Tyson Foods Soars To Record After Hiking Beef, Chicken And Pork Prices By Double Digits | ZeroHedge
Francesco Abbruzzino, The Uncensored Report, LLC
Stock of Tyson Foods, the world’s second largest processor and marketer of chicken, beef, and pork after Brazil’s JBS S.A., is soaring 9%, hitting an all time high and is one of the S&P’s best companies this morning…
… after the company reported blowout earnings (thanks to passing on surging food prices) and announced that it is raising prices even more as it grapples with a tight labor market and smaller livestock herds. According to the report, beef prices jumped by 32% in the quarter, with chicken up ~20% and pork 13%.
This helped Tyson’s operating margin grow to 11.3%, up from 6.7%, a year earlier. The higher meat prices has, however, had the Biden administration scrambling as profits continue to mount at meatpackers, while runaway inflation continues to crush Biden’s collapsing approval rating.
This is what the company reported:
- Beef: Sales volume decreased due to the impacts associated with a challenging labor environment and increased supply chain constraints, partially offset by strong global demand Average sales price increased as input costs such as live cattle, labor, freight and transportation costs increased and demand for our beef products remained strong
- Pork: Sales volume was up slightly as strong global demand was offset by the impacts associated with a challenging labor environment. Average sales price increased as input costs such as live hogs, labor freight and transportation costs increased and demand for our pork products remained strong partially offset by unfavorable mix associated with labor shortages
- Chicken: Sales volume increased primarily due to increased live production and a strong demand environment. Average sales price increased due to the effects of an inflationary cost environment
- Prepared Foods: Sales volume decreased due to the divestiture of our pet treats business in the fourth quarter of fiscal 2021 as well as lower production throughput primarily associated with a challenging labor and supply environment Average sales price increased primarily due to the effects of revenue management in an inflationary cost environment
