Tyson Foods enters Brazilian poultry industry

by Editor fleischwirtschaft.com
Tuesday, September 23, 2008

Tyson Foods, Inc. is continuing the strategic expansion of its international business by investing in the Brazilian poultry industry, the company announced.

Arkansas-based Tyson, the world’s largest meat and poultry processor, has signed purchase agreements with three poultry companies in southern Brazil. Each is vertically integrated and offers the potential for domestic and international sales growth.

Terms of the planned Brazilian transactions were not disclosed, however, company officials confirmed Tyson will acquire Macedo Agroindustrial and Avícola Itaiópolis (Avita), both located in the state of Santa Catarina, and will initially have 70% ownership of Frangobrás in the state of Paraná. Tyson expects to conclude all three transactions in the next 60 days.

Santa Catarina and Paraná are leading corn and soy-producing states in Brazil. This is important since grain represents about half of the cost of raising a chicken. Both Brazilian states also have excellent access to major ports for exporting products.

Jóster Macedo, president of Macedo and an experienced leader the Brazilian poultry industry, has been selected to head all of the Brazilian operations to be acquired by Tyson.