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Tyson Foods, Inc.: Meat & Poultry Outlook 2012 Summary

Explore the paradigm shift in per capita consumption impacting Tyson Foods, Inc., focusing on producers' profitability, protein production drivers, and export growth, with insights on feed conversion rates and corn futures. Delve into global protein consumption trends, international operations, agriculture job opportunities, and challenges faced by regulatory agencies in the industry.

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Tyson Foods, Inc.: Meat & Poultry Outlook 2012 Summary

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  1. Meat & Poultry Outlook Tyson Foods, Inc. February 24, 2012

  2. Company Overview

  3. Per Capita Consumption

  4. Paradigm Shift • Old: Demand driven • New: Producer profitability • Increase in exports

  5. Protein Production Drivers Contract grower Feed conversion1.92 : 1 3.7 bushels of cornto produce 100 lbs. of boneless skinless meat • Independent producer • Feed conversion3.5 : 1 • Approx. 8 bushels of corn to produce 100 lbs. of boneless skinless meat • Independent feedlot • Feed conversion7-9 : 1 • Yearling (750 lbs.) fed beef (300 lbs.) 11 bushels corn to produce 100 lbs. of boneless fed beef

  6. Corn Futures/Chicken Live Cost Live Cost ~ $0.45/lb. Live Cost ~ $0.35/lb. Live Cost ~ $0.25/lb.

  7. U.S. Corn Usage Source: USDA

  8. Energy Costs • Gas: Most expensive January ever • 2012: $3.37 • 2011: $3.10 • 2010: $2.71 • Diesel: 57% increase since 2007

  9. Meat & Poultry Demand • Prices increasing faster than inflation • Consumption declined slightly • Demand has increased

  10. Global Protein Consumption Metric Tons in Millions Source: USDA FAS and OECD. Includes Beef/Veal, Pork, Broilers, and Turkey

  11. Exports % of Production Exports Imports Protein Exports a Major Factor Chicken % of production Beef Pork Source: USDA and Robert A. Brown, Inc. January 30, 2012 2011 and 2012 are RAB forecasts

  12. International Operations

  13. Feeding the World • 70% more food needed • 9 billion people by 2050 • U.S.: less than 10% on food • ‘Agricultural illiteracy’

  14. Jobs in Agriculture • 22 million agriculture jobs • AgCareers.com: 40,000 jobs posted • Outdated stereotypes

  15. Regulatory Agencies - Issues • FSIS • GIPSA • FDA • EPA • DOT • OFCCP • Trade • EEOC • ICE • OSHA • USTR • Ethanol

  16. Purpose Statement

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