020921 Pork Producers Sue TysonSeptember 15, 2002Russellville, AR (AP) - Dozens of pork producers sued Tyson Foods Inc., alleging the meatpacking giant abandoned them in a recent restructuring. Tyson announced last month that it would close its company-owned and leased hog farms and end contracts with 132 contract hog producers in Arkansas and eastern Oklahoma. Farmers said they received letters from the Springdale, Ark.-based company, saying it was discontinuing pork operations in the area effective immediately. The lawsuit seeks unspecified damages. Tyson, the world's largest processor and marketer of beef, chicken and pork, left the pork- processing business in the mid-1990s, then re-entered it after acquiring meatpacker IBP for $3 billion in September 2001. The restructuring began last month, and should be completed in the second quarter of the 2003, Tyson said. Tyson said transportation costs were a big factor in the decision to carry out the restructuring. Competing companies have pork processing operations closer to packing facilities, avoiding higher transportation costs for both finished hogs and grain, Tyson said.
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