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Tyson consolidating more beef operations

Agriculture.com Staff 08/18/2006 @ 7:36am

Tyson Foods, Inc.is consolidating its beef plants in the Pacific Northwest, the company announced yesterday.

Effective Oct. 16, 2006, Tyson Fresh Meats, Inc., a subsidiary of Tyson Foods, will permanently close its beef slaughter plant in Boise, Idaho, and scale back processing operations at its Pasco, Wash., complex. The Pasco plant has historically operated one shift of beef slaughter and two shifts of beef processing.

"This consolidation is part of a much broader strategy designed to return Tyson Foods to profitability,” said Richard Bond, president and CEO of Tyson Foods. "In addition to cost savings, we also remain focused on creating product demand, improving product mix and achieving maximum price for the high quality foods we produce."

The changes involving Boise and Pasco are also part of an initiative aimed at improving the performance of Tyson's beef and pork business. As a result of this initiative, Tyson consolidated beef plants in northeast Nebraska earlier this year and has been simplifying and streamlining its beef and pork product mix.

"The Boise plant has performed reasonably well for many years, however, market and economic conditions have changed," said Jim Lochner, Tyson senior group vice president. "There's more beef slaughter capacity than available cattle, while the cost of transporting beef carcasses from Boise to Pasco for processing has increased significantly."

The closing of the Boise plant means the elimination of beef slaughter capacity of 1,600 cattle per day or approximately 470,000 cattle a year. It also results in the elimination of all 270 jobs at Boise and approximately 500 positions at Pasco.

"While it’s always difficult to eliminate operations and jobs, we believe it makes economic sense to take these steps," Lochner said.

Tyson Foods, Inc.is consolidating its beef plants in the Pacific Northwest, the company announced yesterday.

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