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Tyson announces expansion in Brazil

SPRINGDALE, Ark.—Tyson Foods Inc. says it’s bought two poultry companies and has acquired majority ownership in a third in southern Brazil, home to many major producers of corn and soybeans.

Terms of the deal were not disclosed.

The Springdale, Ark.-based meat producer announced Thursday its agreements with the companies. Tyson says it will buy Macedo Agroindustrial and Avicola Itaiopolis, both in the state of Santa Catarina. Tyson says it has acquired a 70 percent ownership of Frangobras, located in the state of Parana.

Tyson’s international president, Rick Greubel, says the company is expanding into Brazil because the country is the world’s leading chicken exporter and third largest chicken producer behind the United States and China.

Tyson, the world’s largest meat company, had sales of $26.9 billion in fiscal 2007. The company says chicken sales represented 31 percent of total sales.

“With the economic stability and a growing middle class, the per capita consumption of chicken will continue to increase in Brazil,” Greubel said. “In addition, our Brazilian operations will give us greater access to markets that are currently buying little to no poultry from the U.S.”

Tyson said current Macedo president, Joster Macedo, will head all of Tyson’s Brazilian operations.

“The current management teams as well as other jobs at all three companies are expected to remain in place as we move forward with expansion plans,” said Greubel. “The transition to expanded production will be gradual with our focus on the long-term success of these operations.”







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