Tyson Foods Enters Brazil

Tyson Foods Inc. is continuing the strategic expansion of its international business by investing in the Brazilian poultry industry. Arkansas-based Tyson has signed purchase agreements with three poultry companies in southern Brazil. Each is vertically integrated and offers the potential for domestic and international sales growth.

"Our investment in these companies is a key part of our international strategy, especially since Brazil is currently the world's leading chicken exporter and third largest chicken producer behind the United States and China,'' says Rick Greubel, group vice president and international president for Tyson Foods. On Sept. 10, Tyson also entered into a joint venture agreement with Shandong Xinchang Group, one of China's leading poultry producers.

Terms of the planned Brazilian transactions were not disclosed, however, company officials confirmed Tyson will acquire Macedo Agroindustrial and Avicola Itaiopolis (Avita), both located in the state of Santa Catarina, and will initially have 70 percent ownership of Frangobras in the state of Parana.