Tyson cuts revenue forecast
Packer and tanning group Tyson Foods has reported a cut in its revenue forecast for the full year, following poor results for the first half of the fiscal year.
At $518 million, the adjusted operating income for the first half of the fiscal year saw an 80% drop compared to the previous year.
Facing increased costs for labour and feed, recent drought conditions have also presented challenges, with cattle producers forced to send animals to slaughter rather than enter them into the breeding programme.
With increasing inflation and a reduced demand for beef, Tyson has found it difficult to pass on the increased costs. Having raised prices in 2022 to counteract inflation, sales prices for beef subsequently fell by 5.4% in the quarter ending April 1.
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