Tyson shares fell 6% Monday, bringing the food processing company down a total of 26% for the year, CNN Money reports. The drop comes after Tyson announced a 12% lower profit forecast for the year than expected due to uncertainty surrounding international trade and lowering prices on major products.
Mexico, Canada, and China have each implemented retaliatory tariffs against the U.S. meat industry due to the Trump administration’s aggressive trade war, decreasing exports at a time when the country has a massive excess of meat in frozen storage. The Wall Street Journal reported the amount of beef, pork, poultry, and turkey stockpiled is rising above 2.5 billion pounds.
“The combination of changing global trade policies here and abroad, and the uncertainty of any resolution, have created a challenging market environment of increased volatility, lower prices, and oversupply of protein,” said Tom Hayes, Tyson Foods president and chief executive officer, according to CNBC.
With beef and pork prices falling, fewer people are buying chicken, Tyson’s main product, according to CNN Money. This, combined with a sharp decrease in demand due to the tariffs abroad, has led to fewer profits. China, the largest market for U.S. pork, raised tariffs on the meat to 62% earlier this month.
CNN Money also reports that Tyson will see 10% lower savings than expected from the Republican tax cuts passed late last year.