By Bob Burgdorfer

CHICAGO (Reuters) - Top U.S. meat producer Tyson Foods Inc (TSN.N: Quote, Profile, Research) posted lower-than-expected quarterly profit on Monday as high feed prices produced a $44 million loss in its chicken unit, and hedging and forward pricing losses pared profits in its beef business.

The company, whose shares fell more than 5 percent, said it paid $140 million more for grain during the quarter to feed its chickens than it did a year ago and it expects grain costs to be up $550 million this fiscal year.

Tyson raises the chickens it processes into meat, but buys the cattle and hogs for its beef and pork operations.

Springdale, Arkansas-based Tyson reported a third-quarter profit of $9 million, or 3 cents per share, compared with $111 million, or 31 cents, a year earlier.

The results included $13 million, or 2 cents per share, in charges for flood damage at a Wisconsin prepared foods plant and impairment of unimproved property in Tennessee.

Analysts on average expected net earnings of 12 cents per share, according to Reuters Estimates.

While the earnings missed trade estimates, Wachovia analyst Jonathan Feeney said the results were not particularly bad, since some of the negative news was due to the hedging-forward pricing losses in beef.

"We believe Tyson is a solid risk/reward on the coming protein recovery," he said in a note to clients.