Group sees poultry industry growing

Arkansas may have the largest meat company in the world, but the state doesn't lead in chicken production.

Marvin Childers, president of the Poultry Federation, said he expects Arkansas to move up in those rankings in coming years. He spoke at Tyson Foods Inc.'s headquarters Thursday before a joint meeting of the state House and Senate committees on agriculture, forestry and economic development.

"We currently have three companies that are looking for additional expansion, a place to put an additional poultry complex," he said. "I think you'll see poultry grow in Arkansas. Once Peco is fully operational, I think Arkansas will once again become the No. 1 poultry producing state in the nation."

Alabama-based Peco Foods Inc. is building a hatchery and poultry-processing plant near Pocahontas and a feed mill in Corning. The $165 million project is expected to create 1,000 new jobs.

But Childers said there were challenges to expanding the poultry industry in the state.

"Take Peco for example: They were negotiating in about four different states. So, economic development incentives, tax breaks, environmental issues -- the same things you would see for an automobile manufacturer," he said. "There has to be a balance, but we have to be competitive with our surrounding states."

Donnie King, Tyson's president of North American operations and food service, preceded Childers remarks.

"I've had the privilege of working in a number of different states and honestly can tell you ... I've never worked with and been involved in a state like Arkansas," he said. "This is unique. It is pro-ag. It is a good place to do business. It is a good place to grow."

Sen. Bruce Holland of Greenwood, chairman of the Senate committee, asked about genetically modified organism labeling and educating an increasingly disconnected public about agricultural issues.

Ben Noble, president of Noble Strategies, a federal and state lobbying firm, said the labeling is becoming an issue more states are tackling.

"Certainly you see the GMO fight bubbling bright at the federal level for a number of years," he said. "Some of the activists on the GMO labeling side that have not had success have gone to California, to Oregon, to the Northeast."

The National Chicken Council is working with manufacturers to try to come up with a federal program "that would be reasonable so when you're a company like Tyson you would not have to come up with 50 different labeling programs around the country," he said.

Regarding education, Ed Nicholson, Tyson's director of corporate social responsibility, community relations and social media, said the company tries to reach customers on Facebook and Twitter.

"We've recognized that this can be a challenge," he said. "We deal with every day. We try to educate people. That's the best thing we do."

Business on 09/19/2014

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