Tyson’s Chicken Strategy

China

Historically, Tyson has purchased chicken from independent farmers in close proximity to Tyson’s chicken processors. This remains the firm’s main strategy in the United States. However, due to recent food safety concerns in China, Tyson is spending millions to backward integrate in China by building its own chicken farms. In early 2014, Tyson operated around 20 farms in China and expects to operate 90 by late 2015. Tyson’s CEO, Donnie Smith, was quoted as saying, “We just can’t build the chicken houses (in China) fast enough, and we’re going absolutely as fast as we know how to go.” This is likely an important strategy for Tyson, considering that traditionally many chicken farms in China are nothing more than mom-and-pop ...

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