Major Taiwanese news network Liberty Times Network (LTN) recently reported that Tyson Foods, the largest U.S. meat supplier, is planning to sell the China-based branch of its poultry business, becoming the latest multinational company planning to divest from the country. Tyson Foods has hired Goldman Sachs to advise on the sale and has sent out preliminary information to potential buyers, including private equity firms.
It’s unclear how much Tyson Foods’ poultry business in China is worth and why Tyson Foods is selling the business. Tyson Foods opened its first factory in China in 2001. Currently, it has four R&D centers, several processing plants, and dozens of farms in China. It operates a vertically-integrated pipeline in China, from breeding and slaughtering to processing and distribution. The company sells chicken, beef, pork, and processed foods.
Livestock business margins have been squeezed in China over the past few years. This is due to the government’s Zero Covid policies as well as higher feed price pressure caused by the Ukraine war. Both Tyson Foods and Goldman Sachs declined to comment.
Source: LTN, August 17, 2023