Tyson Foods Inc. will be reducing prices on certain products for the remainder of the week, according to The Wall Street Journal. This comes after surging meat prices and shortages at some retail shops in the first half of May.
The Arkansas company, which processes about 25% of the nation's beef, will discount prices of ground beef, roasts, and other beef products by as much as 30% through Saturday. Price reductions will be given to restaurants, grocery stores, and other customers for a limited time.
Noel White, Tyson's chief executive, said the reduction in price on specific products is a move to keep beef affordable. This comes at a time when prices have soared due to production woes seen at processing plants across the country. He said discounting prices will help "preserve consumer demand" as processing plants come back online after some were shuttered for virus containment purposes.
"We're doing this because we want to help keep beef on family tables," White said.
Don Close, a senior meat analyst for Rabobank, said consumers have been struck hard by the economic turmoil and have downgraded from rib-eye steaks to hamburgers.
"Clearly, with the price run-up we've seen in recent weeks, we're seeing demand erosion," he said.
Wholesale beef prices have nearly doubled over the last several months as tens of millions of Americans have lost their jobs, and economic depression unfolds.
The reason for soaring beef prices, as we've explained several times: an unprecedented collapse of the nation's food supply chain as over a dozen meat processing plants have been shuttered due to the coronavirus pandemic.
Last month, Tyson Chairman John Tyson warned in a full-page ad in several newspapers:
"As pork, beef and chicken plants are being forced to close, even for short periods of time, millions of pounds of meat will disappear from the supply chain," wrote Tyson. "The food supply chain is breaking."
The announcement by Tyson comes after government data shows American grocery store prices are quickly rising as unemployment reaches levels not seen since the Great Depression. Grocery prices rose 2.3%, including seasonal adjustments, in April, which was the sharpest increase since 1974.
A quick fix that could temporary reduce prices is to flood US markets with Mexican steaks and other beef cuts. And according to new reports, that is about to begin. Enjoy that Mexican beef.