THE Department of Justice (DOJ) announces its investigation into the four major meatpackers, Tyson Foods, JBS USA, Cargill, and National Beef Packing. The investigation will include possible antitrust violations in the U.S. cattle and beef industries. On the same day (last Monday), Senator Chuck Schumer (D-NY) once again pushed for the Family Grocery and Farmer Relief Act, which seeks to break up big meat monopolies, support local farmers and lower grocery costs.
Multiple plant closures across the country, the current market structure and high concentration in the industry indicate anti-competitive activity, Acting Attorney General Todd Blanche said during a press conference. An executive order was signed in December 2025 by President Trump, which was intended to investigate price fixing in the food supply chain. Blanche said the DOJ reviewed more than 3M documents and contacted hundreds of stakeholders in the businesses, including ranchers, cattlemen, producers and processors.
Agriculture Secretary Brooke Rollins was also at the press conference to discuss some of the factors the cattle and meat industry is dealing with, including a 75-year low in cattle herd size. Rollins said that over the last decade, 17% of cattle ranchers have been lost. Officials previously stated the four largest beef processors control about 85% of the U.S. beef processing market. This has led to a frightening landscape for cattle ranchers, said Rollins. Industry consolidation reduces options for ranchers looking to sell their cattle. It weakens their negotiating power and it risks reliance upon a single buyer, she said.
Rollins Addresses Foreign Ownership
Rollins also addressed foreign ownership of meatpackers, raising concerns about how it could affect food supply chains and food security. JBS S.A. is headquartered in Brazil and the majority of National Beef is owned by Brazilian company Marfrig Global Foods. Half these meatpacking giants, including the largest meatpacker in the world, are either foreign-owned or have significant foreign ownership and control, making them a threat not just to U.S. cattle producers but a threat to America itself, she said.
During the conference, the DOJ also promoted the whistleblower’s rewards program for the ongoing inquiry. If the information you provide helps DOJ secure a criminal penalty in excess of $1M, you can be entitled to recover and receive 15-30% of the money DOJ recovers, said Blanche. Whether you’re a farmer, a purchaser or a processor, you can help protect food security in America by reporting these types of violations and potentially criminal conduct, he said.
The DOJ announcement, however, overstates the market share of the Big Four packers and omits the fact that beef processing consolidation has remained the same for years. CBW data reveals that the four firms have accounted for less than 75% of commercial (total) cattle slaughter for the past decade or more. Consolidation occurred more than 20 years ago and total industry cattle slaughter capacity has declined sharply as well. CBW estimates that the one-time capacity of the 73 largest federally-inspected beef processing plants is 129,000 head per day. The capacity total in 2011 was 138,000 head per day. Another irony is that the DOJ has launched its investigation just as fed beef processors continue to lose tens of millions of dollars per week Tyson Foods’ beef segment had an operating loss of $240M in Tyson’s fiscal 2026 second quarter (see next story).
TYSON BEEF HAS SMALLER LOSS
TYSON Foods’ beef segment reports a smaller loss in the company’s fiscal 2026 second quarter than in the first quarter. But increased live cattle costs continue to hurt Tyson’s beef margins and its overall profits. Cattle costs in the quarter were up $600M versus a year earlier, Tyson said in a securities filing. Average beef prices were up 11.5% year-on-year but sales volume was down 13.1%. Sales totaled $5.205 billion, versus $5.196 billion in 2025. Quarterly operating loss was $240M, versus a $222M loss in 2025. The segment’s six-month operating loss was $559M, versus $248M in 2025. Tyson says it anticipates a beef operating loss of $500M to $350M in fiscal 2026.
The results reflected the expected volatility in the cattle cycle, said President and CEO Donnie King said. Tyson successfully completed the previously announced strategic decision to optimize manufacturing footprint. As a result, its second quarter results reflect only a portion of these operational adjustments, which are intended to improve utilization and strengthen Tyson’s cost positions. Importantly, it is staying focused on the levers it can control, plant utilization, operating discipline, customer bid and execution. Tyson expects the benefits from these adjustments to build as it moves through the year. Its outlook for the remainder of the year implies lower losses in the back half than the front half of the year. But Tyson will continue to expect results below historical margin levels until cattle supplies normalize, he said.
As in the first quarter, Tyson’s Chicken and Prepared Foods segments helped Tyson deliver strong overall results in the quarter. The segments drove meaningful momentum, said King. Tyson’s disciplined balance sheet management, execution and diversified, multi-protein portfolio position it to capitalize on significant growth opportunities ahead. Tyson remains focused on continuous improvement, leveraging its scale and operating capabilities to better serve its customers and consumers. With sustained market demand for protein and Tyson’s proven ability to innovate and execute, it is well-positioned for long-term value creation. It has enabled Tyson to return $445M of cash to its shareholders year to date through a combination of dividends and share repurchases, he said.
Tyson Delivered Solid Top Line Growth
Tyson delivered solid top-line growth in the quarter, with improvements in its Chicken and Prepared Foods segment sales, said King. Protein continues to be a priority for consumers. As the leading animal protein provider, Tyson is well positioned to meet this demand with products that deliver complete nutrition, including all nine essential amino acids. This, along with its shift to simple ingredients, like those found in your pantry, is resonating in gaining traction with consumers, he told analysts.
Total sales in the quarter were $13.653 billion, up 4.1% from $13.074 billion in 2025’s second quarter. Adjusted operating income was $497M, down 3% from the prior year, or 87 cents per share on the common stock, down 5% from the prior year. Operating income was reported as $435M, versus $100M in 2025. Volume in Tyson’s Chicken business grew 1.7% year-over-year, driven by an improved product mix of value-added and branded items and strong execution in operations and marketing. Tyson delivered another impressive quarter with $523M in adjusted operating income and a 12.2% margin while navigating a more normalized commodity environment and typical second quarter seasonality, said King.
Chicken demand remains robust and Tyson’s customer-centric approach is working, said King. Overall, year-over-year chicken volume was up 1.7%, with retail and foodservice volumes growing nearly three times faster than total volume, reflecting momentum with its strategic customers. This is another example of how its chicken business is outperforming compared to a commodity chicken business. A significant theme during the call was Tyson’s genetics business, which contributed one-third of the year-over-year improvement in the second quarter. The genetics business is a strategic asset for the company, said King. Its next generation genetics line is delivering superior live performance and real customer value. But this improvement also requires great execution and Tyson is doing that as well, he said.
Prepared Foods’ Sales Rise 4.8%
Tyson’s Prepared Foods segment had a 4.8% increase in sales to $2.511 billion, versus $2.396 billion in a year earlier. The average price change was 4.4% while the volume change was 0.4%. Segment adjusted operating income was $352M in the second quarter, even as commodity costs were higher year-over-year, said King. Margin expanded to 14%, reflecting strong demand, share gain, and discipline execution. Importantly, Tyson continues to drive innovation and its brands are winning in the marketplace. In the quarter, Tyson gained share in volume, dollars and units. Its brand strength and focus on customer relationships, along with improved promotional efficiency and targeted map investments, are delivering a strong return on investment, he said.
In terms of how the company is driving innovation across the Tyson portfolio, King told analysts the company is using AI-driven insights that sharpen how the company identifies emerging preferences and translates them into action. This enables Tyson to bring on-trend consumer-led products into the marketplace. In practice, the integration of AI allows Tyson to better connect what consumers are telling it with what shows up on shelves and menus. The capability is accelerating its innovation pipeline, improving decisions around distribution and pricing and strengthening the effectiveness of marketing and new customer acquisition.
The Jimmy Dean brand is one example of how Tyson applied AI insights to create the next wave of higher protein breakfast, said King. The recent launch of the Jimmy Dean protein breakfast platform is off to a phenomenal start, bringing higher protein versions of consumer traditional favorites like sandwiches and bowls that are showing stronger velocity and consumer takeaway. Tyson is pairing those core items with innovations like Jimmy Dean High Protein Waffles that are new and incremental to Tyson’s prepared foods business. Early consumer responses have been very positive and it’s bringing new and younger consumers to the brand, he said.
Pork Has Volume Increase
Tyson’s Pork business performed well in a stable operating environment, said King. Quarterly sales were $1.579 billion, versus $1.244 billion in 2025. Sales volume year-on-year was up 4.4% and average prices were up 1.3%. Adjusted operating income was $41M, versus $69M in 2025, with a margin of 2.6%. Pork benefited from its relative value compared to beef, which supported strong consumer demand in both retail and foodservice, said King.
With reliable pork raw materials and a tighter, more integrated network, Tyson is improving mix and lifting value and prepared foods by driving higher utilization across bellies, hams and trims, said Devin Cole, Tyson’s chief operating officer. Overall, he is encouraged by the incremental steps Tyson took in the second quarter and he is confident that Tyson has room to grow and improve across the operational and controllable aspects of its business in 2026 and beyond, he said. All parts of the pork value chain, from hog supply, pork production through retail and foodservice customers are in relative balance, allowing for more predictable and stable operating margins, said King.
Tyson’s International segment continued its momentum, producing another positive quarter. Sales were $577M versus $566M. Adjusted operating income for the second quarter was $37M. Chief Financial Officer Curt Calaway said the segment performed in line with expectations, and the annual outlook remains at $150M to $200M. As Tyson has discussed, there is increasing demand for protein, which helps Tyson drive strong revenue and cash flow even through economic ups and downs, King told analysts.
In a securities filing, Tyson said its Pork segment experienced sufficient supply of market-ready hogs and increased hog costs. Its Chicken segment experienced reduced feed ingredient costs. Its Prepared Foods segment is currently experiencing increased raw material costs primarily due to higher meat costs. Additionally, the International segment is currently experiencing increased raw material costs. Geopolitical tensions in the Middle East, including heightened tensions involving Iran, have increased volatility in global energy and commodity markets, which may affect Tyson’s cost structure, including transportation costs, it said.
U.S. AND CHINA DOMINATE OZ TRADE
THE U.S. and China continued to dominate Australia’s beef export trade during April. Total volume to all export markets last month reached 140,943 metric tons(mt), up 13,770 mt or 11% from April last year, and only moderately smaller than the booming March number that fell just short of 150,000 mt. March was in fact the nation’s second highest volume record, says Beef Central. Fewer working days due to the Easter and ANZAC Day public holidays may have capped last month’s volume from being even higher.
The result has been underpinned by high rates of weekly national slaughter since late February, including some of the biggest production weeks seen since the 2015 drought turnoff period, says Beef Central. Unless rates of production decline substantially during the second half of the year, it’s looking increasingly likely that Australia will hit another all-time beef export volume record in 2026. Total volume to all export markets for the first four months of the year has already reached 506,000 mt, up more than 67,000 mt or 15% on last year, which generated the previous all-time calendar year record of 1.5M mt. Grain-fed exports last month retracted a little in line with the broader trend since March, reaching 40,093 mt, up 8% year-on-year but well short of the more than 50,000 mt month in March.
The U.S. continued to dominate export business last month, accounting for 41,174 mt in April, down only 869 mt or 2% on March but almost 11% higher than April last year, says Beef Central. For the January-April period, exports to East and West Coast ports reached 146,956 mt, up 17,600 mt or 13.6% on the same four months last year. Exports to China were lower than what many anticipated, given the looming triggering of the Safeguard tariff under Australia’s 2026 quota of 220,000 mt. If anything, trade has been more orderly than what many anticipated at the start of the year when the new quota was imposed, with some forecasts for the quota being filled now suggesting late July or August, says Beef Central.
April shipments to China reached 29,583 mt, some 3300 mt or 10% below the previous month, says Beef Central. This was well shy of earlier predictions that monthly volume might soar past 40,000 mt as the race to get product in before the quota filled gathered pace. Calendar year to date, Australia has now consigned 106,145 mt to China, a rise of 29,500 mt or 38% on the same period last year. This number suggests Australia has not yet filled 50% of its 2026 quota entitlement. However, there is a lag factor between Australia’s and China’s trade data, says Beef Central.
March U.S. Pork Exports Boom
Meanwhile, March exports of U.S. pork were among the largest on record, concluding a very strong first quarter, says the U.S. Meat Export Federation (USMEF). While March beef exports were below last year, largely due to the ongoing lockout by China, the value of beef variety meat shipments reached a new monthly high, surpassing the previous record from January. Pork exports totaled 285,567 mt in March, up 6% from a year ago, the largest in five years and the third largest on record. Export value increased 4% to $803.2M, the second highest on record, trailing only April 2021. Through the first quarter, pork exports were 3% above last year’s pace in both volume (778,939 mt) and value ($2.17 billion). Exports are on a record pace to Mexico and Central America. March beef exports totaled 97,731 mt, down 11% from a year ago, while value fell 8% to $844.7M. The March export results included 29,062 mt of beef variety meat, up 24% from a year ago and the largest since 2017. Variety meat export value increased 50% to $135.6 million, the highest on record. CBW will report more fully on exports in its next issue.
CORRECTION: CBW in its May 4, 2026 issue cited analyst Kevin Grier as saying that Canadian retail beef prices have probably increased about 77% since 2021, far outpacing consumer price increases. That should have read that wholesale beef costs increased about 77%.