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Tyson Teams Up With Cactus Feeders and Cresud in Argentina Beef Venture

12 January 2007

ARGENTINA - Tyson Foods, Inc. has entered into a joint venture in Argentina, which will create the first vertically integrated beef operation in the South American country. The venture is expected to produce both products for the domestic Argentine consumer and give Tyson access to European and other high value beef markets.

Tyson has teamed up with Cactus Feeders Inc., one of the world's leading cattle feeding companies, and Cresud S.A.C.I.F. y A. (Nasdaq:CRESY), the leading agribusiness company in Argentina. The joint venture will use an existing feedlot operated by Cactus and Cresud to supply most of the beef for a beef slaughter and processing plant recently purchased by the joint venture. Both the feedlot and plant are located in central Argentina. Sales for the joint venture are expected to be in the range of $30 to $35 million in 2007.

Cactus and Cresud have successfully operated the feedlot, located at Villa Mercedes in the province of San Luis, since 1999. It currently has a one time capacity of 25,000 head, but the new venture has plans to expand its feedlot capacity in the region. The boxed beef plant, previously operated under the name Exportaciones Agroindustriales Argentinas S.A., is located in Santa Rosa in the province of La Pampa. It will be Tyson's first participation in a beef operation outside of North America.

Currently, approximately 380 people work at the government inspected facility, which now has the capacity to slaughter and process about 9,500 cattle per month. The new company expects to expand the plant's capacity to 15,000 head per month in the future.

The CattleSite News Desk



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