Tyson Sees Cattle Herd Rebuilding in 2026, But No Beef Boost Until 2028

As of August 4th, 2025, Tyson Foods Inc. is anticipating a gradual recovery in the US cattle herd, with CEO Donnie King stating that the rebuilding process will begin "in earnest" next year. However, the meat producer does not expect to see the benefits of this herd expansion until 2028.

According to King, signs that ranchers are starting to retain more heifers for breeding purposes are setting a stronger outlook for Tyson's money-losing beef business. The CEO explained that it will take a couple of years for this move to translate into increased supplies of slaughter-ready animals. For years, ranchers have been forced to slash herd sizes due to high interest rates, expensive feed, and persistent drought, leading to the worst cattle shortage in decades.

While the beef business continues to struggle, with Tyson reporting a $151 million loss in the most recent quarter, the company has managed to cushion the impact through stronger demand for its chicken products. In fact, Tyson has raised its full-year earnings forecast by $100 million, largely driven by the performance of its poultry division, which has benefited from low feed costs.

"I don't think we have peaked in chicken," King said during the conference call, indicating that Tyson sees further growth potential in its chicken operations, including the ability to add more value-added and branded products to its portfolio.

Despite the ongoing challenges in the beef segment, Tyson remains optimistic about the long-term prospects for the industry, with the CEO stating that the company is "poised to capitalize on tremendous opportunity ahead of us" as cattle availability improves in the coming years.