Tyson buys poultry rendering assets to advance sustainability strategy

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Tyson Foods is buying the poultry rendering and blending assets of American Proteins in a bid to recycle more animal products for feed, pet food and aquaculture.

The $850 million deal, which also expands Tyson’s presence in the animal feed ingredient sector, is the company’s latest step in its sustainability strategy.

“Rendering plays a key role in growing our business and helping us deliver on our sustainability goals,” said Tom Hayes, Tyson President and CEO.

“Through this important business, no part of the animal goes to waste, and we can recycle valuable ingredients into feed for pets and aquaculture.”

Rendering is an environmentally friendlier way to keep animal products out of landfills and potentially reduce greenhouse gas emissions. According to the National Renderers Association, rendering’s contribution to carbon emission reduction in the US and Canada is equivalent to removing more than 12 million cars from the road annually.

“This acquisition is a great complement to our existing business, gives us the ability to render raw materials in a region we don’t currently serve, and better positions us to meet the competitive, fast-growing national and global demand for animal protein,” said Doug Ramsey, Group President of Poultry for Tyson Foods.

The acquisition includes four rendering plants located in Georgia and Alabama and 13 blending facilities located throughout Southeastern and Midwestern states.

The facilities are expected to provide additional capacity to Tyson’s current animal by-products business. Approximately 700 people work for American Proteins and most are expected to become Tyson Foods team members.

Though part of the company’s ongoing sustainability efforts, it will nevertheless prove a financially savvy move. Over the next twelve months, the business is expected to generate adjusted net sales of over $550 million.