Cattle feeders will receive a bonus when selling to Tyson Fresh Meats during the week of March 23rd. Tyson will add $5 per cwt. to live cattle and $7.94 per cwt. to dressed and grid cattle.
In a statement to the Rural Radio Network, Tyson said the premium is being made to demonstrate the commitment and support of its valued 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.
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.”
The move is receiving mixed reactions from cattle producers across the nation.
Rural Radio Network market anchor Clay Patton said that over the last two week’s live cattle futures have seen volatile trade that dropped prices below $100/cwt.
“Cash prices followed the futures to a certain extent dropping sharply from late February cash prices of a $120/cwt to $105/cwt Monday, March 16,” said Patton. “In that same time frame, wholesale meat prices to retailers have returned back to their 2017 highs.”
According to Patton, during the week of March 16-20 choice and select beef prices jumped as much as $12/cwt per day. With the division between cash paid to cattle feeders and cash received from retailers, packer margins have been estimated by analysts between $300-$500/head.
Tyson operates beef plants in Nebraska, Illinois, Iowa, Kansas, Texas and Washington. The company’s beef business generated $15.8 billion in sales in the fiscal year 2019.