Tyson Foods is to adjust the weight of chickens raised at some of its farms as domestic inventories increase and feed costs rise, Bloomberg news is reporting.
Tyson, which uses contract growers to raise poultry of different sizes, is reducing the weight of its “big birds,” which may weigh as much as eight pounds, because of higher corn prices, Chief Executive Officer Donald Smith announced.
“We’re making some adjustments in the weight of the birds we’re producing at some of our complexes,” a spokesman for the Springdale, Arkansas company, said in response to questioning from Bloomberg News. “We’ve recently held a series of meetings with contract poultry farmers in some of our complexes to talk about adjustments we’re making in operations in response to changing market conditions.”
Corn futures in Chicago have risen 69% in the last year to almost $7.15 a bushel. Corn and soybean meal represented 42% of Tyson’s cost of raising live chickens in 2010.