COVER STORY Its results reflected this. The segment in Tyson's fiscal 2021 fourth quarter ended Oct. 2 had operating income of $1.147 billion, beating its previous quarterly record of $1.120 billion set in the prior quarter. Operating income for the year was a record $3.240 billion, twice the previous record of $1.580 billion set in fiscal 2020. The results meant Tyson Beef had four consecutive years with operating income in excess of $1 billion. The beef results significantly boosted Tyson's overall results for the year. Tyson Beef contributed 74% to Tyson's overall operating income of $4.396 billion. It's beef operating margin (sales versus income) for the year was 18%. But beef margins this year for Tyson and other fed beef processors will likely be half that. Tyson expects its margin will be 9% to 11% in fiscal 2022, which began Oct. 3. Tyson Beef's remarkable results reflected how much demand at home and abroad outstripped available supplies of beef since the COVID-19 16 MEAT+POULTRY | 01.22 | www.meatpoultry.com pandemic began. Tyson in fiscal 2021 operated its beef plants at only 78% of capacity. This meant its slaughter total was 6.287 million head, which meant its operating income was $515 per head. The utilization rate reflected the ongoing labor shortage at Tyson plants and those of most other large companies in the US meat and poultry industry. Tyson's chicken and prepared foods plants ran at 79% in the fiscal year. But its pork plants ran at 88%. The worst impacts of the COVID-19 pandemic are now behind the meat and poultry industry. But the largest processors still face challenges in finding enough workers to fully staff their plants. The shortage is most acute in beef plants because they are much more labor-intensive than in other meat processing plants. This shortage has eased only slightly despite companies' best efforts to alleviate it. Packers spent hundreds of millions of dollars on multiple ways from early in the pandemic to protect their workers. They dramatically raised starting wages (to about $22 per hour) and spent money on everything from free vaccinations and bonuses for getting the shot to free community college for children of Carrie Ryan - stock.adobe.comhttp://www.meatpoultry.com