Source:  Tom Johnston, MEATINGPLACE.COM, 9/24/10

Surging corn prices have prompted Tyson Foods to consider raising chicken prices, the company’s spokesman confirmed.

“As always, we’re closely monitoring grain prices and continue efforts to limit our exposure to price increases,” spokesman Gary Mickelson said in an e-mail. “However, we believe higher corn prices will ultimately result in consumers paying more for chicken, since we’ll be forced to raise our prices to offset the increase in input costs.”

Corn futures rose to $5.2375 per bushel this month on the Chicago Mercantile Exchange, the peak price since September 2008, amid increased U.S. grain exports and lower yield forecasts, Bloomberg reported.
Mickelson said in the e-mail that Tyson doesn’t expect the corn rally to have an immediate impact on its beef and pork businesses.

“While it is difficult to predict any long-term impact ... the overall volume of protein availability is tighter today than the last time corn prices spiked in 2008,” he said.

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