Tyson Meat Shortages & Price Increases

Introduction

During the Covid-19 pandemic, labor shortages in meat production staff began to cause price increases due to heightened demand. However, this would not be the end of price increases from large meat distributors like Tyson: between July and September (Q3), inflation increased by 14%. When inflation occurs, the price of goods increases to match the value of the dollar. Tyson increased its average price for pork by 39.3% in Q3, while it raised beef and chicken prices 11.6% and 15.6%, respectively. Due to these increases, Tyson increased prices for restaurants, meaning that dining out at your favorite restaurant became more expensive as well (Cost-push inflation).

The Biden administration has responded to these price increases by campaigning against “anti-competitive” behavior by “Big Meat” businesses. They believe inflation in the meat market is due to the price increases of Tyson’s products, and reducing the control of the meat industry by Tyson would remedy inflated prices. On the other hand, Tyson states inflation is forcing them to increase costs to keep their business running. Tyson’s problems have only been compounded by their chickens underperforming. With fewer chickens being born, the supply of chicken is reduced, but the demand for chicken remains the same; this causes prices to increase as even places like McDonald’s cannot give their customers chicken.