Tyson Foods

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Tyson Foods sued over ‘climate-smart’ product claims

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by Talk Business & Politics staff (staff2@talkbusiness.net)

Environmental Working Group (EWG) has sued Tyson Foods over the company’s “climate-smart” claims. The civil suit was filed Sept. 18 in the District of Columbia Superior Court and backed by animal rights and environmental groups such as the Animal Legal Defense Fund, FarmSTAND and Earthjustice.

The suit claims Springdale-based Tyson is making false claims under the Consumer Protection Procedures Act in the District of Columbia because consumers are looking for these “greener products”.

“Tyson knowingly capitalizes on these well-intentioned preferences in advertising in numerous outlets a pledge to achieve ‘net-zero’ climate emissions by 2050 and marketing ‘climate-smart’ beef,” the lawsuit noted.

Tyson Foods sued over ‘climate-smart’ product claims

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Tyson Foods rolls out ‘Razorback Nuggets’ ahead of football season

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by Kim Souza (ksouza@talkbusiness.net)

Research and development workers at Springdale-based Tyson Foods wanted to develop a Razorback-inspired food that might be a hit at tailgating events for University of Arkansas fans. The result is a nugget that looks like a pig but tastes like chicken.

Niki Mann, director of product development for Tyson’s retail business, said she and her team sought to bring the product to market about four months ago, inspired by the excitement around Razorback sports, especially with the hiring of Hall of Fame basketball coach John Calipari. Tyson Foods Chairman John Tyson played a role in the Calipari hiring.

The “Razorback Nuggets” shaped like the hog mascot are breaded frozen white meat chicken similar to the company’s popular dinosaur-shaped nuggets but about twice the size and sold only in a larger family-size bag.

Tyson Foods rolls out ‘Razorback Nuggets’ ahead of football season

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Scientists push EPA to update meat packer wastewater discharge rules

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by Kim Souza (ksouza@talkbusiness.net)

A report from the Union of Concerned Scientists (UCS) alleges that water pollutants discharged from Tyson Foods’ processing plants “pose a risk to people and the environment and include large amounts of nitrogen and phosphorus.”

According to the report, the agriculture industry is the largest consumer of freshwater and meat and poultry processors account for nearly one-third of that water consumption. Tyson Foods is the largest meat company in the country with 123 processing facilities and all that animal processing creates massive amounts of wastewater.

Researchers Omanjana Goswami and Stacy Woods published “Waste Deep” on April 30. While the report notes Tyson Foods is acting within the legal limits, Woods said the regulatory standards for wastewater discharged to surface waters and municipal sewage treatment plants have not been updated in 20 years.

Scientists push EPA to update meat packer wastewater discharge rules

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Inside the kitchen with Tyson Foods chef Thomas Wenrich

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by Kim Souza (ksouza@talkbusiness.net)

Thomas Wenrich fell in love with food at age 15 while working in a small restaurant in his hometown of Hebron, Conn. As a teenager, he was hooked immediately. His family owned and operated an automotive parts store in Hebron, but Wenrich said he had no interest in working in that business.

“I love hospitality and the service of feeding people, the teamwork in the kitchen and the grunt and grind of taking these raw ingredients and turning them into a beautiful experience for someone. I fell in love with that process and knew that was what I wanted to do,” Wenrich said.

He worked in restaurants in the Northeast throughout high school and then attended Johnson & Wales Culinary School in Rhode Island. Over the next few years, he worked in restaurants and hotels in Providence. In 2008, Wenrich graduated with a bachelor’s degree in culinary nutrition, arts and chef training from Johnson & Wales. His first trip to Springdale was in 2009 for an intern position at the Discovery Center, where the company develops products for its customers. From that experience, he accepted a job as a chef with Newlywed Foods, a Tyson Foods supplier. Based in Springdale, he worked occasionally with the company’s culinary team.

Inside the kitchen with Tyson Foods chef Thomas Wenrich

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First-quarter net income expected to fall 55% for Tyson Foods

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by Kim Souza (ksouza@talkbusiness.net)

Tyson Foods may post lower profits when it reports first-quarter earnings on Monday (Feb. 5.) Net income is forecast at $142.094 million, or 40 cents per share, down 55% from the year-ago period, according to a consensus of analyst estimates.

Revenue is projected at $13.36 billion, up less than 1% from the $13.26 billion reported a year ago. While the Springdale-based meat giant continues to face earnings challenges, Stephens Inc. analyst Ben Bienvenu is a little more optimistic for the rest of the year.

“We think chicken fundamentals are positioned to show improvement through this year, with margins headed toward historical average profitability, a welcomed change after a difficult last year. But given the length of the beef cycle, shares are trading at discounted levels. As we move through the next several years we think improving earnings power will increasingly push Tyson Foods shares higher,” Bienvenu noted.

First-quarter net income expected to fall 55% for Tyson Foods

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Tyson Foods opens bacon processing plant in Kentucky

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by Kim Souza (ksouza@talkbusiness.net)

Tyson Foods opened a new processing plant in Bowling Green, Ky., this week. The 400,000-square-foot plant cost $355 million to build and outfit and will employ around 450 workers.

The facility is expected to produce two million pounds of bacon weekly for its Wright and Jimmy Dean retail brands and for food service customers.

“Our innovative new plant in Bowling Green reflects a major investment that we are proud to make in south-central Kentucky,” said Tyson Foods CEO Donnie King. “This enables us to focus on the health and safety of our team members while also delivering best-in-class service for our customers.”

Tyson Foods opens bacon processing plant in Kentucky

photo courtesy Tyson Foods

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Missouri chicken farmers sue Tyson Foods for breach of contract

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by Kim Souza (ksouza@talkbusiness.net)

A group of contract growers that supplied chickens to Tyson Foods’ slaughter and processing plant in Dexter, Mo., have sued the company claiming a breach of contract following a plant closure in October.

The suit was filed Dec. 22 with the Circuit Court of Stoddard County, located in southeast Missouri.

The farmers claim Tyson executives knew as early as November 2021 that the company planned to cease operations in Dexter but withheld that information from growers who said they incurred more debt and made additional investments in their farms without knowledge that their contracts would end.

The plaintiffs seek $25,000 each and additional relief for damages relating to their loss of income resulting from the closure.

Missouri chicken farmers sue Tyson Foods for breach of contract

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U.S. Marshals Museum opening, pilot training center top Fort Smith metro stories in 2023

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by Talk Business & Politics staff (staff2@talkbusiness.net)

The long-awaited opening of the U.S. Marshals Museum and the final decision to place a foreign pilot training center in Fort Smith were two of the top news stories in the Fort Smith metro during 2023.

Following are the top five stories, followed by a list of other notable news.

1. U.S. Marshals Museum finally opens
After more than 16 years of fundraising struggles and leadership changes, the U.S. Marshals Museum opened in downtown Fort Smith on June 29. Just under 10,000 people would visit the museum in its first month.

In January 2007, the U.S. Marshals Service selected Fort Smith as the site for the national museum. The Robbie Westphal family, led by Bennie Westphal and Robin Westphal Clegg, donated the riverfront land for the museum. A ceremonial groundbreaking was held in September 2015. Museum officials initially hoped to have the facility open by late 2017, but struggles to raise money delayed the opening. Construction of the approximately 53,000-square-foot U.S. Marshals Museum was completed — except for exhibits — in early 2020.

U.S. Marshals Museum opening, pilot training center top Fort Smith metro stories in 2023

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Tyson Foods opens $300 million automated chicken plant in Virginia

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by Kim Souza (ksouza@talkbusiness.net)

Tyson Foods’ smart chicken plant in Danville, Va., is up and running with 13 high-speed automated case packing lines and five high-speed robotic case palletizing units, according to the company.

The $300 million, 325,000-square-foot fully-cooked poultry facility will employ about 400 workers when it ramps up to full capacity by early 2024, the Springdale-based meat giant said Tuesday (Nov. 28).

“This plant is also a significant step toward our ongoing goal of operational excellence by investing in innovative technology and automation,” said Tyson Foods CEO Donnie King. “This facility delivers on our commitment to ensuring best-in-class service for our customers and accelerating our long-term growth.”

Tyson Foods opens $300 million automated chicken plant in Virginia

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Tyson Foods reports fiscal year loss of $648 million

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by Kim Souza (ksouza@talkbusiness.net)

Tyson Foods on Monday (Nov. 13) reported an income loss in fiscal year 2023 of $648 million, well below the $3.238 billion of net income in fiscal 2022. Annual revenue was also lower at $52.881 billion, dipping 0.75% from the prior year.

For 2024, Tyson Foods said it expects revenue to remain flat in the $52.8 billion range, well below the $57.37 billion analysts had projected. Company executives said they expect better results in chicken and prepared foods with comparable results in pork and continued challenges in the beef segment during fiscal 2024.

“While economic headwinds persist, we are moving in the right direction and managing what we can control,” Tyson Foods President and CEO Donnie King said in prepared remarks. “The decisions we have taken have made us more operationally efficient and aided a second quarter of sequential improvement in adjusted operating income. The strategy and leadership team we have in place will allow us to take advantage of the long-term opportunities in front of us and drive shareholder value.”

Tyson Foods reports fiscal year loss of $648 million

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Tyson Foods in recent years sees rapid turnover at top job

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by Kim Souza (ksouza@talkbusiness.net)

It’s proven to be a tough job to hold as of late. The Tyson Foods chief executive officer role has turned over four times in seven years since Donnie Smith stepped down. Tyson Foods CEO Donnie King, CEO since June 2021, is the fourth in the job since Smith left in 2016.

Smith held the CEO position through a growth period for Tyson Foods from 2009 through 2016. He oversaw the acquisition of Hillshire Farms in 2014 and is credited with achieving four straight years of record net income and multiplying stock value six times in seven years.

At 57, Smith stepped down as CEO with a hefty retirement package valued at $24 million, which included a three-year consulting agreement that paid him a minimum of $5,800 per hour worked. His exit package also included $3.53 million in severance and restricted shares and stock options valued at $5.5 million. Additional shares, valued at $6.69 million, were to vest if his successor Tom Hayes achieved certain performance goals. Smith also had a minimum of $8.16 million in retirement benefits. Smith logged 36 years with Tyson Foods, joining the company after college graduation.

https://talkbusiness.net/2023/08/tyson-foods-in-recent-years-sees-rapid-turnover-at-top-job/

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Around 2,800 jobs to be cut as Tyson Foods closes chicken plants

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by Kim Souza (ksouza@talkbusiness.net)

Tyson Foods announced Monday (Aug. 7) plans to close four chicken processing plants in North Little Rock, Noel and Dexter, Mo., and Corydon, Ind., over the next three quarters. The news followed a significant financial loss in the third fiscal quarter.

While Tyson did not confirm the total number of jobs eliminated with the closures, estimates from local communities total 2,800 plant positions. The majority of those will be in Noel, with an estimated 1,500 jobs and full poultry production complex closing its doors in October. North Little Rock’s further processing plant will lose an estimated 200 jobs in October. The plants in Dexter, Mo., and Corydon, Ind., employ 500 and 600, respectively, according to local community statistics. Those plants are slated to close in early 2024.

Tyson Foods CEO Donnie King said the decision to shutter the plants was “gut-wrenching” but necessary as the older facilities were in need of major capital investments that did not make sense. The North Little Rock plant is 55 years old and was acquired by Tyson Foods in 1969 from Prospect Farms. It is a further-processing plant and not a slaughter facility. The Noel, Mo., complex includes a processing and kill plant, truck shop and service center and is a major employer in McDonald County. The Dexter, Mo., and Corydon, Ind., facilities are also older further-processing plants.

https://talkbusiness.net/2023/08/around-2800-jobs-to-be-cut-as-tyson-foods-closes-chicken-plants/

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Tyson Foods posts ugly $417 million net income loss in third fiscal quarter

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by Kim Souza (ksouza@talkbusiness.net)

Tyson Foods on Monday (Aug. 7) reported a quarterly net income loss of $417 million, a wide swing from net income of $720 million in the year-ago quarter. The company cited one-time charges of more than $448 million in the chicken and prepared foods segments for most of the loss.

Revenue came in at $13.14 billion, down 3% from a year ago and 2.8% shy of analysts’ estimates for the quarter ending July 1. On an adjusted basis, earnings per share totaled 15 cents, down 92% from the year-ago period. Analysts predicted adjusted earnings per share of 26 cents.

Tyson Foods CEO Donnie King said market dynamics remain challenging for the company and the industry. He assured analysts that Tyson was turning things around in its chicken segment and is setting itself up to be a stronger, more sustainable and efficiently run company. King announced closures of chicken plants in North Little Rock, Noel and Dexter, Mo., and Corydon, Ind. He said the two previous closures in Van Buren, Ark., and Glen Falls, Va., helped increase efficiency in the chicken segment.

https://talkbusiness.net/2023/08/tyson-foods-posts-ugly-417-million-net-income-loss-in-third-fiscal-quarter/

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Cattle herd rebuilding means lower margins for packers like Tyson Foods

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by Kim Souza (ksouza@talkbusiness.net)

Lower beef packer margins for Tyson Foods and other processors will continue as the U.S. beef cattle herd rebuilds, according to Derrell Peel, livestock marketing analyst at Oklahoma State University Extension.

Packers like Springdale-based Tyson Foods lost about $10 per head on the beef they processed for the week ending June 3. The loss per head widened from $5 per head the prior week. Packers profited about $87 per head a month ago and $265 per head a year ago, according to Sterling Beef Profit Tracker.

Packer margins are being squeezed by higher live cattle prices driven by fewer cattle supplies which has pushed processing capacity utilization down to 79% in recent weeks.

https://talkbusiness.net/2023/06/cattle-herd-rebuilding-means-lower-margins-for-packers-like-tyson-foods/

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Tyson Foods posts $97 million quarterly loss, reduces earnings guidance

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by Kim Souza (ksouza@talkbusiness.net)

Tyson Foods reported a second fiscal quarter net income loss of $97 million on Monday (May 8), a wide swing from net income of $829 million in the same quarter last year. Revenue was $13.133 billion, up from $13.117 billion a year ago, but $600 million less than the consensus estimate.

After one-time adjustments for restructuring and plant closures, the net loss per share was 4 cents, down from $2.28 earned a year ago. Tyson fell way short of the 80 cents per share consensus estimate. The earnings miss in the quarter ending March 31 and weaker guidance for fiscal 2023 by Tyson Foods sent the stock tumbling more than 15% in heavy trading Monday morning after the earnings report was posted.

“While the current protein market is challenging, we have a strong growth strategy in place and are bullish on our long-term outlook,” said Donnie King, president and CEO of Tyson Foods. “We saw strong performance in our branded foods business and continue to be laser-focused on meeting customer needs and planning the future with them.”

https://talkbusiness.net/2023/05/tyson-foods-posts-97-million-quarterly-loss-reduces-earnings-guidance/

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Tyson Foods expected to report 65% earnings decline

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by Kim Souza (ksouza@talkbusiness.net)

Springdale-based Tyson Foods is expected to report a 65% decline in net earnings per share for the second quarter ending March 31. The consensus estimate is $285.68 million in net income on higher revenue of $13.62 billion, an annual gain of 3.8%.

The meat giant will report fiscal second-quarter earnings on May 8. Some analysts recently raised their earnings guidance for Tyson Foods based on better-than-expected performance in the company’s beef and prepared foods segment. That said, none of the segments are expected to outperform the year-ago period, with the exception of a small gain in the company’s international division.

Tyson’s chicken business continues to struggle, though margins have likely improved during the recent quarter. according to Ben Bienvenu, an analyst with Stephens Inc. He said margins would likely remain under pressure given elevated grain costs that should abate later in the year. Chicken prices also remain amid higher production and weaker consumer demand.

https://talkbusiness.net/2023/05/tyson-foods-expected-to-report-65-earnings-decline/

Tyson Foods’ early origins were in downtown Springdale more than eight decades ago with the Tyson Feed & Hatchery business founded by John W. Tyson.

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Former Tyson Foods exec named chief sustainability officer for National Pork Board

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by Talk Business & Politics staff (staff2@talkbusiness.net)

Jamie Burr, former director of environmental compliance for Tyson Foods, has been named the first chief sustainability officer for the Des Moines, Iowa-based National Pork Board.

Burr brings more than 20 years of experience to the trade group working in sustainability and environmental programs for Tyson Foods. He grew up on a hog farm in southern Missouri. Burr served on and chaired several Pork Board environmental and sustainability committees and task forces, so his leadership has already helped shape the industry’s sustainability vision, the trade group noted in the release.

“Jamie’s input has been invaluable to several key producer-funded initiatives for more than a decade,” said National Pork Board CEO Bill Even. “Establishing a CSO position and adding Jamie to the team continues to demonstrate our industry’s strong commitment to advancing pork sustainability. Burr’s previous experience puts him in a unique position to be an advocate for the pork industry.”

https://talkbusiness.net/2023/04/former-tyson-foods-exec-named-chief-sustainability-officer-for-national-pork-board/

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Tyson Foods faces scrutiny over plant closures

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by Kim Souza (ksouza@talkbusiness.net)

Tyson Foods may have violated the Packers and Stockyards Act (PSA) in the effort to close large poultry processing operations in Van Buren and Glen Allen, Va., according to Peter Carstensen, law professor at the University of Wisconsin-Madison Law School.

Springdale-based Tyson gave workers at the two plants – almost 1,000 in Van Buren and just under 700 jobs in Virginia – the required 60 days notice that the plants would close on May 12. However, the Packers and Stockyards Act (PSA) requires growers who supply chicken processing plants be given at least 90 days notice before ending a contract.

Carstensen said violation of the PSA and lack of 90-day notice for growers is likely to draw antitrust scrutiny, Carstensen said in a report first published by Reuters. If Tyson is found in violation of the PSA the company could face fines up to $29,270 per contract, he added.

https://talkbusiness.net/2023/03/tyson-foods-faces-scrutiny-over-plant-closures/

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Tyson Foods to build $70 million hatchery in Hope

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by Talk Business & Politics staff (staff2@talkbusiness.net)

On the heels of Tyson Foods’ announcement to close its processing plant in Van Buren, Ark., with the elimination of almost 1,000 jobs, the Springdale-based meat giant reports a new $70 million hatchery it will build in Hope that will be completed in late 2024.

The new 131,000-square-foot hatchery will replace the existing facility and triple capacity, contributing to operational efficiencies at the company’s nearby poultry processing complexes in Hope and Nashville, Ark.

“We continually strive to unlock the next level of excellence in quality and service to our customers,” said Donnie King, CEO of Tyson Foods. “This investment is another way to demonstrate our long-term commitment to our home state of Arkansas and the Hope and Nashville communities.”

https://talkbusiness.net/2023/03/tyson-foods-to-build-70-million-hatchery-in-hope/