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Tyson Foods Inc. has stopped using wheat in its poultry feed due to prices rising above those for corn, according to reports, ending a practice that began in 2011 when wheat prices fell below those of corn for the first time in 15 years.
The change in current practice, which other companies are also headed towards, could put a strain on U.S. corn supplies, which are set to drop to their lowest level in 16 years during the summer, say analysts. "If the price spread between wheat and corn narrows some more, we may work it back into our feed ingredient formula," said Tyson spokesman Gary Mickelson. The U.S. Department of Agriculture has projected feed and residual use of U.S. wheat for the 2012–2013 marketing year that began June 1 at 230 million bushels, a 50 million-bushel rise from 2011–2012 and the highest level in four years.
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Company has net earnings of $72 million in first quarter 2014
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