WEEKLY MARKET TRENDS REPORT

August 2, 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- Beef production last week declined 1.6% but was 1.5% larger than a year ago. 2013 to date beef output is trending just .8% below last year but steeper production declines versus 2012 are expected in the coming months due to historically limited cattle supplies. The recent depreciation in the beef markets appear to be garnering buyers interest. Both spot and forward, for delivery 22-90 days out, beef shipments last week climbed to four week highs. Further, retailers are starting to secure product for the upcoming Labor Day holiday. Modestly higher beef steak cut prices are likely in August.

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 Increasing Increasing Increasing Increasing Decreasing Increasing Decreasing Increasing Increasing Increasing Decreasing Decreasing Decreasing Increasing Decreasing Decreasing Increasing Decreasing Decreasing Decreasing Increasing Decreasing Increasing Increasing Increasing Decreasing 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 Good

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

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)

Increasing Steady Steady

Good Good Good

Lower Higher Higher

Oil and Grains Report

Oil & Grains- Spot corn and soybean prices have fallen to their lowest levels in over a year. Favorable crop
conditions are persisting but the markets may reach a short term bottom soon.

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 Durum Wheat

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

Supplies 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 Higher

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

Dairy Report
Dairy- The CME cheese markets have edged higher during the last week as milk production seasonally declines and export demand remains solid. There has been little to no relief in the historically inflated international dairy prices which suggests that strong export demand for U.S. cheese will persist. The five year average price trend for the CME cheese block market during August is relatively flat however exports could influence prices modestly upward. The CME butter market continues to track near one year lows but the downside price risk is likely only modest from here.

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

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

Pork Report
Pork- Pork output last week fell 1.1% last week but was .4% larger than the same week a year ago. Stronger pork production gains versus 2012 are anticipated in the coming months. The USDA is estimating summer U.S. pork output to be 1% larger than last year. The pork rib markets have declined in recent weeks due to seasonally light demand but higher rib prices may be forthcoming due to Labor Day feature activity. Last year the pork sparerib market rose 7% during the first two weeks of August.

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 Decreasing Decreasing Increasing Decreasing Increasing Decreasing Decreasing Decreasing Decreasing Increasing

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

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

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

Canned Tomato Report

Tomato Products, Canned- Early harvest tomato for canning yields have been disappointing due in part to warm weather. The canned tomato markets 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 Lower Lower Lower Lower

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

Poultry Report
Poultry- Chicken production for the week ending July 20th was .2% bigger than last year. Year to date chicken output is trending 3.1% above 2012 and solid output gains are anticipated versus the previous year in the coming months. The USDA is projecting third quarter chicken production to be 2.7% larger than a year ago. The chicken breast markets have been drifting lower as of late. Typically these markets find support during August due in part to better demand. The boneless skinless chicken breast market has appreciated in each of the last three Augusts by an average of 11%. Still, strong chicken output may temper any pending chicken breast market gains. Modestly higher wing prices are anticipated in August as well.

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

Supplies 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 Higher Higher Higher Higher Higher Higher Higher Higher Lower Lower Higher Higher Lower Lower Lower

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

Seafood Report
Seafood- The major Canadian snow crab fishing season has basically culminated with
100% of the Gulf of St. Lawrence quota landed and 97% of the Newfoundland quota achieved. Snow crab prices remain inflated. However, Canadian snow crab output this year is estimated to be 5% larger than 2012. This factor and a higher valued U.S. dollar suggests that the upside price risk in snow crab prices from here is likely nominal.

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 N/A N/A N/A Increasing Increasing Steady Steady Steady Increasing Steady Steady

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

Price vs. Last Year N/A N/A N/A Lower Higher Higher Higher Higher Lower Lower Higher

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 Steady Decreasing Decreasing Decreasing Increasing 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 Decreasing 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 Jun-13 Increasing Decreasing Increasing Increasing Increasing Decreasing May-13 Increasing Decreasing Increasing Decreasing Decreasing Increasing Apr-13 Decreasing Increasing Decreasing Increasing Increasing Decreasing

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

Processed Fruits and Vegetables Report

Processed Fruits and Vegetables- June 30th frozen green bean (59%), cut corn (33%) and cut corn (15%)
stocks were all larger than a year ago. The markets are steady.

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 Lower Higher Lower Higher Higher Higher Lower

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

Produce Report
Produce- The iceberg lettuce markets have climbed to some of their highest levels since March. Challenging weather has reduced lettuce yields as of late. Iceberg shipments last week fell 16% and were 17% less than the same week last year. Farmers are harvesting lettuce early to meet demand and take advantage of the elevated price levels. This suggests that iceberg lettuce supplies could be somewhat short for the next few weeks which may be supportive of the markets. The Idaho potato harvest will get underway shortly but notable price relief is not likely until September.

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.

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

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

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

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.

Increasing Increasing Steady Decreasing Decreasing Decreasing Decreasing Increasing Increasing

Good Good Good Good Good Good Good Good Good

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

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