As the national labor shortage continues, Tyson Foods looks to increase its workforce through increased employee benefits, workforce redistribution and automation.
Speaking during a conference call with reporters on February 7, Tyson Foods President and CEO Donnie King along with other executives addressed various market challenges and labor shortage solutions.
Tyson's labor situation
Tyson is experiencing consumer demand that is currently outpacing its labor capabilities, which is why the company aims to rectify this disparity with efforts “to be the most sought after place to work,” said King. These efforts include a $500 million investment into employee salaries and benefits as well as developing on-site child care programs.
Tyson will also continue research and development into automation. The company will be focusing its attention on automating jobs with high turnover rates.
As an update to the 200 employees laid off at the Robards, Kentucky facility, the employees’ relocation to two other facilities in Tennessee is due to changes in consumer demand and will be temporary, according to Tyson executives.
Impact of regulations
Executives also addressed recent developments in state and federal regulations on the meat-processing industry, including a statement from the White House regarding rising meat prices. Tyson executives assured that they will continue to monitor and adhere to any regulations put in place and they reaffirmed their trust in the market to set supply and demand.
One of the most impactful changes in the meat-processing market is also California’s Proposition 12 “which mandates farm animal confinement standards and directs the Department and the Department of Public Health to jointly promulgate regulations to implement the provisions for specified farm animals and the sale of specified products derived from them,” according to the California Department of Food and Agriculture.
Tyson executives acknowledged that this proposition has created complications for their access to California’s market and they are still uncertain on exactly what effect this will have on the industry in the near future.
The Tyson Foods conference call was held in conjunction with the release of the company’s financial results for the first quarter of fiscal year 2022. The diversified protein producer reported an increase in both net sales and net income.
Tyson Foods, headquartered in Springdale, Arkansas, is the largest chicken producer in the United States and the fifth largest turkey producer. It is also one of the nation’s four largest beef producers and a major producer of pork. The company is also expanding its presence in the plant-based protein sector.
