Tyson Foods Stock Falls as Cattle Costs Weaken Profits

Shares of Tyson Foods fell after the ongoing cattle shortage ate into its profits in the latest completed quarter.

The stock was down 10% at $54.63 in early trading. Shares are now in negative territory year-to-date. They were trading at $62.02 this time a year ago.

The cost of livestock has been driven up recently after America's cattle supply reached its lowest level since 1951, according to the Agriculture Department.

The higher cattle costs led Tyson's beef business to record a loss in the fiscal second quarter of $258 million, compared with a loss of just $35 million in the same quarter a year earlier.

An executive for the largest U.S. meat supplier said on Monday's earnings call that Tyson's beef business is experiencing "the most challenging market conditions we have ever seen."

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