Sysco profit down on higher meat, poultry prices

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  Sysco Corp. reported a 2 percent drop in quarterly profit.

  From WATTAgNet:
  Sysco Corp., America’s largest food distributor, reported a 2 percent fall in quarterly profit. It said its profits were hurt by a rise in meat and poultry prices, a strong dollar and higher expenses.
  Sysco’s net income was $177 million, or 30 cents per share, down from $180.9 million a year earlier.
  The company’s sales rose 4.2 percent to $11.75 billion.
  Ted Rueger, president of Eastern Poultry Distributors, recently said in an interview with WATT PoultryUSA that the rising cost of proteins is the biggest challenge facing poultry distributors.
  “It takes more capital for poultry distributors to run their businesses today than a year ago,” he said in fall 2014.
  “A load of boneless chicken for which a distributor might have paid $50,000 a year ago more recently cost around $80,000.
  “Distributors are facing the same kind of cost increases in their beef and pork purchases. Meat proteins are at all-time highs, and as a result 30 percent to 40 percent more capital might be required today to run their businesses than a year ago,” he said.