May 18, 2011

Tyson Foods says protein demand is progressing in US

Sales of chicken, beef and pork were better in the last two weeks due to warmer weather, according to Tyson Foods, Inc at the BMO Capital Markets 2011 Farm to Market Conference.

Donnie Smith, Tyson's president and chief executive officer, and Noel White, senior group vice president of Tyson Fresh Meats, were presenters at the conference.

"We are happy with the improvement in demand we have seen following a cold, wet April," Smith said. As beef and pork pricing are strong, many retailers and food service operators are likely to feature chicken this summer, he added.

According to White, a key factor driving price is the amount of protein available to US consumers. According to USDA figures, protein supply has declined in the past three years and is projected to decline again in 2011 which is an unusual trend. Strong exports have contributed to that trend.

"Exports, along with production efficiencies and value-added programmes, are driving our earnings," White said. Going forward, he does not see major changes in the solid fundamentals of beef and pork. "The outlook is bright," he concluded.