John W. Tyson

John W. Tyson (189_ -1967) was the founder of the company that became corporate food giant Tyson Foods.

In the early 1930's, John Tyson knew he could make money by selling chickens outside Arkansas' borders, so he began hauling birds to markets as far away as Kansas City and Chicago. Before long, Tyson was moving toward vertical integration, where he could control the product from the egg to the consumer's table. First, he purchased incubators from a local hatchery-owner when his chick supplier refused to supply birds. The incubators were a success, and Tyson quickly had all of the chicks he needed to supply local growers. Later on, when a local feed mill told Tyson he would have to wait for feed, he decided to mill his own. By the end of the decade, he had become a commercial feed dealer for Ralston Purina. [ [http://www.tyson.com/FoodService/AboutTyson/History/1930s.aspx About Tyson - History - 1930s ] ]

In the 1940's John Tyson's fledgling business continued to grow. In 1943, he purchased the first company-owned broiler farm, located in Springdale, Arkansas. Two years later, he made another leap with the purchase of New Hampshire Red Christy chickens, birds that were bred for meat yield. Tyson went against the industry trend and began cross-breeding birds. As it turned out, Tyson's birds performed better than the pedigrees. In 1947, Tyson Feed and Hatchery was incorporated. Tyson's company now provided three essential services: the sale of baby chicks, the sale of feed, and the transportation of chickens to market. By the end of the decade, giants such as Swift and Swanson were basing slaughter operations in Northwest Arkansas so they could be close to the supply of birds. Refrigerated trailers were beginning to be used to transport ice-packed chicken. Despite the advances in technology, the industry was still at the mercy of the market. [ [http://www.tyson.com/FoodService/AboutTyson/History/1940s.aspx About Tyson - History - 1940s ] ]

By the time 1950 rolled around, John Tyson's company was processing about 96,000 broilers a week. His entrepreneurial ideas had caught on, and there were 19 other companies in the area that were providing similar services. The decade was still young when, in 1952, a young Don Tyson left the University of Arkansas, where he was studying agricultural nutrition. He joined his father's company as a general manager. Though the business was growing rapidly, a fluctuating market and periodic outbreaks of disease left the poultry industry vulnerable. In fact, Swanson offered to buy Tyson out the very same year that Don joined the company. While John and Don may have briefly entertained the idea of selling out, they talked it over and decided to keep going. By that time, the hatchery was producing 12,000 chicks per week. The back seat was removed from John Tyson's old car, allowing the birds to be transported to the farms. Annual sales were approximately $1 million. Toward the end of the '50s, John Tyson tried and failed to convince an out-of-state company to build a processing plant in Northwest Arkansas. Knowing he had already purchased the land, Don persuaded his father to let him build the plant at a cost of $75,000. Some months later, and at a cost of $90,000, the plant on Randall Road in Springdale, Arkansas, was finished. Although John was not happy with his son for exceeding the cost estimate, the Tyson company had its first processing plant. [ [http://www.tyson.com/FoodService/AboutTyson/History/1950s.aspx About Tyson - History - 1950s ] ]

1961 was a lean year for Tyson's Feed and Hatchery. Production costs exceeded broiler prices for 34 consecutive weeks. Still, John and Don Tyson would not be daunted. They responded to the climate by going into the commercial egg business and building new offices in downtown Springdale. Two years later, in 1963, the company went public and sold 100,000 shares of stock for $10.50 a share. The company changed its name to Tyson's Foods. [ [http://www.tyson.com/FoodService/AboutTyson/History/1960s.aspx About Tyson - History - 1960s ] ]

In 1967, John Tyson died. That year, Tyson Foods had revenue of over $50 million. Don Tyson succeeded his father as President and CEO of Tyson Foods, and over the course of the next four decades, built the company into a $10 billion business.

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