Tyson Foods expects tight US cattle supply into 2027
Tyson Foods expects tight U.S. cattle supplies through 2027 as herd rebuilding remains slow. High costs and drought continue to pressure meatpacker margins.
Tyson Foods Inc-CL A expects tight cattle supplies to persist through 2027 as United States ranchers struggle to rebuild herds. Beef prices have climbed more than 16% since January 2025, reaching record highs as inventories hit a 75-year low. This supply crunch pressures meatpacker margins and sustains high grocery costs for American consumers entering the summer season.
### Why the U.S. Cattle Herd Recovery Is Stalling Ranchers have been slow to retain heifers for breeding, a necessary step to increase production. High market prices and drought conditions in the western United States have instead encouraged producers to send female cows to slaughter. Tyson CFO Curt Calaway said at a BMO investor conference in New York that heifer retention remains spotty and regional.
