Tyson Foods is continuing to make inroads into the international markets the protein provider believes will be so integral to its growth strategy. Tyson just announced $340 million plans to acquire the Thai and European operations of BRF S.A. in a deal that will include four processing facilities in Thailand, one processing facility in the Netherlands, and one processing facility in the United Kingdom.
“As noted when we acquired Keystone Foods on November 30, we believe some of our biggest growth opportunities are in value-added foods and international markets,” said Noel White, President and CEO. “In addition to domestic benefits, the Keystone acquisition provided us with a scalable production platform in the Asian poultry market. The acquisition of these BRF facilities will help complement and strengthen our presence in Thailand and provide new capabilities in Europe, enhancing our ability to serve growing global demand for value-added protein.”
In these past months following the company’s acquisition of Keystone, Tyson has repeatedly noted that it believes approximately 90 percent of global protein consumption growth will occur outside the United States, with 60 percent of the volume growth coming from Asia over the next 5 years.
Donnie King, Tyson’s Group President of International touched on this point again in the company’s statement on the BRF acquisition: “Increasing our international footprint with in-country operations and export capabilities will help Tyson Foods strategically access new markets and better serve the growing global demand for our value-added protein.”
The strategy seems to be working for Tyson thus far. In a press release on the company’s Q1 financial results released in tandem to the acquisition news, Tyson reported a strong boost in prepared food growth.
Below are a few additional highlights from Tyson’s Q1 results:
“Our diversified business model continues to set Tyson Foods apart,” commented White. “The Prepared Foods and Beef segments delivered strong results in our fiscal first quarter, while the Pork and Chicken segments performed well given market conditions. We’re proud of the growth Prepared Foods has achieved in the past five years and the role it has played in stabilizing volatility while growing earnings. Moving forward, we will remain focused on growing Prepared Foods as well as our value-added and international businesses.”
Deli Market News is keeping a close eye on Tyson as it continues to seek out new growth opportunities internationally and will report back with the latest.