Phil SengPresident & CEOU.S. Meat Export

FederationInternational Markets UpdateInternational Markets Update

Global Beef & Beef Variety Meat Exports

0.0

0.5

1.0

1.5

2.0

2.5

3.0

2003

2004

2005

2006

2007

2008F

2009F

BVM

Beef

0.0

0.5

1.0

1.5

2.0

2.5

3.0

2003

2004

2005

2006

2007

2008F

2009F

BVM

Beef

Source: USDA/USMEF Forecast

2009 Forecast 2.27 billion lbs2008 Forecast

2.15 billion lbs

(Billion pounds)

2003 Exports2.81 billion lbs

Global Drivers

Macroeconomic Factors

Supply and Demand

Market Access

Marketing Programs

Macroeconomic Factors

Supply and Demand

Market Access

Marketing Programs

Denver

Mexico City

MoscowBrussels

Beirut TokyoShanghai

Taipei

Seoul

Singapore

Guangzhou

Monterrey

St. Petersburg

Hong Kong

Beijing

USMEF’s International Offices

Caribbean

*Consultants

C/S America

Short plates, short ribs and tongues to Japan

Rounds, outside skirts, and variety meats to Mexico

Rounds and livers to Russia

Short ribs, chuck rolls, variety meats to Korea

Short plates, short ribs, and variety meats to Taiwan & China

Livers to Egypt

Carcass Value Maximization

Export Price Premiums

*Based on USMEF Office estimate, Cost & Freight**USDA Choice Wholesale Weekly Average for Jan. 17, 2009

*Based on USMEF Office estimate, Cost & Freight**USDA Choice Wholesale Weekly Average for Jan. 17, 2009

$0.00

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

$7.00

$8.00

$9.00

$10.00

Chuck ShortRib

Tenderloin Boneless Strip BonelessShortrib

U.S

. D

olla

r/L

B

Japan*

Korea*

Hong Kong*

U.S.**

USMEF Crisis Conference

危機危機

2009 Program ChangesJapan: Develop new opportunities for

additional cuts, especially in foodserviceJapan: Develop new opportunities for

additional cuts, especially in foodservice

2009 Program ChangesKorea: Rebuild customer confidence in U.S.

beef through promotions, consumer events, and PR

Korea: Rebuild customer confidence in U.S. beef through promotions, consumer events, and PR

2009 Program Changes

Mexico: Intensify retail point of sale programs

Mexico: Intensify retail point of sale programs

2009 Program Changes

All MarketsCompanies, Cuts, ConceptsFocus on under valued cuts & middle

meatsEmphasize displacing competitionDevelop new sales channels, including

catering and convenience store chains

All MarketsCompanies, Cuts, ConceptsFocus on under valued cuts & middle

meatsEmphasize displacing competitionDevelop new sales channels, including

catering and convenience store chains

Thank YouThank You