The Stanly News and Press (Albemarle, NC)

Community News Network

February 1, 2013

Tyson says consumers may be shifting to chicken from beef

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."

 

1
Text Only
Community News Network
  • Why do wolves howl?

    Of all the myths that dog the wolf, none is more widely accepted than the idea that wolves howl at the moon. Images of wolves with their heads upturned, singing at the night sky, are as unquestioned as a goldfish's three-second memory or a dog's color-blindness (both also myths).

    April 18, 2014

  • Biggest student loan profits come from grad students

    This week, the Congressional Budget Office projected that the federal government would earn roughly $127 billion from student lending during the next 10 years.

    April 18, 2014

  • quake.jpg Pennsylvania won’t take action following Ohio ruling on quakes, fracking

    Pennsylvania officials plan no action despite new Ohio rules on drilling that affect a seismically active area near the state line.

    April 18, 2014 1 Photo

  • Raw oysters spike U.S. rise in bacterial infections, CDC reports

    Raw oysters, so good with hot sauce, increasingly can carry something even more unsettling to the stomach: A bacteria linked to vomiting, diarrhea and pain.

    April 17, 2014

  • To sleep well, you may need to adjust what you eat and when

    Sleep.  Oh, to sleep.  A good night's sleep is often a struggle for more than half of American adults.  And for occasional insomnia, there are good reasons to avoid using medications, whether over-the-counter or prescription.

    April 16, 2014

  • Doctors to rate cost effectiveness of expensive cancer drugs

    The world's largest organization of cancer doctors plans to rate the cost effectiveness of expensive oncology drugs, and will urge physicians to use the ratings to discuss the costs with their patients.

    April 16, 2014

  • Allergies are the real midlife crisis

    One of the biggest mysteries is why the disease comes and goes, and then comes and goes again. People tend to experience intense allergies between the ages of 5 and 16, then get a couple of decades off before the symptoms return in the 30s, only to diminish around retirement age.

    April 15, 2014

  • treadmill-very-fast.jpg Tax deduction for a gym membership?

    April marks another tax season when millions of Americans will deduct expenses related to home ownership, children and education from their annual tax bill. These deductions exist because of their perceived value to society; they encourage behaviors that keep the wheels of the economy turning. So why shouldn't the tax code be revised to reward preventive health?

    April 15, 2014 1 Photo

  • Google acquires drone maker Titan Aerospace to spread Internet

    Google is adding drones to its fleets of robots and driverless cars.
    The Internet search company said it acquired Titan Aerospace, the maker of high-altitude, solar-powered satellites that provides customer access to data services around the world. Terms of the deal weren't disclosed.

    April 14, 2014

  • 25801486.jpg VIDEO: Northern California bus crash kills 10

    At least nine people died in Northern California on Thursday night, in an accident involving a bus, a car and FedEx truck. The bus was filled with high school students from Southern California who were on their way to visit a college campus.

    April 11, 2014 1 Photo

Graduation Salutes
Seasonal Content