WEEKLY MARKET TRENDS REPORT

August 10, 2012

Individual Reports on: Beef, Veal and Lamb Oil and Grains Dairy Pork Canned Tomato Poultry Seafood Bean, Rice, Coffee and Sugar Processed Fruits and Vegetables Produce

Beef, Veal and Lamb Report

Beef, Veal & Lamb- Beef output l a s t week
i ncrea s ed 1.4% a nd wa s .4% more tha n the s a me week i n '11. La s t week US pa s ture condi ti ons were the wors t for a ny week i n the l a s t 13 yea rs . Thi s wi l l ti ghten a va i l a bl e ca ttl e s uppl i es n ext yea r a nd ma y s upport the beef ma rkets i n '13. Schedul ed La bor Da y fea ture a cti vi ty i s pres s uri ng ma ny beef ma rkets hi gher s uch a s ground beef a nd s tri ps . Beef pri ces tend to a ppreci a te over the next two weeks . The dema nd for hol i da y beef i tems s uch a s ri beyes a nd tenderl oi ns wi l l s oon be ri s i ng. The choi ce tenderl oi n a nd ri beye ma rkets us ua l l y trend 23% a nd 14% hi gher from now through Nov.

Live Cattle (Steer) Ground Beef 81/19 Ground Chuck 109 Export Rib (choice) 109 Export Rib (prime) 112a Ribeye (choice) 112a Ribeye (prime) 116 Chuck (choice) 120 Brisket (choice) 121c Outside Skirt (ch/sel.) 167a Knckle, Trimmed (choice) 168 Inside Round (choice) 174 Short Loin (choice 0x1) 174 Short Loin (prime 2x3) 180 1x1 Strip (choice) 180 1x1 Strip (prime) 180 0x1 Strip (choice) 184 Top Butt, boneless (choice) 184 Top Butt, boneless (prime) 185a Sirloin Flap (choice) 185c Loin, Tri-Tip (choice) 189a Tender (select, 5 lb & up) 189a Tender (choice, 5 lb &up) 189a Tender (prime, heavy) 193 Flank Steak (choice) 50% Trimmings 65% Trimmings 75% Trimmings 85% Trimmings 90% Trimmings 90% Imported Beef (frozen)

Market Trend Increasing Increasing Increasing Decreasing Increasing Increasing Decreasing Increasing Increasing Increasing Increasing Increasing Increasing Increasing Increasing Increasing Increasing Increasing Decreasing Decreasing Decreasing Increasing Increasing Decreasing Increasing Decreasing Increasing Decreasing Increasing Decreasing Decreasing

Supplies Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good

Price vs. Last Year Higher Higher Higher Higher Higher Higher Higher Higher Higher Higher Higher Lower Higher Lower Higher Higher Higher Lower Higher Higher Higher Higher Higher Higher Higher Lower Lower Higher Higher Higher Higher

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Veal Rack (Hotel 7 rib) Veal Top Round (cap off)

Steady Steady

Good Good

Higher Higher

Oil and Grains Report

Oil & Grains- The US government
might be forced to temporarily alter their ethanol policies. Still, corn supplies may remain tight. Elevated corn prices could persist.

Soybeans Crude Soybean Oil Soymeal Corn Crude Corn Oil Distillers Grain, Dry Crude Palm Oil Hard Red Winter Wheat Dark Northern Spring Wheat High Fructose Corn Syrup Durum Wheat

Market Trend Decreasing Decreasing Decreasing Decreasing Decreasing Decreasing Increasing Increasing Decreasing Decreasing Increasing

Supplies Good Good Good Good Good Good Good Good Good Good Good

Price vs. Last Year Higher Lower Higher Higher Lower Higher Lower Higher Higher Higher Lower

Market Report provided by American Restaurant Associationwww.AmericanRestaurantAssociation.com- 888-423-4411

Dairy Report
Dairy- M ilk demand for the upcoming school year is rising.
This might lead to further upside price pressure for dairy due to less available milk supplies for manufacturing. The butter market remains strong. Yet, expanding Oceania milk and butter production in the coming months could be bearish for US butter exports. Butter prices usually peak for the year in September. The cheese markets are firming. History suggests that cheese prices can remain elevated through August before topping next month. Soft global cheese prices continue to discourage US cheese exports.

Market Trend Cheese Barrels- CME Cheese 40 lb Blocks- CME American Cheese Cheddar Cheese Mozzarella Cheese Provolone Cheese Parmesan Cheese Butter- One lb Solids Nonfat Dry Milk Whey, Dry Class I Milk Base Class II Cream (Heavy Cream) Class III Milk- CME Class IV Milk- CME Increasing Increasing Decreasing Decreasing Decreasing Decreasing Decreasing Increasing Increasing Increasing Steady Increasing Increasing Increasing

Supplies Good Good Good Good Good Good Good Good Good Good Good Good Good Good

Price vs. Last Year Lower Lower Lower Lower Lower Lower Lower Lower Lower Lower Lower Lower Lower Lower

Market Report provided by American Restaurant Associationwww.AmericanRestaurantAssociation.com- 888-423-4411

Pork Report
Pork - Pork output
last week rose .8% and was 1.8% more than the same week in '11. Hog supplies are anticipated to become more available in the coming weeks which should encourage pork production. The USDA pork cutout value usually peaks next week. M any of the pork markets are likely near a seasonal top. Since '07, the average move lower for pork belly and ham prices are 23% and 25% from now through the end of the year. A new swine flu strain is making news but there's no evidence that the strain is passed by consuming pork.

Live Hogs Belly (bacon) Spare Rib (4.25 & down) Ham (23-27 lb) Loin (bone-in) Baby Back Rib (1.75 & up) Tenderloin (1.25 lb) Boston Butt, untrimmed 4-8 lb. Picnic, untrimmed SS Picnic, smoker trim boxed 42% Trimmings 72% Trimmings

Market Trend Decreasing Steady Decreasing Decreasing Decreasing Decreasing Decreasing Decreasing Steady Steady Decreasing Decreasing

Supplies Good Good Good Good Good Good Good Good Good Good Good Good

Price vs. Last Year Lower Lower Lower Lower Lower Lower Lower Lower Lower Lower Lower Lower

Market Report provided by American Restaurant Associationwww.AmericanRestaurantAssociation.com- 888-423-4411

Canned Tomato Report

Tomato Products, Canned- The CA tomato harvest
by this Saturday. Canned tomato prices are firm. is progressing with 3.9 million tons expect to be achieved

Whole Peeled Standard Diced, Fancy Ketchup, 33% Tomato Paste- Ind.

Market Trend Steady Steady Steady Steady

Supplies Good Good Good Good

Price vs. Last Year Higher Higher Higher Higher

Market Report provided by American Restaurant Associationwww.AmericanRestaurantAssociation.com- 888-423-4411

Poultry Report
Poultry- Chicken
feed costs are historically high but producers have yet to further cut chicken output noticeably from '11 levels. A major chicken producer thi s week reported disappointing earnings. This is adding fuel to expectations that production will soon be slowed. Chicken wing prices are firm. This year's seasonal chicken wing market rise is underway. Wing prices should achieve record highs in the fall. Egg prices have risen in part to the heat producing a 2% loss in the hen flock. US egg output may improve when the hot weather breaks tempering any further egg price increase. Mexico has instituted a new tariff on US chicken leg quarter and thigh meat imports. Last year 14% of the total US chicken exports went to Mexico.

Whole Chicken (2.5-3 lb-GA) Whole Chicken (LA) Chicken Wings, Whole Chicken Wings, Jumbo Cut Chicken Breast, Bone-In Chicken Breast, Bnless Sknless Chicken Tender (random) Chicken Tender (sized) Chicken Legs (whole) Chicken Leg Quarters Chicken Thighs, bone in Chicken Thighs, boneless Large Eggs Medium Eggs Whole Eggs- Liq Egg Whites- Liq Egg Yolks- Liq Whole Turkey (8-16 lb) Turkey Breast- Bnls/Sknls

Market Trend Steady Steady Increasing Increasing Increasing Increasing Steady Steady Decreasing Steady Decreasing Increasing Increasing Increasing Decreasing Decreasing Steady Increasing Increasing

Supplies Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good

Price vs. Last Year Higher Higher Higher Higher Higher Higher Higher Higher Lower Higher Higher Higher Higher Higher Higher Higher Higher Higher Lower

Market Report provided by American Restaurant Associationwww.AmericanRestaurantAssociation.com- 888-423-4411

Seafood Report
SeafoodThe salmon markets continue to trade below thei r 3 year price averages. This is due in part to better global Atlantic salmon production and a strengthening US dollar contributing to solid US salmon imports. The US imports the majority of its yearly salmon supply needs. If the US dollar continues to appreciate it will likely keep salmon imports healthy and could be bearish for salmon prices. The shrimp markets are steady.

Salmon, Whole (10-12 lb) Catfish, Filets Trout, Drn. (8-14 oz) Shrimp (16-20 count) Shrimp (61-70 count) Shrimp, Tiger (26-30 count) Snow Crab Legs (5-8 oz) Snow Crab Legs (8 oz up) Cod Tails, 3-7 oz. Frz. Cod Loins, 3-12 oz. Frz. Salmon Portions, 4-8 oz. Frz.

Market Trend Steady Steady Steady Increasing Decreasing Steady Steady Increasing Decreasing Increasing Decreasing

Supplies Good Good Good Good Good Good Good Good Good Good Good

Price vs. Last Year Lower Lower Higher Lower Lower Lower Lower Lower Higher Lower Lower

Bean, Rice, Coffee and Sugar Report

Market Report provided by American Restaurant Associationwww.AmericanRestaurantAssociation.com- 888-423-4411

Pinto Beans Black Beans Rice, Long Grain Coffee Beans Sugar Honey

Market Trend Decreasing Steady Increasing Decreasing Increasing Steady

Supplies Good Good Good Good Good Good

Price vs. Last Year Higher Higher Lower Lower Lower Higher

Paper Product Report

Wood Pulp (paper)

NBSK- Paper napkin 42 lb. Linerboard-corrugated box

Plastic Resins (plastic, foam)

Market Trend Decreasing Increasing Steady Steady

Supplies Good Good Good Good Good

Price vs. Last Year Lower Lower Higher Lower Lower

PS-CHH-utensils, cups, to-go

cont.

PP-HIGP-heavy grade u tensils PE-LLD-can liners, film, bags

Steady

Retail Price Change from Prior Month

Beef and Veal Dairy Pork Chicken Fresh Fish and Seafood Fresh Fruits and Vegetables Apr-11 Increasing Increasing Decreasing Increasing Increasing Decreasing Mar-11 Increasing Increasing Increasing Decreasing Increasing Increasing Feb-11 Increasing Increasing Increasing Increasing Increasing Increasing

Market Report provided by American Restaurant Associationwww.AmericanRestaurantAssociation.com- 888-423-4411

Processed Fruits and Vegetables Report

Processed Fruits and Vegetables - Some of the US vegetable for processing crops remain challenged due to
the M idwest drought. The processed vegetable markets could firm this fall.

Canned 6/10 Corn, Fancy Whole Kernel Green Beans, Fancy 4 sv Green Peas, Fancy 4 sv/blend Frozen Corn, Cob 96 count Corn, Kernel 12/2.5 lb. Green Beans, Cut 12/2 lb. Green Peas, 12/2.5 lb. Potatoes, FF Fancy, 6/5 lb.

Market Trend

Steady
Steady Steady Steady Steady Steady Steady Steady

Supplies Good Good Good Good Good Good Good Good

Price vs. Last Year Higher Higher Higher Higher Higher Higher Higher Higher

Market Report provided by American Restaurant Associationwww.AmericanRestaurantAssociation.com- 888-423-4411

Produce Report
Produce The California lettuce harvest has been impacted by unfavorable weather conditions. The iceberg lettuce market is pricing well above year ago levels an d history suggests that further price appreciation may be forthcoming. Still, the California lettuce harvest is expected to improve during the next few weeks which could temper any further lettuce price increases. The tomato markets are lower. US tomato supplies remain adequate. Tomato prices are usually erratic in August but then trend higher in September. The Idaho potato markets usually top later this month.

Limes (150 count) Lemons (95 count) Lemons (200 count) Honeydew (6 ct.) Cantaloupe (15 count) Blueberries (12 count) Strawberries (12 pints) Avocados, Hass (48 count) Bananas (40 lb)-Term. Pineapple (7 ct.)- Term. Idaho Potato (60 count) Idaho Potato (70 count) Idaho Potato (70 count)-Term. Idaho Potato (90 count) Idaho Potato #2 (6 oz. min.) Processing Potato (100 lb) Yellow Onions (50 lb) Yellow Onions (50 lb)-Term. Red Onions (25 lb)-Term. White Onions (50 lb)-Term. Tomatoes, (large- case) Tomatoes, (5x6, 25 lb.)-Term. Tomatoes, Vine Ripe, (4x5) Roma Tomatoes (large- case) Roma Tomatoes (xlarge- case) Green Peppers (large- case) Red Peppers (large- 15 lb. cs.) Iceberg Lettuce (24 count) Iceberg Lettuce (24 cnt)-Term.

Market Trend Decreasing Steady Steady Decreasing Decreasing Decreasing Increasing Decreasing Decreasing Increasing Increasing Increasing Increasing Increasing Increasing Steady Decreasing Increasing Increasing Decreasing Decreasing Decreasing Decreasing Increasing Increasing Decreasing Increasing Decreasing Decreasing

Supplies Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good

Price vs. Last Year Lower Lower Lower Lower Lower Lower Higher Lower Higher Lower Lower Lower Lower Lower Lower Lower Higher Higher Higher Higher Higher Higher Lower Higher Higher Lower Higher Higher Higher

Market Report provided by American Restaurant Associationwww.AmericanRestaurantAssociation.com- 888-423-4411

Produce Report (continued)

Leaf Lettuce (24 count) Romaine Lettuce (24 count) Mesculin Mix (3 lb)-Term. Broccoli (14 cnt.) Squash (case) Zucchini (case) Green Beans (bushel) Spinach, Flat 24s Mushrooms (large), Term. Cucumbers, Bushel Pickles (200-300 ct.)-Term. Asparagus (small) Freight (CA to City Avg.) Increasing Decreasing Increasing Decreasing Increasing Increasing Decreasing Increasing Decreasing Decreasing Decreasing Increasing Increasing Good Good Good Good Good Good Good Good Good Good Good Good Good Higher Higher Lower Lower Lower Lower Lower Lower Higher Lower Lower Higher Lower

Market Report provided by American Restaurant Associationwww.AmericanRestaurantAssociation.com- 888-423-4411