In this file:
· As food costs soar, Tyson reports meaty profit
… the company’s quarterly profit jumped to $829 million from $476 million a year earlier. That’s almost twice as much profit...
· Tyson Foods reports soaring meat prices as inflation continues
… the average price of its products rose 17.6% in the quarter…
· White House criticizes meat giants for jacking up prices after Tyson's earnings
… they have an "ability to jack up prices and pass those on to consumers when they should not" …
As food costs soar, Tyson reports meaty profit
by: David Lazarus, KTLA-TV (CA)
May 9, 2022
Going to the grocery store has become a painful experience for most consumers. But for food companies, soaring food prices can mean sky-high profits.
Tyson Foods, the biggest U.S. meatpacker by sales, says its quarterly earnings topped expectations, prompting the company to raise its outlook for the year.
But Tyson doesn’t want anyone to mutter “price gouging” while searching for bargains at the supermarket meat department.
The Arkansas-based company insists its higher prices are merely a reflection of higher production costs.
“We do not ask the customer to pay for our inefficiencies,” Tyson Chief Executive Donnie King told reporters. “We are asking customers to pay for inflation we see throughout the supply chain.”
For that reason, the company says, its average beef price rose by 24% over the last three months. Chicken prices were up by 14%, while pork was 11% pricier.
Here’s the thing, though: If Tyson’s higher prices are solely offsetting higher manufacturing costs, its profit margin shouldn’t be rising significantly. It should be a wash, more or less.
But the company’s quarterly profit jumped to $829 million from $476 million a year earlier. That’s almost twice as much profit...
Tyson Foods reports soaring meat prices as inflation continues
Nathan Bomey, Axios
May 9, 2022
Meat prices continued to skyrocket in the first quarter.
Driving the news: Tyson Foods reported Monday that the average price of its products rose 17.6% in the quarter ended April 2, compared with a year earlier.
· The price of Tyson beef was up 23.8%, while chicken rose 14.4% and pork jumped 10.8%.
The big picture: The cost of labor and agricultural prices continue to fuel the spike.
· "We saw continued inflation across the business, in some instances, up 25% or more," Tyson CFO Stewart Glendinning said Monday on a conference call. "Notable examples were labor, feed ingredients, live cattle, lean hogs and freight costs."
more, including chart
White House criticizes meat giants for jacking up prices after Tyson's earnings
By Victor Reklaitis, MarketWatch
May 9, 2022
White House press secretary Jen Psaki on Monday raised concerns about large meat processors, as she responded to a reporter's question about better-than-expected earnings from Tyson Foods
Psaki told reporters during a briefing that she didn't have "any reaction directly to one company's earnings," but Biden administration officials continue to be concerned that meat conglomerates are "so dominant" that they're elbowing out smaller companies and they have an "ability to jack up prices and pass those on to consumers when they should not."
The administration and industry traded barbs last year.
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