Soaring feed costs are driving a wave of
cross-border deals in the meat industry. Tyson Foods Inc. is one of several companies targeting Asia, where rising incomes are enabling people to eat more meat.
As part of its expansion, the company is planning to buy 60% of Chinese poultry processor Xinchang Group, according to a
Reuters report.
The stake will allow Tyson to team up with Xinchang as it builds a plant outside Shanghai to sell to the Yangtze River Delta market.
Last month Tyson acquired a 51% stake in
Mumbai-based Godrej Foods Ltd. On the other hand, it sold off its Canadian operations to XL Foods Inc. Tyson will hold its
third-quarter earnings call on July 28.
In the second quarter, sales of fiscal 2008 were $13.4 billion compared to $13.1 billion for the same period in 2007. - Maria Woehr
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