| SPRINGDALE, Arkansas, Feb. 1
SPRINGDALE, Arkansas, Feb. 1 Tyson Foods Inc.
(TSN.N), the largest U.S. meat company, said on Friday it has
signed a deal with a Chinese company to raise and process Tyson
brand name chicken in China, with production forecast to begin
In addition, the company said at its annual meeting in
Springdale, Arkansas, it expects to close on two other poultry
joint ventures this year, one in China and one in South
The latest deal is with the Jiangsu Jinghai Poultry
Industry Group Co Ltd, a Chinese poultry breeding company.
The two companies will build a fully integrated poultry
operation in Haiman City near Shanghai, which will be called
Jiangsu Tyson Foods, and will produce fresh, packaged chicken
products that will be sold under the Tyson name.
"Based on population alone, China offers an enormous
opportunity. Demand for high quality fresh chicken in China is
growing faster than the existing domestic supply can deal
with," Tyson Chief Executive Richard Bond said during the
"We intend to help this need by becoming the first producer
to deliver brand name, high quality fresh chicken to consumers
in the eastern China market."
Construction of the processing plant will start once the
Chinese government approves the project. A feed mill is
currently under construction and the two firms will work to set
up chicken farming operations to supply the plant.
Terms of the deal were not disclosed, other than that Tyson
will own 70 percent of that business.
This will be Tyson's second poultry venture in China, plus
the company also has part ownership of a pork processing plant
Tyson is the largest U.S. beef producer and second largest
U.S. producer of chicken and pork.
(Editing by Marguerita Choy)