Tyson Foods invests in joint venture with Jacob Stern & Sons
by February 11, 2020 4:50 pm 1,610 views
Tyson Foods’ beef and pork subsidiary and Jacob Stern & Sons of Houston, Texas, launched a joint venture known as JST Global that intends to serve the global fats and oils markets. The terms of the venture were not disclosed by either party.
Tyson Foods CEO Noel White said recently the meat giant will continue to look for investments that help the company achieve its goal for long-term sustainable food production. That means finding the best revenue streams for by-products of the beef, pork and fresh meats business. Tyson said fats and oils are key ingredients in thousands of products such as pharmaceuticals, personal care, animal nutrition and the rapidly developing field of renewable fuels.
“Jacob Stern and Tyson Fresh Meats have enjoyed a strong relationship for over 50 years. Combining Tyson’s vast supply of animal fats with Jacob Stern’s Texas operations is a natural evolution and positions JST Global to meet growing worldwide demand,” said Phil Bernstein, chairman of Jacob Stern & Sons.
Tyson Fresh Meats, based in Dakota Dunes, S.D., operates six beef plants and six pork plants in the U.S. Jacob Stern & Sons is among Tyson’s largest customers for animal by-products and is the largest U.S. processor and marketer of animal fats.
“We maximize the value of every animal we harvest so that no part of the animal goes to waste,” said Steve Stouffer, group president with Tyson Fresh Meats. “Responsibly processing fats and oils are a key part of our business and our commitment to sustainability.”
He said the joint venture gives Tyson the opportunity to continue to add value to its beef and pork production, enabling the company to innovate in new untapped markets while continuing to work directly with existing animal fat customers and the emerging renewable energy market.
Tyson said following a transition period, the marketing of all animal fats generated by Tyson Fresh Meats will be conducted by JST Global teams in Houston, Dakota Dunes and Omaha. Jay Van Valen, former president of Jacob Stern & Sons’ Texas division, will serve as CEO of JST Global, which will maintain its headquarters in Houston. Tyson said the sales teams from Jacob Stern & Sons and Tyson Fresh Meats will collaborate to provide a seamless transition for customers.
White recently said Tyson is open to expanding through acquisitions, venture capital investments as well as joint ventures like the JST Global deal.
Share of Tyson Foods (NYSE: TSN) closed Tuesday (Feb. 11) at $80.99, down 59 cents. Over the past 52-weeks Tyson shares have traded between $59.60 and $94.24.