Tyson eager to meet antibiotic-free chicken demand

The demand for chicken raised with no antibiotics ever continues to grow, and Tyson Foods President Tom Hayes says the company is poised to meet that demand.

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bhofack22, Bigstock
bhofack22, Bigstock

The demand for chicken raised with no antibiotics ever (NAE) continues to grow, and Tyson Foods President Tom Hayes says the company is poised to meet that demand.

Hayes, who was named Tyson’s president in June and will take over as its CEO at the conclusion of 2016, discussed Tyson’s venture into NAE chicken while participating in the Bernstein Consumer Summit on December 7.

“The consumer’s looking for certainly more antibiotic-free (chicken) and we have a line that is no antibiotics ever. That line has been growing from a very small base, but it’s been growing aggressively,” Hayes said.

“We feel like we are in a position where we can offer customers exactly what they want and when they want it. Customers have been moving toward more NAE and so we’re happy to do that. Our margin profile is strong on our NAE products, and so the growth that we see in that NAE space matches the supply chain.”

Hayes acknowledged that Tyson Foods would be open to the idea of new acquisitions to help it better meet the NAE chicken demand.

Tyson Foods launched its line of NAE chicken, NatureRaised Farms, in 2013. The company also has a line of NAE pork, Open Prairie Natural Pork, which it introduced in 2016, and a line of NAE beef, Open Prairie Natural Angus, which it rolled out in 2009.

Progress being made in phasing out human antibiotics

While Tyson chickens raised for the NatureRaised Farms label are raised with no antibiotics ever, the company is also involved in an initiative to phase out the use of antibiotics important in human medicine from its entire broiler supply.

Tyson Foods announced in April 2015 that it would remove use of all human antibiotics by the end of 2017. Hayes reported that it is making “exceptional progress” toward meeting that goal.

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