Tyson Foods announced Wednesday (Feb. 14) plans to acquire a grain elevator operations located in western Tennessee to support its poultry business expansion underway in that region. Tyson Foods is buying the elevators located in Dyer, Humble and Kenton, Tenn., from the the grain division of The Andersons Grain Group for an undisclosed figure.
This grain operation will support Tyson Foods’ existing complexes located in Union City, Tenn., as well as its planned chicken complex in Humboldt.
“This project will help secure vital inputs for us, and position us to grow and support our customers,” said Doug Ramsey, group president of poultry for Tyson Foods. “We look forward to creating more direct relationships with the grain producers in the area.”
The transaction is expected to close in March and about 20 employees of The Andersons are expected to become employees of Tyson Foods. No disruption to existing contracts with area farmers is anticipated.
Tyson Foods said it developed a program called Local Grain Services (LGS) to build relationships with and resources for farmers who provide grain to feed chickens grown for the company. Buying corn, wheat and soybeans directly from local farmers promotes local economies and is part of the company’s strategy to sustainably feed the world with the fastest growing portfolio of protein-packed brands, the company stated the release. The food company said it has also developed multiple resources for farmers to sell their grain, including a mobile app and website.
Buying existing operations is one way Tyson Foods is acting more sustainably, a mission CEO Tom Hayes said the company is serious out.