Tyson warns of U.S. meat shortages as coronavirus shuts livestock plants

By Karl Plume

CHICAGO (Reuters) – Millions of pounds of beef, pork and chicken will vanish from U.S. grocery stores as livestock and poultry processing plants have been shuttered by coronavirus outbreaks among workers, the chairman of Tyson Foods Inc said.

John Tyson warned that the U.S. “food supply chain is breaking” as a growing number of plant closures have left farmers with fewer options to market and process livestock.

Tyson Foods announced last week that it would shutter two pork processing plants, including its largest in the United States, and a beef facility to contain the spread of the virus.

Other major meat processors like JBS USA [JBS.UL] and Smithfield Foods have closed facilities in recent weeks as cases of COVID-19, the potentially lethal respiratory disease caused by the novel coronavirus, have soared among plant workers.

More than 5,000 U.S. meat and food-processing workers have been infected with or exposed to the virus, and 13 have died, the country’s largest meatpacking union said Thursday.

Companies say they are checking workers’ temperatures, working with local health officials and taking other steps to prevent the spread of the virus.

It is unclear how soon meat processing plants may reopen.

“There will be limited supply of our products available in grocery stores until we are able to reopen our facilities that are currently closed,” John Tyson said in a release published on Sunday.

“In addition to meat shortages, this is a serious food waste issue. Farmers across the nation simply will not have anywhere to sell their livestock to be processed, when they could have fed the nation,” he said.

Tyson shares are down more than 34% since the beginning of the year but have recovered from a more than four-year low hit in March.

(Reporting by Karl Plume in Chicago; editing by Jonathan Oatis)

U.S. grocery meat supply to improve soon, after virus-fueled demand surge: Tyson Foods

By Tom Polansek

CHICAGO (Reuters) – Demand for U.S. meat at grocery stores will likely exceed supplies for at least another week, the chief executive of Tyson Foods Inc told Reuters on Thursday, as the coronavirus pandemic fuels panic buying among shoppers.

Food manufacturers say overall meat supplies are ample to feed the millions of Americans hunkering down in their homes after state and local governments closed schools, bars and restaurants in an escalation of “social distancing” policies aimed at containing the virus.

But a surge in demand for products from chicken and beef to dry pasta at supermarkets has left store shelves and meat cases empty, alarming consumers.

“Once we are able to replenish supplies, which is probably going to take another week or so, then I think that we’ll be back in better equilibrium between supply and demand,” Tyson CEO Noel White said in an interview.

He later added: “In the short term, being a matter of weeks, there are some imbalances that exist.”

The “imbalances” are more demand than supply in sectors like retail stores, White said. The total amount of beef, pork and poultry available in the United States is up about 2% to 3% from last year, he said.

Orders for meat from grocery stores were significantly higher than usual through the weekend, after demand began to shift away from restaurants last week, White said.

“The demand hit very quickly,” White said. “The order fill rate has improved. It’s still not where we would expect it to be.”

Increased buying at supermarkets has lifted overall demand for meat, although the increase has been largely offset by reduced demand from restaurants, White said. Demand from casual dining restaurants, in particular, has suffered, though fast-food restaurants continue to benefit from strong drive-through traffic, he said. Tyson is the largest U.S. meat supplier and counts companies like McDonald’s Corp as customers.

To meet increased retail demand, Tyson has shifted processing facilities to produce food for grocery stores instead of restaurants, White said. The company is running slaughterhouses at full capacity and on weekends, he said.

U.S. cattle futures have dropped sharply on concerns slaughterhouses will close if the novel coronavirus spreads among workers.

To avoid shutdowns, Tyson has begun taking employees’ temperatures at two processing facilities and is expanding the practice to all U.S. workers, according to the company. It expects deliveries of several thousand thermometers on Thursday, White said.

(Reporting by Tom Polansek in Chicago; Editing by Matthew Lewis)

Bird flu found in Tennessee chicken flock on Tyson-contracted farm

The Avian influenza virus is harvested from a chicken egg as part of a diagnostic process in this undated U.S. Department of Agriculture

By Jo Winterbottom

(Reuters) – A strain of bird flu has been detected in a chicken breeder flock on a Tennessee farm contracted to U.S. food giant Tyson Foods Inc, and the 73,500 birds will be culled to stop the virus from entering the food system, government and company officials said on Sunday.

The U.S. Department of Agriculture said this represented the first confirmed case of highly pathogenic H7 avian influenza (HPAI) in commercial poultry in the United States this year. It is the first time HPAI has been found in Tennessee, the state government said.

Tyson, the biggest chicken meat producer in the United States, said in a statement it was working with Tennessee and federal officials to contain the virus by euthanizing the birds on the contract farm.

In 2014 and 2015, during a widespread outbreak of HPAI, the United States killed nearly 50 million birds, mostly egg-laying hens. The losses pushed U.S. egg prices to record highs and prompted trading partners to ban imports of American poultry, even though there was little infection then in the broiler industry.

No people were affected in that outbreak, which was primarily of the H5N2 strain. The risk of human infection in poultry outbreaks is low, although in China people have died this winter amid an outbreak of the H7N9 virus in birds.

The facility in Tennessee’s Lincoln County has been placed under quarantine, along with approximately 30 other poultry farms within a 6.2-mile (10 km) radius of the site, the state said. Other flocks in the quarantined area are being tested, it added.

Tyson, the USDA and the state did not name the facility involved. Tyson said that it did not expect disruptions to its chicken business.

The USDA should have more information by Monday evening about the particular strain of the virus involved, spokeswoman Donna Karlsons said by email.

HPAI bird flu was last found in a commercial turkey flock in Indiana in January 2016.

The USDA said it would inform the World Organization for Animal Health (OIE) and international trading partners of the outbreak.

The biggest traditional markets for U.S. chicken meat are Mexico and Canada, which introduced state or regional bans on U.S. broiler exports after the outbreak two years ago, and China, which imposed a national ban.

Tennessee’s broiler production is too small to rank it in the top five U.S. producing states but it is the third-largest generator of cash receipts in agriculture for the state.

In January, the USDA detected bird flu in a wild duck in Montana that appeared to match one of the strains found during the 2014 and 2015 outbreak.

The United States stepped up biosecurity measures aimed at preventing the spread of bird flu after the outbreak two years ago.

Tyson said precautions being taken include disinfecting all vehicles entering farms and banning all nonessential visitor access to contract farms.

In recent months, different strains of bird flu have been confirmed across Asia and in Europe. Authorities have culled millions of birds in affected areas to control the outbreaks.

France, which has the largest poultry flock in the European Union, has reported outbreaks of the highly contagious H5N8 bird flu virus. In South Korea, the rapid spread of the H5N6 strain of the virus has led to the country’s worst-ever outbreak of bird flu.

(Reporting by Lewis Krauskopf in New York and Jo Winterbottom in Chicago; Editing by Will Dunham)