Tyson Provides $26 Million to Fuel Family Farmers - US - In an effort to help its 6,800 contract poultry producers deal with rising energy costs, Tyson Foods, Inc. will provide them with more than $26 million in supplemental fuel payments this winter, the company reported today.

Tyson has provided extra energy allowances to producers in the past because of increased fuel expenses; however, this season's total payment will be the largest in company history.

"We all know fuel costs have risen substantially over the last two years and are projected to continue to rise this winter," Bill Lovette, senior group vice president of Poultry and Prepared Foods for Tyson Foods, said. "This is a challenge for all of us in the poultry industry, because adequate heating is essential to bird well-being, health and performance.

"In order to help contract producers supply this basic need for our birds during this time of high fuel costs, we're providing them with a supplemental energy allowance," Lovette said. "These payments will be in addition to any fuel allowance included in Tyson contracts with producers who pay for their own fuel."

The money for broiler producers will be divided into two equal payments made on or about November 1, 2005 and February 1, 2006. Each broiler producer who is on Tyson's regular placement schedule as of the date of the allowance payment will receive a check. Qualified pullet producers will each receive one overall payment during the winter months.

Amounts given to broiler producers will be based on such factors as the total number of square feet of housing the producer operates, as well as the historical fuel usage by the Tyson poultry production complex with which they contract. This usage will be determined by factors such as average winter temperature in the complex, bird size, and number of flock starts during the winter.

Tyson poultry complexes include hatcheries, feed mills and chicken processing plants. Tyson currently operates poultry complexes in 13 states, including Alabama, Arkansas, Georgia, Indiana, Kentucky, Mississippi, Missouri, North Carolina, Oklahoma, Pennsylvania, Tennessee, Texas and Virginia.

Tyson Foods, Inc., founded in 1935 with headquarters in Springdale, Arkansas, is the world's largest processor and marketer of chicken, beef, and pork and the second-largest food company in the Fortune 500. The company produces a wide variety of protein-based and prepared food products, which are marketed under the "Powered by Tyson(TM)" strategy. Tyson is the recognized market leader in the retail and foodservice markets it serves, providing products and service to customers throughout the United States and more than 80 countries. Tyson has approximately 114,000 Team Members employed at more than 300 facilities and offices in the United States and around the world.

Source: Tyson Foods Inc - 3rd OCtober 2005