March 3, 2010

Tyson Foods shifts away from Russian market

Tyson Foods reduced the amount of chicken exports to Russia by about 10% of its total exports from about 50% a few years ago as the company works to find other markets for the product.

Tyson CFO Dennis Leatherby said the company had found other export markets as well as domestic uses for the meat.

Russia, once the largest export market for US chicken, has reduced imports in order to build its own industry. The country also banned US chicken in January due to a chlorine wash used to kill bacteria, but negotiators are working to reopen that market.

Leatherby said Tyson was focused on reinvesting in the business and improving its debt rating to investment grade rather than buy back shares.

"Share buybacks would be our lowest priority by far," he said. Acquisitions would be considered, "but they would pretty much have to fall in our lap at pretty reasonable prices," he said.

In addition, the company will focus efforts on integrating recent acquisitions in China and Brazil this year.