Although Tyson Foods Inc projected in May that it’s pork, chicken and beef units could all benefit late in fiscal year 2019 from increased meat demand from China, the company said on Monday that it has not reaped major financial gains yet.
The deadly swine virus, African swine fever (ASF), that has killed millions of hogs in China and is expected to create a global shortfall in pork, has kept investors and American farmers waiting to benefit from the outbreak, Reuters reported.
U.S. pork shipments to China have suffered since Beijing imposed retaliatory duties on imports last year as part of the escalating trade war between the U.S. and China.
Still, Tyson reported better profits than expected for the quarter ended June 29, as sales volumes and average prices increased for its beef and pork products.
“The African swine fever outbreak continues to take its toll on hog supplies in Asia,” said Noel White, Tyson’s president and chief executive. “Given the magnitude of the losses in China’s hog and pork supplies, the impending impact on global protein supply and demand fundamentals is likely to be a multi-year event.”
In the third quarter ended June 29, net income attributable to Tyson rose to $676 million, or $1.84 per share, up from a year ago at $541 million, or $1.47 per share.
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