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Tyson Foods reported lower-than-expected quarterly sales and stuck to its annual revenue forecast on Monday amid weaker demand for beef, sending shares down 9% and overshadowing better-than-anticipated profits.
U.S. President Donald Trump's trade policies hung over the meat company due to concerns that tariff disputes could raise prices for a range of consumer goods and further reduce demand for pricey meat products.
Beef prices have already climbed after U.S. ranchers slashed their cattle herds due to a years-long drought that dried up pasture lands used for grazing.
"Beef is experiencing the most challenging market conditions we've ever seen," CEO Donnie King told analysts on a call.
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Tyson warned that tariffs could also trigger some sales disruptions, adding that exports account for less than 10% of its business. But King said the impacts would be temporary as trade flows change, and that the company does not expect global meat consumption to decline.
Demand for Tyson's beef declined as average prices spiked 8.2% in the second quarter that ended on March 29.
Some shoppers are increasingly opting for less-expensive meats, such as chicken, as consumer sentiment has ebbed.
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