Tyson invests in AI-enabled robotics firm to boost worker productivity – Food Dive

Dive Brief:

The pandemic has worsened what has been a long-running labor deficit in the meat processing industry.

With up to 20% of Tyson's 120,000-member workforce not showing up on some days for a variety of reasons, automation is "one of our solutions to what we are experiencing today,"Hector Gonzalez, Tyson's senior vice president of human resources,told Food Dive in a recent interview.

Most recently, Tyson has focused on refining its use of automation and robotics so it can move product more precisely.Some tasks require the ability to sort through differently shaped cuts of protein, or demand a delicate touch. According to Soft Robotics, its SoftAI software can bring the finesse of a human hand to applications as diverse as shifting chicken breast tenders to packaging soft marshmallow Peeps.

"We are continually exploring new areas in automation that can enhance safety and increase the productivity of our team members," Rahul Ray, senior director of Tyson Ventures, said in a statement. He noted the transformative potential of Soft Robotics' robotic technology, computer vision and AI platform.

Demand for Soft Robotics' automation technology has been so robust due to the ongoing labor crisis that the company said it recently experienced two of its largest sales quarters in its seven-year history.

For Tyson, the Soft Robotics technology is yet another tool in its technology toolbox. In 2019, the pork, beef and chicken processor built a manufacturing automation centernear its headquarters in Arkansas to develop and test automated and robotic technologies that do everything from detecting product defects to stacking pallets.

Investing in automation is key for Tyson following a surge in protein demand by consumers as they look to have a balanced diet, satisfy hunger throughout the day and build muscle.

In the company's second-quarter earnings call, the company noted how volumes were under pressure despite surging demand for meat because of COVID-19-related production inefficiencies. Tyson's then-CEO Dean Banks pointed to high employee turnover and absenteeism.

Tyson is investing in automation and technology "to try to alleviate these more difficult and higher turnover jobs," and to reclaim some of the efficiencies and profitability it has lost, Banks said.

Other meat producers also are investing heavily in automation, including Pilgrim's Pride, the second-largest poultry producer that is majority owned by Brazilian meat giant JBS.

"We continue implementing a long-term strategy of introducing more automationin our operations to reduce operational challenges to labor and again in the future," Fabio Sandri, the CEO of Pilgrim's Pride, said in the company's first-quarter earnings call.The Colorado-based firm plans to spend more than $100 million on automation during the next year, which it believes will help it trim 5,600 positions.

Automating meat factories has long been a difficult feat because it is costly and carcasses come in varying sizes so it can be hard for robots to cut and work with all types accurately. But as the coronavirus ravaged meat plants, forcing many to temporarily shutteras thousands of workers got sick, more companies accelerated their plans for automation. Meat and poultry companies also are automating certain tasks that can be repetitious or prone to injury, such as moving or loading boxes.

Tyson's investment in Soft Robotics, and the hundreds of millions of dollars it has spent on technology and automation, is likely just the beginning as the meat and poultry giant joins other competitors in making their businesses more efficient and predictable.

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Tyson invests in AI-enabled robotics firm to boost worker productivity - Food Dive