Tyson Sees Meat Prices Up As Freight Costs Rise
by Allison Prang, MarketWatch
Posted: 2018-02-12 15:28:58 EST

Tyson Foods Inc.'s chief executive said rising freight and labor costs will mean higher meat prices for U.S. consumers.

Tyson projected a nationwide shortage of trucks and drivers will add $200 million to the meat company's costs this year, while rising wages for slaughterhouse workers also increase expenses for the biggest U.S. meat processor by sales.

"Freight is a tough one, it's affecting all of our businesses," Chief Executive Tom Hayes said Thursday. "Ultimately, the consumer's going to pay for it at some point."

Tire makers, beer distributors and other companies are struggling against a nationwide trucking shortage. The strengthening U.S. economy is driving industrial production higher, so companies are trying to ship more goods. At the same time, bad weather has slowed transport across parts of the U.S. and a new federal safety rule that took effect in December has cut into the availability of roadworthy trucks.

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