Tyson blames underperforming roosters for US chicken shortage

Underperforming roosters that aren’t producing as many chicks as anticipated are partly guilty for the US poultry shortage, in line with executives at Tyson Foods.

The Springdale, Arkansas-based firm, one of many world’s largest producers of poultry and different meats, mentioned earlier this week that it’s struggling to ramp up chicken provide as a result of the brand new roosters it’s been utilizing for fertilizing eggs and breeding new chicks merely aren’t hitting expectations.

“We’re changing out one [type of] male that, quite frankly, we made a bad decision on,” Donnie King, president of Tyson’s poultry enterprise, mentioned Monday on a convention name with analysts.

Breeding firms present hens and roosters to chicken producers like Tyson, which then breed the birds and hatch their eggs to provide poultry. Tyson owns one of many main breeding firms within the US, Cobb-Vantress.

Tyson mentioned the brand new roosters it’s been utilizing for fertilizing eggs and breeding new chicks aren’t assembly expectations.
Alamy Stock Photo

King defined that the corporate found that eggs fertilized by this particular sort of rooster hatch much less typically, limiting the corporate’s provide simply as nationwide demand for chicken is sky excessive. He added that the corporate is working to interchange the rooster by the autumn, however there might be a lingering provide hit that carries over into subsequent yr. 

The hatching disaster hit Tyson in January, after it launched the kind of rooster that’s now getting the boot, King mentioned. The breeding drawback might be accountable for as a lot as half of Tyson’s issues assembly demand for its chicken, King mentioned.

A sign outside of a facility occupied by Tyson Foods, Inc.
Tyson factors to a surge in demand and worker absence along with decrease hatching because the causes of their provide points.
Alamy Stock Photo

“It’s about a 50/50 split between the hatch issue for us and the strong demand,” King instructed reporters after the earnings name, in line with Reuters. “We’ll get our supply sorted out.”

There are a wide range of different elements additionally holding again chicken provide, in line with Gary Mickelson, a spokesperson for Tyson. He mentioned the winter storm that slammed Texas earlier this yr in addition to “worker absenteeism” and a surge in demand are additionally hurting provide. 

Multiple 18-wheelers wait in traffic on I-35 Southbound on February 15, 2021 in Austin, Texas.
The winter storm that slammed Texas earlier this yr slowed down transportation of Tyson chicken.
Getty Images

He added that the corporate switched to the brand new sort of rooster as a result of it improved the standard of meat.

But since Tyson skilled the surprising drop in chicks, it has moved again to the roosters it beforehand used, he mentioned.

As the Post previously reported, there’s merely not sufficient chicken to go round as US demand for the meat surges. A meat-processing slowdown brought on by pandemic security measures together with a surge in demand for lately rolled out fried chicken sandwiches are largely behind the shortage, fast-food executives mentioned final month.

McDonald's Crispy Chicken Sandwich.
A surge in demand for quick meals fried chicken sandwiches are largely behind the availability shortage.
Alamy Stock Photo

“Demand for the new sandwich has been so strong that, coupled with general tightening in domestic chicken supply, our main challenge has been keeping up with that demand,” David Gibbs, CEO of Yum Brands, instructed traders final month. KFC, which is owned by Yum Brands, recently rolled out a new fried chicken sandwich.

Other firms, together with Dallas, Texas-based Wingstop, Charlotte, North Carolina-based Bojangles and Buffalo Wild Wings have all reported that they’ve additionally struggled to satisfy demand in current weeks.

With Post wires.

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.