The US company Tyson Foods projected feed ingredient costs to be higher for its fiscal year 2022 (ending early next October) compared to fiscal year 2021.
In general, the prepared foods segment faced higher costs largely due to the impacts of an inflationary environment.
According to the United States Department of Agriculture (USDA), national protein production (beef, pork, chicken, and turkey) decreased 1% in the first quarter of fiscal year 2022 (ended January 1) compared to with the same period of fiscal year 2021.
Each of Tayson’s segments is experiencing an improvement in foodservice demand.
All segments experienced strong demand, challenging labor conditions and operating cost inflation, especially in labor, freight and certain materials, and Tyson Foods expects these trends to continue through the remainder of fiscal 2022.
Additionally, grain and feed ingredient costs have increased substantially, impacting all of its segments. Thus, the company seeks to recover these higher costs through pricing.
Tyson Foods is one of the world’s largest food companies and a recognized leader in protein.
Globally, the company has a broad portfolio of products and brands including Tyson, Jimmy Dean, Hillshire Farm, Ball Park, Wright, Aidells, ibp and State Fair.
By its own description, Tyson Foods continually innovates to make protein more sustainable, personalize food for everywhere it’s available, and raise the world’s expectations for the benefits of good food.
Headquartered in Springdale, Arkansas, the US company had approximately 137,000 employees as of October 2, 2021.
Finally, some of the key factors influencing its business are customer demand for your products; the ability to maintain and grow customer relationships and introduce innovative new products to market; accessibility of international markets; market prices of their products; the cost and availability of live cattle and hogs, raw materials and feed ingredients; availability of team members to operate your production facilities; and the operational efficiency of its facilities.