Tyson, the largest meat producer in the United States, is about to increase prices for chicken, beef and pork. For over a year, the company refrained from raising their prices, even as inflation put pressure on their quarterly earnings. Now the company has no choice but increase their prices by between 19-38 percent.
Inflation has risen to its highest level in thirty-one years, as America faces historic incompetence in the Congress and the White House. Instead of sticking to a budget and adhering to responsible economic policies, the U.S. Congress passed a $1 trillion spending bill, insulting American taxpayers and common sense. Joe Biden signed the spending extravaganza with glee, claiming that additional government spending will help the current economic situation. He said the current inflation is only temporary and Americans need not worry. Biden says the benefits of his new infrastructure deal will soon be felt (even though out-of-control government spending is one of the main reasons why inflation continues to skyrocket). “My message to the American people is this: America is moving again and your life is going to change for the better,” Biden lied through his false teeth.
As inflation explodes, companies are increasing costs at a historic pace
As inflation explodes and as government spending continues to spiral out of control, major food retailers are preparing for new, historic price hikes on top of the price increases they already expected. Tyson Foods just announced new price hikes for chicken, beef and pork. During the fourth quarter of 2021, chicken prices are set to go up 19 percent; beef is set to go up 33 percent; and pork prices will rise 38 percent. The company contradicts the Biden administration and says rising prices will continue into the foreseeable future, as long as inflation continues to put pressure on the company.
“Inflation has clearly had an impact on the business,” said CEO Donnie King. “As rates of inflation continue, so will our pricing actions.”
On the company’s quarterly earnings call, Tyson Foods CFO Stewart Glendinning said the company has not increased prices to adjust for inflation throughout 2021, but hopes to recover those cost increases during fiscal year 2022. “We expect to take continued pricing actions to ensure that any inflationary cost increases that our business incurs are passed along.”
Tyson is expected to see revenues of $47 billion in 2021 and expects anywhere from $49 to $51 billion in 2022. The increases in revenue over the next year aren’t expected to result in higher profits, as operation costs continue to rise.
Like most US companies, Tyson is dealing with increased labor costs, thanks to the federal government’s plan to pay people extra to stay home and not work. The labor shortages are exacerbated by unlawful vaccine mandates that are driving hard working people out of the labor force and into the black market.
Tyson is also dealing with increased transportation costs thanks to the Biden regime’s war on American energy, pipelines, coal and natural gas. The cost of feed grain and packaging is also going up, giving the company more reasons to raise their prices.
According to the Bureau of Labor Statistics, Bureau of Economic Analysis, inflation is causing historic price increases throughout the economy. Used cars are now up 26%. Fuel is up 59%. Laundry equipment is up 15%. Furniture is up 12%. Foods like eggs, bacon and steak are up 11%, 20% and 24% respectively. From September to October of this year, consumer prices have risen on average, .9 percent. The Bureau reports that prices of consumer goods have risen six percent over the past year alone, with no end in sight.
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