|Traded as||NYSE: TSN (Class A)|
S&P 500 Component
|Founder||John W. Tyson|
|Headquarters||Springdale, Arkansas, U.S.|
|John H. Tyson|
|Products||Meat and Cultured Meat|
Number of employees
Tyson Foods, Inc. is an American multinational corporation based in Springdale, Arkansas, that operates in the food industry. The company is the world's second largest processor and marketer of chicken, beef, and pork after JBS S.A. and annually exports the largest percentage of beef out of the United States. Together with its subsidiaries, it operates major food brands, including Jimmy Dean, Hillshire Farm, Ball Park, Wright Brand, Aidells, and State Fair. Tyson Foods ranked No. 80 in the 2018 Fortune 500 list of the largest United States corporations by total revenue.
The company was established by John W. Tyson in 1935, and benefited during World War II when chicken was not included in foods that were rationed. As of 2014, the company employs 115,000 people, who work at more than 300 facilities, over 100 of which are in the US. Tyson had about 97,000 employees in 27 states; locations are concentrated in the Midwest, with 16 locations in Arkansas, 11 in Texas, 9 in Iowa, and the remainder of the mostly eastern US with less than 3–4 locations. Tyson also works with 6,729 independent contract chicken growers.
Tyson is one of the largest U.S. marketers of chicken, beef and pork to retail grocers, broad line foodservice distributors and national fast food and full-service restaurant chains; fresh beef and pork; frozen and fully cooked chicken, beef and pork products; case-ready beef and pork; supermarket deli chicken products; meat toppings for the pizza industry and retail frozen pizza; club store chicken, beef and pork; ground beef and flour tortillas. It supplies Yum! Brands chains that use chicken, including KFC and Taco Bell, as well as McDonald's, Burger King, Wendy's, Wal-Mart, Kroger, IGA, Beef O'Brady's, small restaurant businesses, and prisons.
The company makes a wide variety of animal-based and prepared products at its 123 food processing plants. It produces many different products, including Buffalo wings, boneless Buffalo wings, chicken nuggets, and tenders. Every week, its 54 chicken plants, 13 beef plants, and six pork plants slaughter and package 42.5 million chickens, 170,938 cattle, and 347,891 pigs. Their largest meat packing facility is their beef production plant in Dakota City, Nebraska. Other plants include feed mills, hatcheries, farms and tanneries.
Acquisitions and investments
In 2001, Tyson Foods acquired IBP, Inc., the largest beef packer and number two pork processor in the United States., for US$3.2 billion in cash and stock. Along with its purchase of IBP, it also acquired the naming rights to an event center in Sioux City, Iowa. Tyson has also acquired such companies as Hudson Foods Company, Garrett poultry, Washington Creamery, Franz Foods, Prospect Farms, Krispy Kitchens, Ocoma Foods, Cassady Broiler, Vantress Pedigree, Wilson Foods, Honeybear Foods, Mexican Original, Valmac Industries, Heritage Valley, Lane Poultry, Cobb-Vantress, Holly Farms, Wright Brand Foods, Inc. and Don Julio Foods. On May 29, 2014, the company announced a $6.13 billion cash offer to acquire all the shares in Hillshire Brands, two days after a $6.4 billion cash and shares bid for Hillshire by Pilgrim's Corp. In June 2014, Tyson won the bidding war against Pilgrim's Pride, agreeing to buy the maker of Jimmy Dean sausage and Ball Park hot dogs for $8.5 billion. On July 28, 2014, the company said it would sell its Mexican and Brazilian poultry businesses to JBS S.A. for $575 million and use the proceeds to pay down debt from its pending $7.7 billion purchase of Hillshire Brands Co. In May 2018, Tyson announced the acquisition of American Proteins, Inc. and AMPRO Products, Inc. for approximately $850 million.
In early 2018, Tyson, through its venture capital arm Tyson Ventures, invested in Beyond Meat, Memphis Meats, and Future Meat Technologies, companies developing plant-based meat substitutes and cultured clean meat, respectively. Former CEO Tom Hayes said that "it might seem counterintuitive", but the investments are part of an effort to meet future consumer demand in a sustainable way.
On June 1, 2018, Tyson announced that it would sell the Sara Lee, Van's, Chef Pierre and Bistro Collection brands to Kohlberg & Company. The sale was completed on August 1, forming Sara Lee Frozen Bakery, which will be based in Oakbrook Terrace, Illinois.
Tyson Renewable Energy
Tyson's processing plants generate a vast supply of animal fats. In late 2006, the company created a business unit called Tyson Renewable Energy to examine ways of commercializing the use of this leftover material by converting it into biofuels. The unit is also examining the potential use of poultry litter to generate energy and other products. On April 16, 2007, Tyson announced a joint venture with ConocoPhillips to produce roughly 175 million gallons of biodiesel a year—enough to run Tyson Foods' truck fleet for 3.5 years.
Since 2000, Tyson Foods has donated millions of dollars in cash to help non-profit organizations across the country. Forbes named Tyson Foods the second most proportionally generous company for its donations in 2007 totaling 1.6 percent ($8 million) of its annual operating income. Tyson initiated the KNOW Hunger campaign in early 2011 to raise awareness of hunger in the United States. After the Joplin tornado of 2011, Tyson sent 77,000 pounds of food to the city. It also sent 100,000 pounds of food to the communities along the Gulf of Mexico after the April 20, 2010, oil spill. Tyson has supported "Little Free Pantries," and has partnered with the Chicago Urban League for educational programs on misconceptions about SNAP (food stamp) benefits. Tyson Foods has made political donations to both major parties. Tyson "pledged to invest $50 million by 2020 in various efforts to fight food insecurity" in 2015. The company exceeded that goal, with contributions of over $60 million to start the year 2020.
In addition to placing 128 part-time chaplains (including both Protestant and Catholic Christians and Muslim Imams) in 78 Tyson plants, in 2006 the company invited their customers to download a prayer book, containing prayers from many faiths, including Christianity, Judaism, Islam, and American Indian spirituality, from the company's website to read during mealtime.
Cultured meat and over-population
Tyson Foods Inc., the world’s second largest processor and marketer of chicken, beef, and pork, was the first major food company to fund cultured meat research in Israel, Netherlands and the United States. With overpopulation as the major motivating forces behind Tyson’s decision to pursue artificial meat.
Board of Directors
- John H. Tyson
- Gaurdie E. Banister, Jr
- Mike Beebe
- Dean Banks
- Mikel A. Durham
- Kevin M. McNamara
- Cheryl S. Miller
- Jeffrey K. Schomburger
- Robert C. Thurber
- Barbara A. Tyson
- Noel White
John W. Tyson, the founder, was CEO from 1935 until his death in 1967.
John H. Tyson served as CEO from 1999 to 2006.
Richard L. Bond was CEO of the company from 2006 until January 7, 2009, when he stepped down and his position was filled by temporary replacement Leland Tollett. Donnie Smith served as CEO from November 2009 to 2016. In November 2016, the company announced Smith would step down at the end of the year and would be succeeded by company president Tom Hayes.
Hayes was replaced by Noel White in September 2018.
This article may lend undue weight to allegations of corporate misconduct without presenting unbiased reports in some cases.. (March 2020) (Learn how and when to remove this template message)
Tyson Foods has been responsible for numerous instances of environmental damage. Tyson is the second largest emitter of greenhouse gases in the global food industry. According to the Institute for Agriculture and Trade Policy, Tyson is among the largest single sources of greenhouse gases in the world when the whole process of rearing animals for slaughter (such as producing feed for the animals and using agriculture chemicals) is considered.
Tyson has been involved in several lawsuits related to air and water pollution. In June 2003, the company admitted to illegally dumping untreated wastewater from its poultry processing plant near Sedalia, Missouri, pleading guilty to 20 felony violations of the federal Clean Water Act. As part of the plea agreement, the company agreed to pay $7.5 million in fines, hire an outside consultant to perform an environmental audit, and institute an "enhanced environmental management system" at the Sedalia plant. At the same time, Tyson also settled a case filed by the Missouri attorney general's office related to the same illegal dumping.
The United States Environmental Protection Agency began the investigation into the discharges in 1997, and federal officials served two criminal search warrants at the plant in 1999. According to EPA and U.S. Department of Justice officials, Tyson continued to illegally dump wastewater after the search warrants were executed, prompting an EPA senior trial attorney to remark that: "Having done this work for nearly 20 years, I don't recall any case where violations continued after the execution of two search warrants. That's stunning." Under the federal and state plea agreements, Tyson agreed to pay $5.5 million to the federal government, $1 million to the Pettis County School Fund and $1 million to the Missouri Natural Resources Protection Fund to help remedy the damage.
In 2002, three residents of Western Kentucky, together with the Sierra Club, filed a lawsuit concerning the discharge of dangerous quantities of ammonia from Tyson's Western Kentucky factories. Tyson settled the suit in January 2005, agreeing to spend $500,000 to mitigate and monitor the ammonia levels.
In 2004, Tyson was one of six poultry companies to pay a $7.3 million settlement fee to the city of Tulsa, Oklahoma, to settle charges that the use of chicken waste as fertilizer had created phosphorus pollution in Tulsa's main drinking water sources.
In 2005, settled a $500,000 lawsuit related to air pollution in Kentucky.
In 2013, Tyson paid nearly $4 million in fines due to eight separate incidents between 2006 and 2010 where it accidentally released anhydrous ammonia, an extremely hazardous substance which causes chemical-type burns. These releases killed at least one worker and injured nearly a dozen other.
In 2019, the Environmental Integrity Project identified Tyson as being a major discharger of pollution to waterways in East Texas. The high volumes of blood, urine, feces and feathers discharged into East Texas rivers and lakes contributing to oxygen levels in the water. The Environmental Integrity Project found that the Tyson plant in East Texas violated its Clean Water Act permit a dozen times over 2016–2017.
In 2019, a Tyson plant in Alabama polluted rivers with E.coli and killed fishlife.
Employment of undocumented immigrants
In 2001, Tyson was charged with conspiracy to smuggle and hire undocumented workers to work on its production lines. Tyson plant managers arranged for delivery of undocumented workers with undercover immigration officials. Prosecutors alleged that the conspiracy to import workers dates back to 1994 when plant managers began to find it difficult to fill positions with "cheap legal help". Of the six managers who were indicted, two accepted plea bargain deals, and one committed suicide one month after being charged. In March 2003, a federal jury acquitted Tyson of having knowingly hired illegal immigrants.
In May 2006, Tyson suspended operations at nine plants during a nationwide day of immigration demonstrations citing expected lack of workers.
In October 2006, a federal judge granted class-action status to a lawsuit brought by Tyson employees who allege that Tyson's practice of hiring illegal immigrants depresses wages 10–30%. The suit further contends that the company violated federal racketeering laws by conspiring with National Council of La Raza and League of United Latin American Countries not to question the employment applications of anyone with a Hispanic surname.
In 2016, Maplevale sued Tyson and others for alleged price fixing. In January 2018 Winn-Dixie Stores and its sister grocery, Bi-Lo Holdings, also sued Tyson and others; weeks later, Sysco and US Foods separately sued Tyson and others. Tyson and 16 other companies were accused of working together to restrict the supply of chickens and to manipulate chicken prices; these activities allegedly started in 2008. Expressing the magnitude of the Mapleville allegations, NBC News stated an American family of four spends an average of $1100 per year on chicken, and if industry-wide price fixing allegations are true, "about $330 of that should still be in your wallet each year".
In June 2020, it was announced that Tyson was cooperating with US Department of Justice in relation to price-fixing in the poultry industry. Tyson was cooperating under a leniency program whereby it would avoid criminal prosecution by providing aid to DOJ investigators. Just prior to the announcement, four poultry industry executives were indicted for price-fixing.
Undisclosed use of antibiotics
In 2007, Tyson began labeling and advertising its chicken products as "Raised without Antibiotics." After being advised by the USDA that Tyson's use of protozoa-killing ionophores in unhatched eggs constituted antibiotic use, Tyson and the USDA compromised on rewording Tyson's slogan as "raised without antibiotics that impact antibiotic resistance in humans." Tyson competitors Perdue Farms and Sanderson Farms sued claiming that Tyson's claim violated truth-in-advertising/labeling standards. In May 2008, a federal judge ordered Tyson to stop using the label. Ionophores are used to control cocidiosis, a parasite common in all birds and the medication is not used in human medicine. In June 2008, USDA inspectors discovered that Tyson had also been using gentamicin, an antibiotic, in eggs. According to USDA Undersecretary for Food Safety Richard Raymond, Tyson hid the use of this antibiotic from federal inspectors, with Tyson not denying the claim and stating that the use of this chemical is standard industry practice. Tyson agreed to voluntarily remove its "raised without antibiotics" label in future packaging and advertising.
An Oxfam report issued in 2016 cited anonymous employees who stated they were routinely denied bathroom breaks, leading them to wear adult diapers to work. According to Celeste Monforton, professor of occupational health at George Washington University, on average, more than one Tyson Foods employee is injured and amputates a finger or limb per month.
In 2017, Tyson Foods announced that they would provide regularly scheduled bathroom breaks for employees, provide workers with training on workers' rights, and establish safety councils that involved workers. Tyson made the announcement in conjunction with Oxfam.
Tyson Foods has been embroiled in numerous scandals related to animal abuse and cruelty. In response to undercover revelations of animal abuse, Tyson has responded by arguing that the undercover animal rights activists were at fault for the abuse by not actively preventing it.
In 2006, Tyson completed a study to determine whether CAK, which uses gas to render chickens unconscious before slaughter, could be a more humane practice than conventional electrical stunning. According to Bill Lovette, Tyson's senior group vice president of poultry and prepared foods, the study found no difference between the humaneness of the two methods. The company plans to ask scientists at the University of Arkansas to initiate a similar study to test these initial results. The research will be led by the newly created Chair in Food Animal Wellbeing at the Dale Bumpers College of Agricultural, Food and Life Sciences of the University of Arkansas. Tyson has committed $1.5 million to help establish the Chair, which will be involved in overseeing research and classes focused on the humane management and treatment of food animals.
In 2014, after an NBC News reported on abuse of piglets at a Tyson pig farm in Oklahoma, Tyson announced new animal care guidelines, such as keeping sows in larger cages, installing video cameras in cages, use pain mitigation strategies in the castration of piglets, and avoiding killing piglets through blunt force. Animal rights activities called on Tyson to make the guidelines a "mandate" rather than a "recommendation."
In 2015, Tyson Foods severed ties with a supplier after Mercy For Animals published videos showing that employees at a Tyson supplier were stabbing, clubbing and stomping on chicken. A 2016 undercover investigation by the animal rights organization Compassion Over Killing showed workers at four separate Tyson processing plants throwing, punching and kicking chickens as well as sticking plastic rods through their beaks. They also wrung birds' necks, ran over them with forklifts and left injured birds in heaping piles to die. A 2017 investigation showed more abuse and cruelty towards chicken. After the 2017 investigation, Tyson responded by saying it would install cameras at its sites and hire off-site auditors. Animal rights activists said the measure did not go far enough. In 2017, Matthew Prescott of the Humane Society of the United States criticized Tyson for failing to implement many of the animal welfare standards that other food suppliers were adopting.
On January 30, 2019, Tyson Foods announced a recall for over 36,000 pounds of chicken nuggets that were at risk of being contaminated with small pieces of rubber. The recall followed allegations by consumers who submitted complaints to the U.S. Agriculture Department. Tyson identified the contaminated nuggets as those received by Arizona, California, Illinois, New Jersey, and Utah club store distribution centers. On March 21, 2019, the company issued a recall for 69,000 pounds of chicken strips potentially contaminated with pieces of metal, following six complaints submitted to the Food Safety and Inspection Service, including three alleged oral injuries. An expanded recall for nearly 12 million pounds of chicken strips was issued on May 4, 2019.
On June 7, 2019, Tyson Foods announced a recall for over 190,000 pounds of chicken fritters which potentially contained hard plastic, calling the action "voluntary" and "out of caution" following reports from three consumers. The products were not sold in retail stores but supplied to various food service locations, including schools.
In April, 2020, a Tyson pork processing plant in Columbus Junction, Iowa closed down after 148 workers tested positive for coronavirus, and two workers died. Officials including the sheriff in Black Hawk County, Iowa were critical of Tyson Foods on April 17, after an outbreak began at a company plant in Waterloo, Iowa. Tyson finally closed the Waterloo plant on April 22. About 180 workers had tested positive for coronavirus out of a workforce of 2,800. According to an Associated Press report, the company said the shutdown "would deny a vital market to hog farmers and further disrupt the nation's meat supply". On April 20, it was reported that 90 workers had tested positive at a Tyson beef and pork packing plant in Goodlettsville, Tennessee. The plant employs 1,600 workers. On April 17, Tyson announced that four poultry workers died who were associated with a Tyson chicken processing plant in Camilla, Georgia. Three worked inside the plant and another worked outside. The Retail, Wholesale and Department Store Union, which represents 2,000 workers at the plant, said that the three plant workers who died were women who had worked for Tyson for 13 to 35 years, and that many plant workers are "sick or in quarantine." Steve Stouffer, president of the fresh meats division at Tyson Foods, expressed some resistance to universal testing of their workers. "Everybody wants to test meatpacking employees, but nobody is testing the communities around them to show what’s the baseline," Stouffer said, adding "And until we know the baselines, my question has always been: Are we the cause or are we just the victim of our surroundings?" At least eight workers at a Tyson plant in Madison, Nebraska had tested positive for coronavirus by April 20, according to local public health officials. Workers have also tested positive at other Tyson plants in Lexington, Nebraska and Dakota City, Nebraska. On April 21, Tyson announced the closure of a plant in Center, Texas, which is located in Shelby County, Texas, a rural county with a rate of coronavirus infections about four times higher than the state average. A local physician reported that over half of the county's cases were associated with the Tyson facility. On April 22, Tyson announced the closure of a pork processing plant in Logansport, Indiana that employed more than 2,200 workers after 146 workers tested positive. The president of the Indiana Farm Bureau said that the organization is "extremely concerned about the closure of the Tyson pork processing facility. This is a devastating blow to the pork producers who sell hogs to Tyson." By May 1, the count of workers who have tested positive for coronavirus at the Logansport plant stood at 890. On April 23, Tyson announced that a beef processing plant in Wallula, Washington was closing. The plant employed 1,400 workers. Local public health officials announced that over 90 workers had tested positive for coronavirus, and one had died. Tyson executive Steve Stouffer said, "Unfortunately, the closure will mean reduced food supplies and presents problems to farmers who have no place to take their livestock. It’s a complicated situation across the supply chain. On April 27, public health officials in Dakota County, Nebraska, which has a population of about 20,000 people, announced that 608 residents had tested positive for coronavirus, a rate about 40 times higher than the Omaha area. The county's biggest employer by far is the Tyson beef packing plant in Dakota City, Nebraska, which employs about 4,300 people. One worker at that plant has died of Covid-19, and local officials believe that the outbreak is centered in the Tyson plant. Eight workers at a Tyson chicken processing plant in Portland, Maine have tested positive for coronavirus, and on April 28, state health officials called for all 400 workers to be tested for the virus. Tyson agreed, and said that it is considering closing the plant. On May 5, local health officials announced that 730 out of 1,250 workers at Tyson's plant in Perry, Iowa had tested positive for coronavirus. The local newspaper called the 58% positive infection rate "jaw-dropping".
On April 26, John Tyson, chairman of the board, wrote in the New York Times that "The food supply chain is breaking...There will be limited supply of our products available in grocery stores until we are able to reopen our facilities that are currently closed."
In June 2020, ProPublica reported that more than 24,000 coronavirus cases were tied to meatpacking plants, with 87 deaths among meatpacking plant workers. Of those 87, more than 25 worked for Tyson. Well after outbreaks had occurred, Tyson did not implement recommended safety measures to protect its workers, such as social distancing, plexiglass barriers and wearing of face masks.
On June 21, the government of China announced that it was suspending imports of chicken from a Tyson factory. The company confirmed that the affected facility was its Berry Street plant in Springdale, Arkansas. Earlier in June, 227 workers tested positive for the coronavirus at that plant. Tyson announced that 481 workers had tested positive at its various facilities in northwest Arkansas. That represented 13% of its 3,748 workers in that region.
In July 2020, Tyson Foods said it would hire 200 nurses and administrative personnel, and begin administering coronavirus tests at all of its U.S. production facilities, as part of the company's response to the pandemic. In August 2020, at least 10,261 Tyson workers were confirmed to have COVID-19 (out of a workforce of 120,000).
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