In this file:
· Tyson reports lower-than-expected sales to China amid pork shortage
… Shares fell 3 percent and hit their lowest in more than three months as Tyson also said it would eliminate 500 jobs as part of a restructuring…
· Coronavirus disrupts China meat imports, food supply during pork shortage
… disruption exasperates Beijing’s efforts to ensure adequate meat supplies and the plans of global companies like Tyson and JBS SA to profit from the shortage…
Tyson reports lower-than-expected sales to China amid pork shortage
Tyson Foods Inc is shipping meat to China and has additional orders on the books due to the pork shortage created by ASF, the company said on Thursday as it reported lower-than-expected quarterly sales.
The Pig Site
8 February 2020
Shares fell 3 percent and hit their lowest in more than three months as Tyson also said it would eliminate 500 jobs as part of a restructuring. Tyson is competing with other global companies to supply meat to China, the world's largest pork consumer.
Separately, an outbreak of coronavirus in people has seen cities quarantined in China, disrupted shipments at ports and raised uncertainty about demand among traders. However, buying interest has still been strong, Tyson Chief Executive Noel White told analysts on a conference call.
Tyson is also selling pork to other countries that have seen their typical supply chains disrupted by China's increased buying, he said.
"We're filling additional orders to China and we've seen year-over-year increases of nearly 600 percent in the first quarter," White said.
Beijing imposed retaliatory tariffs on US pork in 2018 amid a prolonged trade dispute between the two countries.
US exports to China and Hong Kong still reached 110,876 tonnes in December, more than quadruple the volume a year earlier, according to industry figures.
China said it would halve additional tariffs levied against US goods last year, following the signing of a Phase 1 deal in January that brought a truce to the bruising trade war.
"If tariffs are lifted or reduced we would likely see an acceleration of already increased global demand for pork, beef and chicken," White said...
... Tyson separately eliminated 500 positions across several areas and job levels...
Coronavirus disrupts China meat imports, food supply during pork shortage
via Business World (Philippines) - February 10, 2020
CHICAGO — Coronavirus is disrupting meat shipments to China as the country faces a shortage due to an outbreak of a fatal pig disease, Tyson Foods Inc and US agricultural groups said on Thursday.
An outbreak of African swine fever, which infects only pigs, has decimated China’s herd, pushing Chinese pork prices to record highs and increasing the need for meat imports.
However, coronavirus — which has killed 563 people so far — is keeping consumers and workers at home in China, delaying purchases at stores and restaurants and slowing the unloading of products at ports.
The disruption exasperates Beijing’s efforts to ensure adequate meat supplies and the plans of global companies like Tyson and JBS SA to profit from the shortage. The dual disease outbreaks also highlight the problems facing import-dependant China in its efforts to feed its population.
“There’s been disruptions at the ports,” Tyson Chief Executive Noel White said on a call with analysts. “That has skewed shipments, receivals.”
China has increased meat imports from the United States, Europe and Brazil as African swine fever has killed up to half its pigs since August 2018.
Beijing pledged to increase purchases of US farm goods in an initial trade deal last month, raising traders’ expectations for more pork shipments. China also eased restrictions on US beef imports and in November lifted a ban on US poultry meat shipments.
But coronavirus has clouded the outlook for Chinese demand, White said, as cities have been quarantined. He said Tyson is still shipping meat to China and has orders on its books.
“Once we get past the coronavirus incident, whenever that might be, I do think there is going to be very strong demand,” he said.
Meat is shipped to China in refrigerated containers that must be plugged into electrical outlets once they are offloaded to keep products cold...