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Chick-News.com Poultry Industry News, Comments and more by Simon M. Shane

Foster Farms Evaluating Strategic Alternatives

11/02/2021

In an October 27th release, Foster Farms acknowledged that it was considering strategic alternatives, ‘business-speak’ for a sale.  Helen Kurtz, Chief Marketing Officer noted in a statement, “We are confident in our strategic plan, and will determine if partnerships further enhance our competitive position.”

 

Foster Farms ranked 11th by volume of production in both the U.S. broiler and turkey segments has an annual revenue approaching $2.5 million and employs 12,000 in plants in Livingston, Fresno, Turlock, Porterville, CA and facilities in Louisiana, Alabama and Colorado. 

The company was established by Max and Verda Foster in 1939 and has developed into a dominant regional producer of broilers and turkeys in the Pacific Coast states. 

 

In February 2019 there were rumors based on visits construed as due diligence evaluations that Tyson was evaluating a possible purchase but no definitive or formal offer was announced.  Acquisition of Foster Farms by one of the major broiler producers will encounter resistance on the basis of potential concentration of production capacity. This is a hot topic in Washington at present as both Senate and House committees are investigating the apparent lack of competition within red meat packing sector. It is possible that Foster Farms could be acquired by either a private equity firm or an agribusiness company that currently has no assets in the poultry industry.  In August a consortium of Cargill Inc. and Continental Grain Company struck a deal to buy Sanderson Farms Inc. ranked third among U.S. broiler producers for $4.5 million in a cash transaction resulting in a consolidation of the acquisition with Wayne Farms.

 


 
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