Tyson Foods 2008 Annual Report Download - page 10

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Diversifying exports: With chicken production in Brazil, Tyson can access
European markets closed to the United States, and by selling to the
Middle East and Africa, we lessen our dependency on Russian markets.
The third key location for Tyson’s international growth is
India, which has a population of more than one billion
people. While per capita chicken consumption is less than
fi ve pounds a year, its annual growth rate of more than
10% is among the highest in the world. In June 2008, Tyson
acquired majority ownership of one of India’s leading
branded chicken companies. In addition to serving the
foodservice market, Godrej Tyson Foods produces retail
fresh chicken under the Real Good Chicken brand and
further processed chicken under the Yummiez brand. The
combined production of the two plants in Mumbai and
Bangalore is approximately 60,000 chickens per day. We
plan to expand the production capacity of the existing
operations and build additional processing facilities to
better reach consumers in the northern and eastern
regions of the country.
Tyson has had a presence in Mexico for 20 years and
currently holds the #3 market share position. We are #1
in value-added chicken production and have reached
full capacity in our plants in a market that continues to
grow. Our longer-term strategy could include acquiring
or building more assets to solidify our market position
in northern Mexico and expand our business into the
central part of the country.
Chicken isn’t the only protein Tyson produces outside the
United States. In 2007, we entered into a joint venture
to create the fi rst vertically integrated beef operation
in Argentina. The South American country is the world’s
fi fth leading beef producer and the second leading beef
exporter. Argentina is known for its low beef production
costs and high-quality breeds of cattle.
Although the state of the world economy and our domestic
chicken business could cause us to be more conservative in
fi scal 2009, Tyson Foods will continue with our strategy to
build a multinational enterprise by integrating our recent
acquisitions and maximizing those assets.
INTERNATIONAL LOCATIONS
Export sales offi ces
Production facilities
Export sales offi ces and
production facilities
8 Tyson Foods, Inc.