SPRINGDALE, Ark., Feb. 1, 2008 (PRIME NEWSWIRE) -- Shareholders of Tyson Foods, Inc. (NYSE:TSN) today elected ten members to the Board of Directors at the company's 45th annual meeting. Tyson officials also announced plans to significantly expand its poultry business in China through a joint venture with a Chinese poultry company.
Those elected to the board, which includes six independent directors, were Richard Bond, Scott Ford, Lloyd Hackley, Jim Kever, Kevin McNamara, Jo Ann Smith, Barbara Tyson, Don Tyson, John Tyson and Albert Zapanta.
Bond, who is also President and CEO of the company, announced during the meeting that 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. Terms of the agreement were not disclosed, however, Tyson officials have confirmed the company will have a 70 percent 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.
"Demand for high quality, fresh chicken in China is growing faster than the existing domestic supply," said Bond. "We intend to help meet this need by becoming the first producer to deliver brand name, high quality fresh chicken to consumers in the eastern China market."
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.
"We believe Jinghai's extensive experience in poultry breeding will provide the foundation needed to successfully build a network of live poultry operations," said Rick Greubel, international president for Tyson. 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 from the processing plant will be sold to retailers serving the Shanghai, Jiangsu and Zhejiang Provinces, which have a combined 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.
About Tyson Foods
Tyson Foods, Inc. (NYSE:TSN), founded in 1935 with headquarters in Springdale, Arkansas, is the world's largest processor and marketer of chicken, beef, and pork, the second-largest food production company in the Fortune 500 and a member of the S&P 500. The company produces a wide variety of protein-based and prepared food products and is the recognized market leader in the retail and foodservice markets it serves. Tyson provides products and service to customers throughout the United States and more than 80 countries. The company has approximately 104,000 Team Members employed at more than 300 facilities and offices in the United States and around the world. Through its Core Values, Code of Conduct and Team Member Bill of Rights, Tyson strives to operate with integrity and trust and is committed to creating value for its shareholders, customers and Team Members. The company also strives to be faith-friendly, provide a safe work environment and serve as stewards of the animals, land and environment entrusted to it.
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Forward-Looking Statements
Certain information contained in the press release may constitute forward-looking statements, such as statements relating to expected production levels generated by the joint venture. These forward-looking statements are subject to a number of factors and uncertainties which could cause the company's actual results and experiences to differ materially from the anticipated results and expectations, expressed in such forward-looking statements. The company wishes to caution readers not to place undue reliance on any forward-looking statements, which speak only as of the date made. Among the factors that may cause actual results and experiences to differ from the anticipated results and expectations expressed in such forward-looking statements are the following: (i) fluctuations in the cost and availability of inputs and raw materials, such as live cattle, live swine, or feed grains (including corn), and energy; (ii) the company's ability to realize anticipated savings from its cost reduction initiatives; (iii) market conditions for finished products, including competition from other global and domestic food processors, the supply and pricing of alternative proteins, and the demand for alternative proteins; (iv) risks associated with effectively evaluating derivatives and hedging activities; (v) access to foreign markets together with foreign economic conditions, including currency fluctuations, and import/export restrictions and foreign politics; (vi) outbreak of a livestock disease (such as avian influenza (AI) or bovine spongiform encephalopathy (BSE)) which could have an effect on livestock owned by the company, the availability of livestock for purchase by the company, consumer perception of certain protein products or the company's ability to access certain domestic and foreign markets; (vii) changes in the availability and relative costs of labor and contract growers, and the ability of the company to maintain good relationships with employees, labor unions, contract growers and independent producers providing livestock to the company; (viii) issues related to food safety, including costs resulting from product recalls, regulatory compliance and any related claims or litigation; (ix) changes in consumer preference and diets, and the company's ability to identify and react to consumer trends; (x) significant marketing plan changes by large customers, or the loss of one or more large customers; (xi) adverse results from litigation; (xii) risks associated with leverage, including cost increases due to rising interest rates or changes in debt ratings or outlook; (xii) changes in regulations and laws (both domestic and foreign), including changes in accounting standards, tax laws, environmental laws and occupational, health and safety laws; (xiv) the ability of the company to make effective acquisitions and successfully integrate newly acquired businesses into existing operations; (xv) effectiveness of advertising and marketing programs; (xvi) the results of the Company's on-going tax account balance review; and (xvii) the effect of, or changes in, general economic conditions.