Tyson Foods announced it is investing $70 million into a new hatchery in Hope, Arkansas, which will replace the existing hatching facility in the company’s home state.
The company said in a press release the new “state-of-the-art” 131,000-square-foot hatchery will triple capacity and help improve efficiency at its poultry processing plants in Hope and Nashville, Arkansas. It is predicted to be completed by late 2024.
The news follows last week’s announcement that Tyson will close two of its poultry facilities in May — in Glen Allen, Virginia and Van Buren, Arkansas — laying off 1,700 workers. The company said its inability to improve its economic situation under its current operational plan, along with a desire to utilize the full capacity at each of its plants, drove the decision to shutter the two locations.
The meat giant’s decisions follow a period of supply and demand volatility over the past year.
On top of creating new jobs for Arkansas residents, Tyson said the new hatchery will give poultry farmers within a 30 to 50 mile radius a new opportunity for contract opportunities.
Last July, Tyson announced another strategic investment in Arkansas, investing $67 million in a feed mill in Hempstead County.
High demand for poultry products in early 2022 led to record profits and supply issues that have continued since. Tyson missed earnings expectations in its most recent quarter, as its bet that fresh chicken would fill a gap caused by weaker beef demand failed to materialize, CEO Donnie King told investors.
Correction: A previous version of this article omitted "million" when describing Tyson's $70 million investment.