Tyson Fresh Meats Inc. of Dakota Dunes, South Dakota, the beef and pork subsidiary of publicly traded Tyson Foods Inc. of Springdale, said Monday that it had launched a joint venture with Jacob Stern & Sons Inc. of Santa Barbara, California.
The joint venture, JST Global LLC, aims to meet what the meat processor called "evolving global demands for fats and oils" across an array of industries, including pharmaceuticals, personal care, animal nutrition and renewable fuels.
"We maximize the value of every animal we harvest so that no part of the animal goes to waste," Steve Stouffer, group president of Tyson Fresh Meats, said in a news release. "Responsibly processing fats and oils are a key part of our business and our commitment to sustainability. This joint venture gives us the opportunity to continue to value-up our beef and pork production, enabling us to innovate in new untapped markets while continuing to work directly with existing animal fat customers and the emerging renewable energy market."
The companies said they would not disclose "specific terms of the venture."
Tyson Fresh Meats operates six beef and six pork plants in the U.S. Tyson said Jacob Stern & Sons is among its largest customers for animal by-products and is the largest U.S. processor and marketer of animal fats.
Under the joint venture, the marketing of all animal fats generated by Tyson Fresh Meats will be conducted by JST Global offices in Houston, Dakota Dunes and Omaha, Nebraska. Jay Van Valen, formerly president of Jacob Stern & Sons' Texas division, will be as CEO of JST Global.
"With a secured supply, JST Global is strongly positioned to address the global demand for commodity and value-added animal fat," Van Valen said. "JST Global's scale and broad capabilities are key differentiators that will allow us to deliver customized solutions, particularly in highly specialized markets such as renewable energy."
Privately held and family-owned Jacob Stern & Sons was founded in 1857 and is now a leading distributor of oleochemicals through its Acme-Hardesty division, located in Blue Bell, Pennsylvania, and is the largest U.S. exporter of tallow.