WEEKLY MARKET TRENDS REPORT

October 5, 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 last week rose 3.6% but was 1.6% smaller than the same
week in '11. Beef production this fall is forecasted to be down 3.5% versus a year ago. This is likely to be supportive of the beef markets. Since '07, the average move over the next eight weeks for the tenderloin and ribeye markets is 18% and 23% higher. History suggests that the downside risk from here for the 90% beef trim market is limited. Fifty-percent trim prices typically bottom in early-October before appreciating into November. But, poor LFTB demand is likely to temper any higher move for the 50% trim market this fall.

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

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

Decreasing Increasing Steady

Good Good Good

Higher Higher Higher

Oil and Grains Report

Oil & Grains- The soybean and soybean product markets have trended lower due in part to the progressing harvest.
Yet, limited soybean stocks and fairly elevated prices should 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 Increasing Decreasing Decreasing Decreasing Decreasing Increasing Increasing Increasing

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

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

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Dairy Report
Dairy- The CME cheese block market is trading at its highest since August '11. Cheese stocks have been tight due
mostly to slowed milk production this summer. Oceania cheese prices have softened and remain at an abnormally large discount to U.S. cheese. This is curbing U.S cheese exports. History points to the block market moving 3% lower in October. The CME butter market is steady which is normal for the early fall. Butter prices tend to peak in November and then move down by 17% until year end. Any butter seasonal price declines this fall may be less intense. Prices per
pound, except Class I Cream (hundred weight), from USDA.

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 Decreasing Increasing Steady Increasing Increasing Increasing

Supplies 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 Lower Higher Higher Higher

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

Pork Report
Pork- Pork output last week fell 2.2% but was 3.4% larger than last year. The total hog inventory on September 1st
was .4% larger than '11. The swine breeding herd was .3% smaller than a year ago. Further reductions in the swine breeding herd are anticipated which should lead to lower pork production levels. In the nearer term, the USDA is estimating fall pork output to be 1.6% larger than '11. Lower ham prices may be forthcoming. The five year average move during the next seven weeks for the ham market is down 13%.

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 Decreasing Increasing Increasing Decreasing Decreasing Increasing Increasing Steady Increasing Increasing

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- The tomato for processing harvest is progressing with total output expected to be
9% larger than '11. Canned tomato prices are 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- Chicken producer margins have improved due to fading grain prices but remain
historically poor. Last week the ARA weekly chicken cutout index fell to its lowest level since early-May. Soft chicken prices along with high grain prices could challenge producer profitability going forward. Still, chicken production this fall is projected by the USDA to rise 1.6% over '11. The chicken breast markets are declining and further depreciation may be pending. Since '07, the average move for the boneless skinless chicken breast market during the next six weeks is 10.7% lower. Chicken wing prices have steadied. The jumbo cut chicken wing market normally rises 6.1% from now through the end of the year.

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

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

Seafood Report
Seafood- The salmon markets continue to price below prior year levels due to strong
salmon supplies out of Norway and Chile, the first and second largest salmon producers worldwide. This healthy salmon supply trend is likely to persist into '13. Still, if the U.S. dollar valuation continues to depreciate, it could temper U.S. salmon import growth. Relatively attractive salmon prices are anticipated to persevere this fall.

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 Decreasing Increasing Increasing Steady 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 Decreasing Steady Increasing Decreasing Steady 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 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 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 2012 green bean for processing harvest is estimated to be flat with the
previous year. The canned green bean markets remain 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

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

Produce Report
Produce- The iceberg lettuce market has softened during the last week due in part to
solid output from California and lackluster demand. The lettuce harvest will transition southward to Huron in the coming weeks. Some lettuce market volatility could be experienced during the shift. The mature green tomato market is currently 14% below its three year average. The eastern tomato harvest will move to Florida soon which should put eastern supplies in better balance with the west. Tomato prices typically move higher in the winter. The Idaho potato markets remain historically low.

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

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