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Diving overview:
- Tyson Foods said value-added products and operational efficiencies across its production facilities helped it cope with declining hog numbers and record-low cattle supplies in FY25.
- Food manufacturers’ efforts to address reduced beef and pork availability have been particularly effective in the prepared foods segment, which has seen the highest fill rates since 2013, said COO Devin Cole. In the performance announcement on November 10th,.
- “In the beef and pork category, we are increasing production and sales by leveraging previously undervalued segments to develop more value-added products such as seasonings, pickles and special cuts,” added CEO and Director Donnie King.
Dive Insights:
Tyson executives have emphasized yield improvements and plant and production efficiencies as a means of managing beef, pork and chicken supplies. “Our multi-protein, multi-channel portfolio, combined with our team’s focus on operational execution in a dynamic macro environment, continues to deliver results,” said CFO Curt Calaway.
However, the beef segment remains the company’s “only weak spot” and the company noted that it expects livestock supplies to remain tight until 2026.
Tyson and other major meatpackers are exploring smaller U.S. cattle herds because: Drought suppresses cattle producers To rebuild inventory and revive carnivorous pests In Mexico, it is known as the New World screwworm.
“Despite ongoing headwinds, we remain focused on what we can control, including shifting additional throughput back to our harvest facilities and tools to increase our ability to adapt to changing market dynamics,” Cole told investors on the Nov. 10 earnings call.
Amidst the multifaceted confusion, Tyson announced his plans on November 21st. close a beef processing plant Reduce production at its Lexington, Nebraska, and Amarillo, Texas beef facilities.
Meanwhile, Tyson offset lower pork sales in the fourth quarter with higher prices due to fewer hogs harvested during the fiscal year that ended in late September, Cole said. The company also sought: maximize We started supplying pork by using it in the prepared food sector, such as pork belly for bacon, ham for lunch meat, and trimmings for sausages.
“We will continue to increase utilization as we are able to improve the accessibility, quality and landing costs of raw materials,” Cole said.
Editor’s note: This story first appeared in the Procurement Weekly newsletter. Sign up here.
