Rising meat prices helped Tyson Foods overcome COVID-related labor shortages at its plants. The top U.S. meatpacker reported a stronger-than-expected quarterly profit this week and forecast improving revenue for the year ahead.
The Arkansas-based company reported a double-digit jump in sales and earnings in the fourth quarter of its fiscal year that ended on October 2. That includes a record quarter in its beef operation despite cattle prices surging 20 percent higher.
While COVID-19 kept many diners at home in 2020, rising meat prices and improving demand from restaurants have boosted the bottom line for meat companies like Tyson. Meatpackers are also seeing record demand for American beef from China, due in part to tensions between Beijing and regular supplier Australia.
Top aides to President Biden have blamed Tyson and other large meatpackers that control much of the meat processing sector for rising food prices.
“Inflation is impacting our business,” says Tyson CEO Donnie King.
(From the National Association of Farm Broadcasters)