After announcing its intentions earlier in March 2024, Tyson Foods has been subjected to considerable media attention, albeit negatively. Tyson Foods’ intention to close down its 60-year-old plant in a small Iowa town has left several of its residents unemployed.
While several town members lost their jobs, some residents decided to seek employment elsewhere, like Joe Swanson. Swanson, a resident of Perry, Iowa, has had to relocate from the town he adores and raises his kids in, as the city’s largest employer recently closed its plant.
Joe Swanson’s Story
According to Swanson, when the Tyson Foods pork plant closure was announced, he couldn’t risk waiting until he was unemployed. Due to his health problems, Swanson was unable to take a chance with unemployment.
Consequently, he accepted a new job offer with health coverage and left the Tyson pork plant before the plant was closed. Having spent nearly 14 years working at the factory, Swanson said, “None of us picked this, and I just want everybody to be OK. Because I know how hard this is going to be for a lot of people.”
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When the plant finally closed on June 28, 2024, a total of 1,300 employees were laid off. However, for people like Swanson, the shutdown has resulted in them living but not working in Perry. Additionally, Swanson said, “You have the power to make sure that you find the right opportunity that’s going to benefit you and your family.”
Why Is Tyson Plant Closing?
On March 11, 2024, Tyson Foods announced its decision to close its pork plant in Perry, Iowa, by July 2024. Subsequently, on June 28, 2024, the Tyson Foods pork plant in Perry closed after 60 years of operation.
However, the reason behind the closure goes further than their 2024 announcement. In 2023, Tyson Foods closed six of its chicken production facilities. Subsequently, in 2024, the New York Post announced Tyson’s closure of two beef plants, with plans to close four more meat processing facilities later in 2024.
The massive closure by Tyson Foods comes as the US pork industry is reeling from the setbacks faced by the meat processing industry. In 2023, the world’s largest meat processor, Smithfield Foods, owned by Shuanghui International for over a decade, also closed 37 of its Missouri sow farms.
Is Tyson Foods Profitable?
In 2023, Tyson Foods saw a decline in sales compared to 2022. According to Bloomberg, “The company is slowly recovering from a mix of setbacks, including a chicken and pork oversupply that drove its profits to tumble by 85% in the last fiscal year.”
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The report said, “Tyson’s pork operations returned to profit in the three months ending in December after five straight quarters of losses, as increased volumes more than offset a decline in prices.”
However, after Tyson Foods’s massive loss in 2023, 2024 has been a more positive year for the company. On Monday, July 29, 2024, Tyson Foods reported a third-quarter profit, with growth in sales across almost all of the company’s business sectors.
Tyson Foods had recorded quarterly revenues of $13.35 billion, exceeding analyst projections for its third quarter. However, while the revenues of prepared foods, beef, and pork increased, chicken sales decreased marginally.
Does KFC Use Tyson Chicken?
There is something unique about the chicken at most fast-food franchises, such as McDonald’s McNuggets’ distinctive flavor and KFC’s secret spice blend. However, most of these restaurant chains are supplied by the same manufacturer, regardless of how different they taste.
Tyson Foods supplies chicken, beef, and pork products to national fast-food restaurants, retailers, and food service distributors. The company also supplies chicken to all the major brand franchises, such as McDonald’s, Burger King, Taco Bell, and KFC.
Additionally, they also supply local eateries and jails with chicken. At its 123 food processing facilities, the company produces an extensive range of processed meat products.
However, the firm has begun closing its plants nationwide, such as its pork processing plant in Perry, which is increasing unemployment in Iowa. Tyson Foods makes chicken nuggets, tenders, and boneless buffalo wings, among other things.
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Who Is the CEO of Tyson?
After being elected as a board member in February 2022, Donnie King is president and CEO of Tyson Foods. As CEO of Tyson Foods, King oversees more than 139,000 employees at over 150 locations worldwide, developing a portfolio that includes some of the fastest-growing protein brands in the world.
King has held managerial positions in several of Tyson Foods’ divisions since starting his career at the firm in 1982. He helped expand Tyson’s global reach, focusing on fast-growing Asian markets as COO and President of the International Business Group.
Additionally, King held the position of President of North American Operations, overseeing all its operations across the continent. King holds a bachelor’s degree in business management from the University of Arkansas at Monticello.
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