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Rebel Capitalist News

News: Bullwhip Effect Crushes Tyson Foods (Canary In Coal Mine?)

Rebel Capitalist News

George Gammon

Business, Investing

4.71.1K Ratings

🗓️ 8 February 2023

⏱️ 22 minutes

🧾️ Download transcript

Summary

The Rebel Capitalist helps YOU learn more about Macro, Investing, Entrepreneurship AND Personal Freedom.

Transcript

Click on a timestamp to play from that location

0:00.0

Hello, Hello, Rebel Capitals. Hope you're well. So in the news today, Tyson Food's getting crushed,

0:05.4

crushed, and I think it's a great example of the Bullwhip effect working its way through the economy.

0:12.6

Let's go right to this story from Zero Hedge and check it out.

0:16.9

Title and now food deflation, question mark, U.S. Food Giant Tyson tumbles on falling beef chicken prices sliding

0:28.5

pork demand so my first thought is, okay, is this because our price is falling because of lack of demand or because an oversupply, i.e. bullup effect.

0:40.0

The largest U.S. U.S.

0:43.0

Well, I guess the bullwhip effect would be a little bit of both, wouldn't it?

0:46.0

So anyway, let me keep moving on or let me go through this article here,

0:49.0

then we'll connect some dots.

0:50.0

When I actually have enough information to comment.

0:53.0

The largest U.S. meat company, Tyson Foods,

0:57.0

badly missed Wall Street estimates for quarterly profit on Monday

1:01.0

and it cut its expectations for operating margins this year in the

1:05.2

face of falling yes falling beef prices easing demand for pork and an ongoing crash in chicken prices as a result of over

1:16.6

production. Oh my gosh we're seeing all this demand. We don't realize it's

1:21.7

because of STEMI checks and PPP. We don't realize it's because of all of these temporary circumstances.

1:31.0

And therefore we're going to grow way more chickens. We're going to produce much

1:36.7

more meat. We're going to send it out to the stores because people are just buying, buying, buying, buying.

1:41.8

We don't understand that it's a sugar rush created by the People are just buying, buying, buying, buying.

1:42.8

We don't understand that it's a sugar rush created by the government.

1:45.6

Let's keep going.

1:46.6

They say sales rose 2.5% to 13.26 billion in three months ending in December 31st.

...

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