Tyson Announces One Time Premium of Five Dollars a Hundredweight on Cattle They Harvest the Week of March 23rdSat, 21 Mar 2020 15:10:01 CDT
Tyson Foods has anounced that they will be offering a one time cash premium on cattle they harvest this coming week- here is the statement provided to the Oklahoma Farm Report by Gary Mickelson of Tyson Fresh Meats:
"As an American company supporting the agricultural backbone of this country it is imperative during this national state of emergency, we not only support our customers, but our cattle supply partners as well by ensuring the long-term sustainability of the beef business. Without the pipeline of high-quality cattle, we would not be able to deliver on meeting the needs of our customers and consumers.
"It is for these reasons Tyson Fresh Meats is providing a one-time premium effective for cattle harvested the week of March 23 in an effort to demonstrate our commitment and support of our valued cattle suppliers. This is an unprecedented time and the intent of our response is to show our support in an effort to help our supply partners weather this extraordinary situation."
According to the Texas Cattle Feeders Association newsletter- "Tyson announced this afternoon that for all fed cattle harvested next week, they will make a one-time assistance payment to cattle feeders of $5 per cwt live and $7.94 per cwt dressed."It is our understanding that the increase will be added to the base cash price for the week.
Feedlots who do business with the other packers have been letting them know what Tyson has announced- no indication if others will follow the lead of Tyson or not.
Grocery meat cases have been emptied over the past two weeks as consumers gather food items in preparation for home isolation. The resulting retail demand caused a rapid spike in beef cutout prices of $47.74 last week, with the Choice boxed trade closing Friday at $253.75.
Cash fed cattle traded from $105 per cwt early in the week to $113 at the end of the week. Live cattle futures were finally trading higher by the end of the week- with April Live Cattle contracts up $4.40 (a dime short of limit up) at $99.50 at settlement on Friday.
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