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Tyson cuts hog production, little market impact

Tyson Foods, Inc. (Nasdaq:TYSNA), the Springdale, Arkansas-based food processor, announced today its intention to adjust pork production volume downward this week in the face of unfavorable market conditions.

"We're taking in excess of 24 hours of production out of the schedule for our six pork plants this week," Tyson spokesman Gary Mickelson told Agriculture Online. This is equivalent of three shifts."

Mickelson said poor market conditions include declining pork sales and higher hog prices.

The six pork plants are located in Iowa, Indiana, and Nebraska.

Dan Vaught, AG Edwards livestock analyst, said the announcement should have little impact on the hog market.

"I thought the lower production announcement signaled tighter supplies for the packers," Vaught said. "But, the number for hogs available for slaughter remain high. We're really not seeing a sign of a shortage."

After dipping to $69.12 per hundredweight on July 17, the lean hog index on Wednesday rose to $71.78.

"It was at an annual high as $78.49 in late June, so the hogs have been higher than they are today, Vaught said. "So, I don't know what's going on. Sometimes packers can blow smoke, but I don't know what's going on in this case."

It should be interesting to see what the weekend slaughter numbers will be, Vaught said.

Tyson Foods, Inc. (Nasdaq:TYSNA), the Springdale, Arkansas-based food processor, announced today its intention to adjust pork production volume downward this week in the face of unfavorable market conditions.

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