Tyson’s Zilmax ban could lead to higher beef prices

09/08/2013
US meat packer Tyson Foods has announced it will stop buying cattle fed with a drug that adds weight, causing analysts to speculate it will cause beef prices to rise.

Tyson, which buys about one in four of all US cattle for slaughter, said it will stop purchasing livestock with Zilmax after some animals arrived at its plant lame and had problems moving, according to a statement.

It has been reported that the drug is used in half or more of the US herd, and the industry is waiting to see if other packers follow suit.

Without the added growth benefits of Zilmax, feedlot owners will need to buy more feed to create the same amount of beef - although there are other growth additives in the market.

Tyson is aiming to increase its exports to China.