Tyson Foods: US Reduces Beef Exports Due To Shrinking Heard

Article explores record-breaking U.S. beef imports, alleviating price concerns amid domestic supply challenges.

Cattle Herd Shrinks, Squeezing Tyson Foods: US Reduces Beef Exports

The United States finds itself in a beef conundrum, importing unprecedented quantities of beef this year while decreasing its exports. This shift comes as ranchers significantly reduce the nation’s cattle herd to its lowest levels in decades, putting pressure on meat industry giants like Tyson Foods (TSN.N).

The decline in cattle numbers, exacerbated by years of drought that parched pasture lands, has driven U.S. beef prices to soaring heights. These elevated prices are tempting companies to turn to imported, more affordable beef and discouraging purchases of U.S. beef by countries such as China, Japan, and Egypt.

Industry analysts anticipate a drop in demand for U.S. beef and increased cattle costs, potentially leading to negative quarterly margins for Tyson’s beef division—the company’s largest unit—marking the first such occurrence this year. Tyson, one of the four main processors responsible for handling roughly 85% of U.S. grain-fattened cattle, is set to announce its fourth-quarter earnings on Monday.

US Beef Exports Face Steep Decline, Slipping from Second to Fourth Place in Global Rankings

According to the U.S. Department of Agriculture (USDA), the United States is expected to fall from its second-place ranking as the world’s largest beef and veal exporter in 2022 to the fourth place this year.

Government data reveals that U.S. beef exports are projected to plummet by 14% in 2023 compared to 2022, totaling 3 billion pounds (approximately 1.4 million metric tons), the lowest figure since the disruptions caused by COVID-19 in 2020. Looking ahead to 2024, with the USDA forecasting further declines in U.S. production due to tight cattle supplies, exports are anticipated to hit an eight-year low at 2.8 billion pounds.

U.S. beef exporters, including Tyson, Cargill (CARG.UL), and JBS (JBSS3.SA), are grappling with a “double whammy” scenario—a combination of higher prices and the strength of the U.S. dollar, which renders American products less appealing to international markets, warns Pete Bonds, a cattle producer based in Texas.

Bonds asserts, “The future of this industry lies beyond the borders of the United States.”

Tyson Grapples with Margin Pressures as U.S. Beef Exports Decline, Amidst Rising Cattle Prices

For Tyson, the erosion of its U.S. export business further compounds the margin pressure stemming from elevated cattle prices, as pointed out by Goldman Sachs analysts. Typically, U.S. beef exports yield higher margins compared to domestic shipments.

Goldman Sachs predicts a drastic margin swing, from a positive 8% a year ago to a negative 1.1% for Tyson’s beef division. Adjusted margins stood at 0.2% in Tyson’s second quarter this year and 1.6% in the third quarter.

In August, Tyson CEO Donnie King issued a warning about the challenges posed by low cattle inventories in the export market. In January, the U.S. beef cow herd reached its smallest size since 1962.

Tyson has been implementing workforce reductions as its beef, chicken, and pork segments face challenges, with high prices causing some Americans to reduce their beef consumption. The company recently announced the closure of two plants in Florida and South Carolina, where hundreds of employees handle meat cutting and packaging.

Analysts suggest that meat processors can employ imports as a strategy to navigate through periods of low margins and expensive U.S. cattle. Frequently, they import lean beef from countries such as Australia and New Zealand to blend with the fattier U.S. supplies for hamburger production.

In its monthly report, the USDA has raised its forecasts for beef imports in 2023 and 2024. Additionally, the U.S. embassy in Paraguay has announced the reopening of the doors to Paraguayan beef imports, marking a significant development after a 25-year hiatus.

Surging U.S. Beef Imports Set to Reach Historic Highs, Easing Price Pressure Amidst Domestic Supply Declines

Government data indicates that total U.S. imports from January through September have risen by approximately 6% compared to the previous year, with Australian shipments surging by 49%.

Katelyn McCullock, the director of the Livestock Marketing Information Center, which analyzes the livestock industry, projects that U.S. beef imports could reach a historic high of 3.7 billion pounds in 2023, surpassing the previous record of 3.4 billion pounds set in 2015. For 2024, imports are forecasted to further increase to 4.2 billion pounds, establishing a new record.

McCullock emphasizes, “Retail beef prices are already at record highs. With domestic supplies facing significant declines this year, these imports are helping mitigate the potential for further price increases.”

Analysts have observed a rebound in live cattle imports from Mexico, following a decline last year, with some of these cattle being placed in U.S. feedlots and subsequently sent for slaughter.

Producers and analysts point out that U.S. ranchers have not yet initiated the process of rebuilding the domestic cattle herd, given that more than half of the nation’s cattle reside in areas still experiencing abnormal dry conditions. The number of heifers, young female cows, in U.S. feedlots as of October 1 showed a 1.3% increase from the previous year, indicating that producers are fattening them for slaughter rather than retaining them on farms for breeding.

Read: Tyson Benefits from Surging US Chicken Prices

The rebuilding process is expected to progress slowly, which will continue to exert pressure on exports, according to producers and analysts who contend that “cattle numbers are tight and getting tighter,” as noted by Derrell Peel, an agricultural economist at Oklahoma State University.

Source: Reuters

Who is Ivan Siqueira, Pilgrim Pride’s new EU President

Discover the latest industry news as Ivan Siqueira takes the helm as President of Pilgrim’s Europe. Get insights into Pilgrim’s strategic move for enhanced collaboration and its commitment to delivering top-quality products to customers during the holiday season. Explore Siqueira’s vision for organic growth and innovation in the region’s food industry.

Ivan Siqueira Elevated to President of Pilgrim’s Europe: A Strategic Move for Enhanced Collaboration

Ivan Siqueira had joined Pilgrim’s Pride Corp. in January 2022. He brought with him nearly three decades of experience in the food industry. Before becoming part of the Pilgrim’s Pride team, Siqueira worked for Seara Foods as the Executive Director.

Siqueira’s appointment as the President of Pilgrim’s Europe marked a strategic move by the company to enhance collaboration among its European businesses. In this role, he was responsible for overseeing various aspects of the company’s European operations, including Pilgrim’s UK, Moy Park, Pilgrim’s Food Masters, and Pilgrim’s Shared Services Ltd.

Read: 542 Pilgrims employees at risk of retrenchment

Ivan Siqueira Takes Helm of Diverse Portfolio in Pilgrim’s Europe Leadership Role, Ensuring Holiday Excellence in Pilgrim’s UK

In his new role, Siqueira will be entrusted with overseeing a diverse portfolio that includes Pilgrim’s UK, Moy Park, Pilgrim’s Food Masters, and Pilgrim’s Shared Services Ltd. Notably, Siqueira will also maintain his position as the interim President of Pilgrim’s UK until a suitable successor is identified. This dual responsibility underscores Pilgrim’s commitment to delivering top-quality and innovative products to its customers, especially during the crucial holiday season.

Ivan Siqueira’s journey with Pilgrim’s began in January 2022, where he brought nearly three decades of invaluable industry experience. Before joining Pilgrim’s Pride, he served as the Executive Director at Seara Foods. In response to his new role, Siqueira expressed his honor and enthusiasm, emphasizing the potential for bringing the various business units closer together. He envisions this move as a means to drive organic growth and enhance Pilgrim’s acquisition strategy, further solidifying their position as a leading food company in the region.

Siqueira shared his thoughts, stating, “I’m honored to take on this new strategic position, which I believe will bring the business units closer together while allowing us to pursue organic growth and enhance our acquisition strategy to continue building the best food company in the region. I will continue to focus on ensuring Pilgrim’s UK delivers excellence for our customers during this crucial period. I’m also looking forward to working with the wider Pilgrim’s family to build on our respective strengths and foundations and provide best-in-class service.”

In summary, Ivan Siqueira’s appointment as the President of Pilgrim’s Europe signifies a pivotal step towards stronger collaboration and growth within the company. With his extensive experience and strategic vision, Siqueira is poised to lead Pilgrim’s into a new era of excellence and innovation in the food industry.

Read: Pilgrims UK – Losses and plant closures

Siqueira’s appointment as the President of Pilgrim’s Europe marked a strategic move by the company to enhance collaboration among its European businesses.

BRF’s Ambitious Stock Offering Plan

BRF S.A.’s game-changing 600 million share stock offering: A bold move to reshape the future.

Brazilian Meatpacker BRF S.A. Reveals Ambitious Stock Offering Plans

Brazilian meatpacker BRF S.A. has just made a significant announcement regarding its stock offering. This move could have far-reaching implications for the company and the market as a whole. Let’s dive into the details.

BRF S.A. Unveils Massive Stock Offering

BRF S.A. has set its sights high by announcing a colossal stock offering involving a staggering 600 million common shares. This ambitious move comes as the company looks to strengthen its position in the market.

Base Offering with Room for Expansion

According to BRF’s official statement, the initial offering consists of 500 million common shares. However, here’s the twist – if market demand warrants it, the company has the flexibility to increase this offering by up to 20%. This demonstrates BRF’s confidence in the appetite for its shares.

Pricing and Trading Schedule Revealed

The big question on everyone’s mind is, “When can we get in on this action?” Well, the pricing for this massive offering is expected to be disclosed on July 13th. Following that, BRF anticipates that trading will commence on the São Paulo Stock Exchange the very next day. Investors can look forward to settlement within the third business day.

Read: What does BRF’s $1.1bn share offer mean for the industry?

A Strategic Move Towards Deleveraging and Capital Improvement

In a statement, BRF outlined its intentions for the net proceeds from this offering, stating, “We intend to use all of the net proceeds from the offering to deleverage and to improve our capital structure.” This strategic approach highlights the company’s commitment to optimizing its financial position for future growth.

A Recap of Previous Developments

Let’s not forget that BRF S.A. made headlines back in May when Saudi Agricultural and Livestock Investment Company (SALIC) agreed to purchase up to 250 million common shares, provided that the offering price did not exceed R$9.00 (US$1.84) per common share. Marfrig Global Foods S.A. also joined in on the action with a subscription of up to 250 million shares.

In Conclusion

The Brazilian meatpacking giant BRF S.A. is clearly making bold moves in the world of finance. With a monumental stock offering and strategic plans for the future, the company is positioning itself for growth and stability. We will continue to monitor this story closely and bring you the latest updates as they unfold.

Read: Saudi Partners with BRF in Giant BRF Multi-Million Dollar Investment

BRF S.A.’s game-changing 600 million share stock offering: A bold move to reshape the future.

A snapshot of Minerva’s poor third quarter results

Minerva’s financial report reveals EBITDA dip, export decline, and standout growth in Uruguay – key insights in this latest update.

Minerva’s EBITDA Declines 11.5% YoY to R$713.7 Million, but EBITDA Margin Improves to 10.1%

In the latest financial report, EBITDA took a hit, sliding 11.5% year-on-year to R$713.7 million (equivalent to US$144.93 million). However, there’s a silver lining as the EBITDA margin managed to inch up by 0.5 percentage points, reaching 10.1%. Net income followed a similar trend, showing only a modest dip of 0.3%, settling at R$141 million (or US$28.63 million).

Total Slaughter Falls by 4.6% YoY to 938,100 Head, but Sales Volume Rises by 3.3%

The numbers on total slaughter were a bit discouraging, with a 4.6% year-on-year decline, resulting in 938,100 head. On the flip side, the total sales volume managed to buck the trend, posting a 3.3% increase, totaling 333,800 metric tons.

Delving into Minerva’s various business units, Brazil’s gross revenue took a hit, down by a notable 17.3% to R$3.77 billion (or US$765.58 million). Meanwhile, Argentina experienced a more substantial decline of 35.9%, amounting to R$927 million (US$188.3 million). Colombia witnessed a sharp drop of 56.3%, with revenues at R$245.3 million (US$49.83 million), while Paraguay dipped by 28.5%, reaching R$947.7 million (US$192.5 million). Uruguay, however, stood out with a 29.5% increase, totaling R$807 million (US$163.9 million).

Read: Minerva Profits Despite Export Ban

Minerva Australia’s Revenue Slides 6.9%, Other Countries Witness a 20.8% Collective Decrease

Australia didn’t have a comparable figure from the previous financial year, but it did experience a 6.9% decline compared to the previous quarter, settling at R$497.6 million (US$101 million). The other countries collectively saw a 20.8% decrease, with revenues totaling R$372.6 million (US$75.67 million).

Read: Minerva Foods Closes Sheep Abattoir

Notably, exports played a significant role, constituting 64.4% of the company’s gross revenue for the quarter. However, they were not immune to the downturn, posting a 22.1% year-on-year drop to R$4.87 billion (US$988.95 million). On the domestic front, revenue saw a milder decline, down by 1.2% to R$2.69 billion (US$546.26 million).

Read: Minerva purchases Breeders and Packers Uruguay

Source: ILM

China’s Massive Purchase of US Soybeans Sends Global Market Soaring

China’s 3M-ton US soybean purchase reshapes global oilseed market. Stay updated on agriculture & commodity trading trends.

China’s Massive Purchase of US Soybeans Sends Global Oilseed Market Soaring

China, in a move that has taken the market by surprise, has just made an enormous purchase of US soybeans. This purchase has sent shockwaves through the global oilseed market, signaling a bullish trend that is catching everyone’s attention.

Cargill Inc., the world’s largest crop trader, has reported this stunning development. According to Alex Sanfeliu, Cargill’s head of world trading, China has secured over 3 million metric tons of US soybeans in just two days. That’s an astonishing amount and reveals a much greater appetite for this commodity than anyone had anticipated.

Read: Cargill Divests from Russia Grain

China’s Shift to US Soy Amid Brazil’s Weather Woes

What makes this even more significant is the timing. Brazil has traditionally been the top supplier of soybeans to China, but this year, their soybean plantings are under threat due to adverse weather conditions. China’s decision to turn to the United States for its soybean needs couldn’t have come at a more crucial time.

This move by China not only underscores their commitment to securing their food supply but also highlights the volatility in the global agricultural market. The prices for oilseeds have been on the rise, and China’s massive purchase is bound to have a ripple effect on the commodity’s value worldwide.

This story is still developing, and we will be closely monitoring the impact of China’s unprecedented soybean purchase on both the US agricultural sector and the global oilseed market. Stay tuned for more updates on this significant development.

Read: Cargill’s Corporate Responsibility: Sustainability, Food, Health, Inclusion

China’s Shift to US Soy Amid Brazil’s Weather Woes

Source: Bloomberg

Egg prices sky-rocket in South Africa

Discover the impact of avian flu on South Africa’s egg prices. Learn how a shortage of poultry stock has led to significant price hikes.

<h1> South African Egg Prices Soar Amidst Avian Flu Outbreak </h1?

Egg prices in South Africa have surged due to the ongoing outbreak of avian flu. In just one month, the cost of 60 eggs has risen three times faster than the inflation rate. South Africa is currently facing a severe shortage of both chicken and eggs, as a highly pathogenic avian influenza strain has caused significant losses in poultry stocks.

The South African Poultry Association (SAPA) reports that 5 million birds have been culled this year, accounting for 20% of the country’s commercial layer flock. Furthermore, 30% (2.5 million) of the national broiler breeder population, which produces the genetic stock for chickens, has been culled. This has led to a scarcity of egg-laying hens and a substantial increase in poultry product prices across the country.

Data from the Pietermaritzburg Economic Justice and Dignity Group (PMBEJD) reveals that egg prices have surged by 20% from September to October 2023 alone, marking a 36% year-on-year increase. The cost of 60 eggs has risen from R136 to R162 during this period, almost three times the Consumer Price Index (CPI) increase of 8.1% recorded in September 2023.

The Association of Meat Importers and Exporters of Southern Africa (AMIE) reports that some wholesalers have also seen a 20% price increase for whole birds and chicken hearts, a 17% increase for chicken necks, and a 25% increase for chicken carcasses and bones.

Deputy President Paul Mashatile announced at the end of October that the government would soon provide a support package for farmers affected by the avian flu outbreak. This response came after calls from the poultry industry for government assistance to address the outbreak, which has resulted in significant losses and quarantines affecting 12% of the country’s chicken industry.

While the local poultry industry has taken measures to mitigate shortages, such as importing over 50 million hatching eggs over the next six months, it is expected that the shortage will persist for some time. Fully restoring the parent stock of chickens in the country is estimated to take between 12 to 18 months, even with the avian flu under control, according to the AMIE.

Will South Africa Run Out of Chicken and Eggs Amidst a Bird Flu Crisis?

Source: Businesstech

EU approval for Lab Grown Pet Food

Czech start-up Bene Meat gets EU approval for lab-grown pet food, becoming the first company globally to offer cultivated meat for cats and dogs.

Czech Company Bene Meat Secures EU Approval for Lab-Grown Pet Food Meat

A Czech startup called Bene Meat Technologies has achieved a significant milestone by becoming the first company to gain official European Union registration for laboratory-produced meat intended for use in pet food. The company announced its plans to increase production capacity to several metric tons per day in the coming year.

This development is part of a global race among various companies to create commercially viable lab-grown meat and fish products that cater to consumers’ concerns regarding ethical considerations and the environmental impact of traditional livestock farming, which is a major contributor to greenhouse gas emissions.

In the United States, Upside Foods and Good Meat secured regulatory approval in June for their cultured meat products designed for human consumption, following Singapore’s lead. However, large-scale production has yet to commence.

Read: US approves lab grown chicken

Bene Meat has shifted its focus to the pet food sector, aiming to provide a product that can be supplied to global pet food manufacturers as a raw material for use in their final products. Roman Kriz, the Managing Director of Bene Meat, stated, “Today we have become the first company globally that has an official authorization for the production and sale of cultivated meat for cats and dogs.”

The product has received certification in the European Feed Materials Register. Kriz also mentioned that the company has successfully scaled up production and aims to offer competitive prices that align with premium and super-premium pet food products on the market.

Bene Meat’s next steps include testing the product’s palatability for animals while expanding production capacity at its existing Prague laboratory and exploring new facilities. Kriz expressed confidence that production would increase significantly, saying, “We expect that during the next year we will get to the level of hundreds of kilograms to single tonnes every day.”

Read: How lab grown meat is made

Founded in 2020 and owned by Czech medical devices producer BTL group, Bene Meat has a team of over 80 researchers and developers and has made substantial financial investments in development. The company anticipates achieving financial self-sufficiency in the coming year. While pet food is currently their primary focus, Kriz emphasized that meat for human consumption remains one of their long-term objectives.

Kriz noted that like other companies in this field, Bene Meat uses cells from live animals, which are cultivated in a bioreactor and nourished with essential nutrients. He did not provide further details on the process. He also highlighted the advantages of lab-grown meat, including ethical and environmental considerations and the ability to maintain full control over the production process, which cannot be guaranteed in traditional livestock farming.

The company is actively engaged in discussions with pet food manufacturers regarding supplies and is exploring potential collaborations to establish production lines at their existing facilities. Additionally, Bene Meat has plans to develop its own brand of final pet food products in the future.

Source: Reuters

Czech start-up Bene Meat gets EU approval for lab-grown pet food, becoming the first company globally to offer cultivated meat for cats and dogs.

Cargill’s Corporate Responsibility: Sustainability, Food, Health, Inclusion

Discover how Cargill is making a positive impact through sustainability, food security, health, and inclusion in the communities it operates. Learn about their initiatives and partnerships driving corporate responsibility.

Cargill’s Four Key Corporate Responsibility Themes: Sustainability, Food Security, Health, and Inclusion

Cargill defines corporate responsibility as a commitment to making a positive impact in the communities where it operates. The company focuses on four key themes of corporate responsibility:

Sustainability: Cargill aims to reduce beef emissions from its North American beef supply chain by 30% by 2030 through its BeefUp Sustainability initiative. They believe agriculture offers opportunities to reduce their carbon footprint and work with ranchers and farmers to achieve this goal.
Food Insecurity: Cargill addresses food insecurity by initiatives that bridge the protein “gap” experienced by communities in need. They recently donated $4.9 million to the Feeding America network to increase the supply of nutritious protein to food banks.
Health: Cargill is dedicated to building healthy communities and supports projects like the Columbus Community Hospital Foundation’s fieldhouse project in Nebraska. This project includes facilities for various sports and activities to promote community health.
Diversity, Equity, and Inclusion: Cargill Protein North America has funded initiatives to promote diversity, equity, and inclusion in Wichita, including a collaboration with non-profits and education communities to enhance education success and workforce readiness.

Cargill emphasizes the importance of partnerships with non-profits, universities, and customer partners to address the unique needs of individual communities. They also recognize the increasing importance of transparency and sustainability to consumers in the food industry and collaborate with other organizations, such as Nestlé and the National Fish and Wildlife Foundation, to support sustainable grazing projects.

Read: Tyson Foods and Cargill Clash in Landmark Legal Battle: Environmental Impact at Stake

Plummeting Pork Prices Pose Deflation Threat to China

Rapidly falling pork prices in China raise concerns of deflation risk, as major hog farmers flood the market. Discover the economic implications and strategies amid this price drop.

Pork Price Plunge Threatens China with Deflation Crisis

Falling pork prices could potentially push China back into a deflationary situation in the near future. This is because major hog farming companies in the country are flooding the domestic market with their products, complicating Beijing’s efforts to boost confidence in the second-largest economy globally.

Live hog futures on China’s Dalian Commodity Exchange have seen a significant 15% decline since the beginning of October, reflecting a sharp downturn in expectations for pork prices nationwide. Wholesale pork prices in China have dropped by over 40% compared to the same period last year.

Economists are predicting that the declining cost of pork, which holds substantial weight in China’s official consumer price index, will likely lead to deflation when October’s data is released this Thursday.

Julian Evans-Pritchard, a senior China economist at Capital Economics, commented, “It appears that consumer inflation will turn negative again in October, mainly due to a decline in food inflation caused by the fall in pork prices.”

A return to deflation, following weak growth in August and a flat CPI reading in September, could undermine the Chinese government’s efforts to restore confidence in the country’s fragile economy. This fragility is attributed to weak consumer confidence and a liquidity crisis in China’s property sector.

The price of pork in China, the world’s largest producer and consumer of pork, has historically followed a boom-and-bust cycle as small-scale farmers enter the market in response to rising demand, leading to oversupply and sharp price drops. Beijing has attempted to gain more control over this cycle by consolidating production among a few large-scale farming companies. However, this year, these same companies have contributed to the price decline.

Pork prices started to rebound in July, partially due to government-led purchases, but then fell again as major listed hog farmers, including Muyuan and New Hope, chose not to reduce production despite weaker demand. Typically, larger producers cut output by selling breeding sows and purchasing fewer piglets to raise until prices recover. However, Chinese piglet prices have only fallen by 10% compared to the previous year, indicating relatively strong demand for young pigs despite the significant drop in pork prices.

Analysts suggest that this strategy paid off last year when a fourth-quarter recovery in pork prices, coinciding with the easing of China’s strict COVID-19 restrictions, allowed top producers to increase revenues at the expense of smaller farmers who were forced out of the market.

Darin Friedrichs, director of market research at Sitonia Consulting in Shanghai, noted that major Chinese pork producers are following a similar strategy this year, but there are no signs of an imminent fourth-quarter rebound in demand. Some pork producers are even selling subsidiaries or having executives buy back stock, indicating increased financial pressure on them.

Muyuan, the world’s largest hog farmer, has seen its stock decline by more than 20% this year, even after announcing a share buyback worth approximately Rmb1bn ($137 million) last month. The company recently canceled a planned share sale in Zurich, citing “objective factors” in a filing to Shenzhen’s stock exchange.

Friedrichs added, “Part of the problem is that many of these major companies have, to some extent, accepted the boom-and-bust cycle and believe they are better at managing it than their competitors.”

Tyson Foods and Cargill Clash in Landmark Legal Battle: Environmental Impact at Stake

Discover the intense legal showdown as poultry industry leaders, Tyson Foods and Cargill Inc., fight a pollution case that’s spanned decades. Will justice be served in this environmental battle? Explore the latest developments now.

Poultry Industry Giants Battle in Court Over Decades-Long Pollution Dispute: Will Environmental Justice Prevail?

A consortium of major poultry producers, including industry leaders Tyson Foods and Cargill Inc., has made a compelling appeal to a federal judge, urging him to dismiss his earlier ruling regarding their alleged contribution to pollution in an important Oklahoma watershed. In a motion filed recently, these industry giants asserted that the evidence presented in the case has become obsolete, with more than 13 years having passed since its inception.

In their filing with U.S. District Judge Gregory Frizzell in Tulsa, the companies contended that the case had now become “constitutionally moot” since the court could no longer provide any effective relief. This legal maneuver aims to challenge the validity of the previous ruling against them, emphasizing that the circumstances surrounding the case have evolved significantly.

The poultry producers highlighted the ongoing improvements in pollution levels as reported by Oklahoma conservation officials. They attributed this reduction to factors such as enhanced wastewater treatment plants, state regulations mandating poultry-litter management plans, and the decrease in poultry farms due to urban expansion in northwest Arkansas.

While the motion seeks to sway the court’s decision, it’s important to note that the Oklahoma Attorney General’s office has not issued an immediate response or comment regarding this development.

The original lawsuit, filed by the state of Oklahoma in 2005, accused the poultry companies of contaminating the Illinois River Watershed by disposing of chicken litter, which subsequently seeped into the river. The case endured a lengthy legal battle, concluding in 2013 without a ruling. In January, Judge Frizzell issued his decision without providing an explanation for the protracted delay.

The motion filed by the poultry companies raised questions about the validity of the court’s findings, noting that much of the evidence and records used to reach the decision were dated from the 1990s and early 2000s. This raises concerns about the relevance and accuracy of the information used to establish their liability for the pollution.

Furthermore, Judge Frizzell had previously instructed the poultry companies and the state to reach an agreement on how to remediate the pollution’s effects. However, both sides reported that mediation had proven unsuccessful, deepening the legal quagmire.

The lawsuit involves several other defendants alongside Tyson Foods and Cargill Inc., including Cal-Maine Foods Inc., Tyson Poultry Inc., Tyson Chicken Inc., Cobb-Vantress Inc., Cargill Turkey Production L.L.C., George’s Inc., George’s Farms Inc., Peterson Farms Inc., and Simmons Foods Inc. As the case continues to evolve, the outcome will have significant implications for the poultry industry and environmental conservation in the region.