Tyson Foods CFO Curt Calaway expects U.S. cattle supplies to remain tight through 2026 and 2027. Calaway stated at a BMO investor conference that efforts to rebuild the national herd are currently spotty.
National cattle supplies dropped to a 75-year low in 2026 as ranchers reduced herds due to drought and high costs. These supply constraints indicate that high beef prices will continue to drive food inflation in the near term.
The outlook suggests sustained pressure on the consumer staples sector, including grocery retailers and restaurant chains. Tyson CEO Donnie King characterized current inflation as persistent and unlikely to decline meaningfully.