Puran Sharma

Puran Sharma asked for an updated view on Tyson Foods' self-improvement initiatives, specifically regarding the $500 million to $700 million target for chicken margin stabilization, and sought insights across other businesses like Prepared Foods and Pork. He also inquired about the regional disparity in heifer retention (north/Midwest vs. west/south), asking for reasons such as drought conditions or economics.

Answer

CEO Donnie King reiterated Tyson's commitment to previous goals, including shifting mix to branded/value-added, increasing household penetration, and executing with excellence across all businesses. He emphasized a multi-year cultural shift focused on efficiency and eliminating non-value-added activities, expecting significant upside across all proteins. COO Devin Cole added that Prepared Foods' operational standards provide efficiency and capacity, while Pork has seen exceptional improvement in margins (up 70 basis points) through efficiencies, yield, and capturing more revenue per animal. King explained that heifer retention is largely due to drought conditions, with regional differences, and that ranchers' business decisions based on market conditions influence the flexibility of retention.

Puran Sharma with Stevens Inc. asked about the expected timing for a notable improvement in soybean oil crush margins, contingent on biofuel policy clarity, and inquired if the combined grain business offers more earnings stability compared to legacy Bunge Global due to increased storage infrastructure.

Answer

Gregory Heckman, Bunge's Chief Executive Officer, stated that final biofuel policy proposals are expected by year-end or early next year, with soybean oil crush margin improvement likely starting in early 2026. He explained that the combined grain business provides more ways to earn money beyond storage, including drying, handling, blending, and improved logistics, offering optionality to serve demand with the right qualities and quantities.

Puran Sharma inquired about the timing for notable improvement in soybean oil crush margins, specifically regarding biofuel policy clarity, and then asked about the combined grain business's stability, comparing storage income versus grain merchandising income given the expanded storage infrastructure.

Answer

CEO Gregory Heckman and CFO John Knepel discussed expectations for the final RVO proposal by year-end or early next year, emphasizing the need for certainty and the importance of SRE reallocation. They anticipate soybean oil crush margin improvement starting early 2026. For the grain business, Mr. Heckman highlighted multiple revenue streams beyond storage, including drying, handling, and blending, and the strategic advantage of connecting origination to processing for logistics efficiencies and optionality in serving demand.