Tyson Foods, the largest meat processor in the US with annual sales of close to $40bn (€36bn), was knocked by the World Health Organisation (WHO) report.
With a 24% share of the beef market and a 7% share of all pork sales in the US, Tyson’s share price fell 6% since Monday,wiping $800m off the group’s market capitalisation.
Shares in the Brazilian meat processor JBS fell by almost 5% during Monday’s trade, but have since recovered.
Traders at the Chicago Board of Trade (CBOT) were also spooked by the report as lean hog futures prices declined for five straight trading sessions.
Since last Wednesday, lean hog futures have retreated by almost 9% to just over $0.61/pound although record US pork supplies and a weak cash market have also played a part in the rout.
Two sisters
Meanwhile, one of Europe’s largest food groups, Boparan Holdings, the parent company of the 2 Sisters Food Group and owner of Green Isle Foods based in Ireland, has reported an operating profit of £22.2m (€30m) for its 2015 financial year, a 27% decline on the previous year.
Group sales declined by almost 14% to £757m (€1,044m) with the group citing a difficult operating environment as a result of price deflation and a highly competitive grocery market in the UK.
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