Tyson says consumers may be shifting to chicken from beef

Discussion

February 1, 2013

Tyson says consumers may be shifting to chicken from beef

By Shruti Date Singh The Washington Post The Meridian Star Fri Feb 01, 2013, 03:47 PM CST

CHICAGO — Tyson Foods Inc., the largest U.S. meat processor, said Friday that consumers may be shifting toward buying chicken and away from red meat after the price of beef rose at a faster pace.

Consumers feeling the pressure from increases in payroll taxes and gasoline prices are "eating different meat" rather than less of it, Chief Executive Officer Donnie Smith said during a conference call with analysts Friday.

"What we're beginning to think is that with all of these pressures on consumers today, maybe we are now seeing a legitimate shift from red meat proteins into chicken," he said.

Beef prices have risen for several years as higher feed costs and the recent U.S. drought reduced the cattle herd. Smith's comments may show that the move away from beef, which has been predicted for years, is perhaps finally happening, JPMorgan Chase said in a note.

Sales climbed 0.9 percent to $8.4 billion, trailing the $8.61 billion average of 12 estimates. Full-year revenue will be about $35 billion, compared with the $34.6 billion average of 13 estimates.

Domestic protein production will fall by about 1 percent in Tyson's current fiscal year as drought conditions cut grain supplies, the company forecast. Cattle supplies may decline 2 percent to 3 percent.

Tyson said it will pay about $600 million more for chicken feed in the period. It predicted chicken and hog supplies will be little changed.

While the beef unit accounted for 40 percent of Tyson's sales in the last financial year, it contributed 17 percent of operating profit, data compiled by Bloomberg show. Chicken made up 34 percent of revenue and 35 percent of operating income. Tyson also processes pork.

The company is working on expanding its range of processed chicken products and items for convenience stores, Smith said on a separate call with reporters.

Tyson may look at smaller so-called bolt-on acquisitions, Smith said on the media call. When asked to comment on whether Tyson is interested in purchasing Hillshire Brands Co., Smith said no. Asked to clarify if Smith meant he had no comment or no interest, he said "a little bit of both."

Text Only

Community News Network

Kebabs: Health kick on a stick
Grilling is a simple way to feed your family well this summer. Start with a lean meat and a healthful marinade and then allow the grill to strip away additional fat for a heart-healthy and waist-friendly final result. Plus, grilling caramelizes the natural sugars in foods, which adds flavor without additional calories and fat.

May 24, 2013 1 Photo
Boy Scouts: Yes to gay youths, no to adults
The Boy Scouts of America on Thursday ended its ban on openly gay youths but maintained a prohibition on gay adult leaders, a decision framed as a compromise but one that could lead to litigation and thousands of defections from one of America's largest youth organizations.

May 24, 2013
Expert: Schools need shelters
Ninety-four percent of Oklahoma schools do not have tornado shelters, according to Gov. Mary Fallin, even though at least one weather expert says they should be standard. With two Moore schools destroyed in Monday’s EF-5 tornado — and ...

May 24, 2013 1 Photo
Siblings withstand storm in fridge
Brother and sister co-owners of a Chinese takeout restaurant huddled inside a refrigerator to survive Monday’s deadly tornado that claimed 24 lives.

May 23, 2013 1 Photo
TIMELAPSE: Take a tour through the damage in Moore
Take a driving tour of the damage in Moore caused by Monday's tornado.

May 23, 2013 1 Photo
Mayor wants tornado shelters in new homes
Moore Mayor Glenn Lewis wants tornado shelters in all new homes in his city, where an EF-5 tornado damaged or destroyed more than 12,500 homes Monday afternoon. A proposed ordinance would require a shelter inside or outside each new residence.

May 23, 2013
AUDIO: Residents share their tornado experiences
Moore, Okla., residents talk about living through Monday's EF-5 tornado.

May 23, 2013 1 Photo
Photos: Aftermath of massive tornado in Moore Storm victims were pulled from the rubble and residents began surveying the damage late Monday and early Tuesday in the Oklahoma City suburb of Moore, where a powerful tornado destroyed entire neighborhoods and left dozens dead.
May 21, 2013
VIDEO: Tornado survivor's missing dog found during TV interview
Barbara Garcia was being interviewed by CBS News about how she survived the destruction of her home to Monday's massive tornado in Moore, when the dog she feared dead was suddenly discovered alive in the rubble of her home.

May 21, 2013 1 Photo
Okla. front pages capture tornado aftermath View how several Oklahoma newspapers covered Monday's massive tornado in Moore. Please note that officials revised the death toll downward early Tuesday morning after some papers were printed, but it is expected to climb again as recovery efforts continue.
May 21, 2013
More Community News Network Headlines

Community News Network

Search Results

Discussion

Tyson says consumers may be shifting to chicken from beef

How difficult do you think it will be for this year's high school graduates to find a job?

Site Map

Contact Us