What's going on?

Tyson Foods reported better-than-expected earnings on Monday, and investors� mouths were watering at the prospect of what the world�s second-biggest meat-maker might cook up next.

What does this mean?

Tyson sold 11% less meat last quarter than the same time last year, but don�t sharpen your knives just yet. That was partly down to one fewer week in the quarter compared to 2020, as well as a shortage of factory-floor workers that forced the company to scale back production. And that lower volume was more than offset by rising prices, with the average price of Tyson�s meat products rising by 23% versus the same time last year.

That led the company to report better-than-expected results just a week after Brazil�s JBS � the world�s biggest meat company � reported record earnings. Their strategies going forward are very different, mind you: where JBS is looking to beef up its size by buying smaller outfits, Tyson announced a new program aiming to save $1 billion a year by 2024.

Why should I care?

For you personally: Your weekly shop just got pricier.
Tyson isn�t just charging a bit more: the average prices of Tyson�s beef and pork were 33% and 38% higher respectively than the same time last year. And it�s far from the only company making this decision, with a United Nations report out earlier this month showing that global food prices hit a decade high in October. Those rising food prices come at a time when consumers are already contending with rising costs of other necessities like fuel and housing, and taken together will likely dent people�s spending on life�s non-necessities.

The bigger picture: Government meets meat.
This whole situation hasn�t gone unnoticed: the US, for one, said recently that a small group of companies � Tyson and JBS included � hold too much power over setting meat prices. That suggests it might be thinking about breaking those firms up altogether, which might puncture their investors� currently chipper spirits.