Tyson Foods 2008 Annual Report Download - page 6

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Jaime Barrenechea (left), Renewable Products
Group, and Tim Ray, Research & Development,
are researching new ideas for pet treats.
Tyson Renewable Products is leading Tyson Foods’
strategy to turn non-prime products into high-margin
initiatives through a variety of creative endeavors
across four platforms – renewable energy, pet products,
nutraceuticals and biotech.
Renewable Energy
In October 2008, Dynamic Fuels, a joint venture
between Tyson Foods and Syntroleum Corporation,
broke ground on a plant that will produce renewable
diesel. The facility is currently scheduled to begin
production in 2010, with a total capacity of 75 million
gallons per year. Unlike the ethanol and biodiesel
industries, which use food ingredients such as corn
and soybean oil to produce fuel, the Dynamic Fuels
project primarily will use non-food grade animal
fats produced or procured by Tyson, such as beef
tallow, pork lard, chicken fat and cooking grease.
The fuel produced by the venture will offer the
same benefi ts of synthetic fuels derived from coal or
natural gas while providing substantial performance
and environmental advantages over petroleum-
based fuels.
Pet Products
Americans love their pets, and it matters where their
protein comes from, especially following the serious
problems caused by imported ingredients in 2007. In
January 2008, we announced a strategic alliance with
Kemin Industries, Inc. to develop, manufacture and
market pet food fl avor-enhancers, known as palatants,
to the North American pet food market. We are
researching a variety of different super premium dog
treats made from chicken breasts, which we plan to
test market in 2009. We hope to unlock additional
opportunities in other high-end pet products as well,
with non-prime products such as bones and pig ears
having a great deal of potential.
Nutraceuticals
Foods containing nutritional supplements are growing
in popularity as Baby Boomers age. With our bone and
cartilage by-products, we are uniquely positioned to
supply proprietary chondroitin and collagen products
through our partnership with BioCell Technology, LLC.
Finished products made with these ingredients are
marketed by major nutritional supplement and food
manufacturers. Additional opportunities are being
explored to further expand this business platform
during 2009 through other raw materials and value-
added partnerships.
Biotech
There is a wide range of opportunities for biotech product
development including keratin protein-based products
for shampoo, skin care, nail care and lotions. Additionally,
Tyson is exploring bioplastics, bio-adhesives and non-woven
materials made from feathers. Disposable diapers made
with keratin from the feathers of Tyson chickens could be a
reality in the future. All of these products will bring added
value to Tyson while supporting our sustainability efforts.
Tyson is fi nding innovative ways to convert non-prime products into
fuel, pet food products and other high-margin commercial products.
THE CREATIVE DIFFERENCE
4 Tyson Foods, Inc.