News last update:6 Aug 2012

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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