Tyson takes stake in Saudi poultry supplier
RIYADH, SAUDI ARABIA – Tyson Foods Inc. announced July 6 that it has acquired a stake in Saudi-based Tanmiah Food Co. to expand its global protein footprint.
Tanmiah is a supplier of fresh and value-added poultry and other meat products, pet food, health products and a food brand franchise operator.
As part of the deal, Tyson said it has acquired a 15% stake in Tanmiah’s subsidiary Agriculture Development Company (ADC) and a 60% stake in Supreme Foods Processing Co. Regulators in the Kingdom of Saudi Arabia are working always to approve the transaction.
“This investment will allow us to access the poultry supply in Saudi Arabia to meet the growing demand for protein in the Middle East and other markets,” said Chris Langholz, President of International for Tyson Foods. “Expanding into international markets is a key part of our strategic growth plan and we are excited to better serve customers in this region.
ADC is a fully integrated poultry company that produces broiler chickens and operates hatcheries and feed mills. It sells fresh poultry under the Tanmiah brand to retailers and food service customers. Supreme Foods produces a variety of value-added cooked chicken and beef products with a distribution network spread throughout the Middle East, including Saudi Arabia, Kuwait, Bahrain, United Arab Emirates, Oman, Lebanon and in Jordan.
“The strategic partnership is expected to accelerate the growth of Tyson Foods and Tanmiah and generate significant value in the short and long term,” said Tan Sun, president of Tyson Foods APAC. “This will be achieved primarily through further expansion across the entire value chain, increased diversification of products, customers and geography, as well as improvements in production and other processes. operational. The agreement will also allow Tyson Foods and Tanmiah to unlock long-term opportunities in the growing halal food market.
Another part of the deal is Tyson Foods and Tanmiah’s commitment to expand Supreme Foods’ processing capacity. The companies said the expansion would double Tanmiah’s capacity to produce processed products.
“We are delighted to partner with a renowned global leader in food production to accelerate our growth and development agenda,” said Zulfiqar Hamadani, Managing Director of Tanmiah. “Our strategic partnership marks an important milestone in Tanmiah’s journey and demonstrates our commitment to growth and support for Saudi Arabia’s food security goals. We are ready to embark on this new phase with Tyson Foods, whose commitment to animal welfare, food safety, sustainability and efficiency is entirely in line with our own business model and our sustainable development. This transaction will not only strengthen our domestic market positioning, but will also allow us to expand our global footprint by leveraging Tyson Foods’ long-standing relationships with customers around the world. »
Tyson continues to expand its value-added capability around the world. The company plans to open seven fully-baked factories outside the United States over the next two years. Six of the facilities will be in Asia and one in Europe.
Tyson Foods’ total sales from international trade and exports accounted for 14% of the company’s total sales in fiscal year 2021. This included $4.8 billion in U.S. export sales and $2 billion in foreign revenue.