US meat giant Tyson Foods has entered into a joint venture with local animal fat specialist Jacob Stern & Sons.

The agreement, through Tyson’s beef and pork subsidiary Tyson Fresh Meats, will see the establishment of JST Global which will serve the worldwide fats and oils market.

The terms of the agreement have not been disclosed. 

Tyson Fresh Meats, based in Dakota Dunes, South Dakota, operates six beef plants and six pork plants in the US while California-based Jacob Stern & Sons is among Tyson’s largest customers for animal by-products and is the largest US processor and marketer of animal fats.

Steve Stouffer, group president, Tyson Fresh Meats, said: “We maximise the value of every animal we harvest so that no part of the animal goes to waste. 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.”

Phil Bernstein, chairman, Jacob Stern & Sons, said: “Jacob Stern and Tyson Fresh Meats have enjoyed a strong relationship for over 50 years. Combining Tyson’s vast supply of animal fats with Jacob Stern’s Texas operations is a natural evolution and positions JST Global to meet growing worldwide demand.”

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Beef and pork by-products of the fresh meats business, along with fats and oils derived from other sources, are key ingredients in thousands of products in industries such as pharmaceuticals, personal care and animal nutrition, plus the developing field of renewable fuels.

Following a transition period, the marketing of all animal fats generated by Tyson Fresh Meats will be conducted by JST Global in Houston, Texas, Dakota Dunes, and Omaha. Jay Van Valen, formerly president of Jacob Stern & Sons’ Texas Division, will serve as CEO of JST Global, which will have its headquarters in Houston. The Jacob Stern & Sons and Tyson Fresh Meats sales teams will collaborate.

Van Valen said, “With a secured supply, JST Global is strongly positioned to address the global demand for commodity and value-added animal fat.”