Tyson Foods 2005 Annual Report Download - page 19

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Tyson Foods, Inc. >> 17
Tyson’s international strategy is to support our global
customers’ international growth, diversify sales in all
markets, increase in-country production in Canada, China
and Mexico and look toward possibly establishing produc-
tion in South America. Tyson Foods’ international business
represents 11 percent of 2005 sales revenue, although import
bans on beef affected sales throughout the year.
Tyson is the leading producer of value-added chicken in
Mexico, supplying products to the foodservice industry
and branded products to retail and club stores. We have
expanded value-added processing capacity to support
our growth. We are looking for opportunities to expand
the Company’s chicken business in Mexico via joint ventures
or acquisitions. Tyson is also examining the possibility of
establishing a presence in Mexico with beef and pork.
Domestic chicken sales volume in China continues to grow,
supported by increased demand for Tyson products. We
are experiencing growth in the foodservice business as we
launch new and innovative products specifically for Chinese
consumer tastes. Tyson’s new products are carried in more
than 700 retail outlets in Shanghai and southern China. In
May, we completed an expansion project doubling the
capacity of our chicken further-processing plant. We are
exploring options for further growth in China through joint
ventures, strategic partnerships and acquisitions.
Tyson Foods’ Lakeside Packers is the market leader in
Canadian beef with a more than 30 percent market share.
In June, we completed an expansion project to increase
production capacity by 20 percent, which gives us a total
capacity to process about 4,700 head of cattle per day
in Canada.
We are examining prospects in South America, which would
allow us to serve our global customers better, participate
in developing markets and allow us to diversify further our
export base.
In 2005, we experienced significant growth in chicken sales
to the Middle East driven by increased demand for products
in Iraq. With South Korean markets opened in the third
quarter of fiscal 2005, we have access to all of our historical
destination markets for chicken.
Tyson products manufactured in China, and developed
to suit the tastes of Chinese consumers, are in more
than 700 retail outlets in the Shanghai area.