11 Dec

Tyson Foods Commands 24% Of The Beef Market

WRITTEN BY Adam Jones

Company overview

Tyson Foods, Inc. (TSN) primarily produces and distributes protein products such as chicken, pork, beef, and prepared foods. It owns brands such as Sara Lee, State Fair, Jimmy Dean, Aidells, etcetera. Tyson Foods has a market cap of $13.2 billion and has facilities in the US, Mexico, India, China, and Brazil, as illustrated below.

 Tyson Foods Commands 24% Of The Beef Market

In fiscal 2014, Tyson Foods (TSN) earned 42% of its revenues from the Beef segment, 30% from the Chicken segment, 14% from Pork, and 10% from the Prepared Foods segment. The remaining 4% from the International segment in 2014.

Commands 24% of the beef market and tops other segments

The US beef packing industry is highly consolidated. According to Cattle Buyers Weekly, in 2014, four producers controlled 75% of the market share:

  • Tyson Foods  – 24%
  • JBS USA –  22%
  • Cargill – 19%
  • National Beef – 10%

According to Watt Poultry USA, in 2014, Tyson Foods also led the ready-to-cook chicken market:

  • Tyson Foods – 21%
  • Pilgrim’s Pride Corporation (PPC) – 18%
  • Sanderson Farms, Inc. (SAFM) – 7%

For more about Pilgrim’s Pride, read A key company overview of Pilgrim’s Pride Corporation.

The pork production business is also consolidated. According to National Pork Board, in 2013, 71% of the market share is controlled by five players

  • Tyson Foods – 17%
  • Smithfield – 26%
  • JBS – 11%
  • Cargill – 9%
  • Hormel Foods Corp. (HRL) – 8%

Some of these companies are held by the SPDR S&P 500 ETF (SPY). This broad ETF also holds restaurant stocks—Tyson’s customers.

For more on the restaurant industry, read An in-depth overview of the US restaurant industry.

Series overview

In this series, we’ll look at each of Tyson Foods’ segments, at its product portfolio, its customers, its distribution channels, at the commodities that affect the company, and at the Hillshire merger.

We’ll start with revenue segments, next.

Latest articles

Tesla is due to release its third-quarter earnings today after the markets close. Will Elon Musk answer analysts’ questions about Walmart solar roof fires?

Caterpillar reported its third-quarter earnings today. The company's revenues fell to $12.8 billion—a 6% fall compared to the same quarter in 2018.

Thursday, October 24 marks a huge day for Intel (INTC) investors. The chip and GPU giant is set to report its third-quarter 2019 earnings after the closing bell.

So far, Charlotte’s Web Holdings (CWBHF) (CWEB) has gained 19.7% year-to-date. The company will report its third-quarter results next month.

On October 22, US crude oil prices rose 1.6% and settled at $54.16 per barrel. The S&P 500 Index (SPY) fell 0.4% on the same day.

Integrated oil and gas major BP (BP) is expected to post its third-quarter results next week. Will BP's earnings put on a good show?