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Tyson Foods missed Wall Street expectations for third-quarter revenue and profit on Monday, hurt by falling chicken and pork prices as well as slowing demand for its beef products.
The company said it is closing four more U.S. chicken plants in the latest bid to reduce costs.
Shares were down nearly 6% premarket.
Tyson has already cut corporate jobs and shuttered other chicken plants this year as it struggles with declining profits and reduced demand from consumers squeezed by inflation and higher interest rates.
The company hiked prices last year to offset spiraling feed and labor costs, but has been hit in 2023 by lower prices in core protein segments, such as pork.
Maybe demand is down because nobody wants to buy chicken wings for $5.99/lb or a bag of frozen chicken for $12.00.
Chicken, like other similar products, is caught in a pinch between high input costs, and slowing sales.
The last couple of years were banner years for the industry, and now we're seeing the other side of the bust/boom cycle of poultry production.
The last few years have been champagne and bonuses in the chicken world so don't feel too bad for them.
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