WEEKLY MARKET TRENDS REPORT

February 1, 2013

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- The Jan 1st cattle on feed inventory was 5.6% smaller than last year
and the smallest for the month since '10. Cattle placements into feedlots during Dec were .5% less than a year ago. However, cattle were placed at an average weight of .6% heavier than '11. Inflated cattle prices are likely to temper beef output in the coming months. Beef prices should be relatively supported as a result. Japan has eased their restriction on U.S. beef imports beginning Feb 1 which could support the beef end-cut markets. Still, financially challenged consumers should limit the upside in beef prices.

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

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 Lower Higher Lower Higher Lower Higher Lower Lower Higher Lower Higher Lower Lower Higher Higher Higher Higher Higher Higher Lower Higher Lower Lower Higher Lower Higher

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

Decreasing Steady Steady

Good Good Good

Higher Higher Higher

Oil and Grains Report

Oil & Grains- The National Weather Service is forecasting the drought to persist into the Spring which could
hinder the winter wheat crops. The grain markets are expected to remain firm.

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 Increasing Increasing Steady Increasing Increasing Steady Decreasing Increasing 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 Lower Higher Higher

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Dairy Report
Dairy- Milk farmers have grown the dairy cow herd in recent months which should keep milk output rates solid in the near term. However, milk prices have recently dipped to their lowest levels in six months. Plus, feed grain prices are moving higher. These are two discouraging signs for future milk production. The CME cheese markets are soft. The CME cheese block market usually moves up 9.7% over the next three weeks. The CME butter market is firm. CME butter prices tend to depreciate 2.8% over the next three weeks but then bottom for the year.

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 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

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

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

Pork Report
Pork- Pork output last week declined 2.6% but was .1% larger than the same week a year ago. Tight hog supplies and seasonally declining pork production rates are expected to keep the pork markets firm. Since '08, the pork belly market has risen 8.4% during the next three weeks. However, due to inflated pork belly prices already in place, any price increases this Feb may be less intense. Sow slaughter rates have fallen in recent weeks. This signals herd expansion which should support pork production later this year.

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 Increasing Increasing Increasing Increasing Increasing Increasing Decreasing Decreasing Decreasing Steady Increasing

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

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

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Canned Tomato Report

Tomato Products, Canned- Dec 1st California tomatoes for canning inventory was 2% larger than the prior
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 Same Same Same Same

Poultry Report
Poultry- Recent data continues to signal chicken production expansion. Broiler type-egg sets for week ending Jan 19 were 1% larger than the same week a year ago. The six-week moving average for broiler egg sets is now 1.12% above the prior year, which is the largest gain in nearly two years. The chicken breast markets remain firm. History points to boneless skinless chicken breast prices rising during the next few months but any market increases this year may be tempered by better production. The chicken wing markets could still set new record highs in the next week but are expected to peak during Feb. Since '08, the average move for the jumbo cut chicken wing market from mid-Feb through early-Apr is 11.6% lower.

Whole Chicken (2.5-3 lb-GA) 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

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

Supplies Good Good Good Good Good Good Good Good Good Good

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

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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

Decreasing Increasing Increasing Decreasing Increasing Decreasing Steady Decreasing

Good Good Good Good Good Good Good Good

Higher Higher Higher Higher Higher Higher Lower Lower

Seafood Report
Seafood- The Alaskan Bering Sea snow crab season is in full swing and weather
conditions have been helpful for fisherman. Snow crab 26% of this seasons quota of 59,715,000 pounds. Since snow crab market over the next eight weeks is up 4.2%. season begins this spring which could improve snow crab prices. landings through Jan 28 were '10, the average move for the Still, the Canadian snow crab supplies and tempers snow crab
th

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 Steady Increasing Increasing Steady Steady Steady Steady

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

Price vs. Last Year Same Lower Higher Lower Higher Lower Lower Lower Lower 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 Increasing Increasing Decreasing Decreasing Steady Supplies Good Good Good Good Good Good Price vs. Last Year Lower Lower Higher 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 Same

PS-CHH-utensils, cups, to-go cont. PP-HIGP-heavy grade utensils PE-LLD-can liners, film, bags

Decreasing

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- Dec 31st frozen green been (33%) and cut corn (1%) inventories were
larger than the previous year. The processed vegetable 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

Produce Report
Produce- Iceberg lettuce supplies from the Yuma-Imperial Valley region are tight in response to recent weather challenges. Total iceberg lettuce shipments last week were 16% below the previous week. The iceberg lettuce market is expected to remain firm in the near term. The tomato markets are relatively weak. The Florida tomato harvest has been solid due in part to favorable weather. Still, history suggests that the downside price risk for mature green tomatoes from here is nominal. The Idaho potato market (70 ct.) typically trends upward in the coming weeks.

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

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

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