Tyson Foods Inc. reported improved sales after raising prices for its beef, chicken, and pork, based on the growing costs that the firm stated are likely to persist.
- The Arkansas-based meat giant increased prices for its key products as executives pointed to an increase in the cost of cattle by 20% year over year in the quarter ended October 2nd.
- The company’s logistics expenses rose by nearly 30%, as the company also paid more for ingredients and packaging materials.
- Donnie King, Chief Executive Officer Tyson, stated that he does not think of anything that has either stayed the same or gone down.
- Tyson and other meatpackers have been struggling to meet the soaring demand from supermarkets and the reopening of hotels and restaurants. The labor shortage in the country has caused many processing factories to remain understaffed.
Rising wages and new benefits, including Tyson’s sick leave policy for processing plant workers, have helped to improve staffing.
TSN up +3.55%
Source: The Wall Street Journal