Tyson to Suspend Operations at Four Plants

[Incognito]

1/06/05 13:00

OMAHA (DTN) -- The affected plants are located in the upper Midwest and Pacific Northwest, and have been hurt by a combination of tight cattle supplies, lackluster domestic beef demand and the continued absence of key export markets.

Beginning Monday, Jan. 10, Tyson will suspend operations at plants in Denison, Iowa; Norfolk and West Point, Neb.; and Boise, Idaho. The company will also temporarily discontinue second-shift processing at Pasco, Wash. The suspension of operations is expected to last three to five weeks and will reduce the company's weekly cattle slaughter by 25,000 to 30,000 head, compared to pre-holiday levels.

"This is a difficult decision. However, we believe it's the right thing for us to do at this time, especially given the challenging market conditions and unfavorable operating margins our beef business continues to face," said John Tyson, chairman and CEO of Tyson Foods. "Our plants have been running at less than 75 percent of capacity over the past two months, which is 10 to 15 percent below historical levels."

[jensend]

this is tyson's answer to r-calf's press releases this week. the game is on and it will probably get pretty dirty. now we'll see who owns the american politicians.

[jensend]

this is tyson's answer to r-calf's press releases this week. the game is on and it will probably get pretty dirty. now we'll see who owns the american politicians.

[intr3est]

Jensend, I believe you're right that this is Tyson's answer to R-calf, show them who's in control, but isn't this what we are also fighting in Canada, too much power in the hands of the large packer? and not enough in the hands of the producer? Now, I do agree that R-calf needs a lesson!

[jensend]

i agree with you. i was just making an observation; not cheerleading for either side. if they destroy each other (highly unlikely, i know) so much the better. r-calf is hurting us now but with tyson the pain will go on and on. best to distance ourself from all the americans.

[intr3est]

Jensend, didn't think you were cheering! I thought I had started with a new thread with this next comment, but I guess I'm not up to speed with this thing yet,so I'll make it again here and hopefully everybody will see it. Has BIG-C approached the Japanese about funding a plant in the west. I believe they could do this and have a little more control over the testing etc. of the cattle. I'm sure they wouldn't mind having a little more control over the end product and it might help Canadian producers with a new "owner" in town. Why they might even like cutting out the middle man american and buying straight from the source!