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Fieldale Farms Offers to Pay $2.25 Million to Settle Chicken-Pricing Lawsuit
A Georgia chicken company has offered to settle a lawsuit that accused the chicken industry of colluding to keep meat prices artificially high. Fieldale Farms Corp. proposed to pay $2.25 million to settle the charges, according to terms of a settlement agreed with plaintiffs in the case and submitted in federal court in Illinois. The company also agreed to provide documents and other information to the plaintiffs, which are suing 13 other chicken companies in the same case.
Tyson Fattens Up Revenue on Higher Prices
Tyson Foods Inc. predicted a continued boom in meat sales, as consumers gobble up more chicken strips and bacon even at higher prices. U.S. restaurants are laying more bacon on entrees and Americans are expected to consume a record 91.3 pounds of chicken each this year. On top of increased demand from foreign buyers, Tyson, the top U.S. meat company, says it is sometimes struggling to keep up. "We're essentially busting at the seams," Tyson Chief Executive Tom Hayes said. Tyson shares climbed 4.9% on Monday after the company reported higher than expected profit and revenue for the second quarter. Tyson said it expects sales to increase 6% in its fiscal 2018, which begins in October.
Tyson Sees Years-Long Boom in Beef -- Market Talk
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09:31 ET - Tyson Foods' (TSN) beef business delivered the biggest year-on-year growth among the company's segments in the latest quarter, and the top US meatpacker tells investors to expect growth from burgers and steaks for years to come. "We see very good conditions for beef as far out as 2020," CEO Tom Hayes says on TSN's fiscal Q3 conference call. Hayes says some "shock to the system" could change that, but the outlook for prolonged expansion comes after the US beef industry has grappled with fallout from a 2012 drought that sharply reduced the US cattle herd and helped push beef prices for consumers to record levels. (email@example.com; @jacobbunge)
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Tyson Struggles to Meet Hunger for Chicken -- Market Talk
09:59 ET - Times are good in the chicken business, so much so that the biggest US player-- Tyson Foods (TSN)--is challenged to keep up with demand. CEO Tom Hayes says the Arkansas company is racing ahead on plans to add production capacity as per-capita consumption is anticipated to hit a record 91.3 pounds per person in the US this year, the fifth consecutive year of growth, according to the National Chicken Council. "Higher prices for chicken haven't dampened consumer demand," Hayes says. TSN's chicken sales climbed 1.6% for the quarter, but operating income fell by nearly 23% and profit margins sagged as Tyson faced higher costs and had to buy more chicken from competitors to meet demand. (firstname.lastname@example.org; @jacobbunge)
Fresh Record for New Zealand Stocks; Dairy Strong -- Market Talk
0530 GMT - Steady afternoon buying allowed New Zealand stocks to finish at another record higher amid gains across Asia Pacific to start the week. The NZX 50 rose 0.3% to 7751.57. Dairy producers A2 Milk and Synlait, which recently expressed confidence that China would let them keep exporting infant formula there, rose some 3%. Macquarie has also became a substantial holder of A2, which is up about 130% this year to hit a series of record highs. Meanwhile, Xero fell 1.2%. (email@example.com)
Cattle Futures Fall on Growing Supply
Cattle futures started the week sharply lower as traders faced the prospect of an increase in supply over the coming weeks. Meatpackers slaughtered 634,000 cattle last week, up 9% from the same time last year, while beef production rose 7% year-over-year to 511.9 million pounds, according to U.S. Department of Agriculture estimates. Average estimated cattle weights also rose.
Zumbrota, Minn Hog Steady At $51.00 - Aug 7
Barrow and gilt prices at the Zumbrota, Minn., livestock market today
are $1.00 lower at $51.00 per hundredweight.
Sow prices are $1.00 to $3.00 higher. Sows weighing under 450 pounds are $65.00-$67.00,
400-450 pounds are at $65.000-$67.00, 450-500 pounds are $65.00-$67.00 and
those over 500 pounds are $68.00-$71.00.
The day's total run is estimated at 300 head.
Prices are provided by the Central Livestock Association.
Estimated U.S. Pork Packer Margin Index - Aug 7
All figures are on a per-head basis.
Date Standard Margin Estimated margin
Operating Index at vertically -
Aug 7 +$30.83 +$ 78.68
Aug 4 +$26.40 +$ 75.11
Aug 3 +$26.88 +$ 77.18
* Based on Iowa State University's latest estimated cost of production.
A positive number indicates a processing margin above the cost of
production of the animals.
This report compares the USDA's latest beef carcass composite
values as a percentage of their respective year-ago prices.
For Today Choice 101.7
(Percent of Year-Ago) Select 103.2
USDA Boxed Beef, Pork Reports
Wholesale choice-grade beef prices Monday fell 89 cents per hundred pounds, to $202.72, according to the USDA. Select-grade prices fell 31 cents per hundred pounds, to $197.00. The total load count was 111. Wholesale pork prices rose $1.66, to $97.00 a hundred pounds, based on Omaha, Neb., price quotes.
(END) Dow Jones Newswires
August 07, 2017 17:36 ET (21:36 GMT)