Tyson partners with Globoaves to increase Brazilian presence

by Bryan Salvage
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SAO PAULO – Tyson do Brasil has signed a one-year contract with Brazilian poultry firm Globoaves, which will supply Tyson with up to 60,000 chickens per day. Globoaves is a Cascavel-based poultry processor that produces whole birds and cuts primarily for export to the European Union, Asia and the Middle East. The value of the agreement was not disclosed.

According to the agreement, Tyson will buy live chickens from Globoaves, which will be processed in one of two Globoaves shifts, to produce a product mix determined by Tyson do Brasil. "International expansion is one of our fundamental strategic objectives, and therefore, we chose a company that has all the necessary certifications to export to the European Union and the so-called General List," said Joster Macedo, president of Tyson do Brasil. "They will handle live-bird production, slaughtering and cutting."

This past September, Tyson announced plans to acquire Brazil’s Macedo Agroindustrial and Avicola Itaiopolis poultry companies as well as 70% interest in Paraná-based Frangobras. At the time, Tyson planned to increase production at these facilities.

Tyson will contract with 670 new growers to supply its units in Sao Jose and Itaiopolis, in Santa Catarina, and Campo Mourao, in Parana, with the objective of increasing production and also reaching the goal of becoming one of the five main poultry producers in Brazil. As a result, the grower network in Itaiopolis and Campo Mourao will increase to 340 farms in 2009. In Sao Jose, the plan is to increase to 350 farms.

"This network expansion will create more direct and indirect jobs, moving the economy in the region in this period of crisis," Mr. Macedo said.

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