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Tyson raises chicken prices as demand shifts from expensive beef cuts

According to Tyson Foods, chicken is growing in popularity as consumers move away from expensive cuts of beef.

In an earnings call on Monday, Tyson CEO Donnie King told analysts that despite a challenging economic environment, as its commodity costs continue to rise, “consumer demand for protein remains relatively stable.”

However, as food prices continue to rise, some are moving away from high-priced meat. Grocery prices alone rose 12.2% in June from a year earlier, outperforming the overall Consumer Price Index.

On Monday, the meat producer saw “particular strength” in its poultry division and reported higher prices in the three months ending June 30, with certain cuts of meat such as breakfast sausage and bacon. on its flesh to cover the higher costs.

According to Reuters, the company raised chicken prices by a little more than 20%.

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The company reported its sales gains were “driven largely by higher average selling prices in chicken and prepared foods,” underscoring demand in the category.

Tyson

Tyson Foods Inc. at Tyson headquarters in Springdale, Arkansas. A car passes in front of the sign. (AP Photo/April L. Brown, File/AP Newsroom)

“We delivered significantly improved earnings in our poultry segment and higher earnings in prepared foods, which partially offset the decline in beef and pork earnings,” King told analysts.

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Meanwhile, the company reported that it faces “smooth consumer demand for beef premium cuts” amid a challenging economic environment. As demand changed, beef prices fell.

Beef prices fell 1.2% in the quarter, according to Reuters.

ticker security the last one change change %
TSN TYSON FOODS INC. 80.09 -7.40 -8.46%

Still, King said, the company’s “diversified portfolio” allows it to “meet the needs of customers and consumers across a wide range of products and price points, even as customers switch between proteins and products.”

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Overall, meat producers posted $13.5 billion in revenue during the period, topping Street forecasts. Three analysts surveyed by Zacks had expected $13.31 billion.

The Associated Press contributed to this report.

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