Tyson joint venture seeks to produce oils, fats

By Aerin Einstein-Curtis contact

- Last updated on GMT

© GettyImages/Motortion
© GettyImages/Motortion

Related tags: Joint venture, Feed ingredient, by-product, Cattle

A new joint venture between Tyson Fresh Meats and Jacob Stern and Sons seeks to produce oils and fats from pork and beef products for global markets including animal feed.

The South Dakota-based meat company announced the joint venture with Jacob Stern and Sons in February, but the specific terms of the venture are not being disclosed. Tyson Fresh Meats, Inc. is a beef and pork-focused subsidiary of Tyson Foods, Inc.

In the US, Tyson Fresh Meats runs six pork processing plants and six beef facilities. California based, Jacob Stern and Sons, has been one of the company’s largest customers for animal by-products and is among the biggest marketer and processor of animal fats.

The joint venture is focused on supplying the global fats and oils market. By-products generated by the pork and beef fresh meat industry and derived fats and oils are used as ingredients in multiple sectors including animal feed.

Tyson focuses on “maximizing the value” ​of each animal slaughtered to reduce or eliminate waste, said Steve Stouffer, group president, Tyson Fresh Meats.

“Responsibly processing fats and oils are a key part of our business and our commitment to sustainability,”​ he said. “This joint venture gives us the opportunity to continue to value-up our beef and pork production, enabling us to innovate in new untapped markets while continuing to work directly with existing animal fat customers and the emerging renewable energy market.”

After a transition phase, all animal fats produced by Tyson Fresh Meats will be marketed by JST Global, the companies said. The joint venture has teams in Houston, Texas; Dakota Dunes, South Dakota; and Omaha, Nebraska.

Sales teams with both Tyson Fresh Meats and Jacob Stern and Sons are set to work together on the transition.

The former president of Jacob Stern and Sons’ Texas division, Jay Van Valen, is set to be the CEO of JST Global. The joint venture will have headquarters in Houston.

In another recent rendering deal, Tyson spent $850m on buying the poultry rendering and blending facilities​ previously owned by American Proteins, Inc. and AMPRO Products Inc.

The acquisition, done in 2018, was aimed at allowing Tyson to recycle additional animal-based by-products into usable ingredients for the animal feed, aquaculture and pet food industries.

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