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Tyson Foods, Inc.

Tyson Foods Inc, founded in 1935 by John W. Tyson began hauling Chickens from Springdale to market in Kansas

City and St. Louis. Now the company is into production and marketing of chicken, beef, pork and prepared foods.

The private company has been listed as the second largest food production company in Fortune 500 list of

companies and is a member of S&P 500. Based out of Springdale, Arkansas, USA, the Tyson family now is as big as

117,000 employed at more than 400 facilities all over USA and 100 countries1. The total revenue produced at the

end of the fiscal year Sept-2010 is $28,430 USD mn with the net income of 780 USD mn.

Segments2

Tyson Foods produces distributes and markets chicken, beef, pork, prepared foods and other related products.

Products are marketed domestically to food retailers, foodservice distributors, restaurant operators and

noncommercial foodservice establishments such as schools, hotel chains, healthcare facilities, the military and

other food processors, as well as to international markets. Each product has processing plants include various

phases of slaughtering, dressing, cutting, packaging, deboning and further processing.

Chicken: Chicken operations include breeding and raising chickens, as well as processing live chickens into fresh,

frozen and value added chicken. It also includes sales from allied products and chicken breeding stock subsidiary.

Beef: Beef operations include processing live fed cattle and fabricating dressed beef carcasses into primal and sub-

primal meat cuts and case-ready products. This segment also includes sales from allied products such as hides and

variety meats, as well as logistics operations to move products through the supply chain. Allied products are

marketed to manufacturers of pharmaceuticals and technical products.

Pork: Pork operations include processing live market hogs

and fabricating pork carcasses into primal and sub-primal

cuts and case ready products. Allied products are sold to

pharmaceutical and technical products manufacturers aswell as a limited number of live swine to pork processors.

Prepared Foods: Prepared Foods operations include

manufacturing and marketing frozen and refrigerated food

products. Products include pepperoni, bacon, beef and

pork pizza toppings, pizza crusts, flour and corn tortilla

products, appetizers, prepared meals, ethnic foods, soups,

sauces, side dishes, meat dishes and processed meats.

Customers3

Wal-Mart Stores (WMT) is the company's largest customer and BRF Brasil Foods SA (BRFS) is the next big. Wal-

Mart Stores, Inc., accounts for 13.4%, 13.8% and 13.3% of consolidated sales in fiscal years 2010, 2009 and 2008,

respectively. No other single customer or customer group represents more than 10% of fiscal 2010 consolidated

sales.

1http://www.tyson.com

2Annual Report Tyson Foods, Inc. Form10-K


41%

35%

13%

11%

Tyson Foods Inc. Sales by Segment

in 2010

Beef

Chicken
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Geography4The company exports to more than 100 countries in fiscal 2010. Major export markets include Canada, Central

America, China, the European Union, Japan, Mexico, the Middle East, Russia, South Korea, Taiwan and Vietnam.

Strategic priorities5

Tysons business strategy has a strong innovation focus, with the company claiming to be the leading product

innovator within its industry. In addition, Tyson operates a strategy of strict cost management, aiming to maintain

its position as the best-cost producer in the meat and poultry processing industry. The company is thus focused on

the improvement of manufacturing efficiencies, capabilities and capacity through automation and capital

improvement projects. Tyson Foods, in the US, is currently involved in a strategy to improve profitability, while

positioning the business for long-term success by ensuring that its operations are cost-effective. Part of this

process is a consolidation of activities in the US market, including the closing down of plants and scaling back of

processing operations.

Growth Objectives

Be the customers go-to supplier Be the best-in-class protein manufacturer Build a multinational enterprise Upgrade the raw materials and by-products

Strategic Partners6

The companys main partners are Wal-Mart Stores (WMT) and ConocoPhillips. Sales Partner, Wal-Mart Stores

account for 13.4% sales in fiscal 2010. Tyson brands include Tyson, Thomas E Wilson, ITC, Wright Brand, Russer,

Jordans, Continental Deli and Iowa Ham. In June 2007, a 50/50 joint venture with Syntroleum Corporation, called

Dynamic Fuels LLC was started off. Dynamic Fuels LLC produces renewable synthetic fuels targeting the renewable

diesel and jet fuel markets. Construction of production facilities was completed in late fiscal 2010, and initial

production began in October 2010. Earlier, in 2007, the company entered into a strategic alliance with

ConocoPhillips to produce renewable diesel fuel using beef, pork and chicken fat as the raw material.

4Tyson Foods, Inc. Fiscal Fact book 2010

5Datamonitor: Company research and SWOT analysis on TSN

6http://www.reveredata.com

Mexico

20%

China

20%

Japan

10%

South Korea

7%

Canada

4%

Russia

1%

Others

38%

Tyson Foods Inc. International Sales *

*Includes U.S exports and

in country production

Total: $4.4 Billion
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Top management7

Corporate Social Responsibility8

Hunger Relief

Tyson Foods primary philanthropic focus is hunger relief. The company began strategically working in this area in

2000, with a formal national partnership with hunger relief organization, Share Our Strength. Since May 2000,

Tyson has donated more than 77 million pounds of food to hundreds of food banks, food pantries, and relief

agencies.

Charitable Giving and Community OutreachTyson Foods strives to give back to the communities where it does business. The companys community outreach

donations provide millions of dollars each year to a host of causes from children and family shelters to libraries,

community parks and recreation areas. They also contribute to United Way

campaigns.

Key Milestones9

7http://www.reuters.com/finance/, http://finance.yahoo.com

8Tyson Foods, Inc. Fact book

9Tyson Foods, Inc. Fact book

Name Title

John Tyson Non-Executive Chairman of the Board

Donnie Smith President and Chief Executive Officer

Dennis Leatherby Executive Vice President and Chief Financial OfficerJames Lochner Chief Operating Officer

Venn: Tyson Foods Inc. History
http://www.reuters.com/finance/http://www.reuters.com/finance/http://www.reuters.com/finance/http://finance.yahoo.com/http://finance.yahoo.com/http://finance.yahoo.com/http://www.reuters.com/finance/stocks/officerProfile?symbol=TSN&officerId=57468http://www.reuters.com/finance/stocks/officerProfile?symbol=TSN&officerId=728888http://www.reuters.com/finance/stocks/officerProfile?symbol=TSN&officerId=728888http://www.reuters.com/finance/stocks/officerProfile?symbol=TSN&officerId=57468http://finance.yahoo.com/http://www.reuters.com/finance/


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Financial Summary10

10Data fromhttp://www.wikinvest.com

0

10

20

30

2007 20082009

2010TTM

InBillionU

SD

Year

Gross Profit Revenue

-1000

0

1000

2000

20072008

20092010

2011*

inMillionUSD

Year

Net Income EBIT

Chart: Comparison with competitors (Last Quarter: Q1 2011)

Chart: Gross Revenue and Profit in last 5 years

Chart: Gross Net Income and EBIT in last 5 years
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Sales Pattern11

Competitor analysis1213

Ticker Name Market

Capital

TSN Tyson Foods, Inc. 7.37 B

BRFS BRF Brasil Foods SA(ADR) 15.08B

HRL Hormel Foods Corporation 7.97B

SFD Smithfield Foods, Inc. 3.63B

PPC Pilgrim's Pride Corporation 1.16B

SAFM Sanderson Farms, Inc. 1.06B


12http://www.reveredata.com

13http://www.google.com/finance

Mexico

20%

China20%

Japan

10%South Korea

7%

Canada

4%

Russia

1%

Others

38%

Tyson Foods Inc. International Sales *

*Includes U.S

exports and in

country production

Total: $4.4 Billion

Sales 2010 2009 2008

Sales $28,430 $26,704 $26,862

Change in sales volume (0.6)% 4.4%

Change in average sales price 7.1% (4.8)%Sales growth (decline) 6.5% (0.6)%

Chart: Stock comparison with competitors (Sept 2010-June 2011)10

HRL - Hormel Foods Corporation

PPC - Pilgrim's Pride Corporation

TSN Tyson Foods, Inc.
http://www.reveredata.com/http://www.reveredata.com/http://www.reveredata.com/http://www.reveredata.com/http://www.google.com/financehttp://www.google.com/financehttp://www.google.com/financehttp://www.google.com/financehttp://www.google.com/financehttp://www.reveredata.com/


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In News

1. Expansion in India and China14Tyson Foods has expanded its operations in India by acquiring majority ownership in one of the leading poultry

processing businesses in India. In 2008, the company purchased 51% ownership of Godrej Foods, based in

Mumbai. The company has been operating in China since 2001 on a small scale. To serve this growing market, in

2008 Tyson established Jiangsu Tyson Foods to produce fresh chicken sold under the Tyson brand for the Shanghai

retail market, and it is expected to be operational in 2011.

2. Renewable products15a) Venture into alternative fuel business

In 2010, Dynamic Fuels, a joint venture between Tyson Foods and Syntroleum Corporation, completed a plant that

produces renewable diesel and began producing fuel in October. At full capacity, the plant will produce 75 million

gallons per year. The first commercial flight using Tyson foods, Biofuel completed its flight on June 29th

2011.

b) Pet ProductsTyson Foods Renewable Products Group launched True Chews dog chews and treats in 2010. True Chews are100% natural products and contain no rawhide or fillers.

c) Nutraceuticals and Biotech SolutionsTyson Foods bone and cartilage by-products are used to supply proprietary chondroitin and collagen products

through partnership with BioCell Technology, LLC. Finished products made with these ingredients are marketed by

major nutritional supplement and food manufacturers. Biotech product development includes keratin protein-

based products for shampoo, skin care, nail care and lotions. Additionally, Tyson is exploring opportunities in

bioplastics, bioadhesives and nonwoven materials made from feathers.

Website and address16

Head Office Tyson Foods, Inc.

2200 Don Tyson Parkway

Springdale

Arkansas 72762

USA

Phone 1 479 290 4000

Fax 1 479 290 4061

Web Address http://www.tyson.com

14http://news.google.com

15Tyson Foods, Inc. Fiscal Fact book 2010

16http://www.tyson.com
http://news.google.com/http://news.google.com/http://news.google.com/http://news.google.com/http://news.google.com/

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