The two year slow down in pork demand has taken its toll on Tyson Foods Inc (Tyson). Both Reuters and the Wall Street Journal are reporting the company is set to sell five hog farms. This will reduce the company’s sow herd by 20,000 head, or roughly 30%. To see the Reuters story click here. To see the Wall Street Journal story here (must be subscriber). Seventy-six jobs in Arkansas, Missouri, and Oklahoma are expected to be lost as a result of the 10 week sale.Tyson cited the high cost of grain, a reduced demand for pork, and a lack of capital for the sale. Though it cannot be contacted through pork consumption, the outbreak of the H1N1 influenza, or swine flu, may have played some role in the need for the sale. The Wall Street Journal’s Lauren Etter writes the USDA is reporting a 36% decrease in pork exports in May from the previous year.
Amidst the sow sale news, Tyson’s stock was up 38 cents Wednesday according to the Arkansas Democrat Gazzette’s Steve Painter. For Painter’s story click here.
Tyson Inc. will hold its third quarter earnings conference call on August 3, 2009 at 9 a.m. Eastern (8 a.m. Central). To listen to the live webcast, go to http://ir.tyson.com.
Posted: 07/16/09
