Tyson Foods, the largest meat company in the US, has announced a $120m (€110m) cost cutting programme over the next two years that will see the Arkansas-based company shed 500 jobs. Tyson announced the restructuring programme in the same week that it reported bumper profits in its beef and pork divisions for the first quarter of its 2020 financial year.

Last week, Tyson unveiled first quarter sales of $10.8bn (€10bn), which was up 6% year on year. Operating profits increased by 2% to reach $826m (€756m), despite profit margins narrowing slightly to 7.6%.

Tyson’s first quarter performance was underpinned by soaring global pork prices due to the African swine fever (ASF) outbreak across Asia.

Higher prices saw Tyson’s turnover from pork surge 17% to $1.4bn (€1.3bn), while profits from pork sales more than doubled to $191m (€175m).

Tyson also reported a 34% increase in profits from its beef division to $410m (€375m), as profit margins widened to a record 10.7%. Tight cattle supplies and strong demand have seen US beef prices rise 6% in the first quarter of 2020.