Tyson beefs up ingredients market

When chicken processor Tyson merged with meat giant IBP the €4.1 billion deal marked one the largest acquisitions in the food industry in the last few years. Today the company is moving deeper into health ingredients.

Meat processor Tyson Foods is to supply glucosamine and chondroitin ingredients made from processed cartilage to supplement makers, it said today.

Tyson will produce the natural glycosaminoglycans chondroitin sulfate and glucosamine using patented technology developed by Active Life Foods.

Rich Marino, holder of the patent, said the agreement with Tyson would "ensure a high quality supply of processed cartilage for the market from a variety of animal sources to meet the needs of a wide range of customers".

Jim Cate, senior vice president of Tyson Foods, said processed cartilage had the advantage of being a natural source of glucosamine and also performance advantages compared to synthetic glucosamine and chondroitin ingredients.

Recent studies have shown that chondroitin sulphate, glucosamine, hyaluronic acid, and cartilage matrix can reduce inflammation in joints of humans and animals, and possibly help regenerate bone cartilage tissue. Sales of arthritis and joint pain supplements are thought to be worth more than $750 million, with glucosamine/chondroitin products reaching over $365 million and growing by 14.2 per cent last year.

Tyson will handle sales of the ingredients, with technical and marketing support from Active Life.

When Tyson Foods - very much a 'chicken' company - combined with IBP in 2001, it became a heavyweight contender in US beef, pork and chicken production.

The $4.7 billion merger opened doors for Tyson to expand its global presence, gain new customers and compete with the likes of Hormel Foods Corp., Smithfield Foods and ConAgra Foods.

The company now controls about 28 per cent of the US beef market, 23 per cent of the chicken market and 18 per cent of the pork market.