Tyson Foods Says Consumers Shifting Away From Higher-Priced Beef

Inflation is starting to jolt U.S. food supply chains, says The Wall Street Journal. Consumers are switching from pricey cuts of beef to less expensive chicken and other meats, as big suppliers like Tyson Foods reset their purchasing and production to meet changes in the market from farms to tables.

The shifts in the meat sector come as consumers are growing more frugal, as prices for essentials such as food and gasoline have become more expensive in recent months. Companies are tracking shifts in demand as some retailers and consumer companies issue profit warnings on falling sales and customers start to pull back spending.

Tyson says demand for chicken is “extremely strong,” helping drive up prices at a double-digit pace as production problems limit supplies.

The higher-margin beef business also faces supply constraints, and the cost of feed, packaging and transportation is taking a bite out of those operations.