www.reuters.com Open in urlscan Pro
2600:9000:235a:f400:15:5a3e:9d40:93a1  Public Scan

Form analysis
0 forms found in the DOM

Text Content

Skip to main content

Exclusive news, data and analytics for financial market professionalsLearn more
aboutRefinitiv

Reuters home
 * WorldChevron
   Browse World
    * Africa
    * Americas
    * Asia Pacific
    * China
    * Europe
    * India
    * Israel and Hamas at War
   
    * Japan
    * Middle East
    * Ukraine and Russia at War
    * United Kingdom
    * United States
    * US Elections
    * Reuters Next
   
   Latest in World
    * Panama top court calls session on presidential frontrunner's candidacy
      8 min ago
      article with gallery
    * Thai King approves ex-diplomat Maris as foreign minister
      
      Retired diplomat Maris Sangiampongsa has been endorsed as the country's
      new foreign minister by Thailand's king, the official Royal Gazette said
      on Wednesday.
      
      18 min ago
    * Philippines says Chinese coast guard elevating tensions in South China Sea
      21 min ago
      
    * Taiwan on alert for post-inauguration Chinese drills
      30 min ago
      

 * BusinessChevron
   Browse Business
    * Aerospace & Defense
    * Autos & Transportation
    * Davos
    * Energy
    * Environment
    * Finance
    * Healthcare & Pharmaceuticals
   
    * Media & Telecom
    * Retail & Consumer
    * Future of Health
    * Future of Money
    * Take Five
    * World at Work
   
   Latest in Business
    * Australia's Qantas probing reports of data breach at loyalty app
      3:01 AM GMT+2
      
    * Brazil posts strong job figures, signals stronger activity; inflation a
      concern
      2:50 AM GMT+2
      
    * Oil falls for a third day as U.S. crude inventories swell
      2:49 AM GMT+2
      
    * Australia banks face profit squeeze on rising costs, mortgage competition
      2:46 AM GMT+2
      

 * MarketsChevron
   Browse Markets
    * Asian Markets
    * Carbon Markets
    * Commodities
    * Currencies
    * Deals
    * Emerging Markets
    * ETFs
    * European Markets
   
    * Funds
    * Global Market Data
    * Rates & Bonds
    * Stocks
    * U.S. Markets
    * Wealth
    * Macro Matters
   
   Latest in Markets
    * Stocks notch monthly drop, dollar rebounds as data, Fed loom large
      2:41 AM GMT+2
      article with gallery
    * TSX loses monthly winning streak as US rate cut prospects ebb
      April 30, 2024
      
    * South African rand weakens after trade and budget balance data
      April 30, 2024
      
    * SocGen Hong Kong traders left bank after unauthorised bets uncovered,
      source says
      April 30, 2024
      

 * SustainabilityChevron
   Browse Sustainability
    * Boards, Policy & Regulation
    * Climate & Energy
    * Land Use & Biodiversity
    * Society & Equity
    * Sustainable Finance & Reporting
    * The Switch
    * Reuters Impact
   
   Latest in Sustainability
    * Biden team sets out path for ethanol aviation fuel subsidies
      2:32 AM GMT+2
      
    * Musk disbands Tesla EV charging team, leaving customers in the dark
      1:43 AM GMT+2
      
    * Germany's struggle to clean up its supply chains has lessons for Europe
      1:34 AM GMT+2
      article with gallery
    * Ex-Google workers say firings for protesting Israel contract were illegal
      1:20 AM GMT+2
      

 * LegalChevron
   Browse Legal
    * Government
    * Legal Industry
    * Litigation
    * Transactional
    * US Supreme Court
   
   Latest in Legal
    * US newspapers sue OpenAI for copyright infringement over AI training
      1:55 AM GMT+2
      
    * IBM wins reversal of $1.6 billion judgment to BMC over software contract
      1:35 AM GMT+2
      
    * Ex-Google workers say firings for protesting Israel contract were illegal
      1:20 AM GMT+2
      
    * US Justice Department takes step to make marijuana use a less serious
      crime
      1:20 AM GMT+2
      article with video

 * BreakingviewsChevron
   Browse Breakingviews
    * Breakingviews Predictions
   
   Latest in Breakingviews
    * Amazon is the everything-plus-AI store
      1:05 AM GMT+2
      
    * Musk’s China jaunt keeps underwhelming status quo
      April 30, 2024
      article with video
    * Global retailers are headed for Shein reckoning: podcast
      April 30, 2024
      article with podcast
    * Von der Leyen’s China plan is all bark and no bite
      April 30, 2024
      

 * TechnologyChevron
   Browse Technology
    * Cybersecurity
    * Space
    * Disrupted
    * Reuters Momentum
   
   Latest in Technology
    * AI fuels cloud computing boom for tech giants
      2:04 AM GMT+2
      
    * PayPal lifts 2024 profit forecast, execs focus on branded checkout growth
      1:56 AM GMT+2
      
    * US newspapers sue OpenAI for copyright infringement over AI training
      1:55 AM GMT+2
      
    * IBM wins reversal of $1.6 billion judgment to BMC over software contract
      1:35 AM GMT+2
      

 * Investigations
 * MoreChevron
   Sports
    * Olympics
    * Athletics
    * Baseball
    * Basketball
    * Cricket
    * Cycling
    * Formula 1
    * Golf
    * NFL
    * NHL
    * Soccer
    * Tennis
   
   Science
   Lifestyle
   Graphics
   Pictures
   Podcasts
   Fact Check
   Video
   Sponsored Content
    * Reuters Plus
    * Coupons
   
   Trending Stories
    * Worldcategory
      New York City police enter Columbia University amid pro-Palestinian
      protests
      article with video
    * Businesscategory
      Musk disbands Tesla EV charging team, leaving customers in the dark
      
    * Worldcategory
      Exclusive: UN experts say North Korea missile landed in Ukraine's Kharkiv
      article with video
    * Worldcategory
      Judge fines Trump $9,000, threatens jail for contempt in hush money trial
      article with video

My ViewMy ViewChevron
Search
Sign InRegister
Menu
 * United States


LAID-OFF: FORMER TYSON FOODS CHICKEN FARMERS FACE HIGH COSTS SWITCHING TO EGGS

By Tom Polansek
April 30, 202412:31 PM GMT+2Updated 17 hours ago
Save
Text
 * Small Text
 * Medium Text
 * Large Text

Share
 * Twitter
 * Facebook
 * Linkedin
 * Email
 * Link

Maximize
Item 1 of 4 A worker sorts cage-free chicken eggs at Hilliker's Ranch Fresh Eggs
in Lakeside, California, U.S., April 19, 2022. Picture taken April 19, 2022.
REUTERS/Mike Blake/File Photo
[1/4]A worker sorts cage-free chicken eggs at Hilliker's Ranch Fresh Eggs in
Lakeside, California, U.S., April 19, 2022. Picture taken April 19, 2022.
REUTERS/Mike Blake/File Photo Purchase Licensing RightsNew Tab, opens new tab
ChevronChevron
CHICAGO, April 30 (Reuters) - Some U.S. farmers who once raised chickens for
Tyson Foods to slaughter are shifting to sell eggs instead after the meatpacker
closed six plants, a move that left local suppliers with limited options for
work.
In one example, former Tyson suppliers in central Virginia formed a cooperative
that will produce cage-free eggs for Indiana-based Dutch Country Organics on a
dozen farms, after Tyson closed its nearby Glen Allen plant last year.
Advertisement · Scroll to continue

In Dexter, Missouri, the world's biggest egg company, Cal-Maine Foods
(CALM.O)New Tab, opens new tab, in March finalized a deal to buy another chicken
meat plant Tyson shuttered. Cal-Maine recruited local farmers to produce eggs.
The switch to eggs, which carries high costs, reflects the tough choices former
Tyson suppliers around the country must make following the company's 2023
decision to shut plants in an effort to return to profitability in its chicken
business after misjudging consumer demand.
Advertisement · Scroll to continue

Egg farming also comes with risk as lethal bird flu infections have hit laying
hens harder than broiler chickens raised for meat. The virus flared up for a
third year this spring, resulting in the culling of nearly 10 million hens
involved in commercial egg production so far this year. Cal-Maine culled about
1.9 millionNew Tab, opens new tab birds this month after an outbreak in Texas.


MILLIONS TO UPGRADE

Former broiler growers must spend millions of dollars on barn and equipment
upgrades to produce eggs, a notoriously volatile market, 18 poultry producers,
government officials and industry experts told Reuters. Last year, egg prices
tanked after reaching record highs due to the worst-ever outbreak of bird flu in
poultry.

"It's a very expensive investment from the grower," said John Bapties, who is
president of the Central Virginia Poultry Cooperative and raised chickens for
Tyson for 20 years before the Glen Allen plant closed.
His cooperative is placing hens in barns that formerly housed broiler chickens,
and expects to sell cage-free eggs produced by about one million birds to Dutch
County Organics within a year, he said.
Advertisement · Scroll to continue

Farmers needed to replace dirt floors in barns with concrete and install nesting
systems for hens, among other costly renovations.
Taylor Lee, a former Tyson grower in DeWitt, Virginia, said he decided against
the switch. He will focus on raising crops while keeping his poultry barns empty
for now.
"They're painting a pretty picture with that co-op but it's $2.8 million roughly
to upgrade my farm to egg production," Lee said.

Roger Reynolds, another Virginia farmer who supplied broiler chickens to Tyson,
said he is considering producing eggs for Braswell Family Farms. His daughter
found work there after Tyson's plant closure eliminated her job.
Producing eggs means a different way of life, Reynolds said. For one thing, hens
lay most of their eggs in the morning, meaning farmers cannot go to church on a
Sunday without checking their barns first, he said.


CAGE-FREE EGGS

The United States has about 125 million cage-free laying hens, about 40% of
total layers, U.S. government data show. More are needed after some states
banned sales of eggs from caged hens and restaurants committed to cage-free
supplies, Dutch Country Organics CEO Lamar Bontrager said.
"I've been getting calls like crazy," Bontrager said. "Those guys are all
concerned of where to procure their eggs."
Dutch Country sells eggs to retailers including Walmart (WMT.N)New Tab, opens
new tab, Kroger (KR.N)New Tab, opens new tab and Target (TGT.N)New Tab, opens
new tab, according to Virginia officials.
Former broiler growers offer egg companies an opportunity to expand production
because the farmers are already familiar with poultry.
"It's one of the ways that these companies are converting: by grabbing old
barns," said Brian Moscogiuri, global trade strategist for Eggs Unlimited.
Tyson declined to comment. The company said last year that 55 broiler growers
supplied the Glen Allen plant and that it offered them buyout packages. The
plant had about 700 employees.
Tyson has laid off corporate employees and said it will close an Iowa pork
plant, in addition to shutting chicken plants. Farmers depended on the plants as
markets for their livestock.
The meatpacker is slated to report quarterly results on Monday.
In Arkansas, the third biggest broiler-producing state, Tyson closed two chicken
plants. Some of its former growers found work supplying other chicken companies,
said Jared Garrett, Arkansas Farm Bureau's director of commodity activities and
economics.
"They lucked out," he said.


JOBS WANTED

Tyson closed chicken plants in Dexter and Noel, Missouri, with about 700 workers
and 1,500 workers, respectively. Cal-Maine said it plans to initially employ
about 100 people at the Dexter plant.
"While I welcome Cal-Maine's investment in Dexter, it does not right the wrongs
of Tyson or guarantee new jobs for the more than 2,000 Missourians now out of
one," U.S. Senator Josh Hawley of Missouri said in a statement to Reuters.
David Wyman, Dexter's city administrator, also welcomed Cal-Maine, though it is
expected to work with a fraction of the farmers who supplied Tyson. Cal-Maine
said it expects to expand over time and that revenue opportunities will be as
good or better than farmers had under previous contracts.
But some former Tyson suppliers are left with empty barns, Wyman said: "They're
really in bad shape."
Egg farming is generally harder to get into operationally than raising chickens
for meat; requires more capital and labor expertise; and carries higher disease
risks, said Wendong Zhang, an assistant professor and agricultural economist at
Cornell University.
"Due to the closure of the plants and termination of contracts, the switch is in
a way a move of necessity," he said.

Get weekly news and analysis on the U.S. elections and how it matters to the
world with the newsletter On the Campaign Trail. Sign up here.

Reporting by Tom Polansek; Editing by Caroline Stauffer and Anna Driver

Our Standards: The Thomson Reuters Trust Principles.New Tab, opens new tab

Save
Share
 * Twitter
 * Facebook
 * Linkedin
 * Email
 * Link

Purchase Licensing Rights
Tom Polansek

Thomson Reuters

Tom has been a journalist for Reuters in Chicago since 2011. He writes primarily
about food and agriculture, and has reported on disruptions to global fertilizer
and grain supplies from Russia's invasion of Ukraine. He also covers U.S.
livestock production and meatpacking companies including Tyson Foods, Smithfield
Foods and JBS. Tom was part of a team of reporters that Reuters named as
Journalists of the Year in 2016 for coverage of Monsanto. He also won awards
from the North American Agricultural Journalists.

 * Email
 * Twitter
 * Linkedin


READ NEXT

ChevronChevron
 * article with video
   United StatescategoryNew York City police enter Columbia University amid
   pro-Palestinian protests
   
   New York City police officers entered the grounds of Columbia University on
   Tuesday night to arrest and disperse pro-Palestinian protesters who took over
   a campus building nearly 24 hours earlier and have occupied a tent camp at
   the Ivy League school for nearly two weeks.

 * article with video
   United StatescategoryJudge fines Trump $9,000, threatens jail for contempt in
   hush money trial
   
   The judge overseeing Donald Trump's criminal hush money trial fined the
   former U.S. president $9,000 for contempt of court on Tuesday and said he
   would consider jailing him if he continued to violate a gag order.

 * article with video
   United StatescategoryBiden vs. Trump: Who is leading the polls?
   
   U.S. President Joe Biden holds a marginal lead over Donald Trump ahead of the
   November presidential election as the Republican candidate is mired in a
   state court fighting charges he falsified business records, according to a
   Reuters/Ipsos poll that closed on Tuesday.

 * United StatescategoryTrump does not rule out building detention camps for
   mass deportations
   
   Republican presidential candidate Donald Trump does not rule out building
   detention camps on U.S. soil for migrants in the country illegally if he wins
   a second White House term, he told Time magazine in an interview published on
   Tuesday.

 * article with video
   United StatescategoryUS Justice Department takes step to make marijuana use a
   less serious crime
   
   The U.S. Justice Department on Tuesday moved to make marijuana use a less
   serious federal crime, taking a step to remove the drug from a category that
   includes heroin in a shift that could shake up cannabis policy nationwide.

 * United StatescategoryUS Supreme Court will not halt Texas age verification
   for online porn
   
   The U.S. Supreme Court declined on Tuesday to block a Texas law requiring
   online age verification in order to access pornographic websites in a case
   pitting the Republican-led state's effort to keep adult content away from
   minors against constitutional free speech protections.




WORLDCHEVRON

 * article with gallery
   
   
   PANAMA TOP COURT CALLS SESSION ON PRESIDENTIAL FRONTRUNNER'S CANDIDACY
   
   Americascategory · May 1, 2024 · 5:10 AM GMT+2 · 8 min ago
   
   Panama's top court kicked off an extraordinary meeting on Tuesday to decide
   on the constitutionality of the presidential candidacy of the former running
   mate of ex-President Ricardo Martinelli, just days before the election.

 * Asia PacificcategoryThai King approves ex-diplomat Maris as foreign minister
   
   Retired diplomat Maris Sangiampongsa has been endorsed as the country's new
   foreign minister by Thailand's king, the official Royal Gazette said on
   Wednesday.
   
   18 min ago
 * Asia PacificcategoryPhilippines says Chinese coast guard elevating tensions
   in South China Sea4:56 AM GMT+2 · Updated 21 min ago
 * Asia PacificcategoryTaiwan on alert for post-inauguration Chinese drills4:48
   AM GMT+2 · Updated 30 min ago
 * ChinacategoryChina launches sea trials for next-generation aircraft carrier
   
   China on Wednesday launched sea trials for the Fujian, its third and most
   advanced aircraft carrier, state media reported.
   
   34 min ago




SITE INDEX


LATEST

 * Home
 * Authors
 * Topic sitemap


BROWSE

 * World
 * Business
 * Markets
 * Sustainability
 * Legal
 * Breakingviews
 * Technology
 * InvestigationsNew Tab, opens new tab
 * Sports
 * Science
 * Lifestyle


MEDIA

 * 
   VideosNew Tab, opens new tab
 * 
   Pictures
 * 
   GraphicsNew Tab, opens new tab


ABOUT REUTERS

 * About ReutersNew Tab, opens new tab
 * CareersNew Tab, opens new tab
 * Reuters News AgencyNew Tab, opens new tab
 * Brand Attribution GuidelinesNew Tab, opens new tab
 * Reuters LeadershipNew Tab, opens new tab
 * Reuters Fact CheckNew Tab, opens new tab
 * Reuters Diversity ReportNew Tab, opens new tab


STAY INFORMED

 * Download the App (iOS)New Tab, opens new tab
 * Download the App (Android)New Tab, opens new tab
 * NewslettersNew Tab, opens new tab


INFORMATION YOU CAN TRUST

Reuters, the news and media division of Thomson Reuters, is the world’s largest
multimedia news provider, reaching billions of people worldwide every day.
Reuters provides business, financial, national and international news to
professionals via desktop terminals, the world's media organizations, industry
events and directly to consumers.


FOLLOW US

 * Twitter
 * Facebook
 * Instagram
 * Youtube
 * Linkedin


THOMSON REUTERS PRODUCTS

 * WESTLAWNEW TAB, OPENS NEW TAB
   
   BUILD THE STRONGEST ARGUMENT RELYING ON AUTHORITATIVE CONTENT,
   ATTORNEY-EDITOR EXPERTISE, AND INDUSTRY DEFINING TECHNOLOGY.

 * ONESOURCENEW TAB, OPENS NEW TAB
   
   THE MOST COMPREHENSIVE SOLUTION TO MANAGE ALL YOUR COMPLEX AND EVER-EXPANDING
   TAX AND COMPLIANCE NEEDS.

 * CHECKPOINTNEW TAB, OPENS NEW TAB
   
   THE INDUSTRY LEADER FOR ONLINE INFORMATION FOR TAX, ACCOUNTING AND FINANCE
   PROFESSIONALS.


LSEG PRODUCTS

 * WORKSPACENEW TAB, OPENS NEW TAB
   
   ACCESS UNMATCHED FINANCIAL DATA, NEWS AND CONTENT IN A HIGHLY-CUSTOMISED
   WORKFLOW EXPERIENCE ON DESKTOP, WEB AND MOBILE.

 * DATA CATALOGUENEW TAB, OPENS NEW TAB
   
   BROWSE AN UNRIVALLED PORTFOLIO OF REAL-TIME AND HISTORICAL MARKET DATA AND
   INSIGHTS FROM WORLDWIDE SOURCES AND EXPERTS.

 * WORLD-CHECKNEW TAB, OPENS NEW TAB
   
   SCREEN FOR HEIGHTENED RISK INDIVIDUAL AND ENTITIES GLOBALLY TO HELP UNCOVER
   HIDDEN RISKS IN BUSINESS RELATIONSHIPS AND HUMAN NETWORKS.

 * Advertise With UsNew Tab, opens new tab
 * Advertising GuidelinesNew Tab, opens new tab
 * CouponsNew Tab, opens new tab
 * Purchase Licensing RightsNew Tab, opens new tab

 * CookiesNew Tab, opens new tab
 * Terms of UseNew Tab, opens new tab
 * PrivacyNew Tab, opens new tab
 * Digital AccessibilityNew Tab, opens new tab
 * CorrectionsNew Tab, opens new tab
 * Site FeedbackNew Tab, opens new tab

All quotes delayed a minimum of 15 minutes. See here for a complete list of
exchanges and delays.

© 2024 Reuters. All rights reserved





RIGHT TO WITHDRAW CONSENT UNDER GDPR

We and our 203 partners store and/or access information on a device, such as
unique IDs in cookies to process personal data. You may accept or manage your
choices by clicking below, including your right to object where legitimate
interest is used, or at any time in the privacy policy page. These choices will
be signaled to our partners and will not affect browsing data.Cookie
PolicyPrivacy Statement


WE AND OUR PARTNERS PROCESS DATA TO PROVIDE:

Use precise geolocation data. Actively scan device characteristics for
identification. Store and/or access information on a device. Personalised
advertising and content, advertising and content measurement, audience research
and services development. List of Partners (vendors)

Allow All Reject All Show Purposes


Feedback