Tyson Foods has reached an agreement buy a 40% stake in the foods division of Group Vibra (Vibra Foods), a Brazilian producer and exporter of poultry products including frozen chicken cuts, frozen middle joints or frozen halal chicken.
“This investment will enable us to access poultry supplies in Brazil to meet the growing needs of Brazilian customers and priority demand markets in Asia, Europe, and the Middle East,” said Donnie King, group president, international & chief administration officer for Tyson Foods. “It’s part of our strategy to develop a more flexible supply chain and mitigate the volatility of our previous model, which relied primarily on U.S. exports,” King noted.
Since last year, Tyson Foods has expanded its global presence through the acquisition of Keystone Foods, which includes operations in China, South Korea, Malaysia, Thailand and Australia, and BRF’s poultry businesses in Thailand and Europe. Grupo Vibra currently serves customers in Brazil as well as more than 50 countries around the world.
Over the next five years, it is estimated that nearly 98% of protein consumption growth will happen outside the U.S, according to the Tyson press release.
“That’s why we’re growing our business outside the U.S. As the world population continues to grow, Tyson will grow with it,” King explained.
Tyson Foods currently generates USD7bn in international sales annually. This includes USD5bn in U.S. export sales and about USD2bn in in-country revenues.
