Tyson takes stake in Saudi poultry provider

RIYADH, SAUDI ARABIA — Tyson Foods Inc. announced on July 6 that it purchased a stake in Saudi-based Tanmiah Food Co. in order to expand its global protein footprint.

Tanmiah is a fresh and value-added poultry provider along with other meat products, animal feed, health products and foods brand franchise operator.

As part of the agreement, Tyson said it acquired a 15% stake in Tanmiah’s subsidiary Agriculture Development Company (ADC) and a 60% stake in Supreme Foods Processing Co. Regulators for the Kingdom of Saudi Arabia are still working to approve the transaction.

“This investment will enable us to access poultry supplies in Saudi Arabia to meet the growing demand for protein in the Middle East and other markets,” said Chris Langholz, president of International for Tyson Foods. “Expansion into international markets is a key part of our strategic growth plan and we’re pleased to better serve customers in this region.”

ADC is a fully integrated poultry company that produces broiler chickens and operates hatcheries and feed mills. It sells fresh poultry under the Tanmiah brand to retailers and foodservice customers. Supreme Foods produces a variety of value-added and cooked chicken and beef products with a distribution network spread across the Middle East, including Saudi Arabia, Kuwait, Bahrain, UAE, Oman, Lebanon, and Jordan among others.

“The strategic partnership is expected to accelerate Tyson Foods’ and Tanmiah’s growth and generate significant value in the short and long term,” said Tan Sun, president of Tyson Foods APAC. “This will be primarily achieved through further expansion across the value chain, and enhanced product, customer, and geographical diversification, as well as improvement of production and other operational processes. The agreement will also see Tyson Foods and Tanmiah unlock long-term opportunities in the growing Halal food market.”

Another part of the agreement is Tyson Foods and Tanmiah’s commitment to expand the processing capacity of Supreme Foods. The companies said the expansion would double production capacity for Tanmiah in further processed products.

“We are delighted to be joining hands with a well-renowned global leader in food production to accelerate our growth and development agenda,” said Zulfiqar Hamadani, chief executive officer of Tanmiah. “Our strategic partnership marks a significant milestone in Tanmiah’s journey and demonstrates our commitment to growth and supporting Saudi Arabia’s food security objectives. We are ready to embark on this new phase with Tyson Foods, whose commitment to animal welfare, food safety, sustainability, and efficiency, are very much in line with our own business model and sustainability framework. This transaction will not only reinforce our positioning in the domestic market but will also enable us to expand our global footprint through leveraging Tyson Foods’ long-standing relationships with customers worldwide.”

Tyson continues to expand its value-added capacity around the world. The company plans to open seven fully cooked plants outside the United States over the next two years. Six of the facilities will be in Asia and one will be in Europe.

Total Tyson Foods sales from international business and exports represented 14% of total company sales in fiscal year 2021. This included $4.8 billion in US export sales and $2 billion in foreign country revenues. 

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