Tyson Fresh Meats, the beef and pork subsidiary of Springdale, Arkansas, USA-headquartered Tyson Foods, on December 9 signed an agreement with the Republic of Kazakhstan and private holding company Kusto Group to collaborate on a project that, in its initial phase could lead to the construction of a modern beef processing plant in Kazakhstan, with an anticipated slaughtering capacity of 2,000 head per day. As presently conceived, the investment is projected to help provide an annual agricultural economic benefit to the country well in excess of US $1 billion.
Energy and mineral rich Kazakhstan, the ninth largest country in the world by geographic area, has identified the livestock and the multi-protein export sector as a key growth market. It has an established beef industry that serves the domestic population with exports to the region. The agreement with Tyson and Kusto Group is part of a broader initiative by the Kazakhstan government to expand and modernize agriculture, beginning with meat production.
Tyson Foods officials have traveled to Kazakhstan, and the Prime Minister of the Republic of Kazakhstan, Askar Mamin, and representatives from the country have been to the United States to visit Tyson headquarters, including one of the company’s major beef complexes. Kusto Group, based in Singapore, but founded in Kazakhstan, has an existing subsidiary with a leading position in beef production in the country.
“We are delighted to welcome Tyson Foods to Kazakhstan. Tyson is a world-class company with the expertise necessary to help Kazakhstan jump-start the transformation of our agro-protein capabilities and help us create an ecosystem that will increase our beef herd size and establish conditions to support thousands of new high-quality jobs in the country. We look forward to a long and mutually beneficial collaboration,” stated Prime Minister Mamin. He is pictured above (front center) signing the deal with with Tyson CEO Noel White (right) and Yerkin Tatishev, Chairman of the Kusto Group.
“We’re pleased to execute an agreement with the government of Kazakhstan and partner with Kusto,” said Steve Stouffer, group president Tyson Fresh Meats. “This opportunity supports one of our growth strategies to expand our global business, and we look forward to bringing our expertise and capabilities to the country of Kazakhstan.”
“At Kusto, we believe in the tremendous potential of Kazakhstan to transform into a global agricultural player, helping provide first class products for consumers around the world,” stated Chairman Tatishev. “Together with Tyson Foods, we are taking a first step in that direction today with our beef operations and look forward to getting underway.”
Since Kusto Group’s foundation in 1997, investing in Kazakhstan and maintaining strong links with the region, the birthplace of its founders, has been one of the diversified oil and gas, construction materials, real estate and agriculture businesses’ top priorities. Its Kusto Agro unit is expanding agricultural offerings to include locally reared beef. As the first company to export Angus and Hereford cattle to Kazakhstan, Kazbeef is dedicated to producing meat of the highest quality, incorporating new techniques and utilizing Kazakhstan’s rich land.
Tyson aims to significantly grow its international business – which accounted for 3% of $42.4 billion in sales during 2018 – in the years ahead. Building a state-of-the-art beef processing plant in the central Asian nation of Kazakhstan makes sense both geographically and in terms of resources. Not only does it have sufficient water and land to raise livestock, but also there is good rail and road access to China, Russia and central Europe.
Tyson Fresh Meats, based in Dakota Dunes, South Dakota, currently operates beef plants in Nebraska, Illinois, Iowa, Kansas, Texas and Washington. The company’s beef business generated $15.8 billion in sales in fiscal year 2019.
With more than 141,000 employees around the globe, Tyson Foods is one of the world’s largest food businesses and a recognized leader in protein. Founded in 1935 by John W. Tyson and grown under three generations of family leadership, the company has a broad portfolio of products and brands including Tyson, Jimmy Dean, Hillshire Farm, Ball Park, Wright, Aidells, ibp and State Fair.
