The movement of product into the market is not enough to cover the cost of cattle, said Tyson Foods spokesman Gary Mickelson.

One of the plants affected was the company's largest facility in Amarillo, Texas. That facility has an estimated slaughter capacity of 5,700 head. The company did not disclose the other locations.

Springdale-based Tyson Foods, The world's largest beef processor, has eight U.S. beef plants along with a large Canadian operation in Brooks, Alberta, and a beef joint venture in Argentina.

The margins began deteriorating on higher live cattle prices that started up in March on immediate supply concerns coupled with higher corn costs.

The beef industry's daily average operating margin for Monday was estimated at a negative $18.65 per head, compared with a negative $18.70 on Friday and a negative $7.05 a week ago, according to HedgersEdge.com, a livestock industry analysis firm.

The U.S. Department of Agriculture estimated Monday's cattle slaughter at 106,000 head, compared with 120,000 a week ago, and 123,000 a year ago.

In other news, the Tyson Foods' board of directors declared a quarterly dividend of 4 cents per share on class A common stock and 3.6 cents per share on class B common stock.

Source: Springdale Morning News