Tyson Foods to “transform agro-protein capabilities in Kazakhstan”

10 Dec 2019 --- Tyson Fresh Meats, the beef and pork subsidiary of Tyson Foods, has agreed  to collaborate on a project that could lead to the construction of a modern beef processing plant in Kazakhstan, with an initial anticipated harvest capacity of 2,000 head per day. The agreement with the Republic of Kazakhstan and private holding company Kusto Group is projected to help provide an annual agricultural economic benefit to the country well in excess of US$1 billion.

“We are delighted to welcome Tyson Foods to Kazakhstan,” says Prime Minister Mamin of Kazakhstan. “Tyson is a food company with the expertise necessary to help Kazakhstan jump-start the transformation of our agro-protein capabilities and help us create an ecosystem that will increase our beef herd size and establish conditions to support thousands of new high-quality jobs in the country. We look forward to a long and mutually beneficial collaboration.”

Click to EnlargeThe Kazakhstan government is looking to expand and modernize its agriculture, beginning with meat production.“This opportunity supports one of our growth strategies to expand Tyson’s global business, and we look forward to bringing our expertise and capabilities to the country of Kazakhstan,” says Steve Stouffer, President for Tyson Fresh Meats. 

Kazakhstan is the ninth largest country in the world by geographic area and has identified the livestock and the multi-protein export industry as a key growth market, notes Tyson Foods. The country has an established beef industry which serves the domestic population with exports to the region. The agreement with Tyson and Kusto is part of a broader initiative by the Kazakhstan government to expand and modernize its agriculture, beginning with meat production.

Tyson Foods officials have traveled to Kazakhstan, while the nation’s Prime Minister along with other government officials have been to the US to visit Tyson headquarters, including one of the company’s major beef complexes. The Kazakhstan-founded Kusto Group, based in Singapore, has an existing subsidiary with a leading position in beef production in the country.

“Tremendous potential”
“At Kusto, we believe in the tremendous potential of Kazakhstan to transform into a global agricultural player, helping provide first class products for consumers around the world,” says Yerkin Tatishev, Chairman of the Board of Directors at Kusto. “Together with Tyson Foods, we are taking a first step in that direction today with our beef operations and look forward to getting underway.”

US-based Tyson Fresh Meats currently operates beef plants in Nebraska, Illinois, Iowa, Kansas, Texas and Washington. The company reports that its beef business generated US$15.8 billion in sales in fiscal year 2019. 

In its recently issued fourth quarter and fiscal 2019 results, Tyson Foods outlines sales growth of 6 percent to US$42.4 billion, driven mostly by chicken-related acquisitions and increased pricing in the beef and prepared food segments.

In a recent earnings call, CEO Noel White commented on the food giant’s recent grappling with a Kansas slaughterhouse fire and African swine fever (ASF) in China. In spite of setbacks, the executive notes significant expansion for the company’s meat business following the inauguration of a new processing facility, with significant export opportunities on the horizon.

By Benjamin Ferrer

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