Tyson Foods($TSN+3.3%) wants to sell its Chinese poultry business
US meat processing and frozen food company Tyson Foods plans to sell its Chinese poultry business. This was reported by Reuters.
$TSN+3.3% has four research and development centers, several processing plants and dozens of breeding farms in China. It has been operating in the country's entire poultry sector, from breeding and slaughtering to processing and distribution, since 2001.
In June, the company started operations at a new frozen and cooked food processing plant in Xiaogan, central China. In the same month, it also opened a factory for processed foods such as cooked chicken and pre-cooked Chinese food in Nantong city in eastern China.
The reasons why $TSN+3.3% wants to sell its Chinese poultry business are not known. Analysts say it could be due to factors such as declining demand for poultry in China due to the COVID-19 pandemic, rising feed prices due to Russia's invasion of Ukraine, and increasing competition from local producers.
Selling this business could help reduce debt and focus on its core markets in the US and Europe.