Tyson Foods Inc said on Monday that the U.S. meat processing industry could reap significant financial gains from a global shortfall in pork as an incurable hog disease spreads rapidly across Asia.
Tyson projected its U.S. pork, chicken and beef units could all benefit from increased demand linked to outbreaks of African swine fever, after the Arkansas company reported quarterly profits above analysts’ estimates.
The disease, which is fatal to pigs but harmless to humans, has been detected in China, Vietnam, Cambodia, South Africa and parts of Europe.
With African swine fever in China, the world’s top hog producer, about 5 percent of the global protein supply has disappeared as demand is rising, Tyson Chief Executive Noel White said.
China is expected to import more protein to make up for its hog deaths, which White estimated at 150 million to 200 million pigs. The losses could help Tyson by pushing up pork prices and prompting consumers to buy more chicken and beef as alternatives, he said.
full story – Reuters