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Foster Farms is an American poultry company that has been privately owned since 1939. It was founded by Max and Verda Foster, who began by investing $1,000 into a farm in Modesto, California, where they raised turkeys. By 1987, Foster Farms was selling about 140 million chickens per year, making it the largest chicken producer in California. By 1996, the company had become the largest poultry producer on the West Coast and the eighth-largest in the US. However, it is unclear if Foster Farms is the biggest chicken producer in the world. The company has faced challenges, including a salmonella outbreak in 2013 and criticism for its handling of COVID-19 cases among its employees. In 2022, Foster Farms was acquired by the private equity firm Atlas Holdings, with former Tyson Foods CEO Donnie Smith assuming the role of CEO.
| Characteristics | Values |
|---|---|
| Year founded | 1939 |
| Founders | Max and Verda Foster |
| Current owner | Atlas Holdings |
| Year of acquisition by current owner | 2022 |
| Location | Livingston, California |
| Number of employees | 10,000-12,000 |
| Annual revenue | $3 billion |
| Type of company | Poultry company |
| Products | Chicken and turkey products |
| Area of operation | West Coast, with a few locations on the East Coast |
| Position in the market | Largest poultry producer in California, second-largest corn dog producer in the US |
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What You'll Learn
Foster Farms: History and Overview
Foster Farms is an American poultry company that has been privately owned since 1939. It was operated by the Foster family from 1939 until 2022, when it was purchased by private equity firm Atlas Holdings. The company is based in Livingston, California, and operates throughout the West Coast, with a smaller number of locations on the East Coast.
The company was founded in 1939 by Max and Verda Foster, who invested $1,000 into a farm in Modesto, California, where they raised turkeys. Max worked out of an office on the back porch of the farmhouse, while Verda tended to the chicks and turned the eggs in the hatchery to keep them warm. In 1942, Max quit his day job as a reporter and city editor for the Modesto Bee. In the 1950s, the Fosters expanded into raising cattle and chickens, and acquired another farm and a feed mill, which allowed the company some independence from outside feed contracts. In 1959, they acquired the Sunland Poultry processing plant in Livingston, California, and moved their headquarters there in 1960. In 1969, Max and Verda Foster turned the company over to their son, Paul Foster, who became president.
In 1973, Foster Farms opened a major distribution center in El Monte, California, to serve Southern California. However, in 1977, Paul Foster died of a sudden heart attack, and his brother, Thomas, became president of the company. In 1982, the company bought the property of The Grange Company and its branch, Valchris Poultry. By the 1980s, Foster Farms had expanded its product offerings to include bologna, poultry franks, and luncheon meats. Sales tripled between 1975 and 1988, and by 1987, the company was selling about 140 million chickens per year, making it the largest chicken producer in California.
In 1988, the company leadership decided to increase production capacity by creating a new fryer ranch in Merced, California, upgrading their feed mill in Ceres, California, and building a new distribution facility and sales office in Livingston, California. In 1989, they obtained a turkey processing plant in Fresno, California, which they converted into a chicken processing plant, enabling them to process 80 million more chickens per year. However, in 1987, a report claimed that a high percentage of chicken was infected with salmonella, causing sales to drop. In response, the company invited the media to visit its processing centers to assure customers that their chickens were safe.
In 1992, brothers George and Tom Foster gave up their roles as president and chief executive to a non-family member, Robert Fox, though they remained on the company's board. The company continued to expand, purchasing Lynden Farms in 1994 and becoming the largest poultry producer on the West Coast and the eighth-largest in the nation by 1996. In 1997, they acquired Pederson's Fryer Farms, the leading poultry producer in Washington, and opened a new processing facility in South Kelso, Washington, in 1998. In 1999, Tom Foster passed away, but George Foster remained active in the company. That same year, Foster Farms produced over 750 million pounds of poultry and was the second-largest corn dog producer in the United States. In 2001, they acquired Zacky Farms' chicken operations in Southern California, significantly increasing their production capacity.
Foster Farms continued to innovate in the 2000s, introducing the Fresh & Easy line of pre-washed, boneless, and skinless chicken pieces in 2003, and launching a campaign against plumping, the practice of adding weight to raw poultry by injecting it with saltwater and other solutions, in 2007. In 2022, the company was acquired by Atlas Holdings, marking the end of the Foster family's ownership. Today, Foster Farms is a major player in the poultry industry, employing approximately 10,000 people and generating revenues of approximately $3 billion annually.
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Products and Services
Foster Farms is an American poultry company that has been privately owned since 1939. It was operated by the Foster family from 1939 until 2022, when it was purchased by the private equity firm Atlas Holdings. The company is based in Livingston, California, and specializes in a variety of chicken and turkey products advertised as fresh and naturally locally grown.
Foster Farms offers a range of chicken and turkey products, including fresh whole chickens, chicken wings and tenders, and ready-to-eat meals. They also provide frozen cooked chicken options for effortless meals. In addition, Foster Farms produces chicken corn dogs and turkey pancake wraps.
The company has a line of premium chicken and turkey products, including sliced meats. They also offer recipes and coupons on their website.
Foster Farms has expanded its product offerings over the years, introducing new lines such as the Fresh & Easy line of individually wrapped, pre-washed, boneless, and skinless chicken breasts and thighs. They have also taken a stand against the practice of plumping, which involves adding up to 15% weight to raw poultry by injecting it with saltwater and seaweed extract and/or chicken stock.
In addition to its poultry products, Foster Farms has also ventured into other food categories. By the 1980s, they were offering products like bologna, poultry franks, and luncheon meats. The company also became the second-largest corn dog producer in the United States by 1999.
Foster Farms operates major processing facilities in California, Washington, Louisiana, Oregon, and Alabama, and its products are available nationwide. The company has a strong presence on the West Coast, with operations concentrated in that region, but it also maintains a small number of locations on the East Coast.
Foster Farms has a long history in the poultry industry and has expanded and diversified its product offerings over the years. The company has a wide range of chicken and turkey products available, and it continues to be a significant player in the American poultry market.
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Business Acquisitions
Foster Farms is an American poultry company that was privately owned by the Foster family from 1939 until 2022, when it was purchased by the private equity firm Atlas Holdings. Atlas Holdings is based in Greenwich and owns about 25 companies in various industries, including food manufacturing and distribution, construction services, power generation, and supply chain management.
Foster Farms has expanded significantly over the years through several business acquisitions. In 1987, the company purchased Oregon's largest poultry producer, Fircrest Farms in Creswell. In 1994, they acquired Lynden Farms for approximately $8.2 million. In 1997, Foster Farms continued its expansion by purchasing Pederson's Fryer Farms, the leading poultry producer in Washington, for approximately $7 million. In 1998, the company opened a $45 million processing facility in South Kelso, Washington, creating 500 new jobs. They also acquired the Butterball Turkey Company's processing plant and feed mill in Turlock, California, as well as a hatchery in Fresno, California.
In 2001, Foster Farms acquired the chicken operations of Southern California's Zacky Farms, including their Fresno plant, hatchery, feed mill, live production ranches, and Los Angeles distribution center. This addition significantly increased their production capacity with 1,500 new employees. In 2022, Atlas Holdings acquired Foster Farms for an undisclosed price, retaining the well-known brand name and appointing Donnie Smith, former CEO of Tyson Foods, as the new CEO.
While Foster Farms is a significant player in the poultry industry, particularly in California, it is not the biggest chicken producer in the world. The company has faced challenges, including a salmonella outbreak in 2013 and criticism for its handling of COVID-19 cases among employees. However, it continues to be a major employer and contributor to various causes in the San Joaquin Valley.
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Employment and Revenue
Foster Farms, an American poultry company, was founded in 1939 by Max and Verda Foster. The company has been privately owned since its inception and was operated by the Foster family until 2022 when it was acquired by private equity firm Atlas Holdings. Headquartered in Livingston, California, Foster Farms has operations concentrated on the West Coast and a smaller presence on the East Coast.
In terms of employment, Foster Farms has experienced growth and expansion over the years. The company's acquisition of Southern California's Zacky Farms in 2001 added 1,500 new employees, significantly increasing production capacity. By 2024, Foster Farms employed 10,000 people according to Forbes, while another source mentions a figure of over 12,000 team members. The company has a dynamic and collaborative work environment, emphasising the importance of talent, passion, and hard work. Foster Farms offers a range of benefits, including support for employee education and advancement within the company, fostering a culture that values its people.
Foster Farms has actively recruited for various roles, including project managers, mechanical engineers, and medical and health positions. The company has also invested in community partnerships and safety measures, conducting a mock HazMat drill in collaboration with local emergency services and health authorities.
Regarding revenue, Foster Farms has seen fluctuations in its financial performance. In 1996, the company's annual sales totalled around $900 million. By 2024, Forbes reported the company's revenue at $3 billion, with previous years' revenue ranging from $2.3 billion to $2.7 billion. The company's revenue growth can be attributed to its expansion, product diversification, and changing consumer preferences, such as the shift towards chicken consumption in the 1980s.
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Salmonella Outbreak
Foster Farms is an American poultry company that has been privately owned since 1939. It is based in Livingston, California, and operates across the West Coast and a few locations on the East Coast. The company produces a variety of chicken and turkey products, and in 1987, it was the largest chicken producer in California, selling about 140 million chickens per year.
In 1987, a report by the television newsmagazine show 60 Minutes claimed that a high percentage of chicken was infected with salmonella. This caused a drop in Foster Farms' sales. In response, the company invited the media to its processing centres to show that its chickens were safe.
In 2014, Foster Farms was again accused of salmonella poisoning. The Centers for Disease Control and Prevention found evidence that chicken from Foster Farms had caused a wave of salmonella infections, affecting more than 600 people.
Following this outbreak, Foster Farms took several measures to address the issue. They increased vaccination and spent more time washing equipment in processing plants. These efforts reduced the share of chicken parts testing positive for salmonella from 20% to less than 5%. While this was applauded as a new safety standard for the industry, some critics argued that it was not enough, and the presence of pathogens on food products was still a concern.
Foster Farms also ensured that the breeding hens in their hatcheries were salmonella-free, as the presence of salmonella in these hens would mean their offspring would also be infected. They also allowed inspectors from the USDA to conduct more extensive safety tests, sampling cut-up chicken parts such as breasts, thighs, and wings, in addition to whole chicken carcasses.
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Frequently asked questions
No, Foster Farms is not the biggest chicken producer in the world. It is, however, the largest poultry processor in California and the largest poultry producer on the West Coast. It is also the 8th largest poultry producer in the US.
Foster Farms is based in Livingston, California, and has operations concentrated on the West Coast. It also maintains a small number of locations on the East Coast.
Foster Farms produces a variety of chicken and turkey products, including fresh whole chickens, chicken wings and tenders, ground meat, deli slices, marinated items, and frozen, breaded products.
Foster Farms employs approximately 10,000 people and is one of the largest employers in the San Joaquin Valley.
Foster Farms was owned and operated by the Foster family from 1939 until 2022 when it was purchased by the private equity firm Atlas Holdings.
