CHICAGO – U.S. beef packers are making record losses as the price they pay for cattle is outstripping what they earn on beef, private data showed on Friday.
Analysts said the losses were record large and could force leading beef producers such as Tyson Foods Inc and JBS USA , a unit of Brazilian company JBS SA , to reduce cattle slaughter and beef production in a bid to lift beef prices.
Spokesman for both companies had not returned phone calls in time for the story.
"We expect packers to cut back kills this week and are looking for them to start trimming plant hours today and a lighter Saturday kill," said Bob Wilson, an analyst with Colorado-based analytics firm HedgersEdge.com.
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