Tyson to adjust beef production as cattle supply remains low

USA – Tyson Foods is responding to historically low cattle numbers by cutting operating costs and slowing its beef processing speeds as demand from consumers continues to hold firm.

The company said it has reduced expenses in its operations and moved some processing activities back to its harvest plants as part of efforts to manage the tighter supply.

To adapt to this environment, the meat processor has shifted some further processing back into its harvest facilities as part of a network restructuring effort aimed at efficiency.

Chief Executive Officer Donnie King said the company is also using new analytics tools to adjust its product mix in real time and support quicker decision-making.

According to Chief Supply Chain Officer Brady Stewart, Tyson has reduced processing line speeds to extract higher yields from cattle, a move the company expects to keep in place for the foreseeable future.

Between January and June, cow slaughter dropped by 16 percent, which King identified as an early sign that ranchers are holding back heifers for breeding rather than sending them to plants.

He projected that large-scale herd rebuilding will likely begin in 2026, though the benefits of this shift would not be visible until at least two years later.

Weather conditions have further pressured beef supply, with Stewart noting that the current drought cycle has lasted longer than others experienced in recent decades.

At the same time, tariffs introduced by the Trump administration on Brazilian beef have not yet affected U.S. retail prices, since imported meat takes time to work through the market.

Overall, King said Tyson has eliminated more than US$100 million in controllable costs from its beef division this year, describing the effort as a way to manage a difficult supply environment while meeting customer demand.

Chicken sales rising

The company’s chicken segment, meanwhile, reported a 10% increase in value-added product sales during the third quarter ending June 28, compared to the same period a year earlier.

Operating income from the chicken business reached US$367 million, up from US$244 million in the previous year’s third quarter, reversing a long stretch of weak results.

King credited recent product launches for driving the growth, citing examples such as Tyson Simple Ingredient Nuggets, which use limited ingredients, and Mega Dino Nuggets, designed for families.

Chief Growth Officer Kristina Lambert added that household penetration of value-added chicken products is increasing, with more than 20 new items introduced in the past year and many still expanding into wider distribution.

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