US meat group Tyson Foods said today (2 June) that structural changes and improved market conditions have had a positive effect on its chicken business.
Speaking at the Stephens Inc Spring Investment Conference, Donnie Smith, senior group vice president for poultry and prepared foods, said the company has modified “many” of its business practices.
“I think we’ll have a stronger Q3 in our chicken segment than we thought a month ago,” he predicted.
Tyson’s chicken business lost US$46m in the second quarter, ended 28 March. Releasing those results, the group said the business started to turn a profit in February.
However, despite the upbeat message, Smith added that higher input costs and demand for other proteins could have an impact later in the year.
“My long-term focus in chicken is on our ‘back to basics’ approach which is serving us well,” he said.
