Tyson says beef demand remains strong
Packer and tanning group Tyson has reported sales revenues of $31.7 billion for the first nine months of its current financial year, the period ending June 27, 2020. This represents a rise of 0.6% compared to the same period in the previous financial year.
Beef contributed the biggest share, 36%, of the group’s overall revenues, with almost $11.5 billion. This represents a year-on-year decline of 4.1%.
In the third quarter, covering April, May and June 2020, revenues from beef were down by 12.1% year on year.
“Without a doubt, our third fiscal quarter was one of the most volatile and uncertain periods I’ve seen during my time in the industry,” said chief executive, Noel White.
Tyson said it had experienced lower production throughput over the period. Covid-19 made an important impact in the third quarter and there was a reduction in capacity as a result of a fire that caused the temporary closure of a production facility for the majority of the first quarter.
However, average sales price increased in the third quarter and in the first nine months of the fiscal year as beef demand remained strong.
