Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Tyson Will Start Shipping Poultry to Russia This Week

Don't Miss Out —
Follow us on:

Aug. 30 (Bloomberg) -- Tyson Foods Inc., the largest U.S. chicken processor, said it plans to ship poultry to Russia this week for the first time since January.

Russia is allowing U.S. chicken imports after effectively banning the meat in January by slashing the amount of chlorine that processors were permitted to use as a disinfectant.

“We currently have five plants eligible to export to Russia and are working to have additional facilities approved,” Gary Mickelson, a spokesman for the Springdale, Arkansas-based company, said today in an e-mail. The plants have been approved by the U.S. and Russian governments, he said.

Mickelson declined to comment on the volume of chicken Tyson plans to ship to Russia.

Sanderson Farms Inc., the fourth-largest U.S. chicken processor, has received approval to ship chicken from three of its plants, Chief Financial Officer Mike Cockrell said today. The company said on Aug. 23 that Russian chicken demand is “spectacular.” Laurel, Mississippi-based Sanderson is currently packing poultry and expects to ship to Russia by the end of next week, Cockrell said in a telephone interview.

“The opening of Russia to U.S. poultry is a strong earnings catalyst for chicken processors,” Farha Aslam, an analyst for Stephens Inc. in New York, said today in an e-mail. “We also expect that Smithfield Foods and Hormel Foods will benefit from overall reduction of protein supplies in the U.S. market.”

The opening of the Russian market should help support the overall protein industry, and hog prices may trade higher along with prices for certain chicken products, Aslam said.

Tyson fell 17 cents to $16.40 at 4:15 p.m. in New York Stock Exchange composite trading. The shares have risen 34 percent this year.

Tyson Foods Inc. is the largest U.S. chicken processor based on 2009 production, followed by JBS SA’s Pilgrim’s Pride and closely held Perdue Inc., according to WATT PoultryUSA, a magazine covering the industry.

To contact the reporter on this story: Shruti Singh in Chicago at ssingh28@bloomberg.net

To contact the editor responsible for this story: Steven Frank at sfrank9@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.