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JBS, the world’s largest meat company, reported a net loss of $290.2 million for the first quarter of 2023, citing high grain prices and an oversupplied meat market as the reasons for the poor results.

This was worse than expected, as analysts had predicted a loss of $297 million. The company’s adjusted EBITDA, a measure of operating income, fell by almost 79% to $2.162 billion.

The challenging environment in the United States, where livestock prices are rising and consumers are deterred by high inflation, also contributed to the weak results.

JBS burned $6.1 billion in cash last quarter, more than double the same period in 2022.

Despite the challenges, JBS’s CEO sees a more positive outlook going forward, with a fall in feed prices and potentially stronger demand for meat in China and the United States.