News

KDA Welcomes Tyson Foods’ Investment in Kansas

Today’s announcement that Tyson Foods, Inc. will soon build a $320 million, state-of-the-art poultry complex in eastern Kansas was the result of a tremendous collaboration of local leaders, the agriculture industry, and state and federal government.

“Tyson Foods is one of the largest food companies in the world, and we welcome the poultry business unit to Kansas,” said Kansas Secretary of Agriculture Jackie McClaskey. “Their investment in our state is an indicator of the support and enthusiasm shown by local leaders who saw this opportunity for economic growth in their community.”

The company will construct a processing plant, hatchery and feed mill near the city of Tonganoxie, in Leavenworth County. The complex will employ approximately 1,600 people and contract with northeast Kansas farmers and ranchers to raise chickens. According to Tyson Foods, the payroll and payments to farmers from the new poultry operation, along with its purchase of grain and utilities, is expected to generate a direct annual economic benefit to the state of Kansas of $150 million.

For the past two years, hundreds of meetings have been held with agriculture industry leaders to discuss the opportunities in and the barriers to economic growth. These meetings led to the development of the Kansas Agriculture Growth Strategy which identified outcomes for growth for 19 agriculture sectors, including poultry. The Kansas poultry industry is currently ranked 34th in the nation in terms of egg and poultry meat sales with a total economic contribution of almost $119.5 million.

“The Kansas agriculture industry has been focused for several years on developing a strategic growth plan, and that process has identified strong growth potential in the poultry sector with available land resources, nearby feed supplies, and more. This project converts that growth potential into real economic growth in our state,” said McClaskey. Agriculture is the largest industry and economic driver in Kansas, providing nearly $68 billion annually, about 45 percent of the state’s economy.

Governor Sam Brownback and Senator Pat Roberts both have been strong advocates for agricultural growth in Kansas, and for this project in particular. “The Governor and our senior senator both recognize the positive economic benefits that will touch many communities in eastern Kansas,” said McClaskey.

In addition to the direct benefits to the economy of Leavenworth County, the Kansas agriculture industry will see other areas of growth. The grower network will provide opportunities for family farms to diversify and add a new revenue source from managing poultry houses as well as reduced soil fertility costs from the utilization of poultry litter as an organic fertilizer. Kansas grain farms will now have a new marketing outlet in the form of direct grain contracts with Tyson Foods.

A project of this magnitude which will have significant impact on the economic growth of the region is a direct result of the collaborative efforts between public and private partners. The Kansas Department of Agriculture is committed to serving and growing the state’s largest industry by continuing to develop opportunities for the communities of Kansas.

Local leaders worked with several state agencies to establish this long-term partnership with Tyson Foods, including the Kansas Department of Agriculture, the Kansas Department of Commerce, the Kansas Department of Health and Environment, the Kansas Department of Transportation and the Kansas Water Office.

For more information about the Kansas Agricultural Growth Strategy project, go to www.agriculture.ks.gov/growag.

About Tyson Foods, Inc.

Tyson Foods Inc. (NYSE: TSN) is one of the world’s largest food companies and a recognized leader in protein. Founded in 1935 by John W. Tyson and grown under three generations of family leadership, the company has a broad portfolio of products and brands like Tyson®, Jimmy Dean®, Hillshire Farm®, Ball Park®, Wright®, Aidells®, ibp® and State Fair®. Tyson Foods innovates continually to make protein more sustainable, tailor food for everywhere it’s available and raise the world’s expectations for how much good food can do. Headquartered in Springdale, Arkansas, the company has 114,000 team members. Through its Core Values, Tyson Foods strives to operate with integrity, create value for its shareholders, customers, communities and team members and serve as stewards of the animals, land and environment entrusted to it. Visit www.tysonfoods.com.