The head of Tyson Foods Inc. said Monday that grain prices may rise again next year, leaving the outlook for demand flat at the largest U.S. meatpacker as it continues efforts to pass price increases on to consumers and food-service buyers.

Higher feed costs have driven a sharp rise in beef prices while even the oversupplied chicken sector has seen some recovery as producers cut back supplies after what Tyson President and Chief Executive Donnie Smith called two of the toughest summer months the industry has ever experienced.

Volatile grain markets left Tyson nursing losses on hedging contracts while chicken demand was poor over the key July 4 holiday weekend. The company reported Monday a 54% decline in fiscal fourth-quarter profit.

Mr. Smith said Tyson's chicken segment returned to profitability in October, and forecast U.S. industry supplies would drop 4% in its 2012 fiscal year, with beef production down 1% to 2% over the same period.

The executive said on a post-earnings call that he expected U.S. gross domestic product to rise by just 1.5% next year, leading him to keep a close eye on retail demand as the company continued efforts to pass on higher feed costs.