Posted: Mar 27, 2012 5:35 PM by Matt Stafford
Updated: Mar 27, 2012 6:47 PM
Tyson Foods Inc. says the negative publicity over "pink slime" has hurt demand for beef and will reduce beef supply in the long term.
A number of consumers, schools and grocers are shunning beef products that contain the low-cost filler known as "pink slime" as concern about it has grown over the past few weeks.
Tyson's top executives told investors at a conference Tuesday that they expect demand to recover quickly, but the market will have to adjust. They estimate there will be a 2 to 3 percent reduction in supply. Shrinking supplies traditionally drive up costs for consumers.
Tyson, based in Springdale, Ark., is one of the world's largest processors and marketers of chicken, beef and pork.