Why Is Tyson Scaling Back On Antibiotic Free Beef

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EPISODE 36 DETAILS

TYSON FOODS SCALES BACK PRODUCTION OF ANTIBIOTIC-FREE BEEF AMID CHALLENGING MARKET CONDITIONS

Reduction In ABF Beef Production

Tyson Foods is reducing its production of antibiotic-free (ABF) beef as it navigates difficult market conditions. According to a Bloomberg report, this decision marks a significant shift in the company's strategy. An anonymous source familiar with the decision revealed that Tyson informed a major customer late last year about its inability to continue supplying ABF beef.

Limitations On Open Prairie Natural Meats Brand

Bloomberg also cited a document indicating that ABF beef under Tyson's Open Prairie Natural Meats brand would be restricted starting in January. This move follows Tyson's earlier decision to move away from raising chicken without antibiotics.

CEO’s Comments On Market Challenges

In the company’s second-quarter earnings call, Tyson CEO Donnie King mentioned that limited cattle supplies have resulted in "spread compression." The company anticipates a full-year adjusted operating income loss ranging from $400 million to $100 million. King emphasized that Tyson would focus on controllable factors, such as "managing mix to meet customer and consumer demand."

Impact On Certified Angus Beef Program

In addition to the changes reported by Bloomberg, Tyson recently ended an ABF beef program with Certified Angus Beef (CAB). A CAB spokeswoman confirmed this development to Meatingplace, stating that Tyson is reevaluating its antibiotic-free offerings as a whole.

By focusing on these key changes, Tyson Foods aims to adapt to current market conditions while continuing to meet customer and consumer demands.

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