April 29, 2008

Tyson not planning to cut chicken production
 

There is no plan to reduce chicken production due to good demand, according to Tyson Foods.

Tyson reported losses in its chicken operations in its fiscal second quarter, but chief executive Dick Bond said that there is a good demand for its biggest protein line and demand has been outstanding in some sales channel.

Some national chains are heavily promoting chicken products, said Bond.

Tyson has been raising prices for prepared poultry products to offset surging feed grain costs, although Bond admits that they have not been able to keep pace with production costs.

The weak dollar is likely to open new export markets for chicken and reduce the company's dependence on exports to Russia, said Bond.

Tyson's decision is in contrast to its largest competitor, Pilgrim's Pride, which has decided to cut weekly chicken production by 5 percent to offset soaring grain costs.