CHICAGO (Reuters) – Tyson Meals Inc (TSN.N) is weighing new websites for a $320 million hen slaughterhouse after opposition from residents of a small Kansas city picked for the venture, the chief government mentioned on Monday.
The venture deliberate for Tonganoxie, Kansas, would have been Tyson’s first new plant for the reason that 1990s and included a hen hatchery and feed mill, in line with the corporate.
Tyson mentioned it will enhance its total manufacturing capability by processing as much as 1.25 million birds per week.
Nevertheless, residents have been involved about its affect on the surroundings and different points.
“We’ll be delayed barely right here,” Tyson CEO Tom Hayes informed reporters in regards to the plant, after the corporate reported better-than-expected earnings.
U.S. per capita consumption of hen is anticipated to hit a report excessive this 12 months, in line with the Nationwide Hen Council, a commerce group that mentioned about 170 million chickens are slaughtered every week for meat.
Hen gross sales have elevated as shoppers search extra protein of their diets. Some view it as a more healthy various to beef and pork.
Tyson determined to construct a brand new slaughterhouse as a result of it was shopping for extra hen than it wished from different producers to fulfill demand, Hayes mentioned.
He declined to say when Tyson would decide a brand new web site. The corporate had anticipated to interrupt floor in Tonganoxie this autumn.
Prestage Farms, the nation’s seventh-largest hog producer, confronted resistance from Mason Metropolis, Iowa residents over a pork processing plant final 12 months. The corporate now plans to complete constructing its $240 million plant in Wright County, Iowa, subsequent 12 months.
States are contacting Tyson to be thought-about for its venture, Hayes mentioned. The corporate needs to realize a greater understanding of how native residents really feel in regards to the plant when choosing the location, he mentioned.
Kansas has helped Tyson slender its search within the state, in line with the corporate. Tyson beforehand gained assist from state and native elected officers to find the plant in Tonganoxie.
“I don’t understand how in contact all the officers have been with what the direct native sentiment was for all of these in the local people of Tonganoxie and the encircling space,” Hayes mentioned.
Reporting by Tom Polansek; Modifying by Cynthia Osterman
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