High feed costs reduce Tyson profit
Tyson Foods Inc. in the US reported lower-than-expected quarterly profit Monday as higher feed prices produced a loss in its chicken unit, while US$75 million in hedging and forward pricing losses pared profits in its beef business.
The company, whose shares fell 10.7 per cent before the bell, said it paid
$140-million more for grain during the quarter to feed its chickens than a year
ago and it expects grain costs to be up $550-million this fiscal
year.
Tyson has been raising meat prices, but those increases have not
completely offset the higher cost of grain.
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