Tyson Foods Inc. will cut prices on select products for the rest of the week, says Wall Street newspaper. This comes after rising meat prices and a shortage in some retail stores during the first half of May.
The Arkansas company, which processes about 25% of the country's beef, will cut prices for ground beef, roasts and other beef products by up to 30% until Saturday . Price reductions will be granted to restaurants, supermarkets and other customers for a limited time.
Noel White, CEO of Tyson, said that lowering the price of certain products is a measure to keep beef affordable. This comes at a time when prices have skyrocketed due to production problems seen in processing plants across the country. He said the reduced prices will help "preserve consumer demand" as processing plants will come back online after some have been closed for viruses.
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"We do it because we want to help keep the beef on family tables," said White.
Don Close, a senior meat analyst at Rabobank, said consumers have been hit hard by the economic downturn and cut back on burgers.
"Obviously, with the price hikes we have seen in recent weeks, we are seeing an erosion in dem and," he said.
Wholesale meat prices have almost doubled in recent months, as tens of millions of Americans have lost their jobs and economic depression is unfolding.
The reason for the rise in beef prices, as we have repeatedly explained: an unprecedented collapse of the country's food supply chain, as more than a dozen Meat processing plants have been closed due to the coronavirus pandemic.
Last month, Tyson President John Tyson warned in a full-page ad in several newspapers:
"As pork, beef and chicken factories are forced to close, even for short periods, millions of pounds of meat will disappear from the supply chain," Tyson wrote. "The food supply chain is breaking."
Tyson's announcement comes after government data shows that prices in American supermarkets are rising rapidly as unemployment reaches levels not seen since the Great Depression. Prices for grocery products rose 2.3%, including seasonal adjustment, in April, the largest increase since 1974.
A quick fix that could temporarily drive prices down is to flood the U.S. markets with Mexican steaks and other cuts of meat. And according to new reports, this is about to start. Enjoy this Mexican meat.