Shares of Hormel plummeted 13% as the company announced price hikes due to increased costs for meat, nuts, and other goods. Pork bellies used in bacon products rose 30% in cost compared to last year, with overall wholesale pork up 10%. Hormel reported lower profit and reduced its outlook for the year.

Hormel is one of many companies warning of higher prices for food and household goods. Rising commodity costs led to a decline in quarterly profit and shares for the company. Despite sales rising 4.6% to $3.03 billion, Hormel’s profit fell short of analysts’ expectations. Meatpacking companies are slowing hog slaughter due to oversupply, affecting beef prices and tree nut costs.

The company’s profit for the quarter was $183.7 million, or 33 cents per share, slightly below the previous year’s $176.7 million, or 32 cents per share. Adjusted earnings were 35 cents per share, missing analyst expectations of 40 cents. Sales exceeded Wall Street estimates at $3.03 billion. Hormel had previously lowered its earnings guidance due to tariffs impacting sales.

Read more at Yahoo Finance: Hormel to Raise Prices, Citing Costlier Pork, Beef and Nuts