Tyson Foods, the world’s second largest meat processor, has announced lower profits for the third quarter of the 2022 financial year after a series of record results.

Overall operating income for the third quarter ending 30 June was down 27% at $998m (€975m) though with the exceptional performance of the first half of the year, year-to-date profits are 15% ahead of previous year at $3.591bn (€3.5bn).

The biggest drop was a 55% decline in adjusted operating income for the beef division to $506m (€494m) for the quarter ending 30 June compared with the same period last year. This was with a marginal increase in volume with higher throughput and heavier carcase weights. The main explanation for reduced margin was the strong US cattle prices during the period, which added $480m (€469m) to Tyson’s cattle purchase prices. Consumer demand for higher-value beef cuts due to wider US inflation contributed to slightly lower average sales prices, according to the Tyson market update.

The weaker global pigmeat market, driven by reduced import demand from China has also impacted on Tyson’s figures for the division in the third quarter. Volumes were down 1.7% compared with the same period in 2021, while the adjusted operating margin fell by 63% to $25m (€24.4m).

It was a much more positive picture for Tyson’s poultry business in the third quarter. Adjusted operating margin surged to $269m (€262.7m), 10 times higher than the same quarter last year.