As a part of its efforts to meet the growing global demand for protein, Tyson Foods has entered into an agreement with Saudi-based Tanmiah Food Company for Tyson to acquire a 15% equity stake in Tanmiah subsidiary Agriculture Development Company (ADC) and a 60% equity stake in Supreme Foods Processing Company.
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 transaction is subject to approval by KSA regulators.
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The investment in Tanmiah aligns with Tyson Foods’ strategy of expanding value-added capacity in its international business. The company expects to open seven new fully cooked plants outside the U.S. over the next two years, with six in Asia and one in Europe. Global protein consumption is forecasted to rise by close to 95 billion lb over the next 10 years, with much of that demand happening outside the U.S.
“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,” says 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.”