February 10, 2011

US meat prices to increase in 2011

US is expected to see escalating prices in meat this year due to greater demand in beef and pork, according to chief executive officer (CEO) of Tyson Foods.

The CEO added that he also foresees higher prices for pork - stating that pork producers have thinned their herds by around 2% in 2010.

Smith sees domestic food inflation surpassing US government predictions - as crop and animal feed prices continue to spike.  The firm expects its feed costs to climb an additional US$500 million this year, but the firm says it will combat this with productivity and higher prices as export demand becomes stronger.

Tyson foresees US production of pork, beef and chicken to be higher than in 2010, with increasing exports which will relay to domestic supplies being lower - this will strengthen pricing.

Smith's comments were made just as the company announced an 86% increase in fiscal first-quarter profit, pushed by higher pork prices and the restructuring of its chicken unit.