Tyson Foods Wants to Turn Animal Fat into Fuel
Date: 14-Nov-06
Country: US
"We believe it's a win for our energy independence, it's a win for our environment, and we believe it will be a big win for our shareholders as well," said Jeff Webster, an official with the company's Corporate Strategy and Development team.
Tyson is researching turning the fat into biodiesel because the cost per pound of animal fat is less than vegetable oils.
No timetable was discussed on this project but the company is a low-cost producer of animal fat, making it an attractive potential fuel source, Webster said. The company is also looking at converting poultry litter to fuel.
Also at the investor conference, Tyson officials said they expect announcements next year regarding joint-venture meat projects in China and South America.
"The opportunity here (China) is to expand our current joint-venture footprint and be the first company to offer a full line of poultry products," said Rick Greubel, group vice-president in Tyson's international unit.
Tyson is drawn by China's growing economy combined with its large population, he said.
In early 2007, Tyson expects to complete a joint-venture poultry operation in Brazil and a joint-venture beef operation in Argentina. In Brazil, low-cost grain, low labor costs, and access to Europe are driving that growth, he said.
The company also intends to expand its poultry operations in Mexico.
"Per capita consumption is less than 60 percent of the U.S, and is growing per annum and that is in poultry," Greubel said of Mexico.
Earlier on Monday, Tyson reported a loss for the fourth quarter of US$56 million, or 17 cents a share. It was the third consecutive quarterly loss, but the company said it expects to post a profit for the current quarter.
