SPRINGDALE, AR – While cow slaughter numbers have been growing in 2021, the global demand for beef continues to grow. Current estimates have the industry processing 10 percent more cattle this year than last year, and if the trend continues for the final weeks of 2021, the nation’s herd could contract by 2 percent.
With a smaller herd expected next year, Tyson is looking for ways to increase profitability, on top of the record earnings in 2021. Last week, the major meatpacker announced a new productivity program designed to drive a “better, faster, and more agile organization,” targeting up to $400 million in savings by the end of 2022 and $1 billion by the end of 2024.
In their most recent fourth-quarter conference call, Tyson is projecting a decrease in beef production during the upcoming year (down 2 percent) but another strong year with an adjusted operating margin between 9 and 11 percent in fiscal 2022.
For Tyson’s pork business, USDA is projecting a decrease in domestic production (down 2 percent), but the company expects operating margin to be between 5 and 7 percent.
Finally, the company is looking at 5 to 7 percent growth on a slight increase in production numbers for chicken.
(SOURCE: All Ag News)