Tyson Foods Production Capacity In Fiscal 2014



Tyson Foods production capacity

At 2014 fiscal year end, Tyson Foods, Inc. (TSN) had the capacity to process 40 million heads of chicken per week, 0.17 million heads of cattle, 0.44 million heads of hog, 85 million pounds of processed foods, and 8 million heads for the International segment. The chart below shows Tyson Foods’ production capacity.

In comparison, Pilgrim’s Pride Corporation (PPC) had a capacity to process 34.7 million heads of chicken per week, and Sanderson Farms, Inc. (SAFM) could process 5 million birds per week.

The SPDR S&P 500 ETF (SPY) holds some of these companies, along with big retailers such as Wal-Mart Stores, Inc. (WMT).

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Beef and Pork

Tyson Foods Beef and Pork segments have 13 and nine production facilities, respectively. The Beef segment’s average capacity utilization was 77% in fiscal 2014, and the Pork segment’s average capacity utilization was 86%.

Prepared Foods and Hillshire’s facilities

Tyson Foods merged with Hillshire Brands in 2014. This added five distribution centers and six turkey operation facilities to the Prepared Food segment. The company had 41 processing plants in this segment with an average capacity utilization of 86% in fiscal 2014.

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The Chicken segment has several facilities for each production stage. That’s because the company’s Chicken segment is vertically integrated, as we discovered in Part 4 of this series. The chicken processing plants had an average capacity utilization of 90% in fiscal 2014.

The International segment, which primarily consists of chicken products, had an average capacity utilization of 67% in fiscal 2014.

The feed mill in the Chicken segment handles feed commodities such as corn and soybean meal. These made up 68% of the company’s feed costs in fiscal 2014. We’ll look at these and other commodities in the next part of this series.

Other facilities

Tyson Foods also runs ten distribution centers, sixty cold storage facilities, and one research and development facility.


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