Tyson and the multiple challenges of covid-19
Tyson Foods has reported sales revenues of almost $10.9 billion for the second quarter of its current financial year, a record total and 4.2% up on the same quarter a year ago.
Beef accounted for almost $4 billion, up by 2.7%. Tyson said it expects industry-fed cattle supplies to increase by approximately 2% in fiscal 2020. “We expect ample supplies in regions where we operate our plants and for profitability to remain strong,” it said.
At the same time, the company said it was experiencing “multiple challenges” related to the covid-19 pandemic. It has had to halt production in some of its meat plants and lower output in others, either through choice (to make the work environment safer) or because of what it called “team-member shortages”.
It said: “The lower levels of productivity and higher costs of production we have experienced will likely continue in the short term until the effects of covid-19 diminish. Each of our segments has also experienced a shift in demand from foodservice to retail; however, the volume increases in retail have not been sufficient to offset the losses in foodservice and as a result, we expect decreases in volumes in the second half of fiscal 2020.”
