SPRINGDALE, Ark., Feb. 10 /PRNewswire-FirstCall/ -- Plans are underway to
end the temporary suspension of operations at Tyson (NYSE: TSN) beef plants in
the Upper Midwest and Pacific Northwest, company officials reported today.
The affected plants will resume production on a staggered basis over the next
two weeks.
Market conditions prompted Tyson to suspend operations January 10 in
Denison, Iowa; Norfolk and West Point, Nebraska; and Boise, Idaho. Second
shift processing at Pasco, Washington, was also temporarily discontinued.
The company now plans to resume production based on the following
schedule:
Denison Wednesday, February 16
Norfolk A-shift processing Monday, February 21
West Point Tuesday, February 22
Boise Tuesday, February 22
Norfolk B-shift processing Wednesday, February 23
Pasco B-shift processing Thursday, February 24
Qualified Team Members at the affected plants have been receiving the
equivalent of 32 hours of pay each week since the second week of the
suspension. Company officials say these workers will continue be paid the
32 hour guarantee while their plants remain idle. Once the plants resume
operations, they will likely still operate at reduced levels of production
until market conditions improve.
"While cattle numbers remain tight, we believe supplies will improve in
the months ahead, especially as the anticipated flow of Canadian cattle
resumes," said John Tyson, chairman and chief executive officer of Tyson
Foods. "Beef demand has been weak, largely because of high beef prices and
the attractive value of competing meats. We typically experience seasonal
improvements in beef sales as we move into the spring and summer months.
We're hopeful cattle prices will moderate, so beef can be priced more
competitively with other proteins."
Tyson also addressed recent progress in U.S. efforts to restart beef
exports to Japan. "While the technical agreement reached between the two
countries is a positive step, we believe the U.S. beef industry remains months
away from any meaningful exports to the Far East," he said.
Tyson Foods, Inc., founded in 1935 with headquarters in Springdale,
Arkansas, is the world's largest processor and marketer of chicken, beef, and
pork and the second-largest food company in the Fortune 500. The company
produces a wide variety of protein-based and prepared food products, which are
marketed under the "Powered by Tyson(TM)" strategy. Tyson is the recognized
market leader in the retail and foodservice markets it serves, providing
products and service to customers throughout the United States and more than
80 countries. Tyson has approximately 114,000 Team Members employed at more
than 300 facilities and offices in the United States and around the world.
Forward-Looking Statements
The Company and its representatives may from time to time make written or
oral forward-looking statements, including forward-looking statements relating
to future beef demand, cattle supplies and the resumption of cattle imports
and beef exports. These forward-looking statements are subject to a number of
factors and uncertainties which could cause the Company's actual results and
experiences to differ materially from the anticipated results and
expectations, expressed in such forward-looking statements. The Company
wishes to caution readers not to place undue reliance on any forward-looking
statements, which speak only as of the date made. Among the factors that may
cause actual results and experiences to differ from the anticipated results
and expectations expressed in such forward-looking statements are the
following: (i) fluctuations in the cost and availability of raw materials,
such as live cattle, live swine or feed grains; (ii) market conditions for
finished products, including the supply and pricing of alternative proteins,
and the demand for alternative proteins; (iii) risks associated with
effectively evaluating derivatives and hedging activities; (iv) access to
foreign markets together with foreign economic conditions, including currency
fluctuations and import/export restrictions; (v) outbreak of a livestock
disease which could have an effect on livestock owned by the Company, the
availability of livestock for purchase by the Company, or the Company's
ability to access certain markets; (vi) successful rationalization of existing
facilities, and the operating efficiencies of the facilities; (vii) changes in
the availability and relative costs of labor and contract growers; (viii)
issues related to food safety, including costs resulting from product recalls,
regulatory compliance and any related claims or litigation; (ix) adverse
results from litigation; (x) risks associated with leverage, including cost
increases due to rising interest rates or changes in debt ratings or outlook;
(xi) changes in regulations and laws (both domestic and foreign), including
changes in accounting standards, environmental laws and occupational, health
and safety laws; (xii) the ability of the Company to make effective
acquisitions, and successfully integrate newly acquired businesses into
existing operations; (xiii) effectiveness of advertising and marketing
programs; and (xiv) the effect of, or changes in, general economic conditions.
SOURCE Tyson Foods, Inc.
 back to top
Related links:
http://www.tyson.com
CONTACT:
media, Gary Mickelson, +1-479-290-6111, or
investors, Louis Gottsponer, +1-479-290-4826, both of Tyson
Foods, Inc.
|
