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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
3Annual 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/8/6/2019 6 Page Report
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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
11Annual Report Tyson Foods, Inc. Form10-K
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.
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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
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