises and processes chickens into fresh, frozen, and value-added chicken products. In addition, through this segment, the company supplies poultry breeding stock and sells allied products – hides and meats – and manufactures and markets frozen and refrigerated food products. Frozen and refrigerated food products include ready-to-eat sandwiches, flame-grilled hamburgers, Philly steaks, pepperoni, bacon, breakfast sausage, turkey, lunchmeat, hot dogs, flour and corn tortilla products, appetizers, snacks, prepared meals, ethnic foods, side dishes, meat dishes, breadsticks, and processed meats.
Prepared Foods: This segment includes operations related to manufacturing and marketing frozen and refrigerated food products and logistics operations to move products through the supply chain. This segment includes brands such as Jimmy Dean, Hillshire Farm, Ball Park, Wright, State Fair, as well as artisanal brands Aidells, Gallo Salame, and Golden Island. It includes products such as ready-to-eat sandwiches, sandwich components such as flame-grilled hamburgers and Philly steaks, pepperoni, bacon, breakfast sausage, turkey, lunchmeat, hot dogs, flour and corn tortilla products, appetizers, snacks, prepared meals, ethnic foods, side dishes, meat dishes, breadsticks, and processed meats.
Products from all the segments are marketed domestically to food retailers, foodservice distributors, restaurant operators, hotel chains, and noncommercial foodservice establishments such as schools, healthcare facilities, the military, and other food processors, as well as to international export markets.
Tyson Foods annually exports the largest percentage of beef out of the US, and together with its subsidiaries, sells its products under brands including Tyson, Jimmy Dean, Hillshire Farm, Ball Park, Wright, Aidells, ibp, State Fair, Gallo Salame, and Golden Island.
In Q1 2019, Tyson had a sales of total $10,443 Mn. By segments, the Beef segment sales volume increased to 3.2%, pork segment sales volume increased to 1.0% and the Chicken sales volume increased to 26.2%.
In 2018, the company sold products across 125 countries, and major sales markets include Canada, Central America, China, the European Union, Japan, Mexico, the Middle East, South Korea, and Taiwan.
- Cobb-Vantress, which is a chicken breeding stock subsidiary, has business interests in Argentina, Brazil, China, Colombia, the Dominican Republic, India, the Netherlands, New Zealand, the Philippines, Spain, Turkey, and the UK
- Tyson Rizhao, which is located in Rizhao, China, is a vertically-integrated chicken production operation
- Tyson Dalong, which is a joint venture in China in which company’s a majority interest, is a chicken further-processing facility
- Tyson Nantong, which is located in Nantong, China, is a vertically-integrated chicken production operation
- Godrej Tyson Foods, which is a joint venture in India in which company have a minority interest, is a chicken processing business
- Tyson Mexico Trading Company, which is a Mexican subsidiary, sells chicken products through the company’s US operations and co-packer arrangements
- 1935: Established by John W. Tyson
- 1947: The company was incorporated as Tyson Feed and Hatchery, Inc., and provides three essential services: sale of baby chicks, sale of feed, and transportation of chickens to market
- 1950–1959: Meatpackers begin to base operations in Northwest Arkansas. In the late 1950s, John offers a parcel of land to a processing company to entice them to build a plant. In 1958, Randall Road plant opens at a final cost of US$ 90,000 Mn, and vertical integration is completed.
- 1962: Acquired an Oklahoma City poultry and egg distribution facility
- 1963: The company goes public as Tyson’s Foods, Inc., and begins its journey of acquisitions that grow Tyson Foods in every direction
- Acquired Garrett Poultry, which is a poultry processing plant, feed mill, and hatchery in Rogers, Arkansas
- 1966: Acquired Washington Creamery Corp., which is a poultry marketing organization in Hempstead, Long Island, NY, and a turkey processing plant in Terre Haute, Indiana.
- 1967: Acquired Franz Food Products, which is a poultry processing plant and freezer facility in Green Forest, Arkansas
- 1969: Acquired Prospect Farms, Inc. of North Little Rock, Arkansas, which is a poultry further processing plant specializing in food service products
- 1972: The company name was changed to Tyson Foods, Inc., along with a new look – the Tyson Oval
- Acquired Krispy Kitchens, which is a poultry further-processing plant in Bentonville, Arkansas
- Built a new poultry processing plant in Nashville, Arkansas
- 1973: Acquired Cassady Poultry Co. in Nashville, Arkansas
- 1977: Acquired swine production facilities from First Colony Farms of Creswell, NC
- 1981: Acquired Honeybear Foods, Inc., which is a poultry processing/ further processing plant in Neosho, Montana
- 1982: Sold commercial egg division to Cargill, Inc.
- 1983: Acquired Mexican Original, Inc., which is a flour and corn tortilla processing plant in Fayetteville, Arkansas
- 1984: Acquired Valmac Industries, Inc., including its Tastybird division, with poultry facilities in Bloomer, Clarksville, Dardanelle, Pine Bluff, Russellville and Waldron, Arkansas, and Carthage, Texas
- 1986: Acquired Heritage Valley, which is a poultry further-processing plant in Van Buren, Arkansas
- Acquired Lane Processing, Inc. and its poultry facilities in Arkansas, Alabama, Oklahoma, and Texas
- Cobb-Vantress is formed as a joint venture between Tyson Foods and The Upjohn Co., establishing it as an international leader in poultry breeding
- 1989: Became the world’s largest fully-integrated producer, processor, and marketer of poultry-based food products. In addition, the company formally organized its international division with joint ventures in both Mexico and Japan.
- Acquired Holly Farms Corporation consisting of seven poultry complexes in North Carolina, Texas, and Virginia, as well as Quik-to-Fix and Harker’s beef facilities in Texas and Iowa and Henry House pork further processing facility in Michigan
- 1990: Market expansion including in countries in Asia, Central America, South America, the Caribbean, and the Pacific Rim
- Sold by-products, flour, bakery, and pie filling operations that had been subsidiaries of Holly Farms
- 1991: International sales offices include Japan, Hong Kong, Singapore, and Canada
- 1992: Acquired Arctic Alaska Fisheries Corp.
- Acquired Louis Kemp Seafood Company
- Acquired a pork slaughter facility in Marshall, Mo.
- 1995: Established new office in Moscow
- Acquired Multifoods Seafood, Inc. and JAC Creative Foods, Inc.
- 2001: Acquired IBP, Inc., in order to become the world’s largest processor and marketer of chicken, beef, and pork
- 2007: The Discovery Center was completed at the Springdale headquarters to serve the company, industry, and consumers as an unrivaled force of innovation
- Entered into a joint venture agreement with Cactus Feeders, Inc. and Cresud S.A.C.I.F.yA. in order to create the first vertically integrated beef operation in Argentina
- 2014: Completed acquisition of The Hillshire Brands Company, which manufactures and markets convenient food products across the globe, in order to diversify portfolio including brands such as Tyson, Wright, Jimmy Dean, Ball Park, State Fair, and Hillshire Farm
- 2017: Acquired and consolidated AdvancePierre Foods Holdings, Inc., which is a producer and distributor of value-added, convenient, ready-to-eat sandwiches, sandwich components, and other entrees and snacks in order to strengthen its product portfolio in prepared foods and chicken business segments
- Sold circle foods prepared foods operations in San Diego to Ajinomoto Windsor
- Sold Kettle Cooked Foods prepared foods to Kerry Group
- 2018: Acquired Original Philly Holdings, Inc., which is a valued-added protein business in order to strengthen its offerings in its prepared foods and chicken segments
- Acquired Keystone Foods, which is a leading supplier of chicken, beef, fish, and pork to support global foodservice industry
- Acquired Tecumseh Poultry, LLC, which is a vertically integrated value-added protein business, and the assets of American Proteins, Inc. and AMPRO Products, Inc., which is a poultry rendering and blending operation, as part of its strategic expansion and sustainability initiatives. This enables the company to strengthen its chicken business segment offerings.
- Completed sale of four non-protein businesses as part of its strategic focus on protein brands. All these businesses were part of the company’s prepared foods business segment, and it included Sara Lee Frozen Bakery, Kettle, Van’s, and TNT Crust and produced items such as frozen desserts, waffles, snack bars, soups, sauces, sides, and pizza crusts.
Tyson Foods, Inc. Facts:
- Leading US protein producers.
- Tyson produces total of 20% of the Pork, Beef, Chicken in the United States.
- 17 distribution centers across the globe.
- Four international facilities.
- Two research & development centers.
- In fiscal year 2018 –
- Beef–133,000 (Approx. avg. head per week)
- Pork–408,000 (Approx. avg. head per week)
- Chicken–37,000,000 (Approx. avg. head per week)
- Prepared Foods–66,000,000 (Approx. avg. pounds per week)
- Sales by segment:
- Beef 37%
- Pork 10%
- Chicken 30%
- Prepared Foods 22%
- Others 1%
- Distribution channel:
- Consumer products 48%
- Foodservice 30%
- International 11%
- Industrial/Other 11%
- In fiscal year 2020 –
- Beef–155,000 (Approx. avg. head per week)
- Pork–461,000 (Approx. avg. head per week)
- Chicken–45,000,000 (Approx. avg. head per week)
- Prepared Foods–74,000,000 (Approx. avg. pounds per week)
- Sales by segment
- Beef – 10.7%
- Pork – 11.0%
- Chicken – 0.9%
- Prepared Foods – 8.7%
What’s New in 2019
- The TYSON and HILLSHIRE FARM brands, entered into a partnership with TAJÍN, which is one of Mexico’s most recognized chili lime seasoning brands, announced the launch of five new products featuring the popular TAJÍN CLÁSICO SEASONING. The product includes Tyson Tajín Chili Lime Chicken Nuggets, Tyson Any’tizers Tajín Chili Lime Boneless Chicken Bites, Hillshire Farm Tajín Chili Lime Smoked Sausage with Mango, Hillshire Farm Tajín Chili Lime Lit’l Smokies, and Hillshire Farm Tajín Chili Lime Smoked Sausage.
- Introduced its first plant-based and blended products, along with its new Raised & Rooted brand as a part of the effort to expand its protein offerings. This initiative makes Tyson Foods, Inc. the largest US-based meat producer to enter the growing alternative protein segment with its own products.
- The Tyson Foods, Inc., and Auburn University’s National Poultry Technology Center (NPTC), which is a leader in poultry housing and associated technologies, opened the largest stand-alone solar powered poultry house to be operated completely off the grid
- Acquired Thai and European Operations from BRF S.A., including processing facilities in Thailand, the Netherlands, and the UK, to expand value-added protein offerings in the global market
- The TYSON FRESH MEATS, which is the beef and pork subsidiary of Tyson Foods, Inc., entered into a collaboration with IDENTIGEN to use DNA technology to trace beef back to the individual animal of origin
- Implemented a third-party certification program to as a part of its commitment to animal welfare to ensure proper handling and transportation of birds in its chicken business
- Ranked No. 1 on Fortune Magazine’s list of the world’s most admired companies in the food production category
Facts In 2019
- In January, the company and Environmental Defense Fund (EDF) collaborated to accelerate Sustainable Food Production.
- In February, the company signed an agreement to acquire the Thai and European operations of BRF S.A.
- In May, the company announced its plan to build a meat and pork processing plant in Salt Lake City.
- In June, the company acquired Thai and European businesses from BRF S.A.
- In August, the company opened its Springdale Tyson Manufacturing Automation Center to develop more automation and robotics for food production plants.
- In August, the company acquired a 40% stake in Grupo Vibra foods, a poultry company.
- In September, the company invested in New Wave Foods to launch plant-based shrimp.
- In September, the company launched Refrigerated Snack Bites under its brand Pact.
- In September, the company announced to invest US$34.2 million to expand its facilities in Camilla, Georgia.
- In October, the company collaborated with Proforest collaborated to conduct a deforestation risk assessment across its global agriculture supply chain.
- In October, the company announced its plans to build a meat packaging plant in Eagle Mountain, Utah.
- In December, the company partnered with the Republic of Kazakhstan and Kusto Group to build a modern beef processing plant in Kazakhstan.
Facts In 2020
- In January, the company divested the Golden Island Jerky Co. business to Jack Link’s Beef Jerky.
- In February, the company’s beef and pork unit, Tyson Fresh Meats announced to form a joint venture with Jacob Stern & Sons to meet global demand for fats and oils.
- In May, the company entered into a partnership with Axiom Medical to help support team members during COVID-19 crisis.
- In July, the company launched a range of chicken products under its Tyson flagship brand in the European foodservice market.
- In August, the company sold its stake to Convergence Investment Partners LLC.
- In August, the company announced to expand sandwich plant in Ohio, the US to increase its production lines.
- In November, the company announced to invest in new plants in Asia and Europe.
- In November, the company is building new factories in China and Thailand to produce cooked-chicken products.
- In November, the company announced the launch of its Raised & Rooted plant-based protein brand in Europe.
Facts In 2021
- In February, the company entered into a partnership with Malayan Flour Mills Berhad to invest in poultry segment of the Malaysian food manufacturing company.
- In February, the company’s 35 plants locations have been recognized by The North American Meat Institute for their dedication to making a positive environmental impact.
- In March, the company plans to reopen its Tyson-owned facility in Columbia and convert it into a meat-cutting facility.
- In March, the company along with Feed the Children, and Americold entered into a partnership to expedite meal distribution to struggling Americans.
- In May, the company announced its plans to sell pet treats business to General Mills, for US$1.2 billion.