Tyson Foods shares climbed to their highest level in more than a year on Monday as the nation's top meat processor announced low prices for livestock feed will help boost results again next year. The company reported higher earnings and revenue
than analysts expected for the quarter ended Sept. 30, sending shares up 1.4 percent in afternoon trading.
According to Reuters, Tyson's feed costs fell $65 million in the quarter as net income attributable to the company rose by $3 million to $394 million. For fiscal 2017, feed costs dropped by $80 million after four years of bumper harvests lowered
Profits have also soared this year for other chicken processors. Pilgrim's Pride Co last week reported quarterly income attributable to the company more than doubled.
Feed costs should stay flat in 2018, Tyson Chief Executive Tom Hayes said, because this year's corn and soybean harvests will again be at or near record levels.
Meanwhile, Tyson's poultry business benefits most from cheap feed because grain accounts for more than half the cost of growing a chicken. The company also processes hogs and cattle.
U.S. beef shipments from January to September jumped 14 percent over a year earlier and pork exports were up 8 percent, according to the U.S. Department of Agriculture. Japan and Mexico are buying Tyson's pork, while Asia was a main market
for its beef.