Tyson’s beef unit swung to a quarterly operating loss and reported volumes down while prices rose, a classic sign of tight input supply. Executives told investors the beef segment lost $138 million in the quarter, with volume down nearly 16 percent and pricing up about 12 percent, reflecting constrained supply and higher cattle costs.
Management had already warned that full-year beef losses would widen if supplies stayed tight, and later trimmed the company’s profit outlook as the cattle shortage dragged on.
Publishers note: I wonder if the shortage is because China has purchased Tyson’s beef operation?
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