The meat processing giant reported a sixth consecutive quarter of losses in its beef segment, highlighting ongoing difficulties in the industry. The root cause is a severe cattle shortage across the United States, which has constrained supply and driven up feed costs, making it increasingly challenging for Tyson to turn a profit in its beef operations.

This cattle shortage is driven by multiple factors, including drought conditions and herd reductions, and is not expected to ease in the near future. As a result, Tyson and other beef producers face continued headwinds, including higher input costs and limited slaughter capacity, which are squeezing margins and impacting overall financial performance.

Despite the challenges in beef, Tyson’s broader business showed resilience, with stronger-than-expected quarterly earnings driven by growth in its poultry, prepared foods, and international segments. However, the persistent losses in beef have overshadowed these gains, causing investor concerns about the long-term outlook for Tyson’s beef operations.

Analysts and investors are now closely watching the company’s strategies to manage the cattle shortage and whether Tyson can stabilize its beef segment in the coming months. The ongoing difficulty underscores broader industry issues, including drought and herd reductions, which are expected to impact supply and prices across the beef market for some time.