SPRINGDALE, Ark., Oct. 3 /PRNewswire-FirstCall/ -- In an effort to help
its 6,800 contract poultry producers deal with rising energy costs, Tyson
Foods, Inc. (NYSE: TSN) will provide them with more than $26 million in
supplemental fuel payments this winter, the company reported today.
Tyson has provided extra energy allowances to producers in the past
because of increased fuel expenses; however, this season's total payment will
be the largest in company history.
"We all know fuel costs have risen substantially over the last two years
and are projected to continue to rise this winter," Bill Lovette, senior group
vice president of Poultry and Prepared Foods for Tyson Foods, said. "This is
a challenge for all of us in the poultry industry, because adequate heating is
essential to bird well-being, health and performance.
"In order to help contract producers supply this basic need for our birds
during this time of high fuel costs, we're providing them with a supplemental
energy allowance," Lovette said. "These payments will be in addition to any
fuel allowance included in Tyson contracts with producers who pay for their
own fuel."
The money for broiler producers will be divided into two equal payments
made on or about November 1, 2005 and February 1, 2006. Each broiler producer
who is on Tyson's regular placement schedule as of the date of the allowance
payment will receive a check. Qualified pullet producers will each receive
one overall payment during the winter months.
Amounts given to broiler producers will be based on such factors as the
total number of square feet of housing the producer operates, as well as the
historical fuel usage by the Tyson poultry production complex with which they
contract. This usage will be determined by factors such as average winter
temperature in the complex, bird size, and number of flock starts during the
winter.
Tyson poultry complexes include hatcheries, feed mills and chicken
processing plants. Tyson currently operates poultry complexes in 13 states,
including Alabama, Arkansas, Georgia, Indiana, Kentucky, Mississippi,
Missouri, North Carolina, Oklahoma, Pennsylvania, Tennessee, Texas and
Virginia.
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
Certain statements contained in this communication are "forward-looking
statements" such as statements relating to expected fuel cost increases.
These forward-looking statements are subject to risks, uncertainties and other
factors, which could cause actual results to differ materially from historical
experience or from future results expressed or implied by such forward-looking
statements. Among the factors that may cause actual results to differ
materially from those expressed in, or implied by, the 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) successful rationalization of
existing facilities, and the operating efficiencies of the facilities; (vi)
changes in the availability and relative costs of labor and contract growers;
(vii) issues related to food safety, including costs resulting from product
recalls, regulatory compliance and any related claims or litigation; (viii)
adverse results from litigation; (ix) risks associated with leverage,
including cost increases due to rising interest rates or changes in debt
ratings or outlook; (x) changes in regulations and laws (both domestic and
foreign), including changes in accounting standards, environmental laws and
occupational, health and safety laws; (xi) the ability of the Company to make
effective acquisitions, and successfully integrate newly acquired businesses
into existing operations; (xii) effectiveness of advertising and marketing
programs; and (xiii) the effect of, or changes in, general economic
conditions. The Company wishes to caution readers not to place undue reliance
on any forward-looking statements, which speak only as of the date made.
Tyson undertakes no obligation to publicly update any forward-looking
statements, whether as a result of new information, future events or
otherwise.
SOURCE Tyson Foods, Inc.
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Related links:
http://www.tyson.com
CONTACT:
Gary Mickelson of Tyson Foods, Inc.,
+1-479-290-6111
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