LIVESTOCK HIGHLIGHTS: Top Stories of the Day
Tyson Adds Workers, Breeds Bigger Flocks as Chicken Demand
The biggest U.S. chicken producer is struggling to keep pace
with rising demand for crispy sandwiches and wings.
Tyson Foods Inc. said it is raising wages to improve staffing at
its poultry plants, spending tens of millions of dollars to buy
meat from competitors and even bringing in a new male bird to help
breed bigger flocks.
Understaffed processing lines and problems on farms and
hatcheries have cut into the Arkansas-based meat giant's chicken
production, executives said, at the same time that reopening
restaurants' demand for chicken is booming.
Costs Eat Into Tyson's Chicken Profits --- Market Talk
0756 ET - Demand for chicken sandwiches and wings is surging at
US restaurants this year, but for the country's biggest poultry
processor, rising costs are offsetting much of the benefit. Tyson
Foods says that while its average price for chicken climbed 7.8% in
the quarter ended April 3 and overall revenue increased, the
company also recorded $320M in legal contingencies and $125M to
$140M in higher feed ingredient costs. Those came on top of ongoing
Covid-19 expenses and severe cold weather across the US South in
February, which hit Tyson's chicken operations. Tyson's adjusted
operating income from chicken falls to $6M for the quarter from
$99M in the prior-year period. (firstname.lastname@example.org;
STORIES OF INTEREST
Chicken Boom Forces Tyson to Scramble -- Market Talk
1005 ET - US restaurants aren't the only ones having to scramble
for chicken breasts and wings. Tyson Foods, the top US chicken
producer, says it is spending more on outside meat purchases to
meet demand from customers, after labor shortages, cold winter
weather and other challenges raising chickens have constrained
Tyson's production. The company is working on staffing up plants
and even bringing in a new male breeding bird to help improve its
hatching rates, but for now, Chief Operating Officer Donnie King
says, "we're too dependent on the outside purchase of meat." In
chicken, Tyson buys meat from other processors when demand exceeds
the company's own supply. (email@example.com; @jacobbunge)
Tyson Foods Estimates 30% of Employees Vaccinated -- Market
0815 ET - Meatpackers have been vaccinating workers against
Covid-19 at plants since early February, but top US protein
producer Tyson Foods still has a long way to go. The Arkansas
company estimates 42,000 employees have been vaccinated so far,
which would represent about 35% of Tyson's US employee base, and
30% of its global total. The CDC estimates that 34.4% of the total
US population now are fully vaccinated. In the meat industry,
companies and unions have been working to overcome skepticism among
some plant workers, mounting educational campaigns and offering
incentives. (firstname.lastname@example.org; @jacobbunge)
Cattle Higher as Producers Have Difficulty Ramping Up -- Market
15:41 ET - Most-active live cattle futures trading on the CME
finished up 2% to $1.185 per pound Monday. The pace of cattle
slaughter is going slower than this time last year, suggesting some
issues with producers being able to ramp up to take advantage of
resurgent demand from food service providers. "Despite strong
demand, packers continue to have a difficult time ramping up
production," says Steiner Consulting. "Labor is a challenge for
packers on a good day and these days the problem has become even
worse as all industries are clamoring for people." Hog futures,
meanwhile, closed trading Monday down 0.5% to $1.12475 per pound.
Estimated U.S. Pork Packer Margin Index - May 10
Source: USDA, based on Wall Street Journal calculations.
All figures are on a per-head basis.
Date Standard Margin Estimated margin
Operating Index at vertically -
May 10 -$ 26.12 +$ 98.16
May 7 -$ 24.70 +$ 98.82
May 6 -$ 26.23 +$ 99.92
* Based on Iowa State University's latest estimated cost of production.
A positive number indicates a processing margin above the cost of
production of the animals.
This report compares the USDA's latest beef carcass composite
values as a percentage of their respective year-ago prices.
For Today Choice 67.4
(Percent of Year-Ago) Select 65.5
USDA Boxed Beef, Pork Reports
Wholesale choice-grade beef prices Monday rose $3.23 per hundred
pounds, to $309.11, according to the USDA. Select-grade prices rose
$3.49 per hundred pounds, to $293.76. The total load count was 71.
Wholesale pork prices fell 31 cents, to $111.39 a hundred pounds,
based on Omaha, Neb., price quotes.
(END) Dow Jones Newswires
May 10, 2021 17:19 ET (21:19 GMT)
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