Tyson Foods has lowered its profit outlook for the year as soaring cattle prices continue to weigh on the meatpacking giant’s bottom line. The company’s cattle costs climbed $575 million in the quarter, driving a shortage of cattle in the U.S. and steep financial losses.

In the fiscal third quarter, Tyson reported a $142 million loss in its beef division. Beef sales price rose 12% year over year while sales volumes fell 16%, reflecting higher retail beef prices that are curbing demand at a time when consumers are already stressed.

Tyson now expects an adjusted operating loss of $500 million to $650 million, compared with its prior forecast of a loss between $300 million and $500 million. Despite the outlook, the company posted a profit of $182 million in the three months ended June 27, up from $61 million a year earlier, and earned 99 cents per share on an adjusted basis.

The rising costs and record‑level retail prices are putting pressure on the beef industry, and the company’s revised forecast reflects these challenging market dynamics.