How Tyson is tackling tight beef, pork supplies

Key Takeaways:

• Tyson Foods has successfully navigated challenges in livestock supply by focusing on value-added products and operational efficiencies in its production facilities during FY25.
• The company’s efforts to address reduced beef and pork availability have yielded positive results, with its prepared foods segment achieving its highest fill rates since 2013, according to COO Devin Cole in a recent earnings call.
• CEO Donnie King highlighted the development of value-added products in the beef and pork segments, such as seasoned cuts and specialty trimmings, as key strategies to increase yield and revenue.

Insightful Analysis:

Tyson executives underscored the importance of yield improvements and operational efficiencies in managing supply challenges across its beef, pork, and chicken segments. CFO Curt Calaway credited the company’s diverse product portfolio and operational focus for delivering positive outcomes in a dynamic market environment.

Despite overall success, the beef segment remains a concern for Tyson due to ongoing tight cattle supplies, with CEO Donnie King acknowledging the need to address this issue as cattle supplies are expected to remain limited into 2026.

Factors like drought, stock rebuilding by cattle producers, and the presence of the New World screwworm in Mexico have contributed to smaller U.S. cattle herds, requiring meatpackers like Tyson to adapt their production strategies to changing market dynamics.

In response to these challenges, Tyson announced plans to close a beef processing plant in Nebraska and reduce production at another facility in Texas, while also maximizing its pork supply through innovative uses in its prepared foods division.

By focusing on higher utilization of raw materials and strategic price adjustments, Tyson aims to enhance access, quality, and cost-effectiveness in its production processes, as outlined by COO Devin Cole.