Tyson grows global presence through Brazilian investment

By Aidan Fortune contact

- Last updated on GMT

Tyson grows global presence with Brazilian investment

Related tags: Poultry

US processor Tyson has furthered its international expansion with an investment in Brazilian poultry producer Grupo Vibra.

Subject to approval by Brazilian regulators, the deal is expected to allow Tyson access to key target markets. Grupo Vibra operates in the production and commercialization of chicken protein with the brands Nat and Avia. Its facilities include hatcheries, laboratories, farms, feed factories and slaughterhouses, enabling it to sell to more than 50 countries around the world. It is headquartered in Montenegro, in the south of Brazil, with 18 production units, more than 4,000 employees and a network of 700 integrated producer families.

“This investment will enable us to access poultry supplies in Brazil to meet the growing needs of Brazilian customers and of priority demand markets in Asia, Europe and the Middle East,”​ said Donnie King, group president, international & chief administration officer for Tyson Foods . “It’s part of our strategy to develop a more flexible supply chain and mitigate the volatility of our previous model, which relied primarily on US exports.”

Grupo Vibra chairman Flavio Sergio Wallauer said the investment would help its international expansion. “This agreement is the result of the mutual trust between our two companies and the goal of both companies to expand globally. We also both believe in the importance of constantly adding value to our products. For us, this includes continuing to grow, innovate and strengthen the position of our brands, Nat and Avia.”

“Tyson will add know-how and new business opportunities to speed up our growth,” ​added Gerson Luís Müller, CEO of Grupo Vibra. “This partnership will be important to further develop our businesses in Brazil and foreign markets, granting access to new technologies and investments mainly in R&D. We will capitalize on a global distribution network to reach new markets. We trust that this agreement will strongly contribute to improve the quality of our services, adding new products to our portfolio offered to clients and consumers.”

Financial details of the transaction have not been disclosed and as part of the agreement, Grupo Vibra will spin-off its genetics multiplication business, Agrogen, into a separate company.

Over the past year, Tyson Foods expanded its global presence through the acquisition of Keystone Foods​, which includes operations in China, South Korea, Malaysia, Thailand and Australia, and BRF’s poultry businesses in Thailand and Europe​.

“Over the next five years, it is estimated that nearly 98% of protein consumption growth will happen outside the US,”​ added King. “That’s why we’re growing our business outside the US. As the world population continues to grow, Tyson will grow with it.”

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