SPRINGDALE, Ark., Dec. 12 /PRNewswire-FirstCall/ -- Tyson Foods, Inc.
(NYSE: TSN) today issued the following statement in reaction to Japan's
decision to lift its two year ban on the import of U.S. beef:
"While we're encouraged U.S. beef exports to Japan will resume soon, sales
will be limited since Japan will only accept U.S. beef from cattle 20 months
old or younger and because of the required cattle age verification process.
"We look forward to doing business in Japan again and are hopeful it will
trigger the re-opening of other key markets in Asia, including South Korea,
Taiwan and Hong Kong. However, it will take time to return to meaningful
export levels in Asia. In fact, even if these other markets open soon with
less restrictive export requirements, we may not see significant export
business to Asia until the second half of fiscal 2006.
"In the meantime, the U.S. beef industry continues to struggle with
challenging market conditions, which include a continued short supply of
market-ready cattle, low plant capacity utilization and the seasonal slowdown
in beef demand along with extremely cold weather in the nation's major cattle
production areas."
Tyson Foods, Inc., founded in 1935 with headquarters in Springdale,
Arkansas, is the world's largest processor and marketer of chicken, beef, and
pork, the second-largest food company in the Fortune 500 and a member of the
S&P 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. The company has approximately 114,000 Team
Members employed at more than 300 facilities and offices in the United States
and around the world. Through its Core Values, Code of Conduct and Team
Member Bill of Rights, Tyson strives to operate with integrity and trust and
is committed to creating value for its shareholders, customers and Team
Members. The company also strives to be faith-friendly, provide a safe work
environment and serve as stewards of the animals, land and environment
entrusted to it.
Forward Looking Statements
The Company and its representatives may from time to time make written or
oral forward-looking statements, such as statements regarding the return of
U.S. beef exports to Asia. 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 (such as avian influenza (AI) or bovine spongiform encephalopathy
(BSE)) 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.
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Related links:
http://www.tyson.com
CONTACT:
media, Gary Mickelson, +1-479-290-6111, or
investors, Ruth Ann Wisener, +1-479-290-4235, both of Tyson
Foods, Inc.
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