In this file:

 

·         Tyson Foods hits record high, prepares for China profit boost

… reaffirmed expectations it will profit from the spread of a fatal hog disease in China, sending shares to a record high…

 

·         China's pork prices to continue rising

… The average wholesale price of pork climbed 29.8 percent year on year…

 

·         Prepared Foods, Beef underpin strong third quarter for Tyson Foods

 

 

 

Tyson Foods hits record high, prepares for China profit boost

 

By By Tom Polansek, Reuters

via The Western Producer (Canada) - August 6, 2019

 

(Reuters) – Tyson Foods Inc reported better-than-expected quarterly earnings on Monday and reaffirmed expectations it will profit from the spread of a fatal hog disease in China, sending shares to a record high.

 

Tyson has not yet reaped major financial gains from the deaths of millions of pigs in China‘s outbreak of African swine fever, Chief Executive Noel White said. China is still working its way through frozen meat supplies, but could begin to increase imports of U.S. pork to fill a shortfall as soon as October, he said.

 

Shares hit a record high of $87.27.

 

African swine fever is fatal to pigs but harmless to humans and has not been found in the United States.

 

China could also ramp up total imports of beef and poultry meat as Chinese consumers look for other sources of protein. That could help Tyson, which produces beef and chicken as well as pork.

 

“I think that all of the proteins will benefit,” White told analysts on a conference call.

 

Tyson has already held discussions with meat buyers in China, the world’s largest hog producer and pork consumer, White said.

 

But China‘s purchases so far have fallen short of industry expectations so far after Beijing last year imposed retaliatory duties on imports of American farm products including pork as part of the escalating U.S.-China trade war.

 

“As China depletes its frozen inventory and starts tapping into the global pork supply in a more meaningful way, we expect Tyson to start realizing meaningful upside, likely in early FY20,” Bernstein analyst Alexia Howard said.

 

Higher corn prices could limit profits for Tyson, which buys the grain to feed chickens. The size of the American crop is uncertain after farmers suffered unprecedented plantings delays this spring due to widespread flooding.

 

Tyson expects a year-over-year increase of $150 million to $200 million in the cost of grain, Chief Financial Officer Stewart Glendinning said.

 

The company recorded a $40 million gain in its chicken unit in the third quarter ended June 29 as corn futures rose, benefiting the company’s position in the grain market. However, much of that profit is likely to be reversed in the fourth quarter as corn prices have pulled back, Glendinning said...

 

more

https://www.producer.com/daily/tyson-foods-hits-record-high-prepares-for-china-profit-boost/

 

 

China's pork prices to continue rising

 

Xinhua (China)

via China.org.cn - August 7, 2019

 

Pork prices in China will continue to rise due to tight supply and the African swine fever, said analysts.

 

The average wholesale price of pork climbed 29.8 percent year on year to 21.59 yuan (about 3.1 U.S. dollars) per kg in June, mainly because of the influence of the African swine fever, said the Ministry of Agriculture and Rural Affairs (MARA).

 

Affected by the African swine fever, breeding enterprises invested more in monitoring and prevention of swine fever, leading to rises in pork prices, said Zhu Danpeng, an analyst in the food industry.

 

The country reported its first case of African swine fever in August 2018 in the northeastern province of Liaoning. Later outbreaks were reported in several other provincial regions.

 

From July 22 to 26, unprocessed lean pork was sold at 25.34 yuan per kilo on average in 16 provinces and regions, up 43.1 percent...

 

more

http://www.china.org.cn/business/2019-08/07/content_75076354.htm

 

 

Prepared Foods, Beef underpin strong third quarter for Tyson Foods

 

By Keith Nunes, Food Business News

08.06.2019

 

SPRINGDALE, ARK. — Strength in Tyson Foods, Inc.’s Beef and Prepared Foods business units propelled earnings during the third quarter of fiscal 2019. Demand for animal protein remained steady as the company focused on bringing more value-added, premium products to market.

 

“Overall, third-quarter earnings were in line with our expectations,” said Noel W. White, president and chief executive officer. “Volume growth in our core retail lines continues to outpace other large food companies and the total food and beverage category, driven primarily by our new product innovation. Our Prepared Foods and Beef segments produced strong results in the quarter, while results in the Chicken segment were mixed, and the Pork segment was negatively affected by increased hog costs.”

 

Net income for the quarter ended June 29 was $676 million, equal to $1.90 per share on the common stock, up 25% from $541 million, or $1.52 per share, in the same period a year ago.

 

Sales for the quarter rose 8% to $10,885 million from $10,051 million.

 

Beef sales rose to $4,157 million from $3,993 million the year prior. Improved cattle supply and stronger demand for beef were the key trends driving the business unit’s performance, according to the company.

 

“Global beef demand was strong, and our Beef business is executing well,” Mr. White said during a conference call with securities analysts. “Pasture conditions are the best that we’ve seen in several years, and cattle supplies are expected to be good through at least 2021. So far this year, our Beef segment has produced a record operating margin of 6.1%.

 

“For the fiscal year, we expect Beef segment’s operating margin to be approximately 7%. With ample supply of the high-quality cattle, we expect similar or better results next year.”

 

Prepared Foods sales dipped slightly during the quarter to $2,089 million from $2,132 million the year prior. Management attributed the decline to business divestments made earlier in the year.

 

“Prepared Foods remains on track for a record year,” Mr. White said. “Through the first nine months, it’s produced a record operating margin of 12%. Retail volume growth has been outstanding as we gained incremental distribution from innovations such as Jimmy Dean Simple Scrambles, Breakfast Bowls and Egg’wiches.”

 

He added that the company’s new lines of meat alternative products have started reaching store shelves. The first products introduced include...

 

more, including product packaging photos

https://www.foodbusinessnews.net/articles/14260-prepared-foods-beef-underpin-strong-third-quarter-for-tyson-foods