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[Shelbyville Times-Gazette]
Shelbyville, Tennessee ~ Thursday, May 15, 2008
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Tyson CEO says ethanol will lead to higher food costs

Thursday, March 27, 2008

(Photo)
Dick Bond, president and CEO of Tyson Foods, spoke to local officials and Tyson workers Wednesday as part of a visit to the Tyson processing plant in Shelbyville.
(T-G Photo by Brian Mosely) [Click to enlarge]
See video of Dick Bond's remarks

--

When Dick Bond says that the price of food will soon go up due to increased ethanol production, you'd best listen to him.

He should know: he's the president and CEO of Tyson Foods.

Bond paid a rare visit to the Shelbyville poultry complex Wednesday to tour the facility and meet with plant management as well as officials from around Bedford County.

Tyson has $27 billion in beef, pork and poultry sales each year. The high cost of grain and corn Tyson uses to feed the animals it processes is impacting the company most these days.

"I can rant and rave about this for some time, but some of the things that our government in Washington has done in terms of mandating the use of corn-based ethanol ... it's not right," said Bond.

Corn has gone from $2.50 a bushel up to $5.40 this week, Bond said, and this price jump "hasn't even impacted the consumer yet."

"Chicken prices are up only three or four percent and will have to be up like 20 to 25 percent as we go forward. We already have high fuel prices, now we're going to have higher prices on protein, cereals or any wheat products ... all the commodities will jump dramatically," Bond said.

World food demand is also a major factor, he said. As more and more nations develop, such as China, the demand for poultry and other meats will increase.

"If you put the whole corn crop into ethanol, you are only going to reduce gas consumption about three and a half percent. But if we all inflated our tires correctly, we'd save three percent ... there are other ways to try and pursue the objective of less dependence on foreign oil, but there are a lot of other ways we can do it [that are] more efficient, more effective and have less impact on food and the environment," Bond explained.

The purpose of the meeting was to have an exchange with local leaders to find "if we are good corporate citizens, and what are the things we need to do to be better," he said.

"We appreciate all the community leaders here do for Tyson Foods," Bond said.

After inspecting the plant, Bond said the facility "looked great" and that the workers were producing a "very high quality product.

"As I go through the plant and talk to everybody, there are a number of changes we want to make," Bond explained, "some of which will likely require some additional staffing. There might be some things we do from an automation perspective and we might consolidate some jobs, but overall, the plant looks good.

"People seem happy. They're glad to be at work." Bond said. "The Shelbyville facility is an excellent facility. It's a long term winner for Tyson Foods."

"Communication is the problem and the resolution" to many situations between the company and the community, Bond said. Open dialog is the key to a successful relationship, he said.

Bond stated that the firm provides economic vitality to the region with its employment of 1,200 team members, 1,100 of whom work in the plant. The facility had an annual payroll of $26 million last fiscal year. A total of $19 million went to area poultry growers.

"What's more important to us is how our team members can be more a part of the community, so we want to make sure that our leaders and team members are participating in the community."

Tyson's philosophy is to give back to the communities they're in and even the ones where they might not be located, such as with relief efforts with Hurricane Katrina and hunger relief in other areas, Bond said.

The Shelbyville complex includes contract poultry growers in nine counties in middle Tennessee and one in north Alabama; the processing plant here; a hatchery in Decherd and a feed mill in Estill Springs.

The plant processes about 1.3 million birds a week, producing more than seven million pounds of fresh chicken, including fresh, tray-packed chicken sold in grocery stores as well as de-boned and bone-in chicken and whole birds and marinated specialty products.

Bond said that he foresees more boneless and skinless breasts coming out of the Shelbyville facility in the future. More de-boning capacity will be added in the future, he added.


Comments
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Gee, I feel like blogging tonite. Forget about workers, illegals and all that. The CEO is saying that prices are pinching his wallet. Hurts, doesn't it. You have more money than I'll ever have, and I'm glad to see somebody other than me, is feeling the pinch. Your just going to pass on the cost to me. I realize that. I grow my own corn & vegetables, and I can stop eating chicken. In my world, I have learned to do without, so your problem is yours. Oh by the way, I know about the chicken business since the Great Depression. Hope the price of corn goes up to $25.00 a bushel. We'll see how you handle that. Maybe Bear Stearns can give you some advice.

Signed: I'm Poor.

-- Posted by framestraight on Fri, Apr 4, 2008, at 7:35 PM

Its great too see the people of Shelbyville opening there eyes up to whats truely going on with tyson foods. Tyson wouldn't dare have a open forum. I know that They have let go workers that they found to be illegal and months later hired them back...now i don't know if in between the time they were let go they were granted there citizenship....but i sincerly doubt it. I hope that its clearly evident to all people of Bedford County that Tyson's will do what ever it takes to prosper at any expense. "By any means necessary"!! I will never buy there products again.

-- Posted by slingshot on Thu, Apr 3, 2008, at 6:00 PM

Mr. Bond's expressed desire for Tyson to be a "good neighbor" bears examination. I suggest that the corporation could do better.

A nonscientific review of the online Times Gazette for stories relating to Tyson reveals 94 stores dating back to April 2004. Three of these stories report contributions of money or goods to middle Tennessee causes. These include Tyson's pledge to provide $75,000 over 5 years to the Community Clinic, Tyson's provision of a truckload of "protein products" to Second Harvest Food Bank of Middle TN, a cash contribution of $4213 to the Learning Tree Head Start program, and Tyson serving as a Gold Sponsor for the Habitat for Humanity Ball.

Part of Tyson's giving comes from their "Powering the Spirit" program which depends on local fundraising- that is, YOU contributing to funds that they then disburse. This is different than Tyson opening up the Tyson checkbook and writing a check to the causes.

Review of Tyson's corporate website reveals sales of 6.8 billion dollars for the first quarter of fiscal year 2008, operating income of 84 million dollars and net income of 34 million dollars.

Of course, press releases from the corporate website detail multiple other episodes of beneficence on their part, and those can be easily reviewed by interested parties.

Tyson deserves recognition for what it has given. However, I would suggest that Tyson has the resources to provide significantly more support than it has so far to the folks it has recruited to this community. In addition, Tyson has far to go to offset the 91 stories detailing negative social and environmental effects of the Tyson plant.

When I start seeing construction on the Tyson Cultural Arts Center of Bedford County, the Tyson Adult Learning Center of Bedford County, the Tyson Community Park and the Tyson Duck River Protecton Center, then I may consider buying a pack of Tyson chicken.

Until then I will continue my boycott.

-- Posted by transplant on Fri, Mar 28, 2008, at 11:30 AM

Let us count our blessings and acknowledge the Father as God Almighty and He said "love thy neighbor". We are a nation of compassion and strong in our faith. Judge not, lest ye be judged. People should not stereotype others or blame everybody else for their bias. We have Americans who are serial killers and rapists; does that mean that all Americans are that way????

-- Posted by Love thy neighbor on Thu, Mar 27, 2008, at 10:38 PM

I had a friend that was a honest father and health care professional that was a VICTIM of Tyson foods WE WILL MAKE MONEY AT ALL COSTS WAY OF DOING BUSINESS. He was hired to do a job as HR Director. Trained and told to do tasks that he thought was on the up and up. He became the fall guy for tyson foods,of corse he knew what he was doing. He was trained by tysons best. Well the end of this story is he shot himself with a deer rifle.

Thats it tyson charge your customers more. Its all about the money. You cant eat some the costs to provide AMERICAN familys a break in food price.

-- Posted by bear on Thu, Mar 27, 2008, at 8:17 PM

Im a relatively new comer here, under 20 years, and in meeting and talking with people ALL of them seem to feel Tyson's is a known hiring magnet for illegals.

Were it one or two... it would be one thing but 100% of Bedford county long term residents say its a fact.

There must be some reason for the tight security there, tighter than some military locations. I cant see a terrorist going in there to blow up chickens.

I sure could see 'interested' local residents wanting to see for themselves the type of people working there. The huge number of obvious illegals here have to be working somewhere and there are only so many horse barns.

Ive found that legal emigrants very quickly learn English while even long term illegals do not.

While unemployment in Bedford county rises is sure is nice of Tyson to import folks to work here, often times helping add to the already overloaded social services, legal system and school system.

Yes that certainly the way any corporation that cares about the community they are in operates. Import non USA citizens to work while natives are unemployed.

Something sure smells, suspiciously like the south end of a north bound chicken.

-- Posted by BobM on Thu, Mar 27, 2008, at 5:39 PM

...and that is the topic of my story tomorrow...

;)

-- Posted by Brian Mosely on Thu, Mar 27, 2008, at 3:15 PM

While it is not mentioned in the Times-Gazette story, Tyson's Vice President of Employment Compliance gave a presentation during the meeting on the company's efforts to employ only those people who have authorization to work in the U.S.

She explained how Tyson uses all available tools provided by the U.S. government to verify the documents of the people the company hires.

The company voluntarily participates in the U.S. government's Basic Pilot/Employment Eligibility Verification Program, which is now known as E-Verify. It is an internet-based system operated by the Department of Homeland Security (DHS) in partnership with the Social Security Administration. The program allows participating employers to electronically verify the employment eligibility of their newly hired employees. According to DHS, "E-Verify is the best means available for determining employment eligibility of new hires and the validity of their Social Security Numbers."

Tyson also voluntarily uses the Social Security Number Verification System (SSNVS). It is an on-line service offered by the Social Security Administration (SSA), which allows registered users (employers and certain third-party submitters) to verify the names and Social Security numbers of employees against SSA records.

In addition to government-provided tools, Tyson trains its hiring managers on employment documentation procedures and works to increase their awareness of identification fraud. Tyson regularly audits the hiring process including work authorization documents and also uses an independent, outside company, which conducts its own audit of the company's hiring practices.

If the company learns one of its workers may not have authorization to work in this country, immediate measures are taken. If they are unable to correct any discrepancies in their documentation, then they are released from employment.

Submitted by

Gary Mickelson

Tyson Foods, Inc.

-- Posted by Tyson on Thu, Mar 27, 2008, at 3:00 PM

Mr Bond,

Since you want an open dialog between the community and your company, how about reading some of the articles and blogs on the T-G site about what many of the citizens think about your company and correct the problems that we have pointed out to you. Let me be more clear. STOP BRINGING IN AND EMPLOYING ILLEGAL IMMIGRANTS AND SOMOLIANS. The money your business brings to this community is obviosuly outweighed by the burden your illegal immigrants and refugees put on our local eductaional, medical, housing, and judicial systems. If your company sincerely wants open dialog, here's another suggestion. Instead of flying in here under the radar and holding a closed meeting at your facility only attended by local management personnel who are employed by YOU and a select group of Bedford County Officials who aren't even named in this article, How about holding an open forum where the people of this community are invited. If you want open dialog with the community open the meeting up to the community. If you want open dialog within your company hold the meeting at your company. You chose the latter which tells me you aren't concerned with what we think perhaps your just too CHICKEN to open it up to the community. Either way don't come to this town ane try to paint a picture that we know isn't true.

-- Posted by Justunjust on Thu, Mar 27, 2008, at 12:11 PM

"Bond stated that the firm provides economic vitality to the region with its employment of 1,200 team members, 1,100 of whom work in the plant. The facility had an annual payroll of $26 million last fiscal year. A total of $19 million went to area poultry growers. "

Alot more of it would have gone to American workers instead of illegals and refugees.

-- Posted by Evil Monkey on Thu, Mar 27, 2008, at 10:46 AM


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