November 11, 2008
The top executive at Tyson Inc. (TSN) said pricing and export conditions in the US poultry market have deteriorated in the fourth quarter.
Oversupply and high feed prices have weighed on the domestic poultry sector, driving some producers such as Pilgrim's Pride Inc. (PPC) to the brink of bankruptcy.
Dick Bond, chairman and chief executive of the second-largest US poultry producer by revenue, said on a conference call that poultry customers have expressed concern about the financial health of some suppliers.
Tyson's fiscal fourth-quarter earnings were hit by losses in its own poultry segment, tempering strength in beef and pork. Bond cited the role of the dollar's rise and lingering trade disputes for hampering export sales, with the Russian market experiencing particular difficulties.