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May 23, 2019

Tyson Foods said to be eyeing China via planned plant in Kazakhstan

Tyson Foods is said to be planning to set up a new beef processing plant in Asia to provide the US meat giant with greater access to a key export market.

By Leonie Barrie

US meat giant Tyson Foods is said to be planning to set up a beef processing plant in Kazakhstan.

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The UK’s Financial Times newspaper reported today (23 May) Tyson in talks with the authorities in Kazakhstan and has discussed an initial investment of US$200m on the project.

But the newspaper suggested that it is China, rather than Kazakhstan itself, which Tyson is targeting through the move.

Citing “three people with knowledge of the discussions,” it suggests that Kazakstan is projecting itself as an “agricultural powerhouse on China’s border” and a location which would allow companies such as Tyson to avoid high tariffs on US goods and provide ‘back door access’ into China.

According to the FT story, Tyson’s prospective deal could see it producing up to five million tonnes of beef a year in Kazakhstan.

However, in a statement sent to just-food, Tyson played down the story, saying it has not yet formalised plans for a plant in the country.

“One of our growth strategies is to expand our global business, so it’s not unusual for us to consider various international opportunities. We’ve visited Kazakhstan and have interest in the nation’s future food production efforts, however, we have not formalised plans for a project there,” it said.

“As we’ve previously reported, we are expanding in other parts of the world. Our 2018 acquisition of Keystone Foods includes operations in Asia Pacific and our pending purchase of poultry production assets from BRF includes facilities in Thailand and Europe.” 

The Washington and Beijing governments are embroiled in a trade war which has impacted those US businesses selling their products into China. 

China has a need to import foreign produced meat, pork in particular, because of its domestic industry being ravaged by an outbreak of African swine fever.

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What’s the forecast for the food and grocery industry?

The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
by GlobalData
Enter your details here to receive your free Report.

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