No matter how you slice it, steak is the main attraction at Tyson Fresh Meats. A processor of beef and pork, Tyson slaughters and sells fresh beef and pork and case-ready ground beef and pork products. Its offerings are sold under brand names, including Chairman's Reserve Beef and Supreme Tender Pork, to mostly US food retailers, food service operators, and meat processors. Tyson does not raise cattle, but has buyers who purchase livestock on the open market. It has swine buyers, as well; however, it does raise some pigs. Non-edible animal remains are processed and sold to manufacturers of animal feed, leather, and pharmaceuticals. Tyson Fresh Meats is a subsidiary of chicken and meat producer Tyson Foods.
South Dakota-based Tyson Fresh Meats' operations consist of 17 production sites located in North America. More than half of the production facilities are used in processing cattle, with remaining sites used to process hogs.
Sales and Marketing
Wal-Mart Stores is Tyson Fresh Meats' parent company's largest customer, accounting for 13% of consolidated sales.
Tyson Fresh Meats (TFM) delivers more than five billion pounds of boxed beef and three billion pounds of pork products to retail and food service customers annually. Beef accounts for nearly three quarters of TFM's $19.8 billion in annual sales, with pork representing the rest.
Tyson Fresh Meats rang up $19.8 billion in sales in fiscal 2013 (ended September), more than half of parent company Tyson Foods' $34.4 billion in total sales. Tyson Foods has posted four consecutive years of growing sales. Revenue from beef increased 5%, while pork sales declined 2%, versus the prior year. Less volatile cattle markets, strong export sales, and higher prices bolstered beef revenue.
Tyson Fresh Meats' strategy for gaining the top shelf for its products focuses on differentiating itself from major competitors, such as JBS Swift (part of JBS USA) and Smithfield, as it gooses demand from markets for value-add, higher profit products. To that end, Tyson Fresh Meats promotes a branded program that moves beyond selling beef and pork "in a box" to building consumer loyalty to the Tyson label. In addition to raising brand awareness and trust in its product safety and quality, the company competes on price, as well as breadth and availability of offerings, and customer service.
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