July 31, 2007

Tyson says business with China continues; calls ban reports wrong

Tyson Foods Inc. (TSN) said Monday (July 30) it continues to do business with China, terming "inaccurate" recent reports that the country had suspended imports from the big meat processor.

"They are an excellent trading partner," Chief Executive Richard Bond said on a conference call.

Earlier this month China's General Administration of Quality Supervision, Inspection and Quarantine was quoted as saying that frozen poultry from Tyson was contaminated with salmonella and that it had suspended imports from the company as well as several other US meat processors.

That announcement was widely seen as retribution for US complaints about the quality of a variety of products, from pet food to toothpaste.

At the time a Tyson spokeswoman expressed disappointment over the report of the ban and said it was investigating the tainted chicken claim. "We will work with the US and Chinese government to get this matter resolved," she said.

Bond gave no details about trade with China other than to say that Tyson had achieved growing exports of chicken leg quarters to China, as well as other Asian countries.

He said Taiwan and South Korea are expected to "normalize" imports of beef this fall, adding that "I think Japan by yearend will allow imports of 30 months and under cattle."