Tyson Foods, the largest meat processor across all species in the US had an exceptionally strong quarter covering October, November and December 2021, which is the first quarter of its accounting year.

Despite a drop in volume of 6.2%, the value of Tyson beef sales increased to just over $5bn (€4.4bn), a 31.7% increase on the same period the previous year.

The company blamed labour shortages for reduction in output but strong demand for beef meant they could increase sales prices to offset the increased costs of labour, cattle costs and freight/transport.

Despite the increased costs, there was a spectacular increase in operating margin at $956m (€839m), or 19.1%, compared with $528m (€463m), or 13.2%, for the same period the previous year.

In the other categories, pigmeat sales increased from $1.4m (€1.2m) to $1.6m (€1.4m) on similar volume to the same quarter the previous year, with operating income of $164m (€144m) compared with $116m (€102m) the previous year.

Chicken sales were $3.9m (€3.4m) compared with $2.8m (€2.5m) the previous year and the adjusted operating income to reflect provision of $320m (€281m) contingency the previous year because of a fire and $23m (€20m) of insurance proceeds in the current year.

Prepared food revenues increased from $2.1bn (€1.8bn) to $2.3bn (€2bn) compared with the same quarter last year, on 2.6% lower volumes, though operating income fell from $266m (€233m) to $186m (€163m).

The company gave a positive outlook for the remainder of the financial year up to the end of September and has revised the operating margin up from 9% to 11%, with the stronger performance in the first half of the year.

Current steer price in the US is approximately the equivalent of €4.50/kg.