Tyson expands chicken production in China

by Editor fleischwirtschaft.com
Tuesday, February 05, 2008

Tyson officials announced plans to significantly expand its poultry business in China through a joint venture with a Chinese poultry company.

Tyson has signed a deal to work with Jiangsu Jinghai Poultry Industry Group Co. Ltd., a Chinese poultry breeding company, to raise and process chicken under the Tyson brand for sale to consumers in eastern China. Tyson officials have confirmed the company will have a 70% ownership share in the business.

Tyson and Jinghai will build a new, fully integrated poultry operation in Haiman City in the Jiangsu Province near Shanghai.

It will be called “Jiangsu Tyson Foods” and will include development of live chicken operations and a chicken processing plant. The operation will produce fresh, retail packaged chicken products sold under the Tyson brand name.

The two companies plan to break ground for the processing plant as soon as Chinese government approvals are received and currently expect to begin operations in 2009. The companies will also be working to finish a feedmill currently under construction and to establish modern chicken farming operations in the region to supply the plant.

The joint venture will initially start by producing 400,000 birds per week with plans to eventually increase production to one million birds per week. Products will be sold to a population of 139 million people.

Tyson already has a presence in China. The company has a joint venture poultry operation involved in producing further processed chicken, including chicken nuggets and popcorn chicken sold under the Tyson name. Tyson also has part ownership in a pork processing plant in China.