Tyson rejects White House claims
Packer and hide processing group Tyson is involved in a dispute with the US government over the price of beef and the level of control that major meat groups have of the market.
Tyson reacted immediately to comments from the US secretary of agriculture, Tom Vilsack, and the director of the National Economic Council, Brian Deese, at a White House press briefing on September 8 criticising Tyson and three other meat companies (JBS, Cargill and National Beef) for posting revenue growth in the face of unfair treatment of farmers and consumers.
In response, the company said: “Tyson Foods categorically rejects the conclusions drawn today the secretary of agriculture and the director of the National Economic Council.”
Its contention is that increases in the price of beef in the US are because of “unprecedented market conditions”. It listed the covid-19 pandemic, severe weather conditions and labour shortages as examples of “unprecedented market shocks” that have occurred in recent months.
These shocks led to an oversupply of live cattle and an undersupply of beef, Tyson said, “while demand for beef products was “at an all-time high”. As a result, the price for cattle fell, while the price for beef rose. “Today, prices paid to cattle producers are rising,” it added.
It is inaccurate to suggest that consolidation in the meat processing industry is leading to higher prices for consumers, it continued, pointing out that, in the last 25 years, “healthy competition” among the big players has led to better availability of beef, better quality and more affordable prices.
It also said it relied on independent farmers and wanted them to succeed, “because without a steady pipeline of livestock, we can’t run our business”.
Tyson said it would welcome a deeper discussion on all of these issues.
