CHICAGO, Ill. (Reuters) — Tyson Foods Inc. is weighing new sites for a $320 million chicken slaughterhouse after opposition from residents of a small Kansas town picked for the project, the company’s chief executive officer said.
The project planned for Tonganoxie, Kansas, would have been Tyson’s first new plant since the 1990s and included a chicken hatchery and feed mill, according to the company.
Tyson said it would increase its overall production capacity by processing up to 1.25 million birds per week.
However, residents were concerned about its impact on the environment and other issues.
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“We’ll be delayed slightly here,” Tyson CEO Tom Hayes said after the company reported better-than-expected earnings.
U.S. per capita consumption of chicken is expected to hit a record high this year, according to the National Chicken Council, a trade group that said about 170 million chickens are slaughtered each week for meat.
Chicken sales have increased as consumers seek more protein in their diets. Some view it as a healthier alternative to beef and pork.
Tyson decided to build a new slaughterhouse because it was buying more chicken than it wanted from other producers to meet demand, Hayes said.
He declined to say when Tyson would pick a new site. The company had expected to break ground in Tonganoxie this fall.
Prestage Farms, the nation’s seventh-largest hog producer, faced resistance from Mason City, Iowa, residents over a pork processing plant last year. The company now plans to finish building its $240 million plant in Wright County in Iowa next year.
Tyson previously won support from state and local elected officials to locate the plant in Tonganoxie.
“I don’t know how in touch all of the officials were with what the direct local sentiment was for all of those in the local community of Tonganoxie and the surrounding area,” Hayes said.Â
