Chinese and American exports from Tyson Foods Inc.'s pork processing facility in Logansport, Indiana, have been suspended, the U.S. Department of Agriculture stated on Monday. The agency announced that the suspension took effect on Aug. 29.
On Monday, neither the USDA nor the company provided an explanation for the suspension of exports from the Tyson Fresh Meats operation to China.
"We work closely with the U.S. Department of Agriculture's Food Safety and Inspection Service to ensure that we produce all of our food in full compliance with government safety requirements. We're confident our products are safe and we're hopeful consultations between the U.S. and Chinese governments will resolve this matter," Tyson said.
In the past, China has prohibited the import of beef from different processing plants in a number of nations due to fears about bringing in coronavirus. Most international health organizations have stated that there is little chance of the virus spreading on surfaces.
Tyson stated in 2020 that the facility employed over 2,200 people and produced three million pounds of pork each day.
Tyson has been taking steps to expand its operations and investments in more than ten nations in an effort to increase its global protein business. Donnie King, CEO of Tyson Foods, recently stated that the global demand for protein is anticipated to double between now and 2050 when the world's population is predicted to reach 10 billion.
"Through our growing international footprint, we're pursuing every option to ensure customers and consumers have access to more - and more kinds - of protein, wherever they live," King said.
China, South Korea, Thailand, Malaysia, Australia, the United Kingdom, the Netherlands, and the rest of Europe are among the countries where Tyson's international company operates. Additionally, Tyson owns a small stake in companies in Brazil and India.
Tyson Foods reported a 7.5% increase in overseas sales for the fiscal year 2021, reaching $1.99 billion, and an adjusted operating income of $24 million, up from $2 million the prior year. The segment's revenue for the first three quarters of fiscal 2022 was $1.717 billion, up 7.2% from the same period last year. However, from the $23 million recorded the year before, adjusted segment income decreased to $19 million.
Although many U.S. plants are eligible to export to China, analysts at Rabobank said the Tyson suspension shouldn't have much of an impact on the meat trade between the two nations. However, the suspension does come at a time when Chinese consumers may be considering more pork purchases from international markets.
