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To Our Shareholders
Tyson Foods, Inc.’s multi-protein business model proved to
be a strategic advantage in the 2008 fi scal year. A record-
setting year from our pork business and an improved
performance by beef supported our chicken business
as it struggled with high input costs and low prices. Our
chicken segment incurred $600 million in additional grain
costs this year, while total inputs were $900 million more
than in 2007. We couldn’t raise prices enough to keep pace
with these extraordinary input costs.
Despite the challenges in our chicken segment, we made
signifi cant progress in other areas. We continued to
manage the Company for the long term by focusing on
our four strategies:
1. Create innovative and insight-driven food solutions
2. Optimize commodity businesses and manage margins
3. Build a multinational enterprise
4. Revolutionize the conversion of raw materials and
by-products into high-margin initiatives
This annual report will focus on the third and fourth
strategies, because there have been several new
developments this year. In our efforts to build a
multinational enterprise, we acquired three poultry
operations in Brazil, entered into majority ownership
joint ventures in India and China and are awaiting
government approval of our third joint venture in China.
In the past when times were tough, we deferred our
international expansion plans, but this time we are
determined to keep moving forward.
We’re also moving ahead with our fourth strategy, which
emphasizes renewable products, including the Dynamic
Fuels joint venture to produce renewable diesel from
by-products such as animal fat, cooking oil and grease.
We’re just beginning this endeavor, but the potential is
very exciting.
We will face more challenges early in the 2009 fi scal
year, but we will handle market conditions as effectively
as possible. I believe we are in a good position, because
we have the right strategy, a solid management team
and a strong balance sheet. I don’t think there is another
protein company better positioned than Tyson Foods.
Richard L. Bond
President and Chief Executive Officer
“I believe we are in a good position, because
we have the right strategy, a solid management
team and a strong balance sheet. I don’t think
there is another protein company better
positioned than Tyson Foods.”
1 2008 Annual Report