UPDATE 1-Tyson sees less, but more expensive, chicken

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CHICAGO, May 15 (Reuters) - U.S. meat company Tyson Foods Inc (TSN.N: Quote, Profile, Research) said Thursday there will be less, but more expensive, chicken on supermarket shelves this summer as higher feed prices are passed onto consumers.

During a webcast presentation at the BMO Capital Markets agriculture and protein conference, Tyson Chief Executive Richard Bond said the chicken industry has reduced production in reaction to higher feed prices.

"The lag of higher priced corn is just now coming through the products that we are taking to market," said Bond.

Tyson is the largest U.S. meat company and produces beef, pork and chicken.

Feed prices have skyrocketed this year due in part to more corn, a popular feed, being used to make the biofuel ethanol. The diversion of corn to fuel production from food production has angered meat companies like Tyson, which have seen production costs soar.

Tyson raises the chickens it processes into meat and it has said feed costs for those chickens will be about $600 million more this fiscal year than the previous year.

Corn prices have exceeded $6 per bushel this year, the highest ever.