November 15, 2007
Tyson's profits may hurt from high feed prices
Tyson Foods Inc. -- the world's biggest meat processor -- projects a setback on its current fiscal year profits with high feed prices squeezing margins, The Wall Street Journal reported on Tuesday (November 13).
Costs for chicken-feed grain are expected to be up as much as US$300 million in the months ahead, and called the current market for beef "extremely difficult."
Tyson's beef business has an oversupply of cattle but little demand for US beef overseas.
The value of US beef exports fell to US$1.63 billion in 2006, down from US$3.1 billion in 2003, according to the US Agriculture Department.
Tyson incurred US$118 million in additional feed-grain costs for poultry in the quarter ended September 29, the newspaper said.