Tyson Fresh Meats and Jacob Stern & Sons launch fats and oils JV
11 Feb 2020 --- Tyson Fresh Meats , the beef and pork subsidiary of Tyson Foods , and Jacob Stern & Sons have launched a joint venture (JV), JST Global, LLC, to serve worldwide fats and oils markets. Tyson Fresh Meats, based in South Dakota, currently operates six beef plants and six pork plants in the US. Jacob Stern & Sons is among Tyson’s largest customers for animal by-products and is the largest US processor and marketer of animal fats. Specific terms of the venture have not been disclosed.
Beef and pork by-products of the fresh meats business, along with fats and oils derived from other sources, are key ingredients in thousands of products in such diverse industries as pharmaceuticals, personal care and animal nutrition, plus the rapidly developing field of renewable fuels.
“Jacob Stern and Tyson Fresh Meats have enjoyed a strong relationship for over 50 years. Combining Tyson’s vast supply of animal fats with Jacob Stern’s Texas operations is a natural evolution and positions JST Global to meet growing worldwide demand,” explains Phil Bernstein, Chairman, Jacob Stern & Sons.
“We maximize the value of every animal we harvest so that no part of the animal goes to waste,” adds Steve Stouffer, Group President, Tyson Fresh Meats. “Responsibly processing fats and oils are a key part of our business and our commitment to sustainability. This JV gives us the opportunity to continue to value-up our beef and pork production, enabling us to innovate in new untapped markets while continuing to work directly with existing animal fat customers and the emerging renewable energy market.”
Following a transition period, the marketing of all animal fats generated by Tyson Fresh Meats will be conducted by JST Global teams in Houston, Dakota Dunes and Omaha (US).
Jay Van Valen, formerly President of Jacob Stern & Sons’ Texas Division, will serve as CEO of JST Global, which will maintain its headquarters in Houston. The Jacob Stern & Sons and Tyson Fresh Meats sales teams will collaborate and the company stresses there will be a “seamless transition for customers.”
“With a secured supply, JST Global is strongly positioned to address the global demand for commodity and value-added animal fats. JST Global’s scale and broad capabilities are key differentiators that will allow us to deliver customized solutions, particularly in highly specialized markets such as renewable energy,” Van Valen adds.
Tyson Foods has been sharpening its focus on sustainable protein for some time. Last month, the meat heavyweight underscored its push for diversification when it created the Coalition for Global Protein, a multi-stakeholder initiative to advance the future of alternative protein sources.
In 2019, the US’ largest meat processor sold its stake in Beyond Meat, signaling its intention to enter the alternative protein space with its own products. Unveiling its alternative protein products and new Raised & Rooted brand to keep pace with shifting consumer preferences, Tyson Foods debuted plant-based nuggets in the summer of 2019.
This JV also closely follows Tyson Fresh Meats collaborating on a project that could lead to the construction of a modern beef processing plant in Kazakhstan.
Edited by Gaynor Selby
