Tyson Foods Inc. is cutting both beef and chicken production, the latter of which marks a significant development in the poultry industry.
According to Aslam, Tyson has a 20% – 25% market share, meaning its cuts could have a significant impact on the overall poultry industry’s supply and pricing.
Tyson spokesman Gary Mickelson has said that “While we would rather not share details of our current poultry production levels, we can tell you we continue to closely evaluate market conditions in an effort to match customer demand with our supply.”
Aslam has further stated that the net effect is that shares of Tyson and Sanderson Farms will increase. Better discipline in the poultry market also is favourable for the profitability of the beef and pork markets, she said.