Home » Economy » Tyson reduces some beef prices as coronavirus pushes grocery-store costs higher
Tyson reduces some beef prices as coronavirus pushes grocery-store costs higher
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Tyson Foods Inc. is lowering some prices it charges supermarkets and restaurants for beef, after coronavirus-driven disruptions at meatpacking plants have led to a surge in meat costs.
The Arkansas company, which processes about one-fifth of the nation's beef, plans to reduce prices for ground beef, roasts and other beef products by as much as 20% to 30% for sales made this week to restaurants, grocery stores and other customers. The move will help keep beef affordable, said Noel White, Tyson's chief executive.
TYSON FOODS INC.
Tyson, the biggest U.S. meat company by sales, has a lot riding on the price of beef. Beef represented more than one-third of the company's $42.4 billion in sales last year. Nearly half of the company's beef is sold to grocery stores and food retailers, the company estimates.
Since the beginning of March, coronavirus outbreaks among meatpacking workers forced the temporary closure of about two dozen major U.S. meat processing plants. The U.S. Department of Agriculture estimated that nationwide production of beef, pork and other red meat last week was about 28% lower than the same period last year, and the agency projected Tuesday that beef production in the second quarter of this year would be one-fifth below first-quarter levels.