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INTERNATIONAL MEAT REVIEW Livestock & Grain Market News January 19, 2012 Volume 16, No. 01 Trade Highlights The USDA Foreign Agricultural Service (FAS) recently issued November 2011 red meat trade data for the U.S. According to the data, during November, U.S. exports of beef and veal cuts and beef variety meats equaled 105,274 MT. This was a little lower than the previous month but was 3.7 percent higher than November 2010. Specifically, exports of fresh, chilled product totaled 37,488 MT, which was up 9.6 percent over the previous month and was up 14.8 percent over November 2010. Conversely, exports of frozen product were down 12.7 percent from the previous month and 6.8 percent from November 2010, totaling 33,469 MT. During November, the U.S. exported 31,289 MT of variety meats, which was 5.0 percent more than the previous month and was 4.6 percent more than November 2010. Year-to-date beef variety meat exports were 19.2 percent higher than a year ago, amounting to U.S. Red Meat Exports Including Variety Meats Beef & Veal Exports for November 2011 Beef Variety YTD* YTD* Percent (Metric Tons) Cuts Meats 2011 2010 Change Japan 12,643 1,669 148,182 115,193 28.6% M exico 12,892 8,992 234,889 224,198 4.8% S. Korea 8,293 1,561 139,664 101,250 37.9% Canada 13,528 1,198 174,125 137,256 26.9% Egypt 3,525 8,313 134,776 101,586 32.7% Hong Kong 3,793 708 48,196 33,962 41.9% Russia 3,692 989 66,666 51,648 29.1% Taiwan 2,781 1 31,671 35,228-10.1% All Others 12,838 7,858 200,506 164,322 22.0% Total Exports 73,985 31,289 1,178,673 964,643 22.2% *The year-to-date totals include variety meats. Source: USDA Foreign Agricultural Service/U.S. Census Bureau 332,331 MT. U.S. beef exports to Mexico during November rose 4.3 percent over October to 21,884 MT. Total yearto-date beef exports to Mexico equaled 234,889 MT, 4.8 percent more than a year ago. Mexico was the leading beef export market for the U.S. with 19.9 percent of the total. During November, the U.S. exported 14,727 MT of beef to Canada. This was up 3.9 percent over the previous month. Year-to-date beef exports to Canada were 26.9 percent greater than a year ago, amounting to 174,125 MT. Overall, U.S. total year-to-date beef and veal and beef variety meat exports equaled 1,178,673 MT, which was 22.2 percent above the corresponding period a year ago. U.S. Red Meat Exports Including Variety Meats Pork Exports for November 2011 Pork Variety YTD* YTD* Percent (Metric Tons) Cuts Meats 2011 2010 Change Japan 39,495 1,950 451,365 397,006 13.7% Mexico 34,261 11,802 465,519 479,350-2.9% Canada 17,676 1,668 187,256 163,932 14.2% S. Korea 9,796 1,841 172,661 76,362 126.1% China 37,925 14,264 316,243 88,179 258.6% Taiwan 1,213 653 24,285 27,341-11.2% Russia 4,861 138 66,763 78,280-14.7% Hong Kong 5,271 8,429 98,899 149,263-33.7% All Others 18,963 3,956 224,965 235,573-4.5% Total Exports 169,460 44,700 2,007,955 1,695,286 18.4% *The year-to-date totals include variety meats. Source: USDA Foreign Agricultural Service/U.S. Census Bureau During November, the U.S. exported 214,160 MT of pork cuts and pork variety meats. This was 8.4 percent higher than the previous month and was 23.6 percent higher than November 2010. More specifically, exports of fresh, chilled pork equaled 59,810 MT, which was up 12.3 percent over the previous month and was up 16.0 percent over November 2010. Exports of frozen pork equaled 96,095 MT, which was nearly unchanged from the previous month but was up 43.3 percent over November 2010. During November, U.S. pork variety meat exports rose 25.6 percent over October to 44,700 MT. Also, this was 25.1 percent higher than November 2010. Total yearto-date pork variety meat exports equaled 419,958 MT, 6.2 percent more than a year ago. During November, the U.S. exported 46,063 MT of pork to Mexico. This was 8.7 percent greater than the previous month. Year-to-date pork exports to Mexico were 2.9 percent less than a year ago, amounting to 465,519 MT. Mexico was the largest U.S. pork export market with 23.2 percent of the total. Pork exports to Japan during November fell 3.6 percent from the previous month to 41,445 MT. Total year-to-date pork exports to Japan equaled 451,365 MT, 13.7 percent above a year ago. During November, the U.S. exported 52,189 MT of pork to China, the largest destination for U.S. during November. This was 10.6 percent higher than the previous month. Year-to-date pork exports to China equaled 316,243 MT, 258.6 percent greater than a year ago. Overall, U.S. total year-to-date exports of pork cuts and pork variety meats equaled 2,007,955 MT, 18.4 percent above the same period a year ago.

International Meat Review, January 19, 2012 Page 2 Trade Highlights (continued) U.S. Red Meat Imports Excluding Variety Meats Beef & Veal Imports for November 2011 Total YTD* YTD* Percent (Metric Tons) Beef 2011 2010 Change Argentina 736 10,155 10,035 1.2% Australia 12,104 137,357 178,837-23.2% Brazil 1,641 9,041 15,074-40.0% Canada 17,524 217,197 277,198-21.6% Central America 5,106 50,215 38,517 30.4% Mexico 5,015 53,480 35,945 48.8% New Zealand 4,257 143,887 147,671-2.6% Uruguay 723 13,630 15,669-13.0% All Others 42 967 1,506-35.8% Total Imports 47,149 635,928 720,452-11.7% *The year-to-date totals do not include variety meats. Source: USDA Foreign Agricultural Service/U.S. Census Bureau During November, U.S. beef and veal imports equaled 47,149 MT. Although this was 9.5 percent lower than the previous month, it was 8.1 percent higher than November 2010. Specifically, fresh, chilled beef imports equaled 24,417 MT, which was down 11.1 percent from the previous month but was unchanged from November 2010. Frozen beef imports equaled 19,496 MT, which was down 6.0 percent from the previous month but was up 17.5 percent over November 2010. During November, the U.S. imported 17,524 MT of beef from Canada, which was 19.3 percent lower than the previous month. Total year-to-date beef imports from Canada equaled 217,197 MT, 21.6 percent less than a year ago. Canada was the main provider of beef to the U.S. with 34.2 percent of the total imports. Beef imports from New Zealand during November fell 17.2 percent from the previous month to 4,257 MT. Yearto-date beef imports from New Zealand were down 2.6 percent from a year ago, totaling 143,887 MT. During November, beef imports from Australia equaled 12,104 MT, which was 1.2 percent lower than October. Year-to-date beef imports from Australia were 23.2 percent below a year ago, amounting to 137,357 MT. Overall, U.S. total year-to-date beef and veal imports equaled 635,928 MT, which was 11.7 percent less than the same period a year ago. U.S. pork imports during November rose 10.2 percent over the previous month to 32,260 MT. Also, this was 3.0 percent higher than November 2010. More specifically, imports of fresh, chilled pork equaled 19,648 MT, which was up 14.6 percent from the previous month and was up 3.9 percent over November 2010. Imports of frozen pork equaled 7,580 MT, which was down 1.6 percent from the previous month but was up 2.2 percent over November 2010. Pork imports from Canada during November rose 17.4 percent over the previous month to 27,564 MT. Total year-to-date pork imports from U.S. Red Meat Imports Excluding Variety Meats Pork Imports for November 2011 Total YTD* YTD* Percent (Metric Tons) Pork 2011 2010 Change Canada 27,564 255,486 281,406-9.2% Denmark 1,995 30,416 30,663-0.8% All Others 2,701 28,104 26,251 7.1% Total Imports 32,260 314,006 338,320-7.2% *The year-to-date totals do not include variety meats. Source: USDA Foreign Agricultural Service/U.S. Census Bureau Canada equaled 255,486 MT, which was 9.2 percent lower than a year ago. Canada was the main supplier of pork to the U.S. with 81.4 percent of the total imports. During November, the U.S. imported 1,995 MT of pork from Denmark, which was 35.6 percent less than the previous month. Year-to-date pork imports from Denmark totaled 30,416 MT, slightly lower than a year ago. Overall, U.S. total year-to-date pork imports equaled 314,006 MT, which was 7.2 percent below the corresponding period a year ago. To obtain further U.S. trade data, go to the FAS website http://www.fas.usda.gov/gats/. North America According to data from the USDA Animal and Plant Health Inspection Service (APHIS), as reported by USDA Livestock and Grain Market News (LGMN), during 2011, U.S. imports of feeder cattle from Canada totaled 76,021 head. This was 61.2 percent less than 2010. Imports of slaughter steers and heifers from Canada were down 32.5 percent from 2010, totaling 413,345 head. According to ERS, Canada s high slaughter cattle prices have prohibited live exports to the U.S. Canada s pasture and forage conditions have been at or above average. Slaughter cow and bull imports totaled 183,189 head, 20.5 percent less than 2010. During 2011, the U.S. imported 4,738,979 head of feeder pigs. This was 2.6 percent higher than 2010. Slaughter hog imports were down 7.1 percent from 2010, totaling 1,005,492 head.

International Meat Review, January 19, 2012 Page 3 North America (continued) Additionally, according to recent data from the USDA LGMN, during 2011, the U.S. imported 1,401,750 head of feeder cattle from Mexico. This was 15.5 percent greater than one year ago and was 50.2 percent greater than two years ago. According to the USDA Economic Research Service (ERS), nearly half of all cattle imported from Mexico weigh less than 400 pounds with only one percent weighing more than 700 pounds. Northern Mexico, where most of the imports originate, has been experiencing a drought, just as U.S. producers in the Southern Plains. According to ERS, cattle supplies are expected to remain tight in Mexico during 2012. To obtain each weekly report, visit the LGMN website at http://www.ams.usda.gov/lsmarketnews. U.S. Quarterly Hogs & Pigs Inventory As of December 1, 2011 Class (1,000 head) 1-Dec-11 1-Sep-11 1-Dec-10 All Hogs & Pigs 65,931 66,744 64,925 Breeding 5,803 5,806 5,778 M arket 60,128 60,938 59,147 M arket Hogs & Pigs Under 50 lbs 19,271 19,696 18,864 50-119 lbs 16,895 17,459 16,519 120-179 lbs 12,472 12,822 12,233 180 lbs & Over 11,490 10,961 11,531 Source: USDA National Agricultural Statistics Service On December 23, the USDA National Agricultural Statistics Service (NASS) released its Quarterly Hogs and Pigs report. According to the data, on December 1, 2011, the U.S. inventory of all hogs and pigs totaled 65.93 million head. Although this was down 1.2 percent from the previous quarter, it was up 1.5 percent over a year ago. The breeding herd totaled 5.80 million head, which was little changed from the previous quarter and from a year ago. The number of market hogs and pigs fell 1.3 percent from the previous quarter to 60.13 million head. However, this was 1.7 percent more than a year ago. More specifically, market hogs and pigs weighing less than 50 pounds equaled 19.27 million head, which was down 2.2 percent from the previous quarter, but was up 2.2 percent over a year ago. The number of market hogs and pigs weighing 50 to 119 pounds was 3.2 percent less than the previous quarter but was 2.3 percent more than a year ago, totaling 16.90 million head. Market hogs and pigs weighing 120 to 179 pounds totaled 12.47 million head. This was down 2.7 percent from the previous quarter but was up 2.0 percent over a year ago. Market hogs and pigs weighing more than 180 pounds totaled 11.49 million head, which was 4.8 percent more than the previous quarter but was little changed from a year ago. During the September to November timeframe, sows farrowed totaled 2.89 million head, which was up slightly over a year ago. This accounted for 49.9 percent of the total breeding herd. During the same time frame, the pig crop equaled 29.01 million head, which was 1.8 percent more than a year ago. Pigs per litter numbered 10.02 head, up from 9.89 a year ago. Iowa remained the largest hog producing state with 19.80 million head. This was 3.7 percent higher than a year ago and comprised 30.0 percent of the total inventory. North Carolina had the second largest inventory with 8.80 million head. This was 2.2 percent less than a year ago and accounted for 13.3 percent of the total U.S. herd. The total number of hogs under contract owned by operations with over 5,000 head accounted for 45.0 percent of the total U.S. hog inventory, unchanged from a year ago. The entire report is available on the NASS website at http://www.nass.usda.gov/. CanFax recently issued Canada s current cattle on feed statistics for terminal feedlots with 1,000 or more head in the provinces of Alberta and Saskatchewan. According to the data, the number of cattle on feed in Canada on January 1, 2012 totaled 998,791 head. This was up 2.2 percent over one year ago and was up 3.4 percent over two years ago. Cattle placed on feed during December equaled 100,624 head. This was 17.5 percent less than one year ago and was 15.2 percent less than two years ago. The number of steers placed on feed totaled 52,449 head, which accounted for 52.1 percent of the total. Heifers placed on feed Canadian Cattle On Feed in Alberta & Saskatchewan Feedlots On Feed December 1, 2011 1,034,198 Placed on Feed During December 100,624 Fed Cattle Marketed During December 122,434 Other Disappearances During December 13,597 On Feed January 1, 2012 998,791 Source: CanFax totaled 48,175 head. Specifically, placements of feeder cattle weighing less than 600 pounds totaled 11,515 head, which was 51.7 percent lower than a year ago. Placements of feeder cattle weighing 600 to 699 pounds were down 39.0 percent from a year ago, amounting to 24,166 head. Placements weighing 700 to 799 pounds equaled 23,193 head, 18.2 percent more than a year ago. Finally, placements weighing more than 800 pounds totaled 41,750 head, 7.3 percent higher than a year ago. Meanwhile, during December, Canada s fed cattle marketings increased 5.8 percent over year ago to 122,434 head. However, this was down 15.7 percent from two years ago. To obtain the complete report, go to the CanFax website at http://www.canfax.ca/.

International Meat Review, January 19, 2012 Page 4 Oceania Recently, Australia s Department of Agriculture, Fisheries and Forestry (DAFF) published Australia s red meat export data for December 2011 and for the year-end. According to the statistics, during December, Australia exported 82,054 MT of beef and veal. Although this was down 8.6 percent from November, it was up 6.0 percent over December 2010. More specifically, exports of frozen beef equaled 60,526 MT, which comprised 73.8 percent of the total. Exports of fresh, chilled beef equaled 21,527 MT. During 2011, Australia s exports of frozen beef totaled 687,130 MT, while exports of fresh, chilled beef totaled 262,062 MT. During December, Australia s beef exports to Japan fell 9.9 percent from November to Australia Beef & Veal Exports for December 2011 Dec YTD YTD YTD Japan 30,202 342,186 356,210-3.9% U.S. 15,968 167,819 185,035-9.3% S. Korea 12,347 146,347 124,161 17.9% CIS 2,979 55,111 56,664-2.7% Indonesia 2,679 39,590 48,436-18.3% All Others 17,879 198,139 152,325 30.1% Total Beef 82,054 949,192 922,831 2.9% Source: Department of Agriculture, Fisheries, and Forestry 30,202 MT. However, this was 3.5 percent higher than December 2010. During 2011, Australia s total beef exports to Japan equaled 342,186 MT, which was 3.9 percent lower than 2010. Japan was the largest market for Australia s beef exports during 2011 with 36.1 percent of the total. Australia s beef exports to the U.S. during December totaled 15,968 MT. This was 4.5 percent less than the previous month but was 80.6 percent more than December 2010. Beef exports to the U.S. during 2011 were 9.3 percent below 2010, totaling 167,819 MT. During December, Australia exported 12,347 MT of beef to South Korea, which was down 1.9 percent from the previous month but was up 2.1 percent over December 2010. Total beef exports to South Korea during 2011 were 17.9 percent greater than 2010, equaling 146,347 MT. During 2011, Australia s beef exports to Russia totaled 55,111 MT, 2.7 percent lower than 2010. Overall, during 2011, Australia s total beef and veal exports equaled 949,192 MT, 2.9 percent more than 2010. Australia Lamb & Mutton Exports for December 2011 Dec YTD YTD YTD Lamb Exports U.S. 2,676 34,333 34,098 0.7% Middle East 3,816 34,893 36,519-4.5% China 1,792 21,234 15,717 35.1% EU 906 12,965 11,942 8.6% New Guinea 890 10,213 9,094 12.3% All Others 3,341 46,411 48,124-3.6% Total Lamb 13,421 160,049 155,494 2.9% Mutton Exports Middle East 4,259 39,547 42,857-7.7% U.S. 676 4,619 8,746-47.2% Malaysia 362 3,482 6,984-50.1% China 618 5,073 6,721-24.5% Singapore 388 5,257 5,441-3.4% All Others 2,841 24,239 28,303-14.4% Total Mutton 9,144 82,217 99,052-17.0% Source: Department of Agriculture, Fisheries, and Forestry During December, Australia s lamb exports fell 6.3 percent from the previous month to 13,421 MT. Also, this was 4.7 percent lower than December 2010. Australia s lamb exports to the Middle East during December equaled 3,816 MT, which was 11.6 percent higher than the previous month and was 17.2 percent higher than December 2010. During 2011, total lamb exports to the Middle East equaled 34,893 MT, 4.5 percent less than 2010. The Middle East was Australia s leading destination for lamb exports with 21.8 percent of the total. During December, Australia exported 2,676 MT of lamb to the U.S. This was 4.6 percent less than November and was 8.1 percent less than December 2010. Lamb exports to the U.S. during 2011 totaled 34,333 MT, which was slightly higher than 2010. The U.S. was the second leading lamb export market for Australia with 21.5 percent of the total. Lamb exports to China during December fell 12.5 percent from the previous month and 6.8 percent from December 2010 to 1,792 MT. Australia s lamb exports to China during 2011 reached 21,234 MT, which was 35.1 percent greater than 2010. Overall, during 2011, Australia s lamb exports equaled 160,049 MT, 2.9 percent more than 2010. Meanwhile, during December, Australia s mutton exports totaled 9,144 MT. Although this was 3.7 percent higher than previous month, it was 4.6 percent lower than December 2010. Mutton exports to the Middle East during December totaled 4,259 MT, which was up 9.0 percent over the previous month and was up 9.4 percent over December 2010. During 2011, Australia s total mutton exports to the Middle East were 7.7 percent below 2010, totaling 39,547 MT. The Middle East was Australia s primary buyer of mutton with 48.1 percent of the total exports. During December, Australia exported 388 MT of mutton to Singapore. This was 5.4 percent lower than the previous month but was 26.4 percent higher than December 2010. Total mutton exports to Singapore during 2011 were down 3.4 percent from 2010, equaling 5,257 MT. Mutton exports to the U.S. during December rose 19.6 percent over November to 676 MT. However, this was 47.9 percent lower than December 2010. During 2011, mutton exports to the U.S. totaled 4,619 MT, 47.2 percent less than 2010. Overall, during 2011, Australia s total mutton exports equaled 82,217 MT, which was 17.0 percent below 2010. Additional data on Australia s export market is available on the DAFF website at http://www.daff.gov.au/.

International Meat Review, January 19, 2012 Page 5 Pacific Rim Japan's Beef Imports for November 2011 Nov YTD YTD YTD Total Beef* 47,817 472,160 453,985 4.0% United States 11,239 109,812 81,519 34.7% Australia 32,586 309,121 320,547-3.6% New Zealand 1,501 27,559 29,378-6.2% Chilled Total 20,156 194,988 193,216 0.9% Frozen Total 27,585 276,622 260,355 6.2% *Includes cheek, head & cooked meats. Source: Japan's Agriculture & Livestock Industries Corporation Japan s Agriculture and Livestock Industries Corporation (ALIC) recently published Japan s red meat import data for November 2011. According to the statistics, Japan s beef imports during November rose 9.0 percent over the previous month to 47,817 MT. However, this was 6.3 percent lower than November 2010. Specifically, frozen beef imports totaled 27,585 MT, which was up 3.9 percent over the previous month but was down 15.9 percent from November 2010. Fresh, chilled beef imports totaled 20,156 MT, which was up 17.0 percent over the previous month and was up 10.8 percent over November 2010. Japan s beef imports from Australia during November rose 11.9 percent over October to 32,586 MT. However, this was down 3.9 percent from November 2010. Total year-to-date beef imports from Australia equaled 309,121 MT, which was 3.6 percent below a year ago. Australia was the leading beef import market for Japan with 65.5 percent of the total. During November, Japan imported 11,239 MT of beef from the U.S. This was 10.9 percent more than the previous month and was 3.1 percent more than November 2010. Year-to-date beef imports from the U.S. were 34.7 percent greater than a year ago, amounting to 109,812 MT. Japan s beef imports from New Zealand during November fell 14.8 percent from the previous month and 14.9 percent from November 2010 to 1,501 MT. Year-to-date beef imports from New Zealand totaled 27,559 MT, 6.2 percent lower than a year ago. Overall, Japan s total year-to-date beef imports equaled 472,160 MT, which was 4.0 percent above the same period a year ago. Japan s beef marketings during October totaled 76,635 MT, which was 1.5 percent more than the previous month and was 14.4 percent more than a year ago. Marketings of imported beef were up 29.3 percent over a year ago, amounting to 48,128 MT. Domestic beef marketings totaled 28,507 MT, 4.1 percent lower than a year ago. At the end of October, Japan s beef stocks equaled 93,889 MT, which was down 2.4 percent from the previous month but was up 5.9 percent over a year ago. Stocks of imported beef totaled 79,737 MT, which was up 3.8 percent over a year ago. Stocks of domestic beef were up 19.8 percent over a year ago, totaling 14,152 MT. Japan s pork imports during November rose 10.0 percent over the previous month and 26.2 percent over November 2010 to 76,516 MT. Additionally, this was the single highest monthly volume since June 2010. More specifically, frozen pork imports totaled 53,169 MT, which was 10.4 percent higher than the previous month and was 33.4 percent higher than November 2010. Fresh, chilled pork imports totaled 23,317 MT, which was 8.9 percent higher than the previous month and was 12.5 percent higher than November 2010. Pork imports from the U.S. during November totaled 31,074 MT. This was up 17.2 percent over the previous month and was up 33.2 percent over November 2010. Also, this Japan's Pork Imports for November 2011 Nov YTD YTD YTD Total Pork* 76,516 725,156 692,617 4.7% United States 31,074 297,346 273,762 8.6% Denmark 10,931 121,272 123,940-2.2% Canada 18,831 157,056 163,877-4.2% Chilled Total 23,317 234,206 209,947 11.6% Frozen Total 53,169 490,822 482,535 1.7% *Includes edible offal. Source: Japan's Agriculture & Livestock Industries Corporation was the highest monthly total since June 2010. Year-to-date pork imports from the U.S. totaled 297,346 MT, 8.6 percent greater than a year ago. The U.S. was the leading supplier of pork to Japan with 41.0 percent of the total imports. During November, Japan imported 18,831 MT of pork from Canada. This was 11.9 percent higher than the previous month and was 34.1 percent higher than November 2010. Total year-to-date pork imports from Canada were 4.2 percent less than a year ago, amounting to 157,056 MT. Pork imports from Denmark during November fell 10.6 percent from October to 10,931 MT. However, this was up 4.8 percent over November 2010. Year-to-date pork imports from Denmark totaled 121,272 MT, 2.2 percent lower than a year ago. Overall, Japan s total year-to-date pork imports equaled 725,156 MT, which was 4.7 percent above the corresponding period a year ago. Japan s pork marketings during October increased 4.5 percent over the previous month and 2.3 percent over October 2010 to 147,287 MT. Imported pork marketings totaled 68,634 MT, 3.0 percent more than a year ago. Marketings of domestic pork were 1.7 percent higher than a year ago, totaling 78,653 MT. At the end of October, Japan s pork stocks equaled 161,682 MT. This was unchanged from the previous month but was down 13.2 percent from a year ago. Stocks of imported pork totaled 140,976 MT, 10.7 percent lower than a year ago. Stocks of domestic pork totaled 20,706 MT, 26.8 percent less than a year ago. Additional data on Japan s red meat trade can be found on the ALIC website at http://lin.alic.go.jp/alic/statis/dome/data2/e_nstatis.htm.

International Meat Review, January 19, 2012 Page 6 Pacific Rim (continued) South Korea Red Meat Imports Beef Imports for November 2011 Nov YTD YTD Percent U.S. 8,518 106,447 75,203 41.5% Australia 12,834 139,744 125,160 11.7% New Zealand 1,814 32,082 32,018 0.2% Total Beef 23,533 283,093 235,619 20.1% Pork Imports for November 2011 Nov YTD YTD Percent U.S. 6,549 143,243 67,953 110.8% Canada 5,609 75,274 49,719 51.4% Chile 2,449 38,072 39,838-4.4% Spain 2,277 29,402 16,803 75.0% Belgium 1,127 15,113 12,744 18.6% France 1,142 17,071 12,730 34.1% Total Pork 31,585 459,776 262,287 75.3% Source: Korea International Trade Association The Korea International Trade Association (KITA) recently published South Korea s red meat import numbers for November 2011. According to the data, South Korea s beef imports during November fell 9.7 percent from October to 23,533 MT. However, this was up 1.8 percent over November 2010. Specifically, imports of frozen beef equaled 19,729 MT, which accounted for 83.8 percent of the total. Imports of fresh, chilled beef equaled 3,804 MT. During November, South Korea imported 12,834 MT of beef from Australia. This was 3.8 percent higher than the previous month but was 1.9 percent lower than November 2010. Year-to-date beef imports from Australia totaled 139,744 MT, which was 11.7 percent higher than a year ago. Australia was South Korea s largest source for beef imports with 49.4 percent of the total. South Korea s beef imports from the U.S. during November fell 18.3 percent from the previous month to 8,518 MT. However, this was 6.0 percent more than November 2010. Total year-to-date beef imports from the U.S. were 41.5 percent greater than a year ago, amounting to 106,447 MT. During November, South Korea imported 1,814 MT of beef from New Zealand. Although this was down 28.6 percent from the previous month, it was up 11.1 percent over November 2010. Yearto-date beef imports from New Zealand totaled 32,082 MT, nearly unchanged from a year ago. Overall, South Korea s total year-to-date beef imports equaled 283,093 MT, which was 20.1 percent above the corresponding period a year ago. In the meantime, South Korea s pork import during November totaled 31,585 MT. This was 4.6 percent higher than the previous month and was 34.0 percent higher than November 2010. During November, South Korea s pork imports from the U.S. increased 1.6 percent over October to 6,549 MT. Also, this was 38.8 percent more than November 2010. Total year-to-date pork imports from the U.S. were 110.8 percent greater than a year ago, amounting to 143,243 MT. The U.S. was the main source for South Korea s pork imports with 31.2 percent of the total. Pork imports from Canada during November equaled 5,609 MT, which was up 10.8 percent over the previous month and was up 27.0 percent over November 2010. Year-to-date pork imports from Canada totaled 75,274 MT, 51.4 percent more than a year ago. South Korea s pork imports from Chile during November fell 14.1 percent from the previous month and 26.3 percent from November 2010 to 2,449 MT. Total year-to-date pork imports from Chile were 4.4 percent less than a year ago, amounting to 38,072 MT. Overall, South Korea s total year-to-date pork imports equaled 459,776 MT, which was 75.3 percent above the same period a year ago. Additional information on South Korea s beef and pork trade is available on the KITA website at http://www.kita.org/.

International Meat Review, January 19, 2012 Page 7 Trade and Production Statistics U.S. Actual Slaughter under Federal Inspection (# Head) 1/7/12 12/31/11 2012 2011 Change Cattle 560,750 540,013 560,750 639,512-12.3% Calves 14,246 14,571 14,246 17,169-17.0% Hogs 2,064,394 1,961,187 2,064,394 2,174,535-5.1% Sheep 31,855 33,742 31,855 37,143-14.2% Goats 8,931 12,395 8,931 9,322-4.2% Source: USDA National Agricultural Statistics Service http://www.ams.usda.gov/mnreports/sj_ls711.txt U.S. Red Meat Production (Million lbs) 1/7/12 12/31/11 2012 2011 Change Beef 436.8 420.9 437 499-12.5% Calf & Veal 2.1 2.2 2 3-16.0% Pork 432.6 409.3 433 455-5.0% Lamb/Mutton 2.4 2.4 2 3-7.7% Source: USDA National Agricultural Statistics Service http://www.ams.usda.gov/mnreports/sj_ls711.txt Canadian Federally Inspected Slaughter (# Head) 1/7/12 12/31/11 2012 2011 Change Cattle 42,880 39,855 42,880 52,690-18.6% Calves 3,119 3,841 3,119 4,068-23.3% Sheep 2,410 1,264 2,410 2,842-15.2% Hogs 357,640 277,349 357,640 386,537-7.5% Source: Agriculture and Agri-Food Canada http://www.agr.gc.ca/redmeat/index_eng.htm Canada Red Meat Production (Million lbs) 1/7/12 12/31/11 2012 2011 Change Beef 35.2 NA 35.2 32.4 8.6% Pork 78.5 NA 78.5 55.0 42.7% U.S. Livestock Exports to Mexico Source: CanFax http://www.canfax.ca/ (# Head) 1/7/12 12/31/11 2012 2011 Change Sltr Ewes 0 0 0 1,055-100.0% Source: USDA AMS Livestock & Grain Market News http://www.ams.usda.gov/mnreports/al_ls635.txt U.S. Livestock Imports from Mexico (# Head) 1/7/12 12/31/11 2012 2011 Change Feeder Cattle 13,668 18,916 13,668 4,396 210.9% Source: USDA AMS Livestock & Grain Market News http://www.ams.usda.gov/mnreports/al_ls625.txt Canadian Slaughter Cattle Average Prices W/E W/E Year Percent (U.S. $/cwt) 1/7/12 12/31/11 Ago Change Alberta Steers $113.74 No Quote $97.44 16.7% Alberta Heifers $113.53 No Quote $97.26 16.7% Alberta Cows $68.75 No Quote $57.67 19.2% Ontario Steers $120.18 No Quote $99.01 21.4% Ontario Heifers $118.86 No Quote $97.80 21.5% Ontario Cows $66.47 No Quote $53.16 25.0% Source: CanFax http://www.ams.usda.gov/mnreports/wa_ls718.txt Canadian Feeder Cattle Average Prices W/E W/E Year Percent (U.S. $/cwt) 1/7/12 12/31/11 Ago Change Alberta Steers 500-600 $161.07 No Quote $136.04 18.4% 600-700 $147.55 No Quote $123.85 19.1% 700-800 $137.99 No Quote $120.81 14.2% Alberta Heifers 500-600 $142.57 No Quote $121.90 17.0% 600-700 $131.56 No Quote $113.98 15.4% 700-800 $126.37 No Quote $108.46 16.5% Saskatchewan Steers 500-600 No Quote No Quote $130.72 --- 600-700 No Quote No Quote $122.37 --- 700-800 No Quote No Quote $113.84 --- Saskatchewan Heifers 500-600 No Quote No Quote $113.67 --- 600-700 No Quote No Quote $108.33 --- 700-800 No Quote No Quote $104.31 --- Source: CanFax http://www.ams.usda.gov/mnreports/wa_ls718.txt Exchange Rates U.S. $ Converted W/E W/E Year to Major Currencies 1/7/12 12/31/11 Ago Australian Dollar 0.98 0.98 1.00 Brazilian Real 1.84 1.86 1.68 Canadian Dollar 1.02 1.02 1.00 Euro 0.772 0.783 0.763 Japanese Yen 77.13 77.40 83.18 Mexican Peso 13.73 13.97 12.19 New Zealand Dollar 1.28 1.29 1.32 South Korean Won 1158.1 1157.5 1121.5 Source: OANDA http://www.oanda.com/converter/classic

International Meat Review, January 19, 2012 Page 8 Trade and Production Statistics Japan Monthly Livestock Slaughter YTD YTD Percent (# Head) Oct 2011 2010 Change Cattle 102,286 935,763 979,318-4.4% Hogs 1,432,207 13,234,051 13,764,979-3.9% Source: Agriculture & Livestock Industries Corporation http://www.ams.usda.gov/mnreports/wa_ls660.txt U.S. Meats Supply and Use (Jan Projection) Percent (Million Pounds) 2012 2011 Change Beef Beginning Stocks 515 585-12.0% Production 25,075 26,297-4.6% Imports 2,090 2,052 1.9% Total Supply 27,680 28,934-4.3% Exports 2,775 2,779-0.1% Disappearance 24,385 25,640-4.9% Total Use 27,160 28,419-4.4% Ending Stocks 520 515 1.0% Pork Beginning Stocks 570 541 5.4% Production 23,209 22,778 1.9% Imports 785 800-1.9% Total Supply 24,564 24,119 1.8% Exports 5,115 5,112 0.1% Disappearance 18,879 18,437 2.4% Total Use 23,994 23,549 1.9% Ending Stocks 570 570 0.0% Source: USDA Economic Research Service http://www.ers.usda.gov/ Additional Information Sources Include: USDA AMS Livestock & Grain Market News (LGMN) USDA Animal & Plant Health Inspection Service (APHIS) USDA Economic Research Service (ERS) USDA Foreign Agricultural Service (FAS) USDA National Agricultural Statistics Service (NASS) Agriculture and Agri-Food Canada CanFax Statistics Canada Agriculture, Fisheries, and Forestry Australia (DAFF) Meat & Livestock Australia (MLA) Australian Lot Feeders Association (ALFA) New Zealand s Beef + Lamb (B+LNZ) Agriculture and Livestock Industries Corporation (ALIC) Korea International Trade Association (KITA) Argentina s Agriculture Food, Health and Quality (SENASA) Uruguay s National Meat Institute (INAC) Food and Agriculture Organization (FAO) Various News Services U.S. Prices for Mexico Feeder Cattle Imports W/E W/E Year (U.S. $/cwt, FOB) 1/7/12 12/31/11 Ago Feeder Steers, Medium & Large, 1 & 2 300-400 lbs $145-$157 $145-$157 No Quote 400-500 lbs $135-$147 $135-$147 No Quote 500-600 lbs $125-$137 $125-$137 No Quote Feeder Heifers, Medium & Large 1 & 2 400-500 lbs No Quote No Quote No Quote Source: USDA AMS Livestock & Grain Market News http://www.ams.usda.gov/mnreports/al_ls626.txt Japanese Monthly Retail Beef Prices Percent (U.S. $/cwt) Nov-11 Nov-10 Change Australia Chuck Roll $1,229.09 $1,215.55 1.1% Brisket $1,264.21 $1,380.56-8.4% Sirloin $1,849.49 $1,787.58 3.5% Round $1,141.30 $1,100.05 3.7% Wagyu Chuck $3,857.00 $3,509.16 9.9% Brisket $3,974.06 $3,657.66 8.7% Sirloin $6,812.67 $6,358.28 7.1% Round $3,675.57 $3,498.16 5.1% Source: Agriculture & Livestock Industries Corporation http://www.ams.usda.gov/mnreports/wa_ls681.txt Japanese Monthly Retail Pork Prices Percent (U.S. $/cwt) Nov-11 Nov-10 Change Domestic Pork Normal Shoulder $778.42 $720.53 8.0% Normal Loin $1,474.91 $1,353.06 9.0% Normal Ham $954.01 $874.54 9.1% Bargain Loin $1,071.06 $1,001.04 7.0% Imported Pork Normal Loin $930.60 $880.04 5.7% Bargain Loin $585.28 $539.02 8.6% Source: Agriculture & Livestock Industries Corporation http://www.ams.usda.gov/mnreports/wa_ls683.txt U.S. Rendered Products Exports YTD YTD Percent (Metric Tons) Nov 2011 2010 Change Edible Tallow 4,984 54,654 75,533-27.6% Ined Meatmeal Tankge 20,024 271,197 260,851 4.0% Inedible Tallow, cwg 39,946 554,695 711,086-22.0% Lard 4,195 30,511 28,892 5.6% Oth Ined an Fats & Oil 53,001 457,745 402,168 13.8% Source: USDA Foreign Agricultural Service http://www.fas.usda.gov/gats The USDA Livestock and Grain Market News staff makes every effort to provide factual news as it occurs in the market. As some of the information presented in this publication is contributed from worldwide sources, the accuracy and correctness cannot always be verified.