Tyson Foods has announced the sale of its poultry processing complex in Vienna, Georgia, to House of Raeford Farms, a local poultry producer based in North Carolina. The financial terms of the deal were not disclosed.
The sale is part of Tyson Foods’ strategy to optimize its plant network. Despite the sale, Tyson Foods will continue to fulfill customer orders from its other production facilities.
House of Raeford Farms, established in 1955, is a family-owned business that produces frozen and ready-to-cook products, deli meats, and fully cooked chicken for the US foodservice and retail markets, as well as international customers. The company’s brands include House of Raeford, Speedy Bird, and Filet of Chicken. House of Raeford Farms plans to maintain poultry processing operations at the Georgia complex, retaining the current workforce and grower network.
This acquisition comes amid a series of recent plant closures by Tyson Foods. In March, Tyson announced the permanent closure of a pork plant in Iowa, impacting 1,276 employees. Last November, Tyson revealed plans to shut down two case-ready meat production facilities in Jacksonville, Florida, and Columbia, South Carolina. Prior to this, Tyson also decided to close four domestic chicken plants due to declining demand and reduced profits, affecting facilities in Missouri, Indiana, and Arkansas. Additionally, Tyson shut down two poultry plants in Virginia and Arkansas, affecting over 1,600 workers.
Despite these closures, Tyson Foods raised its adjusted operating income (AOI) outlook for its chicken segment following its second-quarter results in May. The company now expects an AOI of $700-900 million, up from the previous $500-700 million forecasted in February. This adjustment comes despite an 8.2% decline in chicken sales in the second quarter, with sales totaling $4.06 billion. CFO John Tyson attributed the volume decline to lower production as the company aligned its supply with customer demand, although prices were reduced by 2.1%.
