lack of sentimentality in, 48, 56–57
shipping business of, 48, 51, 52–53
Tyson, Johnny, 160–62, 167, 180, 264, 306, 307, 308
as CEO of Tyson Foods, 167, 169, 176–80
chairman appointment of, 163–64
childhood of, 161–62
drug and alcohol abuse of, 162, 164, 167
explosive temper of, 161, 178
father’s tutoring of, 161–62
IBP acquisition and, 174–76
internal coup against, 178–80
lack of respect among executives for, 161, 162, 164
rebranding campaigns of, 176–78, 179, 180
Tyson’s struggles under leadership of, 164, 167–69
Tyson, Randall, 88
Tyson Feed and Hatchery, 63
bookkeeping department of, 63, 64, 68, 71–72, 73
control of chicken farmers by, 62
cost-cutting ethos at, 59, 60, 67, 78, 79
creation of, 56
debts of, 75, 76, 77–78, 80
depression of prices paid to farmers by, 79
egg-laying farms at, 78–79, 80
in emergence of contract farming, 68, 70, 71
expansion of, 57, 58, 60, 64, 68, 69
farm ownership experiment of, 22, 23, 71
feed mills of, 58, 59, 61, 72
field technicians at, 59, 69, 71
first slaughterhouse built by, 60–61, 169–70
government inspections failed by, 61
grocery and restaurant contracts of, 54, 60, 62, 65–66, 73, 76
growing customer base of, 58, 60, 62, 64–65
hatcheries of, 58, 59, 61, 62, 72, 78, 79–80, 87
1961 financial crisis and, 76–80, 81, 266
organized chaos in early years of, 64, 65
origins of, 46, 48, 51, 52–56, 66, 92, 161
production scale-backs at, 77, 78
profits of, 58, 59
public offering decision of, 80–81, 92
slaughterhouse of, 60–61, 62, 66, 72, 169
Springdale offices of, 58, 63–64, 65, 74
tax evasion of, 66, 71–74
trucking lines of, 58, 59, 61, 62, 72
vertical integration of, 56, 58, 61, 62, 65, 66, 78
weekly managers’ meetings at, 74–76, 77, 155
Tyson Foods, 80–81, 92, 97, 98, 105, 118, 120, 135, 136, 138–39, 151, 161–62, 189, 240, 244, 245, 246, 251, 253, 261, 279, 291, 295, 303, 308, 310–11, 318–19
antibiotics used by, 7–8
Berryville complex of, 317
biological innovations spearheaded by, 5–6, 92, 109, 157
breeding techniques at, 21, 92, 157, 159, 167
Broiler Office of, 33–35, 36, 37
centralization of control at, 20, 21, 33, 34, 159, 229, 265–66, 270–71
“Class B” shares of, 162
Clinton as political patron of, 262, 268, 310
close monitoring of farms’ efficiency and profitability by, 20, 24, 33, 34, 115, 126, 130, 131
competition among top executives at, 93, 96, 160, 161
contract farming networks of, 7, 8, 29, 72, 105, 106, 140, 143;, 159, 200, 221, 226, 231, 243, 270, 310, 314, 316; see also contract farmers
control of food markets by, 108, 110, 111, 114, 115, 176, 184, 204, 209, 266, 269, 270, 271, 273, 274, 275, 284, 310, 312, 313, 318
“Cornish game hens” gimmick of, 86–87
corporate workforce expansion at, 177, 178, 180
cost-cutting ethos at, 46, 102, 105, 106, 179–80, 312, 314, 315
cost models used at, 95–96
culture of placing blame on farmers in, 44, 103–4, 126, 130
debts of, 98, 175, 176
depression of prices paid to farmers by, 4, 7, 25, 31, 35, 46, 116–18, 119, 122, 126, 127, 132, 168, 188, 192, 203, 204, 269, 275, 312
diseased birds delivered by, 9, 17–20, 27–29, 32, 37, 38, 39–40, 41, 43–44, 103, 118, 133–34, 135, 136, 137
Donnie Smith as CEO of, 305, 311–12, 313
Don Tyson as maintaining control in, 162, 163, 178–79, 305–6
Don Tyson as stepping away from daily operations at, 159–60, 162, 163, 166
egg-laying farms of, 103, 270
as escaping public scrutiny, 3, 8
expansion of, 81–82, 85–86, 87, 93, 97–100, 101, 102, 108, 110, 111, 140, 145, 152, 155, 156, 157, 159, 167, 176, 177, 180, 306, 308, 310, 314, 318
farm/manufacturer hybrid quality of, 66, 98
fast-food contracts of, 30–31, 95, 98, 101, 107, 108, 109, 159, 169, 178, 225, 267, 275, 306, 311
feed mills of, 5, 8, 21, 24, 30, 33, 83, 103, 105, 134, 316
field technicians at, 9, 17, 18–20, 24, 28–32, 34, 39–40, 44, 102–4, 118, 120, 126, 137–38, 151, 192–93
financial losses in poultry division of, 264, 265, 266, 267, 270, 305
globalization of, 306, 308
government intervention as beneficial for, 58, 145, 166
government regulations evaded by, 66, 85
Green Forest plant of, 106–8
grocery and chain supplier contracts with, 3, 31, 83, 158, 159, 169, 178, 225, 265, 267, 275, 288, 311
growing customer base of, 98, 101, 108, 159
hatcheries of, 5, 19, 21, 36–37, 44, 83, 103, 108, 134, 270
hidden prevalence of products supplied by, 2–3, 177, 178, 179, 311
hog farming division of, see Tyson Foods, hog division of
improving of complex efficiency at, 105–6, 107
industry dominance of, 3, 4, 5, 6–7, 108, 110, 111, 114, 145, 159, 160, 169, 174, 175, 176, 180, 204, 208–9, 233, 235, 266, 273, 281n, 318
Intensified Management Status program of, 126, 130, 131
internal coup at, 178–80
Johnny Tyson as CEO of, 167, 169, 174–75, 176–80
Johnny Tyson named chairman of, 163–64
labor disputes and, 83–85, 256
lawsuits filed against, 37, 100, 257, 269, 283, 317
lobbying operation of, 251n, 279, 286, 292, 295
market-downturn survival strategies of, 77–78, 100, 102, 179–80, 270–71, 305, 311–13
marketing department at, 106, 177–78, 180
mergers and acquisitions by, 81–82, 85–86, 93, 96, 98–102, 104, 105, 108, 109–10, 111, 174–76, 177, 306, 314, 316
Miller vs. Smithfield Foods legal battle and, 236, 241, 257
1990s financial losses of, 163, 167, 169, 174
official statement issued to author by, 20n, 325–26
Performance Improvement Program of, 130
pioneer business model of, 4, 5–6, 69–70, 78, 92, 93, 102, 107, 110, 111, 149, 152–53, 167–68, 169, 173–74, 180, 187, 209, 212n, 223, 225, 226, 240, 241, 262, 287, 311
poultry slaughterhouses of, 2, 5, 8, 11, 21, 22, 23, 33, 46, 83, 87, 93, 98, 102, 106, 107, 110, 118, 125, 132n, 160–61, 162, 177, 180, 226, 270, 288, 306, 312, 314, 318
production cutbacks in, 266, 267–68, 270–71, 275, 305, 312, 313
profits of, 10, 12, 110, 140, 157, 159, 166, 174, 177, 204, 310, 311–13, 314, 315
in public response to GIPSA rule, 293–94, 295
raising of prices by, 3, 12, 313
rebranding campaigns of, 176–78, 179, 180
rural economies reshaped by, 3, 5, 6, 9–10, 11–13, 46, 67, 106, 111, 145, 180–81, 191, 227, 288, 312, 314–16
sales forecast meetings at, 266–67
Seafood Group of, 159, 164, 167
secrecy and, 2, 4, 8, 9, 116, 117, 121, 157, 224, 256, 294
smalltown economic dependence on, 1, 2, 8, 21, 315
specialty chicken products produced by, 30–31, 86–87, 91, 95, 106–7, 163
Springdale headquarters of, 4, 8, 11, 20, 21, 30, 33, 81, 89, 92, 94, 96, 100, 159, 162, 163, 168, 177, 179, 180, 264, 265–66
standard dress code at, 9, 63
stock prices of, 163, 164, 169, 265, 266
strict contractual terms and conditions set by, 24–25, 30
supply chain group of, 266–67, 270, 271, 288
targeted retaliation against farmers by, 4, 36, 37–38, 43, 269
tax evasion strategies of, 73–74
tight control over chicken farmers by, 5, 9, 17n, 23–25, 30, 33, 38, 43–44, 83–84, 85, 103, 114–15, 117, 120, 131, 134, 138–39, 159, 173, 232, 237, 257, 310, 312
Tollett as CEO of, 162–63
tournament payment system of, 24, 33, 105–6, 114–17, 119, 120–22, 124–25, 126, 127, 130–32, 139, 145, 192, 256, 257, 284, 293–94, 299
trucking lines of, 2, 21, 22, 24, 27, 33, 34, 35–36, 87–88, 133, 136, 151, 156–57, 200, 265, 266, 288
trucking log errors at, 34–35
2008 financial crisis and, 264–65, 266, 267, 270, 271, 305, 311–13
vertical integration in, 4–5, 20–22, 25, 109, 115, 156, 157, 172, 174, 191, 202, 226, 231, 262, 270, 271, 275, 288, 316
Waldron complex of, 1–2, 3, 6–7, 8, 11, 21–22, 26, 30, 32–34, 37, 38, 45, 102–4, 115, 118, 121, 123, 125, 126, 130, 162, 226
weekly senior leadership meetings at, 87, 89, 92–93, 96, 155, 168
Tyson Foods, cattle division of, 175, 208–9, 211, 217, 221–23, 224, 227, 266, 267, 269, 284
cattle buying operations at, 220–21
Garden City plant of, 212
grid system of payment in, 222, 225
growth hormones used by, 209, 224–26, 227
slaughterhouses in, 180, 224, 270, 288, 311, 314
tight control over animal producers in, 5, 7, 209, 224, 227, 266, 284
Tyson Foods, hog division of, 162, 168, 175, 191–94, 196, 199–200, 203, 240, 242, 266, 267, 285
ambitions for creation of, 152–53, 155
canceling of contracts by, 193–94
and decline of independent hog farmers, 191, 194
experimental flagship farms in, 149–52, 154–55, 192
financial struggles of, 164, 167–69, 174
Holdenville complex in, 156–57, 168, 193, 227
industrialization of, 5, 149, 152–53, 156–58, 167–68, 169, 187, 189, 191, 196, 204
month-to-month contracts offered by, 193–94, 198
“nurseries” of, 156, 157, 191, 226–27, 266
recruitment of contract farmers in, 187–89
slaughterhouses in, 157, 180, 196, 270, 288, 311, 314
Smithfield Foods as biggest competitor to, 167–68
tight control over animal producers in, 5, 156, 157, 159, 184, 192–93, 204, 266
tournament system of pay in, 192
vertical integration in, 156, 157, 191, 202
Tyson’s Pride, 307
unemployment rates, 156, 195, 267, 276, 297, 311
Union Parish, La., 230, 231–33
unions, 83, 169, 170, 244, 250, 262
U.S. Bank, 141
U.S. General Accounting Office, 73
Valmac Poultry, 100, 101–2, 104, 110
Varney, Christine, 276, 277–78, 287, 294, 295, 303
as USDA/DOJ public workshops, 279, 280
vertical integration, 4–5, 6, 55–56, 109, 233, 247, 250, 262, 275, 285, 314
in beef industry, 5, 172, 209, 285
de facto, 209
Iowa’s ban on, 240–41, 242, 243, 253, 255
Miller in legal battle against, 229, 233, 236, 241–44, 245, 253–54, 255, 269, 280, 287
pitfalls of, 229–33, 260, 316
in pork industry, 5, 156, 157, 172, 191, 202, 237, 240, 241, 242, 269, 280, 285, 287
in poultry industry, 5, 20–22, 25, 55–56, 58, 61, 62, 65, 66, 78, 81, 93, 109, 110, 115, 172, 226, 230, 231, 242, 270, 275, 287, 294
of Tyson companies, 4–5, 20–22, 25, 56, 58, 61, 62, 65, 66, 78, 93, 109, 115, 156, 157, 172, 174, 191, 202, 226, 231, 262, 270, 271, 275, 288, 316
Vietnam War, 67, 188
Vilsack, Tom, 275, 276, 279, 282, 285, 286, 291, 294, 296, 299, 300, 302, 303
in defense of new GIPSA rule, 289–90, 291
Morning Joe appearance of, 297–98
Obama’s selection of, as secretary of agriculture, 12, 268–70
at USDA/DOJ public workshops, 279, 280–82
Virginia Poultry Growers Cooperative, 273–74
Waldron, Ark., 1–2, 3, 10–12, 18, 25, 30, 34, 42, 44, 46, 103, 104, 111, 117, 118, 125, 128, 135, 145, 232, 303, 315, 319
Buddhist temple in, 137
Chambers Bank in, 1, 26, 38–39
demise of chicken farms in, 40, 43, 45, 46, 113, 118, 127, 137
economic hardship in, 11–12, 25, 45, 146
Laotian immigrants in, 113, 114, 118–19, 120, 137, 141
Tyson complex in, 1–2, 3, 6–7, 8, 11, 21–22, 26, 30, 32–34, 37, 38, 45, 102–4, 115, 118, 121, 123, 125, 126, 130, 162, 226
Wal-Mart, 83, 98, 108, 109, 110, 153, 177, 225, 262, 267, 275, 288, 316
Walton, Sam, 98
Ward Feed Yard, 221–22, 223, 224n
Washington Creamery, 85–86
Wayne Poultry, 292–93
Weiser, Philip, 287
Wendy’s, 31, 91, 92, 98
West, Robert, 317
West Bend, Iowa, 186, 187, 189, 198, 199
Whittemore, Iowa, 184, 186, 187, 189, 198, 199, 201
feed store in, 189–90, 201
Wilson and Company, 76
Winter, Ken, 217–20, 222, 223, 224, 226, 282
Winter, Ross, 218
Winter Feed Yard, 217–19, 220, 221
Winters, Ken, 284
Wirtz, Chuck, 183–87, 191, 196, 198–99, 202, 204, 205, 282
feed store of, 189–90, 201
independent hog farm of, 184–87, 189–90, 194, 195, 199, 201, 203
Wirtz, Trela, 187
Wisconsin, 244
World War II, 54
Wray, Donald “Buddy,” 68–69, 70, 71, 88, 96, 106, 160, 264, 305, 318
as sales manager, 86, 87, 92
in weekly managers’ meetings, 74, 75–76, 77, 92–93
Xiong, Pa Chay, 142–43
Xiong, Tria and Mai, 142
Yandell, Jeremy, 32, 42
Yandell, Jerry, 17n, 18, 22, 24, 25–29, 31–32, 34, 41–43, 114, 116, 125, 128, 134, 135, 136, 145, 284
childhood of, 25–26, 41
diseased birds of, 18–19, 20, 27–29, 32, 38, 39–40, 41, 43, 44
financial struggles of, 19, 20, 28, 32, 38–39, 40, 41–42, 43, 44–45, 113
Yandell, Kanita, 17–20, 26, 32, 38, 39–40, 41, 42, 43, 44–45, 114, 135
Yang, Mai, 142
Yang, Nouk, 128–29, 132, 133, 134, 135–36, 137, 141
Yang, Nue, 128–29, 132, 133, 135, 136, 137
Yang, Tua, 132–35
Yang family, 132–35, 139, 145
Zilmax (growth hormone), 7, 224–26, 227
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Copyright © 2014 by Christopher Leonard
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Library of Congress Cataloging-in-Publication Data
Leonard, Christopher.
The meat racket : the secret takeover of America’s food business / Christopher Leonard.—1st ed.
p. cm.
Includes b
ibliographical references.
Meat industry and trade—United States. 2. Tyson (Firm) 3. Investigative reporting. I. Title.
HD9415.L46 2014
338.7'636500973—dc23
2013040588
ISBN 978-1-4516-4581-1
ISBN 978-1-4516-4584-2 (ebook)