March 4, 2010

Tyson expects improvement in poultry business

Tyson Foods executives are expecting improvement in the company's underperforming chicken business that could bring good returns in 2010 and 2011.

Chief Operating Officer Jim Lochner and Chief Financial Officer Dennis Leatherby said Tyson has improved its chicken business over the past year, as the US meat supply has declined, which should help Tyson.

Most livestock and poultry producers lost money in 2008 and 2009, which led to cutbacks in the herds and flocks and less protein available in the marketplace, Lochner said.

For the first time in 40 years, industry watchers predict a second consecutive yearly drop in the amount of available meats. The reduced supply should mean higher prices for meat, Tyson said. The company is poised to capitalise on returning demand, said the executives.

Tyson suffered during the recession as people ate out less, hurting demand for chicken breast meat and causing prices to fall.

The company's chicken business was hurt the most in the downturn, and in January 2009 it tapped former CEO Leland Tollett to restore the segment to growth. He was replaced in November, a sign that the company believes its chicken business has improved.