Standard Terms for the Sale of Cattle to Tyson Fresh Meats, Inc.

EFFECTIVE JULY 6, 2026

(these "Standard Terms")

These Standard Terms apply to sales of Cattle (defined below) by Cattle owners, or their authorized agent ("Producer") to Tyson Fresh Meats, Inc. ("TFM"). Producer, if acting in an agency capacity, shall provide these Standard Terms to their Cattle owner principal. Section headings below are for convenience only and shall not be used in construing or interpreting these Standard Terms. TFM and Producer may be referred to herein individually as a “Party” and collectively as the “Parties.” 

1. CATTLE. TFM does not, unless expressly agreed upon in advance by TFM, accept deliveries of cattle at its facilities with the following characteristics:

  • A) cattle that exceed fifty-eight (58) inches in height at the point of withers;
  • B) non-ambulatory, slow moving, or severely foundered cattle; if a TFM animal welfare specialist confirms Producer shipped such cattle, Producer may be charged up to $1,000; 
  • C) cattle exceeding 1,600 pounds or less than 900 pounds;
  • D) cattle with abscesses, scars or ruptures, uncastrated males, freshly castrated males, or cattle with one or more fresh cuts or unhealed wounds; 
  • E) cattle with Cysticercosis (measled beef);
  • F) cattle with horns longer than six (6) inches in length or greater than one and one-half (1.5) inches in diameter at base of skull; 
  • G) cattle containing or presenting any other defect that would result in condemnation or downgrade of the carcass quality or cattle that would otherwise be unable to pass United States Department of Agriculture (“USDA”) antemortem inspection; and 
  • H) cattle with dairy conformation. Dairy conformation, as compared to cattle without, is indicated by a carcass having inferior muscling which includes without limitation (i) thinly muscled rounds, usually exhibiting a straight line from hock to tail; (ii) thin loins, indicated by a substantial dip in the sirloin-short loin juncture; (iii) disproportionately long and narrow ribeyes for corresponding carcass weight; (iv) longer carcass for corresponding carcass weight; (v) barrel of the body is usually deep and wide but thin; and/or (vi) narrow and thinly muscled chucks. 

Cattle without the above characteristics or cattle having such characteristics but approved for delivery by TFM shall be referred to herein as “Cattle.” 

Producer shall not add or replace cattle identified for a transaction prior to shipment with the exception of “same lot” cattle, and in such event only as mutually agreed upon by the Parties. Prior to any agreement on “same lot” cattle, TFM shall be allowed to inspect such cattle, which includes without limitation physical inspection by TFM. 

2. APPROVED SUPPLIER REQUIREMENTS. TFM will not accept Cattle deliveries from Producer unless Producer has provided TFM with an executed copy of TFM’s standard affidavit addressing and containing assurances from Producer as to: (A) prohibited feed and (B) drug withdrawal. Producers must be Beef Quality Assurance (“BQA”) Certified or a TFM-approved equivalent. Further information and resources on BQA can be found here: https://www.bqa.org/. TFM retains sole and absolute discretion as to the approval of any Beef Quality Assurance alternative(s).

3. GRADE AND YIELD SALES. Any Cattle sales to TFM on a quality grade basis (“Quality Grade”) and yield grade basis (“Yield Grade” and, together with Quality Grade, “G&Y Basis”) shall utilize USDA-assigned Quality Grades and TFM-assigned Yield Grades. G&Y Basis transactions shall consist of a base price per hundredweight (“Base Price”), premiums (“Premiums”), and discounts (“Discounts” and, together with Base Price and Premiums, “Terms”). G&Y Basis transactions shall be one of the following:

  • A) G&Y Programs: Producer and TFM negotiate Terms, with such Terms being specific to such Producer in relation to Cattle quality, attributes, volume commitments, etc. (“G&Y Programs”);
  • B) TFM Programs: Terms are unilaterally developed by TFM and available for Producer’s use (“TFM Programs”); TFM may revise the Terms of TFM Programs from time to time and in its sole discretion; Producers are encouraged to inquire before the time of sale as to the Terms of the desired TFM Program applicable at the time of any sale; 
  • C) Negotiated G&Y Transactions: Producer and TFM separately negotiate the Base Price and apply only the Premiums and Discounts of a TFM Program to Cattle delivered under such transaction (“Negotiated G&Y Transaction”); or 
  • D) CME Based G&Y Transaction: TFM’s separate “Live Cattle Contract – Native Cattle” is utilized for Base Price negotiation; the Premiums and Discounts of a TFM Program, or as negotiated between Producer and TFM, are then applied to the Cattle delivered under such transaction (“CME G&Y”). 

(The aforementioned defined G&Y Basis Programs in Section 3(A)-(D) collectively “G&Y Basis Transactions”). 

The price paid under G&Y Basis Transactions may be subject to TFM weekly buy spreads (“Spreads”) as indicated in the applicable G&Y Basis Transaction. The Spreads are updated weekly by TFM in its sole and absolute discretion and reported to the USDA. The Spreads are available with the regional Cattle buyer and are based on current market conditions. 

Freight to the TFM harvest facility shall be identified in the applicable G&Y Basis Transaction or shall be negotiated between the Parties. All Cattle sold on to TFM as a G&Y Basis transaction will be purchased by TFM strictly contingent upon Cattle carcasses passing USDA inspection and with corresponding weight diminution (if any) for all Cattle carcass parts condemned by USDA inspectors.

4. CAMERA GRADING SYSTEM. The usage and parameters of TFM’s camera grading system (as approved and certified by USDA pursuant to applicable regulations and authority, the “Camera”) for determining and assigning Quality Grades and Yield Grades for G&Y Basis Transactions are as follows: 

  • A) the Camera will assign Quality Grades to Cattle carcasses pursuant to applicable USDA regulations; USDA grading personnel with authority (and instruction) shall override a Camera-assigned Quality Grade in the event such grader observes a 20° difference in marbling compared to the Camera-assigned Quality Grade; 
  • B) the Camera will gather data to determine back fat (“BF”); rib eye area (“REA”); and kidney, pelvic and heart fat (“KPH”) of each Cattle carcass; 
  • C) the hot carcass weight (“HCW”) of each Cattle carcass will be based on the weight at the TFM hot scale; 
  • D) KPH will be estimated for each Cattle carcass through a USDA-approved equation developed by the manufacturer of the Camera; 
  •  
  • E) the REA will be the average for the Cattle carcass and the BF will be based on the most representative Cattle carcass side imaged as determined by TFM; BF may be torn from a Cattle carcass during the removal of the hide or trimmed for various reasons; if an accurate reading of BF cannot be made due to the removal of BF on both halves of the Cattle carcass at the point of measurement, a TFM carcass merchandiser will assign a Yield Grade based on an overall visual assessment of the Cattle carcass; 
  • F) if the Camera is unable to procure a Quality Grade, such will be assigned manually by the USDA; 
  • G) TFM will use the USDA yield grade formula for determining Yield Grade, described as follows: Yield Grade = 2.5 + (2.5 x BF) + (0.2 x KPH) + (0.0038 x HCW) – (0.32 x REA); the Yield Grade calculation will then be used to determine if a Cattle carcass is a Yield Grade 1 through 5 using USDA yield grade tables in effect as of the date of these Standard Terms; and 
  • H) if the Camera does not obtain an accurate reading, TFM will take a manual BF and REA measurement to determine Yield Grade; if the Camera or a TFM carcass merchandiser cannot accurately measure and assess the carcass for Yield Grade, then a default Yield Grade will be assigned as follows: 
    • i) USDA Prime and Choice Quality Grade Cattle carcasses will be defaulted to a Yield Grade 3; 
    • ii) USDA Select Quality Grade Cattle carcasses will be defaulted to a Yield Grade 2; 
    • iii) ‘no roll’ Cattle carcasses will be defaulted to a Yield Grade 2; and 
    • iv) all other Quality Grades will be defaulted to a Yield Grade 2. 

5. CARCASS WEIGHT SALES. The weight for determination of payment for Cattle carcass weight transactions (a.k.a. ‘in-the-beef’) (“Carcass Weight”) shall be the carcass weight from a TFM harvest facility hot scale. Discounts shall be applied as negotiated between the Parties. If TFM determines the hot scale did not capture an accurate weight for a Cattle carcass, a default weight will be applied. Documentation provided to Producer will indicate when a default weight has been used. All Cattle sold as Carcass Weight or a G&Y Basis transaction will be purchased by TFM strictly contingent upon Cattle carcasses passing USDA inspection and with corresponding weight diminution (if any) for all Cattle carcass parts condemned by USDA inspectors. 

6. LIVE SALES. Cattle purchased off live scale weight (“Live”) shall be paid at the price negotiated between the Parties. Discounts shall only be applied as negotiated between the Parties. If the live scale(s) at the TFM harvest facility are inoperable and TFM has purchased the Cattle Live, TFM may, in its sole discretion, take one of the following actions: 

  • A) establish a Carcass Weight price based on the Live price, in each case that is acceptable to the Parties; or 
  • B) instruct the trucker hauling the Cattle to weigh the loaded truck at the nearest certified scale then reweigh the truck at the same scale after unloading the Cattle and prior to washout; the difference between the loaded and unloaded weight of the truck plus agreed upon shrink will be used as the payment weight for the Cattle. 

Sale proceeds for the sale(s) of Cattle, whether G&Y Basis, Carcass Weight, or Live, shall be referred to herein as the “Proceeds”. Proceeds, less any applicable deductions in these Standard Terms and due to Producer, shall be referred to herein as “Net Proceeds”. 

 7. TITLE AND RISK OF LOSS. Title and risk of loss for Live transactions will pass from Producer to TFM as mutually agreed between the Parties. Title and risk of loss for Carcass Weight and G&Y Basis transactions will pass to TFM upon the individual Cattle carcass(es) passing the hot scale at TFM's facility. Producer will be responsible for any and all damages and costs, excluding incidental or consequential damages, incurred by TFM that arise from or are otherwise related to Cattle carcasses which contain drug residue or are adulterated in any other manner (which adulteration is due to Producer’s actions or inactions), even if title and risk of loss has transferred from Producer to TFM. Notwithstanding the foregoing, nothing in these Standard Terms shall alter or eliminate any rights or obligations of either Party in the event of any third-party claim. 

8. DELIVERY. For Cattle deliveries to TFM: 

  • A) Cattle shall not be in transport more than twenty-four (24) hours without Producer causing such Cattle to be unloaded, provided water and feed (hay), and rested at least twelve (12) hours before reloading.; 
  • B) all Canadian direct import Cattle delivered to TFM must be age verified in accordance with CFIA-approved programs recognized by USDA for import into the United States and all trailers must be sealed by the competent authority; 
  • C) In the event of travel time in excess of twenty-four (24) hours or an emergency transport problem that requires Canadian direct import Cattle or any other situation that requires sealed Canadian direct import Cattle or Cattle trailers to be unloaded prior to delivery to the applicable TFM facility, the following is required: 
    • i) a suitable location must be identified that provides necessary water, feed, and appropriate accommodation for the Canadian Cattle and/or Cattle; 
    • ii) a licensed veterinarian (“Veterinarian”) must be present at unloading to break the seals and observe and count the Canadian Cattle and/or Cattle as they are unloaded; if a local Veterinarian is not readily identified, contact to the appropriate state veterinary office should be made for assistance in finding a Veterinarian; 
    • iii) after the requisite resting period, a Veterinarian must be present to observe and count the reloading of Canadian Cattle and/or Cattle, and to provide an replacement seal to the trailer; 
    • iv) the Veterinarian shall prepare a written report describing the situation and detail what he/she did in the observations and counting of the Canadian Cattle and/or Cattle; this report must be sent with the driver and presented to the applicable TFM facility and USDA veterinarian when the Canadian Cattle and/or Cattle are delivered to the TFM harvest facility; and 
    • v) prior to the Canadian Cattle and/or Cattle arriving at the TFM facility, Producer and/or the driver shall contact the appropriate USDA-APHIS office and TFM complex manager advising them of the Cattle unloading and the reason therefor; and 
  • D) all drivers transporting Cattle must be BQA Transportation Certified to haul said Cattle and enter TFM’s harvest facilities and comply with BQA’s Transportation Manual, available here: https://www.bqa.org/resources/manuals. In the event of conflict between the provisions of this Section 8 and the BQA Transportation Manual, the provisions of this Section 8 shall control. 

9. PROCEEDS DEDUCTIONS & MORTALITY COVERAGE. TFM will deduct from the Proceeds all required beef board, check off payments, brand inspection fees, and all other required federal, state, or local governmental fees as may from time to time arise. If Producer is responsible for delivering the Cattle to TFM, TFM will provide Producer (to the extent available at the applicable TFM harvest facility) insurance against certain risks associated with death loss during the transportation of Cattle to the TFM harvest facility. This mortality coverage program (the “Program”), if available and provided that Producer does not affirmatively decline participation in the Program, contains certain terms and conditions and is provided for a fee which is automatically deducted from the Proceeds. A TFM CATTLE BUYER WILL INFORM NEW PRODUCERS OF THE PROGRAM PRIOR TO DELIVERY EITHER BY ORAL INSTRUCTION OR DELIVERY OF THESE STANDARD TERMS. IF PRODUCER CHOOSES TO DECLINE THE PROGRAM PRODUCER MUST INFORM TFM PRIOR TO SHIPPING CATTLE. If Producer affirmatively declines participation in the Program, Producer may not participate in the program for one year from the date of declination. Program costs and/or premiums may change from time to time at TFM’s sole discretion. Program costs and premiums specific to each TFM harvest facility are available from the respective TFM harvest facility scalehouse. The Program may also contain exclusions and limits including without limitation a limit on whether all Cattle deaths will be covered. This limit may be imposed on producers with a history of higher death loss and excessive loss ratio. This limit may be imposed at the sole discretion of TFM. 

10. MARKETABLE TITLE & LIENS. Producer represents and warrants it has good and marketable title to all Cattle delivered to TFM. If any security interest and/or lien as addressed by the Food Security Act of 1985 (7 USC 1631, et. seq.) or any foreign law (hereafter “Lien”) encumbers the Cattle at the time of delivery, Producer shall inform TFM of the existence of each such Lien and provide contact information for the corresponding lienholder (“Lienholder”). Absent written documentation from the Lienholder authorizing payment of Net Proceeds solely to Producer, TFM shall remit the Net Proceeds jointly to Producer and Lienholder. Producer shall indemnify and hold harmless TFM for any and all damages incurred arising from or related to Cattle encumbered by any Lien or other security instrument and delivered to TFM. 

11. PAYMENT. Net Proceeds shall be remitted to Producer and Lienholder, if applicable (or its authorized agent, as applicable), pursuant to the Packers and Stockyards Act of 1921, as amended. 

12. PRICING & ADJUSTMENTS. The Parties acknowledge that the buying and selling of Cattle occurs in a setting in which Producer can offer to sell Cattle to others and TFM can offer to buy Cattle from others. Having the opportunity to deal with others, the Parties have agreed to enter into a Cattle purchase and sale agreement with the other Party subject to these Standard Terms. Each Party acknowledges that the other Party may have used various factors and assumptions in assessing whether to offer or accept an identified price or pricing mechanism, including information provided or published by third parties (e.g., USDA fed cattle and beef price reports, live cattle futures prices, government data on cattle inventories, etc.). The Parties, unless otherwise memorialized in writing, do not warrant the accuracy, completeness, or appropriateness of any factors and assumptions used or made by the other Party. There will be no adjustment to the identified price or pricing mechanism if it is later discovered a third party made a mistake or error which affected such factors and assumptions as may have been relied upon by the Parties or a Party. NOTWITHSTANDING THE ABOVE, IF INFORMATION PROVIDED OR PUBLISHED BY A THIRD PARTY SOURCE IS AN EXPRESS TERM IN AN AGREED-UPON FORMULA USED IN A PRICING MECHANISM (FOR EXAMPLE, A USDA REPORT IS USED AS THE BASE PRICE), AND THIS INFORMATION IS INCORRECTLY REPORTED, THE PARTIES WILL ADJUST THE PRICE RETROACTIVELY UNDER THE FORMULA USING THE CORRECTED INFORMATION ONLY IF ALL THREE OF THE FOLLOWING OCCUR: A) THE THIRD PARTY SOURCE PUBLISHES A STATEMENT THAT THE PREVIOUSLY REPORTED INFORMATION WAS NOT CORRECT, B) THE THIRD PARTY SOURCE PUBLISHES CORRECTED INFORMATION, AND C) THE PRICE CALCULATED USING THE CORRECTED INFORMATION IS DIFFERENT FROM THE PRICE CALCULATED USING THE INCORRECT INFORMATION. For the avoidance of doubt, publication of updates of previously reported information shall not be considered corrections of previously published incorrect information. Any payment owed by TFM or Producer under this Section shall be paid per the Packers and Stockyards Act of 1921 as amended, after the recalculation is completed. Such recalculation shall be performed promptly following the applicable Party becoming aware of the correction of the information.

13. ANIMAL WELFARE.

  • A) Animal health and welfare is of utmost importance to TFM, which is committed to the well-being, proper handling and humane slaughter of all animals in its supply chain. To that end, TFM expects Producer will ensure proper care and welfare of all of Producer’s cattle. Producer represents and warrants that Producer is and will remain in strict compliance with industry standards relating to animal welfare and all applicable federal, state, and local laws. Producer shall also ensure compliance with TFM’s Zero Tolerance Policy and Animal Welfare training policy. Additional information on TFM’s practices and policies can be obtained by contacting TFM’s Corporate Animal Welfare Center of Excellence and here: https://www.tysonfoods.com/innovation/food-innovation/food-quality-leader/certifications-and-programs. 
  • B) Any suspected or reported non-compliance with any applicable animal welfare law, TFM animal welfare policy, or industry standard may be fully investigated by TFM, in TFM’s sole and absolute discretion. Depending on the outcome of that investigation, TFM may choose in its sole discretion to provide support to Producer to ensure compliance and may report the incident to a federal or state regulator or government agency. TFM may upon reasonable notice conduct an audit on Producer’s animal welfare policies and procedures and its facilities. If TFM notifies Producer that Producer is non-compliant with any applicable law, TFM animal welfare policy or industry standard, Producer will take corrective action to remedy such non-compliance. TFM reserves the right to terminate any existing or contemplated agreement(s) with Producer if TFM reasonably believes that the Producer is non-compliant with any applicable law, TFM animal welfare policy or industry standard.

14. GOVERNING LAW & SEVERABILITY. These Standard Terms shall be governed by and construed in accordance with the laws of the State of Delaware, without giving effect to any choice of law or conflict of law provisions, except to the extent that the application of Delaware law is prohibited by the laws of the state in which the principal part of the performance takes place under these Standard Terms. The provisions of these Standards Terms are severable. If any provision of these Standard Terms is found to be invalid, illegal, or unenforceable in any respect by a court of competent jurisdiction, such invalidity, illegality, or unenforceability shall not affect any other provision of these Standard Terms. In such event, the Parties shall negotiate in good faith to modify these Standard Terms to best reflect the original intent of the Parties in a valid and enforceable manner. In the event of any conflict between these Standard Terms and applicable law, the applicable law shall prevail to the extent of such conflict, but the remainder of these Standard Terms shall continue in full force and effect to the maximum extent permitted by law. 

15. SUPPLIER CODE OF CONDUCT. Producer agrees to comply with TFM's updated Supplier Code of Conduct, as amended from time to time and available at https://tyson.navexone.com/content/dotNet/documents/?docid=10681&app=pt&source=unspecified&public=true 

16. WRITTEN AGREEMENT CONTROLS. If the terms of a separate written cattle purchase and sale agreement or other written agreement between TFM and Producer conflict with these Standard Terms, the terms of such written agreement shall control. 

THESE STANDARD TERMS MAY BE UPDATED PERIODICALLY BY TFM IN ITS SOLE DISCRETION. THESE STANDARD TERMS ARE POSTED AT TFM HARVEST FACILITIES, ARE AVAILABLE FROM YOUR TFM CATTLE BUYER, AND ARE AT https://www.tysonfoods.com/legal/cattle-terms. 

 

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Mission Statement on Animal Well-Being

Tyson Foods, Inc.'s Mission Statement on animal well-being can be found here: https://www.tysonfoods.com/sites/default/files/2025-02/Tyson%20Foods%20Animal%20Welfare%20Statement_2025%20FINAL.pdf

Questions About Procurement Programs

If you have any questions about these Standard Terms, procurement programs, or any other questions, please communicate with your TFM Cattle buyer or contact TFM's corporate Cattle procurement department at 2200 W. Don Tyson Parkway, CP821A, Springdale, AR 72762.