Costs for pork and beef have fallen over the previous yr as demand has softened, one of many largest U.S. meat producers says.
Shares of Tyson Meals plunged 12 p.c in early buying and selling Monday after the corporate reported first-quarter outcomes that embrace anticipated 2023 losses of two p.c and 1 p.c on pork and beef respectively due to decrease revenue margins. Its general gross sales of $13.1 billion had been little modified in comparison with final yr.
All 4 of the corporate’s main protein companies are experiencing “uncommon challenges,” stated Donnie King, president and CEO, in an investor name. Beef costs fell 5.4 p.c within the second quarter due to decrease demand in the USA, whereas pork costs sank 10.3 p.c on softer world demand. On the similar time, provide chain prices stored rising, as the corporate paid extra for cattle than final yr.
“The primary half was difficult, and lots of the head winds we’re experiencing are prone to persist via the fiscal yr,” stated Tyson Meals chief govt John R. Tyson.
In late April, the corporate introduced plans to put off 10 p.c of its company workforce and 15 p.c of its senior administration positions.
This can be a growing story and shall be up to date.
