Tyson Foods has seen its sales growth slow to its lowest in nine quarters after overseas buyers refused beef shipments delayed by West Coast port disruptions, forcing the biggest meat processor in the U.S. to cut its full-year profit forecast.

 

During the port disruptions along the U.S. West Coast earlier this year, Asian buyers directed their business to other countries, and found themselves oversupplied after the port issues were resolved in February, according to Donnie Smith, Tyson Chief Executive.

 

Due to losses suffered by its beef business, a unit responsible for 24% of the company’s operating profits last year, the company posted a lower-than expected profit for the April through June quarter. And during the third quarter, Tyson was forced to cut prices to clear out ‘significant’ inventory – a move which dented the company’s margins.

 

As a result, beef sales volumes fell by 3.9% – the company posted an operating loss of $7 million, and the company’s shares, which have been at record highs over the past month, have fallen by 11%.

 

Tyson’s overall sales have climbed more than 10% over the past four quarters, reaching $10.07 billion in the latest quarter, driven by a shrinking U.S. cattle herd due to drought, and record high beef prices. However, these same factors combined with a strong dollar have negatively affected exports, which have fallen by 14.4% in May, and which are predicted by the U.S. Department of Agriculture (USDA) to remain under pressure through the near future.