Tyson expands chicken production with US$320 state-of-the-art facility
07 Sep 2017 --- Tyson Foods Inc. has announced plans to open a US$320 million chicken facility outside Tonganoxie, Kansas. The new poultry complex will keep pace with very strong demand for chicken, according to Tyson Foods, Inc. as the company prepares to build a high-tech operation that will produce pre-packed trays of fresh chicken for retail grocery stores across the US.
Tyson will construct a processing plant, hatchery and feed mill near the city of Tonganoxie, in Leavenworth County, which will employ approximately 1,600 people and contract with northeast Kansas farmers and ranchers to raise chickens.
The operation is currently scheduled to begin production in mid-2019.
“More people want fresh food and as one of the world’s leading protein companies, we’re well-positioned to provide it,” said Tom Hayes, president and CEO of Tyson Foods. “We believe this new operation, which will incorporate the latest production technology, will enable us to meet the sustained growth in consumer demand for fresh chicken.”
The poultry plant will be capable of processing 1.25 million birds per week, increasing Tyson Foods’ overall production capacity.
The payroll and payments to farmers from the new operation, along with its purchase of grain and utilities, is expected to generate an annual economic benefit to the state of Kansas of US$150 million.
“Kansas will be an outstanding home for this Tyson complex,” adds Governor Sam Brownback. “Growing Kansas means we must grow the food and agriculture sector which accounts for nearly 45 percent of the state’s economy. The far-reaching impact of this development will be felt by farmers, ranchers, agribusinesses and communities throughout eastern Kansas. This is a step in the right direction to further diversify and grow our state’s economy.”
“The Leavenworth County Board of Commissioners is excited that Tyson Foods will be opening a state-of-the-art poultry processing facility in southern Leavenworth County,” said Mark Loughry, Leavenworth County administrator.
“This represents a significant investment by Tyson and creates new jobs at the plant for our citizens. More than that it provides an opportunity for area ag producers that was previously unheard of in Kansas.”
“We believe eastern Kansas is the right location because of the availability of grain and labor, as well as access to our nationwide customer base that is accessible through the state’s top-notch transportation network,” adds Doug Ramsey, group president of Poultry for Tyson Foods.
Tyson Foods anticipates purchasing about 300 acres of property south of Tonganoxie and currently plans to break ground sometime this fall.
The company will work with outside contractors to build the plant, hatchery, feed mill and related infrastructure.
Earlier this year, Tyson Foods announced it was moving to No Antibiotics Ever (NAE) in its Tyson branded retail chicken products, making it the world’s largest producer of NAE. The Tonganoxie plant will be part of the continued expansion of the company’s NAE offerings.
Tyson Foods currently operates facilities in six Kansas communities, employing about 5,700 in the state.
In its 2016 fiscal year, Tyson Foods paid Kansas cattle suppliers more than US$2 billion and hog suppliers more than US$1.3 million. The company estimates its total statewide annual impact for fiscal 2016, including grain purchases, utilities, property taxes and charitable contributions to be more than US$2.4 billion.
