Tyson's (NYSE:TSN) meat supply challenges have started to impact demand. The processor of cattle, pigs, and chickens is reportedly cutting beef prices in response to a move by many consumers to try other protein choices. Beef prices jumped in the wake of COVID-19 plant closures in recent weeks.
"We're doing this because we want to help keep beef on family tables," CEO Noel White said.
In early May, Tyson announced that sales rose in the fiscal second quarter despite a huge shift in demand away from restaurants and into the retailing industry segment. Yet the company has already started to feel the pinch from meat plant closures and the loss of restaurant sales. Executives are predicting falling sales volumes over the next six months.
Some beef prices will decline by as much as 30%, Tyson told MarketWatch, which should help the product compete better with alternatives like Beyond Meat (NASDAQ:BYND). The plant-based meat substitute producer is aiming to capitalize on meat industry challenges and build a foothold in the niche. Beyond Meat recently announced a 141% quarterly sales increase and reported having plenty of inventory on hand to satisfy increasing demand in both its retailing and foodservice segments.