In consumer staples, Tyson (TSN, Financial) benefitted from the African swine flu that forced hog herds to be culled in China. Reduced supply resulted in higher global pork prices while driving up other protein prices such as chicken. Additionally, Tyson’s prepared foods business has developed nicely over the last 3-4 years via organic and acquisitive growth. The strategy proved fruitful, as prepared foods had the best first quarter sales and highest margins of any of Tyson’s four divisions. The stock was strong despite the federal lawsuit filed in April by major packaged food companies alleging that processors like Tyson, Pilgrim’s Pride, Perdue and a dozen other chicken suppliers conspired to inflate chicken prices.
From Bernard Horn (Trades, Portfolio)'s second-quarter 2019 Polaris Global Value Fund shareholder letter.
