U.S. cattle producers have started rebuilding herds, or will soon, Tyson Foods CEO says

Chicago | Reuters — U.S. cattle producers have began rebuilding the nation’s herd or are near doing so, Tyson Meals CEO Donnie King stated on Wednesday, after supplies dwindled to a 74-year low.

Tight cattle inventories have pushed up beef costs for U.S. customers and compelled meatpackers, together with Tyson and rivals like Cargill and JBS, to pay extra for livestock to slaughter.

Farmers slashed their herds by sending extra animals to slaughter as a substitute of holding them to breed following a years-long drought that diminished grazing lands and raised costs for livestock feed. Ongoing dryness over the previous yr had discouraged producers from beginning the rebuilding course of, which might take roughly two years.

“All people is hesitant, together with me, to name that we are actually in rebuild,” King stated on a webcast of BMO’s Farm to Market Convention. “If we’re not, we’re very shut.”

Tyson reported an adjusted working lack of $181 million in its beef enterprise within the six months that ended on March 29.

The USDA, in its Might 12 World Agricultural Provide and Demand Estimates (WASDE), projected U.S. beef production and exports to fall in 2026 on persevering with tight provides.

—Reporting by Tom Polansek, with recordsdata from Glacier FarmMedia

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