WEEKLY MARKET TRENDS REPORT

September 21, 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 production last week was .8% larger than the previous year.
Declining packer margins are slowing beef output and supporting beef prices. Still, various beef end cut markets are expected to peak soon. Last year choice chuck prices fell 14% in the fourth quarter. U.S. retail beef prices during August were up 5.8% versus '11 and the second highest on record. Record high retail beef prices are likely to persist this fall. Domestic retail gasoline prices are rising and are roughly 7% above the same week in '11. Inflated retail beef and gasoline prices could curb beef demand in the coming months.

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

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

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

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

90% Imported Beef (frozen) Veal Rack (Hotel 7 rib) Veal Top Round (cap off)

Decreasing Increasing Increasing

Good Good Good

Higher Higher Higher

Oil and Grains Report

Oil & Grains- The grain harvest is progressing placing downward pressure on grain prices. Yet, grain stocks
remain historically tight. The grain markets should remain inflated this fall.

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 Steady Decreasing Decreasing Decreasing 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- The cheese markets are firm. Fonterra's recent dairy auction resulted in modestly higher cheese prices. Still,
Fonterra's global cheese price average is at a $.25 discount to the existing U.S. cheese block market. This isn't a healthy sign for U.S. cheese exports. Since '07, the average move for the cheese block market over the next six weeks is 3.2% lower. The CME butter market is steady. The five year average move for the butter market from now through the end of the year is 17% lower. Any fall butter and cheese market declines this year could be tempered.

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 Increasing Increasing Increasing Increasing Increasing Increasing Increasing Increasing Steady Decreasing Increasing Steady

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

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

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

Pork Report
Pork- Pork production last week was 6% more than '11. Pork output is expected to remain seasonally strong which
should keep pork prices under downward pressure in the coming weeks. Still, the baby back rib and 72% pork trim markets are presenting value. During the last ten years, the baby back rib market priced below $2 on only eight weekly occurrences. The 72% pork trim market is 39% below its five year weekly average. U.S. retail pork prices in August were .2% below '11 but the highest since November.

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 Increasing Increasing Increasing Steady Decreasing Decreasing Decreasing Decreasing Decreasing Steady Decreasing Steady

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

Price vs. Last Year Lower Higher 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- By the end of this week the CA tomato harvest is forecasted to be 9.5% larger than
last year. The canned tomato markets remain firm.

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- Spot feed costs for chicken producers have modestly declined as of late but
producer margins remain historically poor. Broiler output rates are anticipated to slow from current levels in the coming months. However, weekly broiler-type egg set data has yet to confirm any significant production cutbacks versus a year ago. The ARA daily chicken breast index has fallen 10.1% since August 30th. History points to the chicken breast markets declining even further, roughly 13% over the next seven weeks. The Northeast chicken wing market recently priced at its highest level since January. Record high chicken wing prices are likely to occur this fall. Retail chicken prices during August were 5.3% above a year ago.

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 Decreasing Decreasing Decreasing Decreasing Decreasing Decreasing Decreasing Increasing Decreasing Increasing Steady Steady Increasing Increasing Increasing Steady 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 Lower Lower Higher Higher Higher Higher Higher Higher Lower

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

Seafood Report
Seafood- In July total U.S. shrimp imports were 7.3% less than last year.
Shell-on imports were up 4.8%. The shrimp markets are relatively steady. Shrimp imports may wane if the U.S. dollar valuation continues to decline which may translate to more expensive shrimp prices this fall. The U.S. imports roughly 90% of its shrimp needs. In August, fresh fish & seafood retail prices were down .4% versus '11 and were lowest since February.

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 Increasing Decreasing Steady Steady Decreasing Steady Steady

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

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

Bean, Rice, Coffee and Sugar Report

Pinto Beans Black Beans Rice, Long Grain Coffee Beans Sugar Honey Market Trend Decreasing Steady Steady Decreasing Decreasing Increasing Supplies Good Good Good Good Good Good Price vs. Last Year Lower Lower Lower Lower Lower Higher

Paper Product Report

Wood Pulp (paper)

NBSK- Paper napkin 42 lb. Linerboard-corrugated box

Plastic Resins (plastic, foam)

Market Trend Increasing Increasing Steady Steady

Supplies Good Good Good Good Good

Price vs. Last Year Higher Higher Higher Higher Higher

PS-CHH-utensils, cups, to-go cont. PP-HIGP-heavy grade utensils 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- The USDA estimates the '12 green bean for processing harvest to be
slightly lower versus '11 and the smallest since 1995. The markets are firm.

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 potato markets are weakening due to the building harvest.
Potato prices remain historically depressed which could temper further market weakness this fall. The 70 ct. ID potato market has not traded appreciably below the existing level since March '01. The chief tomato crops will transition south soon. Once Florida production picks up it could influence tomato prices lower. The Hass avocado market is pricing 27% below its three year average. Avocado supplies may improve in the coming weeks with the Mexican harvest. Usually avocado prices fade 22% during the fall.

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)

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

Supplies 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 Higher Higher Higher Higher Higher Lower Higher Lower Lower Lower Lower Lower Lower Lower Lower Higher Higher Higher Same

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

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.

Decreasing Decreasing Increasing Increasing Decreasing Decreasing Increasing Increasing

Good Good Good Good Good Good Good Good

Lower Lower Higher Higher Lower Lower Higher Higher

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.) Decreasing Decreasing Increasing Increasing Increasing Increasing Increasing Decreasing Steady Decreasing Decreasing Increasing Steady Good Good Good Good Good Good Good Good Good Good Good Good Good Higher Lower Lower Higher Lower Lower Lower Higher Higher Lower Lower Lower Lower

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