To sell chickens to Tyson, ensure your farm meets their quality standards, establish a contract, and contact their procurement department for guidance.
Selling chickens to Tyson Foods requires understanding their contract farming system. As one of America’s largest poultry processors, Tyson works with independent farmers through a unique partnership model. This guide explains the requirements, process, and realities of becoming a Tyson contract grower.
Tyson’s Contract Farming System
Tyson Foods has operated with contract farmers since the 1940s. Their system provides stability for both parties:
- Tyson supplies chicks, feed, and technical support
- Farmers provide housing, labor, and utilities
- Compensation isn’t tied to market price fluctuations
This model helps farmers avoid feed cost risks while ensuring Tyson gets consistent poultry supply. According to Tyson, they pay nearly $820 million annually to over 3,600 contract growers.
Current Payment Structure
Tyson uses an incentive-based payment system:
| Payment Type | Description |
|---|---|
| Base Rate | Standard payment per bird |
| Performance Bonus | Additional pay for above-average results |
Requirements to Become a Tyson Contract Grower
Tyson has specific requirements for prospective chicken farmers:
Location Requirements
- Must be within 30-50 miles of a Tyson feed mill
- Proximity ensures efficient chick and feed delivery
- Local processing plant must need additional growers
Facility Requirements
- Existing chicken housing or land for new construction
- USDA estimates $400,000 per new chicken barn
- Most growers operate multiple barns
For those considering starting with chickens, learn about coop size requirements for smaller operations.
The Application Process
To begin selling chickens to Tyson:
- Contact the live operation manager at your nearest Tyson complex
- Submit financial and property documentation
- Undergo facility inspection if using existing structures
- Secure financing for any new construction
- Sign contract upon approval
Financial Considerations
Becoming a Tyson grower requires significant investment:
Startup Costs
- $1-2 million typical for multiple chicken houses
- Equipment and infrastructure costs
- Working capital for utilities and labor
Ongoing Expenses
- Labor costs (typically 2-3 workers per farm)
- Utility expenses (especially ventilation)
- Maintenance and upgrades
Many farmers use specialized financing for poultry operations.
Risks and Challenges
Recent plant closures highlight potential risks:
- Tyson closed 6 chicken plants in 2023
- Some growers left with millions in debt
- Barns often built to Tyson specifications
- Difficult to transition to other poultry companies
One Missouri grower reported $1 million remaining debt after contract cancellation. Another in Arkansas faced bankruptcy with $1.4 million outstanding.
Alternatives to Tyson Contracts
For smaller operations consider:
- Local farmers markets
- Direct-to-consumer sales
- Specialty poultry markets
- Other processors with different requirements
If raising chickens for eggs instead of meat, understand when breeds start laying to plan production.
Tips for Success
Current Tyson growers recommend:
- Maintain excellent bird health metrics
- Keep detailed production records
- Build strong relationship with field technician
- Stay current on equipment upgrades
- Diversify income if possible
For more on chicken care, see our guide on parasite prevention in flocks.
Industry Outlook
The poultry market continues growing:
- US chicken consumption hit 97.6 pounds per capita in 2022
- Global demand increasing
- Tyson processing over 45 million chickens weekly
However, industry consolidation means fewer processing companies controlling more market share. Growers should carefully evaluate long-term contracts.