Tyson won’t use antibiotics on fresh chicken
NEW YORK — Tyson Foods will no longer use antibiotics to raise chicken that is sold fresh in stores and will launch a $70 million advertising campaign to tout the shift, the nation’s largest meat producer said Tuesday.
The company said fresh chicken raised without antibiotics was shipped to stores Monday and will be sold beginning later this week in packaging that emphasizes that there are no artificial ingredients.
“We’re providing mainstream consumers with products they want,” Tyson Chief Executive Richard L. Bond said at a press conference.
Consumers will have to pay slightly more for the privilege, though. Tyson Senior Vice President Dave Hogberg declined to specify how much of an increase shoppers will see at stores, but said it would be “below the cost consumers say they’re willing to pay.”
He added that competitors charge about $1.50 to $2 per pound more for boneless, skinless chicken breast without antibiotics and that the price hike for Tyson’s antibiotic-free chicken would be less than $1 per pound.
Tyson, the country’s second largest chicken producer, will also be spending more to make the switchover to raising the antibiotic-free chickens. Hogberg said Tyson is converting 20 — or slightly less than half — of its production facilities to produce the products. He declined to specify how much the move is costing the company.
Bond, however, said the switch would not impact the company’s earning short-term.
Instead, he said earnings and sales would both benefit from the move since it could increase demand for chicken and potentially generate additional sales on other Tyson products.
But J.P. Morgan analyst Pablo E. Zuanic said the move most likely won’t lead to a large increase in either sales or profit.
Shares of Tyson fell 12 cents to close at $22.96 Tuesday.