CHICAGO, Ill. (Reuters) — Tyson Foods Inc. has reported a record quarterly operating income for its beef business because of increased exports and cattle supplies.
Stronger demand for beef offset weaker results in Tyson’s pork and chicken units, which the company said were hurt by trade disputes between the United States and major importers such as Mexico and China.
Sales volume for Tyson’s beef rose in the third quarter due to a decline in prices fuelled by increased cattle supplies.
Those lower prices prompted some casual U.S. restaurants to promote beef products instead of chicken, chief executive officer Tom Hayes said.
The shift away from chicken helped Tyson double its beef unit’s operating income from a year ago to $318 million, accounting for 40 percent of its total for the quarter.