Tyson To Add $5 To Cash Cattle Prices

Tyson announces assistance payment ( Tyson Foods )

Tyson Foods told cattle feeders on Friday that next week it will add $5 per cwt. to live cattle and $7.94 per cwt. to dressed and grid cattle. The increase will be added to the base cash price for the week.

Gary Michelson, Tyson Foods director of media relations, told Drovers in a Saturday morning email the one-time premium is an effort to demonstrate the company’s commitment to cattle suppliers.

“As an American company supporting the agricultural backbone of this country it is imperative during this national state of emergency, we not only support our customers, but our cattle supply partners as well by ensuring the long-term sustainability of the beef business,” Michelson wrote.

“Without the pipeline of high-quality cattle, we would not be able to deliver on meeting the needs of our customers and consumers. It is for these reasons Tyson Fresh Meats is providing a one-time premium effective for cattle harvested the week of March 23rd, in an effort to demonstrate our commitment and support of our valued cattle suppliers. This is an unprecedented time and the intent of our response is to show our support in an effort to help our supply partners weather this extraordinary situation.”

Tyson Foods operates 6 beef packing facilities in the U.S., harvesting an average of 155,000 head of cattle each week.

Grocery meat cases have been emptied over the past two weeks as consumers gather food items in preparation for home isolation. The resulting retail demand caused a rapid spike in beef cutout prices of $47.74 last week, with the Choice boxed trade closing Friday at $253.75.

Cash fed cattle traded from $105 per cwt early in the week to $113 at the end of the week. The spike in the beef cutout price meant beef packer margins may have exceeded $400 per head for the week.

No announcement of a similar assistance payment from other packers has been made.

Related stories:

Demand Surge Drives Cash, Boxes Higher

Comments
Submitted by Mark on Sat, 03/21/2020 - 12:56

Wow Tyson, you are a cut above the rest. You graciously donate 10% of your profits for one week to the very people you are STEALING it from. Should we put you on the same level as Mother Theresa with all your generosity or wait to see what happens in the future?

Submitted by Anthony Young on Sat, 03/21/2020 - 19:23

Wow! Plus they don’t have enough time to get more beef imports in the system! To the consumer this appears as an act of compassion! To the US cattlemen it’s nothing because they know the situation.

In reply to by Mark (not verified)

Submitted by Darren on Sat, 03/21/2020 - 20:40

their just doing this to hopefully get the few politicians they dont donate to off their backs. their afraid congress will do the right thing and start enforcing the anti trust laws ready on the books and reinstate mandatory cool.

In reply to by Mark (not verified)

Submitted by Butch on Sat, 03/21/2020 - 20:43

Poor doggie needs a bone!!!
A scratch behind the ear isn't enough.

In reply to by Mark (not verified)

Submitted by Scott on Sat, 03/21/2020 - 13:27

Hell of a deal. Does it make you feel good inside or what.... Theft for many months now trying to say they are trying to help the producer. The beef pipelines are low and next week it should take more money to buy cattle anyways. They can steal from us and give back what they feel like giving. This is such bullshi! I cant even think straight after reading this type of gesture. What the he!!? It tells me cattle should be much higher than they are. Maybe when I cool off I can put up a better response.

Submitted by Kurt on Sun, 03/22/2020 - 21:44

Such a shame as they didn’t have to give you cry babies one dime. Was in this business many years and cannot remember one time the feeders called and said keep some of my profits. So sad when you cannot just be thankful for what you have. This market always has its up and downs, it is very rare that it is ever equal. But next time when you feeders are making the money please give some back to the packer.

In reply to by Scott (not verified)

Submitted by justin gray on Sat, 03/21/2020 - 15:06

when your stealing 700 a HD from us and you give back 75, I hope you dont expect a pat on the back!

Submitted by C J Oakwood on Sat, 03/21/2020 - 19:43

Well [email protected] head extra is better than not....we're about to see an explosion in meat demand when people can get back to normal....they will need cattle!

Submitted by Rancher on Sat, 03/21/2020 - 19:44

Keep your cattle on the ranch.

Submitted by Carol on Sat, 03/21/2020 - 20:16

Your generosity is overwhelming....not. It’s a travesty to American cattle producer. They deserve more from you and the other packers.

Submitted by Non ya on Sun, 03/22/2020 - 00:19

Pay your your workers Hazard pay for working in this crisis

Submitted by Ron on Sun, 03/22/2020 - 06:32

Oh boy what a gracious move they need the cattle because they're making a ton of money !!! The cattle feeders who do all the work are losing but the Packers are making 400 to $500 a head there's something wrong with this !!! The price of doesn't go down in the supermarket because their price gouging yeah they're going to raise the price of cattle live because they need them to make their bottom line even better !! We just went through this with the Kansas fire I think there's a reason there's rules and laws that the Packers cannot get together with the Board of Trade and manipulate the market

Submitted by American on Sun, 03/22/2020 - 07:44

This is a joke and almost makes me as a producer more angry than them doing nothing. They are trying to make us feel better about them running our livelihood into the ground. People please keep your cattle at home the extra five cents is a long way from being able to turn a profit!!!!

Submitted by Tyler on Sun, 03/22/2020 - 08:45

Get ready....... box beef will probably go up another 7 bucks..... 🤦🏽‍♂️

Submitted by Danny on Sun, 03/22/2020 - 09:36

Steal the whole pie and then offer to generously give an eighth back to keep us quiet. Today, this week we as producers need to hold out for our fair share of the whole pie. If we don’t our industry and way of life is doomed. I can’t keep going like the last four years have been.

Submitted by Brad on Mon, 03/23/2020 - 06:47

This is a pittance compared to their profits. Do they truly feel farmers and ranchers are that dumb?