Monitoring Desk
ISLAMABAD/NEW YORK: Tyson Foods Inc took the “hit in the mouth” as larger than the expected beef and pork supply weakened demand for its chicken, executives said as the meatpacker missed Wall Street estimates for quarterly profit.
The company’s primary markets, beef, pork, and chicken, went opposite to what executives planned, and they were surprised by how much meat was available in the United States (US). Shares of Tyson, the largest United States meat company by sales, were down 4.8 percent at 60.97 dollars on Monday afternoon.
The result shows Tyson’s struggle to forecast demand for meat in a high-inflation environment, and the availability of beef changes rapidly while drought in the western US drives ranchers to decrease cattle herds by sending more animals to slaughter.
Tyson Food Inc
A company said that Tyson grappled with larger-than-expected supplies of chicken as the worst-ever United States outbreak of bird flu triggered export restrictions, resulting in more poultry available domestically.
Chief Executive Officer Donnie King said, “we got hit in a mouth in Q1 because of all protein on the market.”.
