Decreased Beef Sales Weighs on Tyson, Pork Expanding

SPRINGDALE, AR – Tyson Foods released its latest quarterly report last week and explains that beef sales volume decreased due to a reduction in live cattle harvest capacity resulting from a fire that caused the temporary closure of a production facility for the majority of the first quarter of fiscal 2020. The average sales price increased as beef demand remained strong but operating income increased. Sales in pork volume increased due to increased domestic availability of live hogs and strong demand for pork products. Average sales price increased associated with higher livestock costs and stronger export markets and operating income increased as well. The chicken sector enjoyed increased sales volume primarily due to a business acquisition, and average sales price increased due to lower rendering and blending sales. The main area of concern has been in the prepared foods sector as sales decreased in volume across the consumer products business.