Panama, Asia New Frontiers for Tyson International

Tyson Foods Inc. in Springdale exports its poultry products to 57 different markets, but until March it only had production facilities in the United States and Mexico.

That changed Feb. 13 when the world’s largest full-service poultry producer broke ground in Panama City, Panama. The company is also still exploring the feasibility of operating fully integrated poultry facilities in the People’s Republic of China, according to its 1999 annual report.

The company is working with the Kuok Group in China on poultry. And it’s partnering with Aboitiz Equity Ventures Inc. and PM Nutrition Co., a subsidiary of Purina Mills for its Fil-Am Foods Inc. commercial swine and feed facilities in the Philippines. But the Panamanian venture means Tyson Foods will now have a permanent presence in the lucrative South and Central American markets.

“Our success in Mexico has been fairly evident,” said C. Ashley White, Tyson Foods’ director of international marketing. “We had a tremendous run there establishing our brand name, and we hope to do the same thing in Panama by supplying our retail partners with a quality product mix similar to what we have in the states.”

Tyson will contribute the technology and marketing and sales expertise. Alimentos Procesados Melo SA will supply growers and its expertise in the region.

Barry Sumerour, an analyst with the Little Rock securities firm Stephens Inc., said Tyson’s moves into Central America and Asia are well timed since poultry consumption in both regions is increasing, and poultry production has recently dropped off in both areas.

Specifically in China, Stephens’ research indicates poultry consumption will have increased by 4 percent from 1999 through 2000 by the time data is collected. China’s poultry meat imports are forecast to increase by 6 percent in 1999 and 2 percent to 870,000 tons in 2000.

At the same time, the country’s meat exports for 2000 are only expected to be 410,000 tons.