Tyson enters Brazilian poultry industry with 3 transactions
Tyson Foods is continuing the
strategic expansion of its international business by investing in the Brazilian
poultry industry, the company has announced.
signed purchase agreements with 3 poultry companies in southernBrazil
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 AvÃcola ItaiÃ³polis (Avita), both located in the state
of Santa Catarina, and will initially have 70% ownership of FrangobrÃ¡s in the
state of ParanÃ¡. Tyson expects to conclude all three transactions in the
next 60 days.
Santa Catarina and ParanÃ¡ 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
â€œOur 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
US and China,â€ said Rick Greubel, group vice president and international
president for Tyson Foods.
â€œThe Brazilian population consumes about 37 kg
(81 pounds) of chicken per person per year compared to 45 kg (99 pounds) in the
US ,â€ he said. â€œWith 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 US.â€
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