Tyson Foods works to reduce chicken stocks after supply surplus

Maker of prepared meats, Tyson Foods Inc., announced that it will sharply reduce chicken production after ideal growing conditions resulted in heavier weights and excess pounds to flood the market.

This past summer, hot weather caused poultry weights to drop, prompting Tyson to purchase extra meat on the market and increase its live supply of chicken as it endeavored to offset the loss. However, beneficial conditions in the fall brought about “more pounds than we intended,” according to Donnie Smith, chief executive of Tyson. Tyson also faces rising costs from its suppliers as corn, a main component of chicken feed, rises and the firm incurs the rising business expenditures.

The supply chain inefficiencies, Smith noted, were a “busted play,” one that Tyson will soon rectify. The company pulled “another play out of the play book, and we’re going to cut production,” Smith asserted, emphasizing the company’s commitment to a streamlined supply chain. The ultimate goal, he affirmed, is to ensure “our inventory is where we want it to be.”

Tyson plans to extend the production cuts into the quarter beginning January 2 and will work with its business units to further reduce business costs.