By Tom Polansek
11:13 AM UTC – November 10, 2023
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CHICAGO (Reuters) – The United States is importing record amounts of beef this year and exporting less after ranchers slashed the nation’s cattle herd to its lowest level in decades, tightening margins for meat companies like Tyson Foods (TSN.N).
The decline in cattle numbers, after years of drought fried pasture lands used for grazing, led to soaring U.S. beef prices. Higher prices incentivize companies to import cheaper beef and discourage U.S. beef purchases by buyers like China, Japan and Egypt.
Analysts expect lower demand for U.S. beef and higher costs for cattle to translate into negative quarterly margins for Tyson’s beef business, its largest unit, for the first time this year. The company, one of four processors that slaughter about 85% of U.S. grain-fattened cattle, reports…
