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Tyson's Chicken Segment Improves; Supports Brazilian Suppliers

by 5m Editor
3 June 2009, at 8:00pm

GLOBAL - Tyson Foods' chicken segment is benefiting from structural changes and market conditions, according to one of the company's top executives. In a separate development, Tyson Foods has secured a $50 million loan to support its poultry suppliers in Brazil.

Tyson Foods, Inc. has reported that structural changes and improved market conditions are having a positive effect on its chicken business.

Speaking at the Stephens Inc. Spring Investment Conference, Donnie Smith, Tyson's senior group vice president for poultry and prepared foods, said: "We have modified many of our business practices, and our people have really embraced making these changes. I think we'll have a stronger Q3 in our chicken segment than we thought a month ago," referring to statements made in Tyson's second quarter earnings call on 4 May.

Mr Smith said that, while the company is better positioned to operate more effectively in the current environment, higher input costs and demand for other proteins could have an impact later in the year.

"My long-term focus in chicken is on our 'back to basics' approach which is serving us well," he said. "We have a great, hard-working team, and they're headed in the right direction. It feels good to see how far we've come in a fairly short time, and we will continue to focus on improving our business and creating shareholder value."

Tyson secures loan For Brazilian poultry suppliers

CNN reports that Tyson Foods Inc. has secured a 100-million-Brazilian-real (BRR; $51.4 million) loan from Brazil's southern regional development bank, or BRDE, to support its poultry suppliers.

A press officer for Tyson said Tyson will use the loan to help some 330 suppliers of poultry to modernise and expand their operations in Brazil's southern states of Parana and Santa Catarina.

The loan will allow the suppliers to improve the supply of chickens to Tyson's three plants, he said.

Tyson acquired three companies in Brazil in October 2008, and Brazil is the world's No. 1 exporter of chickens, according to the CNN report.