Tyson Foods’ business model is diversified across the three leading proteins (chicken, beef, and pork), all major distribution channels, product types, and geographies of production and distribution. This diversification helps mitigate changes in market fundamentals affecting segment performance in each protein. We operate four main business segments including chicken, beef, pork, and prepared foods.

Sales by SegmentTyson Foods’ chicken business is vertically integrated. Vertical integration allows the company to oversee every aspect of production and product quality from the egg to the finished product on a consumer’s plate. In short, there are seven stages involved in getting chicken to the consumer including breeder flock, pullet farm, breeder house, hatchery, broiler farm, processing and further processing, and distribution.

Tyson Foods buys cattle on the open market. The United States’ cattle industry is composed of more than one million individual farms and ranches. Each year cattle producers market approximately 35 million cattle that are eventually harvested for food. There are four primary stages in cattle and beef production including cow-calf operation, stocker operation, feedlot operation, and packer-processor. The process begins with the cow-calf operator and finishes with a packer-processor such as Tyson Foods.

There are four primary stages in hog and pork production including sow-farrowing barns, nurseries, finishing farms, and packer-processor. When pigs reach approximately 270 pounds, producers sell them on either a live-weight or carcass-weight basis to livestock exchanges, producer-owned marketing networks, or directly to packers such as Tyson Foods.

Tyson Foods’ products are not limited to main-course protein. As an example, Tyson Foods is the largest supplier of pepperoni and pizza toppings to the foodservice industry. We market our prepared foods products to retail delis, foodservice distributors, restaurant operators, and on-site foodservice establishments, such as schools, universities, corporate cafeterias, hotel chains, health care facilities, and the military.

To learn more about these business segments, review the Tyson Foods Fiscal 2012 Fact Book, which is available through our Investor Relations website.

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