Tyson Foods Inc (TSN.N) cut its full-year profit forecast on Monday, citing the uncertainty in trade policies and increased tariffs that have hurt domestic and export prices of meat, sending its shares down 6 percent.

Following U.S. tariffs on imported aluminum and steel, China retaliated with tariffs on U.S. pork and beef, while Mexico and Canada also implemented levies, leading to over supplies and subsequently lower prices for these proteins in the domestic market.

This has in turn hurt the consumption of chicken in the United States, forcing producers such as Tyson to reduce prices to spur demand.

“We still face pressure on chicken sales volume and pricing due to the abundance of relatively low-priced beef and pork on the market,” Chief Executive Officer Tom Hayes said.

This has in turn hurt the consumption of chicken in the United States, forcing producers such as Tyson to reduce prices to spur demand.

“We still face pressure on chicken sales volume and pricing due to the abundance of relatively low-priced beef and pork on the market,” Chief Executive Officer Tom Hayes said.

“Our forecasted earnings range reflects the current market volatility in meat prices,” Hayes said.

REUTERS

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