[PPT] - Presented by: Len Steiner Steiner Consulting Group, 800.526.4612 PowerPoint Presentation

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 

Presented by: Len Steiner

Steiner Consulting Group, 800.526.4612

MICA 2017 Annual General Meeting & Conference

Westin Gaslamp Hotel, San Diego, CA

October 24 to 27, 2017

supporting and promoting imported meat

SLIDE 2

2018 Meat Market Outlook Presented by: Steiner Consulting Group | (800) 526-4612

Main Discussion Points Today

 #1: Economic Situation in US and World  #2: Currency Markets  #3: Feed Input Costs  #4: Cattle Supplies in USA, Canada and Mexico  #5: Product Availability from Importing Partners

Special Discussion on Argentina

 #6: Demand in US Domestic Market  #7: Demand in Other Markets (Competition)  #8: Supplies of Competing Proteins  #9: US Lamb Business  #10: Price Forecasts

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SLIDE 3

2018 Meat Market Outlook Presented by: Steiner Consulting Group | (800) 526-4612

Global Situation – Last Year

2

Source: Moody's Economy.com, Steiner

Canada: Q2 GDP declined 1.7%, higher recession risk at this time USA: robust job growth continues to point to a more rapid expansion pace for remainder

f the year

Mexico: GDP accelerated to 2.8% in

Q1. Growth on track

EU Brexit delayed effects remain a negative for 2017 Brazil: Economy contracted 6% in

Q1. Political

issues persist and unemployment at 11.6% in July Argentina: Economy continues to struggle and weak commodity markets have added to the negative outlook Australia: Q2 growth +3.3% vs. year ago despite slower export growth India: Economy is growing and inflation remains low New Zealand: Q2 growth +3.6%, helps bolster NZD Japan: Monetary policy fails to fight deflation China: Growth in Q2 was 6.7% in line with estimates. Overcapacity problems will continue to weigh down Russia: Low energy prices and weak commodities are big negative for growth

SLIDE 4

2018 Meat Market Outlook Presented by: Steiner Consulting Group | (800) 526-4612

Global Situation – Current

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Canada: robust growth in Q1. Export growth remains a weak point USA: job market recovery continues. Growth rebounded in Q2 and expansion remains on track EU Impact of Brexit starting to be felt in

UK. North/East

expanding and even South is recovering Brazil: Two consecutive quarters of positive growth. Argentina: Continued improvement in business conditions and higher commodity prices bolstering growth

India: Growth has slowed but expansion remains on track

New Zealand: Low unemployment, higher inflation, more growth Japan: Modest inflation and weaker Yen is supportive China: Growth has recovered. Consumer spending accelerated in last two quarters, which is key as economy relies less on heavy industry Russia: Finally out of recession economy slowly recovering. GDP +0.3%, inflation down to 4%

Source: Moody's Economy.com, Steiner

Mexico: GDP growth was 2.8% in Q1, up from 2.3% in previous quarter

Australia: Q2 growth was up 0.8%, a much faster pace than the previous quarter.

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2018 Meat Market Outlook Presented by: Steiner Consulting Group | (800) 526-4612

#1 Economic Situation in US and World

Global Economic Growth Expected to Further Expand in 2018

Source: Moody's Economy.com

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World

N. Am.
S. Am.

Euro Asia Oceania

2014 2.5 2.4 0.0 1.1 4.3 2.7 2015 2.6 2.5

1.9

1.9 4.5 2.5 2016 2.3 1.6

2.9

1.7 4.5 2.6 2017 Fcst 2.9 2.2 0.3 2.2 4.7 2.2 2018 Fcst 3.0 2.9 2.2 1.7 4.5 2.5 Last update: September 18, 2017

4.0
3.0
2.0
1.0

0.0 1.0 2.0 3.0 4.0 5.0 6.0

World

N. Am.
S. Am.

Euro Asia Oceania

REAL GDP GROWTH %

GLOBAL GROWTH OUTLOOK

2015 2016 2017 Fcst 2018 Fcst

SLIDE 6

2018 Meat Market Outlook Presented by: Steiner Consulting Group | (800) 526-4612

#1 Economic Situation in US and World

Expansion to Be Sustained in 2018 But Risks Mount

Positives

Near full employment
Low rates
Weaker US$
Income growth
Low household debt
Strong corporate balance sheets
Banks in good shape
Export demand

Negatives

Rising inflation pressures
Qualified labor shortages
China debt
Political risk in US and Europe
Geopolitical risk (war)
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* Forecast: Moody’s

10.00
8.00
6.00
4.00
2.00

0.00 2.00 4.00 6.00 8.00

'00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 % ch.

ANNUAL USA GROWTH RATE OF GDP

Annualized Quarterly Growth Rate

forecast

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2018 Meat Market Outlook Presented by: Steiner Consulting Group | (800) 526-4612

#1 Economic Situation in US and World

US economy has added jobs consistently since 2011

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Economy has added 1.8MM jobs in the last 12 months. Job creation contracted in

September due to short term storm effects. Leisure and hospitality was down 111,000 jobs.

Foodservice has been one of the main job creators
1000
800
600
400
200

200 400 600 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

THOUSAND JOBS

NEW JOB CREATION: NON AGRICULTURAL, 000's

0.00 2.00 4.00 6.00 8.00 10.00 12.00

percent

USA UNEMPLOYMENT RATE: %

September 2017 4.2% Dec 2018 Forecast 4.1%

SLIDE 8

2018 Meat Market Outlook Presented by: Steiner Consulting Group | (800) 526-4612

#1 Economic Situation in US and World

Overall foodservice dollar sales continue to grow but…

Dollar sales growth has slowed down, in part due to lower food inflation. Deflation has impacted retail sales more than foodservice.

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4.0%
2.0%

0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0%

'08 '09 '10 '11 '12 '13 '14 '15 '16 '17

GROCERY STORE $ SALES : Y/Y % CH.

Latest Data is for August 2017

4.0%
2.0%

0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0%

'08 '09 '10 '11 '12 '13 '14 '15 '16 '17

FOODSERVICE $ SALES : Y/Y % CH.

Latest Data is for August 2017

Source: Advance Monthly Sales for Retail & Foodservice, US Census Bureau

SLIDE 9

2018 Meat Market Outlook Presented by: Steiner Consulting Group | (800) 526-4612

#1 Economic Situation in US and World

Fast Food Outperformed Other Sectors In August

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4.0%
2.0%

0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0%

'08 '09 '10 '11 '12 '13 '14 '15 '16 '17

FOODSERVICE $ SALES : Y/Y % CH.

Latest Data is for August 2017

Same Store Sales - August 2017 vs. August 2016, Tracking Survey Responses by Industry Segment Source: National Restaurant Association Family Dining Casual Dining Fine Dining Limited Service Quick Casual Higher Sales 36% 31% 36% 62% 45% Lower Sales 34% 43% 64% 17% 55%

0% 10% 20% 30% 40% 50% 60% 70% SAME STORE SALES

Source: US Census Source: National Restaurant Association

SLIDE 10

2018 Meat Market Outlook Presented by: Steiner Consulting Group | (800) 526-4612

#1 Economic Situation in US and World

One possibility for low traffic is that food at home now much cheaper

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Source: Bureau of Labor Statistics

Food CPI Comparisons. Jan 2008 = 100

Source: BLS. Analysis by Steiner.

95.0 100.0 105.0 110.0 115.0 120.0 125.0 130.0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Food at Limited Service Restaurants Food away from home Food at Home

SLIDE 11

2018 Meat Market Outlook Presented by: Steiner Consulting Group | (800) 526-4612

A More Chaotic/Diverse Food Delivery System

Before

re
RETAIL/GROCERY
FOODSERVICE

Now

RETAIL/GROCERY
Cooked Meals
Meal Kits
In-store restaurants
FOODSERVICE
Restaurant meals
Carryout Meals
Meal delivery/UberEATS
Food trucks
Online/Meal Kits/Amazon Fresh
Blue Apron, Prepared Meal

Programs

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SLIDE 12

2018 Meat Market Outlook Presented by: Steiner Consulting Group | (800) 526-4612

# 2 Currency Markets

Performance of US$ vs. Imported Beef Currencies in last 12 months

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US Dollar vs. Currencies of Top Meat Trading Partners

% change in the last 12 months (Nov 2016 - Oct 2016)

90% 95% 100% 105% 110%

Nov '16 Dec '16 Jan '17 Feb '17 Mar '17 Apr '17 May '17 Jun '17 Jul '17 Aug '17 Sep '17 Oct '17

USD/NZD

USD/AUD

USD/CAD USD/Peso

Positive for US imports Negative for US exports Negative for US imports Positive for US exports

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2018 Meat Market Outlook Presented by: Steiner Consulting Group | (800) 526-4612

# 2 Currency Markets

Price of Imported 90CL Beef in US$ Remains Near Levels from 2012

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US $200 cwt US $210/cwt

100 150 200 250 300 350

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Price of 90CL Imported Beef in US Market (CIF)

Prices in US$/cwt

USD/cwt

Pricein USD

Oct 2012 Current

SLIDE 14

2018 Meat Market Outlook Presented by: Steiner Consulting Group | (800) 526-4612

# 2 Currency Markets

Price of Imported 90CL Beef in US$ Terms & AUD Terms

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$270/cwt $210/cwt

100 150 200 250 300 350

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Price of 90CL Imported Beef in US Market (CIF East Coast).

Prices in US$/cwt and AUD/cwt

USD/cwt

Pricein USD and AUD

AUD/cwt

+33% gain from currency shift

SLIDE 15

2018 Meat Market Outlook Presented by: Steiner Consulting Group | (800) 526-4612

#3 Feed Input Costs

Three Consecutive Years of Above Trend Yields = A lot of Corn

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Corn yields: 2012 – 123.1 bu. 2017 – 171.8 bu. =

+40% increase

TREND CORN YIELDS AND 2017-18 ESTIMATED YIELDS

Corn Yields Since 1990. More Stable and Higher Yields in the Last Decade Point to Effect of Technological Improvements. Data from USDA.

90 100 110 120 130 140 150 160 170 180

2013 2014 2015 2016 2012 not included in trend 1990 - 2016 Linear Trend 2017 USDA Est.

SLIDE 16

2018 Meat Market Outlook Presented by: Steiner Consulting Group | (800) 526-4612

#3 Feed Input Costs

Corn Acres Lower in 2017 But Large Carryover Offsets the Decline Since 2007 planted acres have averaged 91 million. + Above average yields = Corn production

utpacing

consumption

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93.5 88.0 94.0 90.4 50 55 60 65 70 75 80 85 90 95 100 1980/81 1981/82 1982/83 1983/84 1984/85 1985/86 1986/87 1987/88 1988/89 1989/90 1990/91 1991/92 1992/93 1993/94 1994/95 1995/96 1996/97 1997/98 1998/99 1999/00 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 million acres

US CORN PLANTED ACRES

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2018 Meat Market Outlook Presented by: Steiner Consulting Group | (800) 526-4612

#3 Feed Input Costs

Corn supplies will be plentiful for another 12 months

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2013/14 2014/15 2015/16 2016/17 USDA Actual USDA Actual USDA Actual USDA Estimate USDA Sep Est USDA Oct Est vs. 2015/16 vs. 2016/17 . Planted 95.4 90.6 88.0 94.0 90.9 90.4 2.7%

3.8%

Harvested 87.5 83.1 80.8 86.7 83.5 83.1 2.8%

4.2%

Yield per harvested acre 158.1 171.0 168.4 174.6 169.9 171.8 2.0%

1.6%

Beginning stocks 821 1,232 1,731 1,737 2,350 2,295 32.6% 32.1% Production 13,829 14,216 13,602 15,148 14,184 14,280 5.0%

5.7%

Imports 36 32 67 55 50 50

25.4%
9.1%

Supply, total 14,686 15,479 15,401 16,940 16,585 16,625 7.9%

1.9%

Feed and residual 5,040 5,280 5,123 5,500 5,475 5,500 7.4% 0.0% Ethanol for fuel 5,124 5,200 5,224 5,450 5,475 5,475 4.8% 0.5% Food, seed and residual 1,369 1,401 1,424 1,440 1,450 1,460 2.5% 1.4% Domestic use, total 11,534 11,881 11,771 12,390 12,400 12,435 5.6% 0.4% Exports 1,920 1,867 1,898 2,225 1,850 1,850

2.5%
16.9%

Use, total 13,454 13,748 13,669 14,615 14,250 14,285 4.5%

2.3%

Ending stocks 1,232 1,731 1,732 2,325 2,335 2,340 35.1% 0.6%

Avg. farm price ($/bu)

4.46 3.70 3.61 3.25-3.55 2.80-3.60 2.80-3.60

11.4%
5.9%

Ending Stocks/Use 9.2% 12.6% 12.7% 15.9% 16.4% 16.4%

Source: USDA

** Corn crop marketing year starts September 1. % Change 2017/18

U.S. Corn Supply and Use

Build up in stocks More going into feed Stalled exports Lower prices required to keep the flow moving

SLIDE 18

2018 Meat Market Outlook Presented by: Steiner Consulting Group | (800) 526-4612

#3 Feed Input Costs

Ethanol Demand Is Flat, Limiting Demand for Corn in Domestic Market

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500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 5,500 MIL BU.

CORN USED FOR ETHANOL PRODUCTION IN USA

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% % OF TOAL USE

CORN USED FOR ETHANOL AS % OF TOTAL USE

SLIDE 19

2018 Meat Market Outlook Presented by: Steiner Consulting Group | (800) 526-4612

#3 Feed Input Costs

Filling the gap - feed use highest in a decade

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Amount of corn going into livestock/poultry consumption is at highest point in 10 years

5,858 4,315 5,500 3,000 3,500 4,000 4,500 5,000 5,500 6,000 6,500 million bu.

US CORN GOING INTO LIVESTOCK & POULTRY FEED (+ residual)

2017-18 2007-08

SLIDE 20

2018 Meat Market Outlook Presented by: Steiner Consulting Group | (800) 526-4612

All time record meat protein production in 2017 and expected to continue in 2018 and 2019

Combined Beef, Pork, Broiler and Turkey Production

Million Pounds. Carcass Wt. Basis. Steiner Forecasts

90,929 103,357

40,000 50,000 60,000 70,000 80,000 90,000 100,000 110,000

+14%

2007 – 14 Avg. 91.2 MM

SLIDE 21

2018 Meat Market Outlook Presented by: Steiner Consulting Group | (800) 526-4612

Growth Expected for All Major Proteins

2015 2016 % CH. 2017 % CH. 2018 % CH. 2019 % CH.

BEEF 23,698 25,221 6.4% 26,253 4.1% 27,255 3.8% 28,066 3.0% PORK 24,501 24,941 1.8% 25,604 2.7% 26,353 2.9% 26,859 1.9% BROILERS 39,636 40,260 1.6% 40,965 1.8% 41,660 1.7% 42,316 1.6% TURKEYS 5,551 5,905 6.4% 5,927 0.4% 5,963 0.6% 6,116 2.6% LAMB 150 150

0.1%

142

5.4%

144 1.0% 155 8.0% VEAL 83 76

8.3%

79 4.6% 87 9.7% 90 3.7% TOTAL 93,620 96,553 3.1% 98,970 2.5% 101,461 2.5% 103,602 2.1%

20

SLIDE 22

2018 Meat Market Outlook Presented by: Steiner Consulting Group | (800) 526-4612

#4 USA Cattle/Beef Supplies

Jan 1, 2018 Inventory + 6.3 MILLION higher than in 2014

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INVENTORY (000 OMITTED) 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 % Ch. vs. 2016 2018 Estimate % Ch. vs. 2016 ALL CATTLE AND CALVES 94,403 95,018 96,342 96,573 96,035 94,721 94,081 92,887 91,160 90,095 88,526 89,143 91,918 93,585 1.8% 94,816 1.3% COW AND HEIFERS THAT HAVE CALVED 41,519 41,678 41,806 41,789 41,692 41,127 40,526 40,068 39,517 38,853 38,293 38,609 39,476 40,559 2.7% 40,865 0.8% BEEF COWS 32,531 32,674 32,703 32,644 32,435 31,794 31,440 30,913 30,282 29,631 29,085 29,302 30,166 31,210 3.5% 31,500 0.9% DAIRY COWS 8,988 9,004 9,104 9,145 9,257 9,333 9,087 9,156 9,236 9,221 9,208 9,307 9,310 9,349 0.4% 9,365 0.2% HEIFERS 500LBS. AND OVER 19,282 19,445 19,950 20,074 19,855 19,604 19,778 19,650 19,445 19,256 18,969 19,261 19,907 20,052 0.7% 20,242 0.9% BEEF COW REPLACEMENT 5,508 5,638 5,864 5,835 5,647 5,550 5,443 5,135 5,281 5,429 5,551 6,086 6,340 6,419 1.2% 6,392

0.4%

DAIRY COW REPALCEMENT 4,018 4,117 4,298 4,325 4,415 4,410 4,551 4,577 4,618 4,546 4,549 4,710 4,814 4,754

1.2%

4,775 0.4% OTHER HEIFERS 9,756 9,690 9,788 9,914 9,793 9,644 9,784 9,938 9,546 9,281 8,869 8,464 8,753 8,879 1.4% 9,075 2.2% STEERS 500 LBS. AND OVER 16,201 16,466 16,988 17,185 17,163 16,809 16,568 16,394 15,957 15,931 15,668 15,630 16,315 16,354 0.2% 16,698 2.1% BULLS 500 LBS. AND OVER 2,201 2,214 2,258 2,214 2,207 2,188 2,190 2,165 2,100 2,074 2,038 2,109 2,142 2,234 4.3% 2,237 0.1% HFRS, STRS AND BULLS UNDER 500 LBS. 15,200 15,215 15,339 15,311 15,118 14,994 15,019 14,610 14,141 13,983 13,558 13,534 14,077 14,386 2.2% 14,774 2.7% ANNUAL CALF CROP 37,260 37,106 37,016 36,759 36,158 35,939 35,740 35,357 34,469 33,730 33,522 34,087 35,083 36,300 3.5%

JANUARY 1st U. S. CATTLE INVENTORY

SLIDE 23

2018 Meat Market Outlook Presented by: Steiner Consulting Group | (800) 526-4612

#4 USA Cattle/Beef Supplies

Four Years into the Current Cycle

22 -

Comparing US Cattle Cycles of the Last +50 Years

Y/Y Change in Cattle Inventories.

6.0%
4.0%
2.0%

0.0% 2.0% 4.0% 6.0% +1 +2 +3 +4 +5 +6 +7 +8 +9 +10 +11 +12 +13 +14

1958 - 1967 1967 - 1979 1979 - 1990 1990 - 2004 2014 - Current # of years from the start of the cycle

SLIDE 24

2018 Meat Market Outlook Presented by: Steiner Consulting Group | (800) 526-4612

#4 Cattle/Beef Supplies

US Cattle Inventories were +1.8% in 2017 and Forecast +1.3% in 2018

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1958 = 91,176 1975 = 132,028 1990 = 95,816 1996 = 103,548 2004 = 94,403 2007 = 96,573

40,000 50,000 60,000 70,000 80,000 90,000 100,000 110,000 120,000 130,000 140,000

TOTAL INVENTORIES, 000 OMITTED

CATTLE INVENTORIES, 000 HEAD, 1920 - 2017 + 2018 Forecast

Jan 1, 2018 94.8 mil head

SLIDE 25

2018 Meat Market Outlook Presented by: Steiner Consulting Group | (800) 526-4612

#4 Cattle/Beef Supplies

Higher Calf Crop + Heavy Weights = +5% Beef Production in 2016

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16,800 17,900 19,000 20,100 21,200 22,300 23,400 24,500 25,600 26,700 27,800 30,000 32,000 34,000 36,000 38,000 40,000 42,000 44,000 46,000 48,000 50,000

Calf Crop '000 head

CALF CROP (1-Yr Lag) AND US BEEF PRODUCTION: 1980 - 2016

Calf Crop (left axis)

Beef Prod mil lb.

Beef Prod. (right axis)

Beef Production

SLIDE 26

2018 Meat Market Outlook Presented by: Steiner Consulting Group | (800) 526-4612

#4 Cattle/Beef Supplies

Weights Expected to Return to Trend, Outperform 2017 Next Year

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650 680 710 740 770 800 830 860 DRESSED WEIGHTS, POUNDS

FI CATTLE AVERAGE DRESSED WEIGHTS: 1990 - 2017

Dressed Carcass Weights. Weekly. USDA

spring 2017

SLIDE 27

2018 Meat Market Outlook Presented by: Steiner Consulting Group | (800) 526-4612

#4 Cattle/Beef Supplies

US Productivity (feedlot based) vs. Other Key Producers/Exporters

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BEEF KILOGRAM PRODUCED (DRESSED WT.) PER ANIMAL IN THE HERD. ANNUAL

SOURCE: USDA

0.0 20.0 40.0 60.0 80.0 100.0 120.0 140.0

USA Australia Brazil

N. Zealand

Uruguay Argentina

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2018 Meat Market Outlook Presented by: Steiner Consulting Group | (800) 526-4612

#4 Cattle/Beef Supplies

US Cattle Prices Back to 2010 Levels…But Volatility Persists

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SLIDE 29

2018 Meat Market Outlook Presented by: Steiner Consulting Group | (800) 526-4612

#4 Cattle/Beef Supplies

Profitability Indicators. Cattle/Corn Ratio Remains Above Long Run Trend

Long run ratio of 30

(cattle price $/cwt divided by corn price in $/bushel) Assume corn price in 2018 of $3.75 (current futures) 30 * 3.5 = $112/cwt fed cattle However, strong demand could support fed cattle prices above these levels, which then induces producers to continue to expand as long as weather/profitability permits.

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0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0

1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 RATIO

5 AREA DIRECT AVERAGE LIVE STEER PRICES/ OMAHA CORN PRICES, #2 YELLOW 1990 - 2017

SLIDE 30

2018 Meat Market Outlook Presented by: Steiner Consulting Group | (800) 526-4612

#4 Cattle/Beef Supplies

Cow Calf Profits No Longer Support Rapid Expansion

200
100

100 200 300 400 500 600

ESTIMATED AVERAGE COW-CALF RETURNS

Returns over cash costs (includes pasture rent), Annual, US$/cow

forecast

Source: LMIC

29 -

SLIDE 31

2018 Meat Market Outlook Presented by: Steiner Consulting Group | (800) 526-4612

#4 Cattle/Beef Supplies

Female Slaughter Ratio Indicates Expansion is Slowing Down But Not Over Yet

0.38 0.40 0.42 0.44 0.46 0.48 0.50 0.52 0.54

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Ratio of Female Slaughter (Heifers + Cows) To Total US Cattle Slaughter

Weekly Data and 52wk Moving Average. Last Reported Week is September 30, 2017

52-wk MA weekly ratio

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SLIDE 32

2018 Meat Market Outlook Presented by: Steiner Consulting Group | (800) 526-4612

#4 Cattle/Beef Supplies

Cow Slaughter Outlook for rest of 2017 & in 2018

 Total cow slaughter

for Jan – Sep = 4.3MM head, +7.2% higher than a year ago. Forecast for cow slaughter in 2017 = +6.8% Forecast for cow slaughter in 2018 = +5.0%

Ratio of Cow Slaughter vs. January 1 All Cow Inventory

Annual Data. Source: USDA

10.0% 11.0% 12.0% 13.0% 14.0% 15.0% 16.0% 17.0% 18.0% 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017F 2018F

Est. 1990 - 2016 Avg.

31 -

SLIDE 33

2018 Meat Market Outlook Presented by: Steiner Consulting Group | (800) 526-4612

#5 Imported Beef

Key Metrics for Major Global Beef Importers

Cattle Population Human Population Cattle/ Person Cattle Slaughter Cattle Sltr./ Cattle Inv. Beef Production

Prod. KG /

Cattle Sltr. Beef Exports Beef Exports / Beef Prod.

000 head

mil. People

000 head MT, CWE KG, CWE

USA 89,143 322 0.28 34,302 0.38 10,815 315 1,028 10% CANADA 11,920 36 0.33 4,262 0.36 1,050 246 391 37% MEXICO 17,120 127 0.13 6,850 0.40 1,850 270 228 12% AUSTRALIA 29,102 24 1.21 9,664 0.33 2,547 264 1,854 73%

N. ZEALAND

10,368 5 2.23 4,839 0.47 690 143 639 93% BRAZIL 213,035 204 1.04 48,220 0.23 9,425 195 1,705 18% URUGUAY 12,053 3 3.53 2,750 0.23 570 207 373 65% ARGENTINA 51,545 43 1.20 13,700 0.27 2,740 200 186 7% INDIA 301,100 1293 0.23 67,000 0.22 4,100 61 1,806 44%

Data source: USDA

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SLIDE 34

2018 Meat Market Outlook Presented by: Steiner Consulting Group | (800) 526-4612

#5 Imported Beef Availability

January Inventory trends in Australia, New Zealand, Uruguay & Brazil

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10,183 10,368 10,033 10,152 10,255 10,381 9,600 9,700 9,800 9,900 10,000 10,100 10,200 10,300 10,400 10,500 2010 2011 2012 2013 2014 2015 2016 2017F 2018F 2019F

NEW ZEALAND CATTLE INVENTORIES: JANUARY 1 STOCKS

Source: USDA Foreign Agricultural Service 000 head 1.8%

3.2%

1.2% 1.0% 1.2% 29,291 29,102 27,413 26,142 26,550 27,050 24,500 25,000 25,500 26,000 26,500 27,000 27,500 28,000 28,500 29,000 29,500 30,000 2010 2011 2012 2013 2014 2015 2016 2017F 2018F 2019F

AUSTRALIA CATTLE INVENTORIES: JANUARY 1 STOCKS

Source: USDA Foreign Agricultural Service

000 head

0.6%
5.8%
4.6%

1.6% 1.9% 11,903 12,053 11,950 11,864 11,804 11,934 10,800 11,000 11,200 11,400 11,600 11,800 12,000 12,200 2010 2011 2012 2013 2014 2015 2016 2017F 2018F 2019F

URUGUAY CATTLE INVENTORIES: JANUARY 1 STOCKS

Source: USDA Foreign Agricultural Service

000 head 1.3%

0.9%
0.7%
0.5%

1.1% 207,959 213,035 219,180 226,045 232,350 238,407 150,000 160,000 170,000 180,000 190,000 200,000 210,000 220,000 230,000 240,000 250,000 2010 2011 2012 2013 2014 2015 2016 2017F 2018F 2019F

BRAZIL CATTLE INVENTORIES: JANUARY 1 STOCKS

Source: USDA Foreign Agricultural Service 000 head 2.4% 2.9% 3.1% 2.8% 51,545 51,545 52,565 53,515 54,215 55,215 44,000 46,000 48,000 50,000 52,000 54,000 56,000 2010 2011 2012 2013 2014 2015 2016 2017F 2018F 2019F

ARGENTINA CATTLE INVENTORIES: JANUARY 1 STOCKS

Source: USDA Foreign Agricultural Service 000 head 2.0% 1.8% 1.3% 1.8% 17,760 17,120 16,615 16,490 16,583 16,658 15,000 16,000 17,000 18,000 19,000 20,000 21,000 22,000 23,000 2010 2011 2012 2013 2014 2015 2016 2017F 2018F 2019F

MEXICO CATTLE INVENTORIES: JANUARY 1 STOCKS

Source: USDA Foreign Agricultural Service 000 head

3.6%
2.9%
0.8%

0.6% 0.5%

SLIDE 35

2018 Meat Market Outlook Presented by: Steiner Consulting Group | (800) 526-4612

#5 Imported Beef Availability

Australian Slaughter – Will We Stop Getting a Weekly Update?

34 -

SLIDE 36

2018 Meat Market Outlook Presented by: Steiner Consulting Group | (800) 526-4612

#5 Imported Beef Availability

Australia Beef Exports to the US & US Market Share

35 -

AUSTRALIAN MONTHLY BEEF SHIPMENTS TO THE US % OF AUSTRALIAN MONTHLY BEEF EXPORTS GOING TO USA

1998 - 2017, metric ton, shipped wt. Source: Australian Department of Water and Agricultural Resources 1998 - 2017, metric ton, shipped wt. Source: Australian Department of Water and Agricultural Resources 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 metric ton, shipped wt. 0% 10% 20% 30% 40% 50% 60% 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 % of all shipments

SLIDE 37

2018 Meat Market Outlook Presented by: Steiner Consulting Group | (800) 526-4612

#6 Demand in US Domestic Market

Wealth Effect: Post Recession Recovery

All-Transactions House Price Index

Index 1980: Q1 = 100. Quarterly. Not Seasonally Adjusted 270 290 310 330 350 370 390 410 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

S&P 500 Index

500 1,000 1,500 2,000 2,500 3,000 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

36 -

SLIDE 38

2018 Meat Market Outlook Presented by: Steiner Consulting Group | (800) 526-4612

#6 Demand in US Domestic Market

Willingness to Spend: Depends if you have a job

0.00 2.00 4.00 6.00 8.00 10.00 12.00

percent

USA UNEMPLOYMENT RATE: %

August 2017 4.4% Dec 2018 Forecast 4.1%

95.0 96.0 97.0 98.0 99.0 100.0 101.0 102.0 103.0 104.0

900
720
540
360
180

180 360 540 720 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

NRA Restaurant Performance Index vs. Monthly Job Gains/Losses

Rest. index Job Gains

monthlyjob gains/losses (L) restaurant index (R)

37

SLIDE 39

2018 Meat Market Outlook Presented by: Steiner Consulting Group | (800) 526-4612

#6 Demand in US Domestic Market Demand Drivers: Income

38 -

30,000 31,000 32,000 33,000 34,000 35,000 36,000 37,000 38,000 39,000 40,000

2000 '01 '02 '03 '04 2005 '06 '07 '08 '09 2010 '11 '12 '13 '14 2015 '16 '17

Real Per Capita Disposable Income, US$

Latest data is for: August 2017 recession

SLIDE 40

2018 Meat Market Outlook Presented by: Steiner Consulting Group | (800) 526-4612

#6 Demand in US Domestic Market

Change in Perceptions Impacts Demand

39 -

SLIDE 41

2018 Meat Market Outlook Presented by: Steiner Consulting Group | (800) 526-4612

#6 Demand in US Domestic Market

USA Per Capita Meat Protein Consumption

40 -

200 210 220 230 240 250 260 270 280 1971 1973 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015

POUNDS PER PERSON PER YEAR

TOTAL BEEF, PORK, POULTRY PER CAPITA DISAPPERANCE (Carcass Wt. Basis)

2017 2018 2019

Forecast

265.3 262.9 259.9

SLIDE 42

2018 Meat Market Outlook Presented by: Steiner Consulting Group | (800) 526-4612

#6 Demand in US Domestic Market

USA Per Capita Beef Consumption

41 -

60 70 80 90 100 110 120 130 1971 1973 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015

POUNDS PER PERSON PER YEAR

BEEF PER CAPITA DISAPPERANCE (Carcass wt. Basis)

2017 2018 2019

Forecast

79.1 81.1 79.1

SLIDE 43

2018 Meat Market Outlook Presented by: Steiner Consulting Group | (800) 526-4612

#6 Demand in US Domestic Market

USA Per Capita Lamb Consumption

42 -

0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50

1971 1973 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 POUNDS PER PERSON PER YEAR

LAMB, PER CAPITA CONSUMPTION (Carcass wt. Basis)

1.18 1.18 1.18

2017 2018 2019

Forecast

SLIDE 44

2018 Meat Market Outlook Presented by: Steiner Consulting Group | (800) 526-4612

#7 Demand in Other Markets

China/Hong Kong Are Now the Top Beef Markets in the World 2017 China Imports:

+6.2%

+79k MT

2018 China Imports

+6.3%

+85k MT

43 -

200 400 600 800 1,000 1,200 1,400 1,600 1,800

TOP GLOBAL BEEF BUYERS. USDA. 000 METRIC TON. CWE

000 mt

China/ Hong Kong USA

RUSSIA JAPAN

SLIDE 45

2018 Meat Market Outlook Presented by: Steiner Consulting Group | (800) 526-4612

#7 Demand in Other Markets

China Purchases So far in 2017 (product wt. basis)

44 -

China Imports of Fresh and Frozen Beef, YTD

Australia Uruguay Brazil New Zealand Argentina Other Total 2016 YTD Jan - Aug 77,725 99,801 121,515 54,237 33,829 13,101 400,208 2017 YTD Jan - Aug 75,565 133,593 125,446 61,101 48,532 11,495 455,732

50,000

100,000 150,000 200,000 250,000 300,000 350,000 400,000 450,000 500,000

metric ton

3%

34% 13% 43%

12%

14%

Australia 19% Uruguay 27% Brazil 30% New Zealand 12% Argentina 9% Other 3.2%

3%

Brazil has now become largest supplier to China

SLIDE 46

2018 Meat Market Outlook Presented by: Steiner Consulting Group | (800) 526-4612

#7 Demand in Other Markets

Hong Kong Purchases So far in 2017 (product wt. basis)

45 -

Fresh and Frozen, YTD

Brazil United States Canada Australia Other Total 2016 YTD Jan - Aug 140,888 59,547 12,869 3,403 23,433 240,140 2017 YTD Jan - Aug 121,164 55,440 9,490 3,545 33,212 222,851

50,000

100,000 150,000 200,000 250,000 300,000

metric ton

14%
7%
26%

4% 42%

7%

Brazil 54% United States 25%

Canada 4% Australia 2% Other 15%

SLIDE 47

2018 Meat Market Outlook Presented by: Steiner Consulting Group | (800) 526-4612

Supplies lies ( Y Y/Y Y % chan ange) e)

Producti uction: n: +2.9% in 2017 +2.9% in 2018 +1.9% in 2019 Exports ts: +9.1% in 2017 +3.7% in 2018 +2.7% in 2019 Per Capita:

0.1% in 2017

+1.1% in 2018 +0.7% in 2019

#8 Competing Proteins

Pork Situation and Outlook

46 -

23,347 23,000 22,436 22,785 23,253 23,187 22,843 24,501 24,941 25,656 26,398 26,905

15,000 17,000 19,000 21,000 23,000 25,000 27,000 29,000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

PORK PRODUCTION: MILLION POUNDS

SLIDE 48

2018 Meat Market Outlook Presented by: Steiner Consulting Group | (800) 526-4612

#8 Competing Proteins

Ratio of Beef Cutout vs. Pork Cutout

47 -

Wholesale Beef Prices Have Returned to More "Normal" Levels Relative to Pork

Ratio of Weekly Choice Beef Cutout vs. Pork Cutout Value

0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 4.50 2010 2011 2012 2013 2014 2015 2016 2017

SLIDE 49

2018 Meat Market Outlook Presented by: Steiner Consulting Group | (800) 526-4612

#8 Competing Proteins

Price Ratio of Ground Beef vs. Pork Chops

48 -

0.40 1.88

0.50

1.00 1.50 2.00 2.50 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Ratio

Ratio: 78CL Meat Block / 1/4" Pork Loins, USDA Wt Avg

52wk Mo. Avg. 2009-10 Avg = 1.22

SLIDE 50

2018 Meat Market Outlook Presented by: Steiner Consulting Group | (800) 526-4612

#8 Competing Proteins

Broiler Situation and Outlook

36,511 35,131 36,523 36,803 36,641 37,425 38,154 39,636 40,260 40,991 41,754 42,458

30,000 32,000 34,000 36,000 38,000 40,000 42,000 44,000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

MILLION POUNDS

BROILER PRODUCTION: MILLION POUNDS

49 -

Forecast Source: Steiner Consulting Group

Supplies lies ( Y Y/Y Y % chan ange) e)

Producti uction: n: +1.8% in 2017 +1.9% in 2018 +1.7% in 2019 Exports ts: +4.8% in 2017 +5.3% in 2018 +2.3% in 2019 Per Capita: +0.2% in 2017 +0.2% in 2018 +0.6% in 2019

SLIDE 51

2018 Meat Market Outlook Presented by: Steiner Consulting Group | (800) 526-4612

#8 Competing Proteins

Ground Beef vs. Chicken Breasts

50 -

Forecast Source: Steiner Consulting Group

78CL Meat Block = 70% 90CL Boneless Beef, Central, Fresh, USDA, Wt. Avg. + 30% 50CL Beef Trim, Fresh, National, USDA, Wt. Avg. Chicken Breast = USDA N.E. Broiler Breast Boneless, Skinless, Wt. Avg.

0.30

1.47

0.50

1.00 1.50 2.00 2.50 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Ratio

Ratio: 78CL Meat Block / Bnls Skinless Chicken Breast

52wk Mo. Avg.

SLIDE 52

2018 Meat Market Outlook Presented by: Steiner Consulting Group | (800) 526-4612

#9 USA Lamb Market Situation

US Lamb Inventories Remain Flat

51 -

2,000 4,000 6,000 8,000 10,000 12,000

US LAMB INVENTORY

mil head

SLIDE 53

2018 Meat Market Outlook Presented by: Steiner Consulting Group | (800) 526-4612

#9 US Lamb Market Situation

Slaughter Has Been Trending Lower For Much of 2017

52 -

SLIDE 54

2018 Meat Market Outlook Presented by: Steiner Consulting Group | (800) 526-4612

#9 US Lamb Market Situation

Lamb prices have settled back after spiking this past spring

53 -

SLAUGHTER LAMB PRICES, (CHOICE & PRIME 2-3)

Source : USDA/AMS, Sioux Falls, SD

100.00 120.00 140.00 160.00 180.00 200.00 220.00 Jan Feb Mar Apr May Jun Jun Aug Sep Oct Nov Dec

2017 2016 2015

SLIDE 55

2018 Meat Market Outlook Presented by: Steiner Consulting Group | (800) 526-4612

#9 USA Lamb Market Situation

Imports Have Captured Almost All of the Increase in US Lamb Consumption in 2017

54 -

50 100 150 200 250 300 350 400 450

Domestic Lamb Production + Imports

mil lb.

US domestic production Imports

SLIDE 56

2018 Meat Market Outlook Presented by: Steiner Consulting Group | (800) 526-4612

#9 USA Lamb Market Situation Lamb Trade Flows so Far in 2017

55 -

YTD Imports = 72,206 MT Jan-Aug, +19%

10,000

20,000 30,000 40,000 50,000 60,000

Australia New Zealand Canada Chile Uruguay United Kingdom Ireland Brazil Other

USA LAMB IMPORTS, USDA, MT, PRODUCT WEIGHT BASIS

311% 102%

100%

5.2 9% 40%

10

20 30 40 50 60 70

SLIDE 57

2018 Meat Market Outlook Presented by: Steiner Consulting Group | (800) 526-4612

56 -

CURRENT FORECAST

SLIDE 58

2018 Meat Market Outlook Presented by: Steiner Consulting Group | (800) 526-4612

Price Forecasts: 2017 and 2018

57 -

20-Oct

Q1 Q2 Q3 Q4 Annual

LIVE STEERS FIVE AREA DIRECT AVERAGE LIVE STEER 5-YR AVERAGE 2012 - 2016 138.38 136.41 131.62 130.64 134.26 2016 HISTORY 134.56 127.87 114.12 106.22 120.69 2017 HISTORY 110.01 121.88 131.32 112.62 2017 FORECAST 113.33 119.79 % CHANGE FROM 2013

9.4%

2.7%

1.3%

6.7%

0.7%

% CHANGE FROM 5-Yr Avg.

11.9%
3.7%
14.4%
13.2%
10.8%

2018 FORECAST 120.00 117.00 113.67 115.33 116.50 % CHANGE FROM 2014

1.5%
10.9%

0.9% 1.8%

2.7%

% CHANGE FROM 5-Yr Avg.

13.3%
14.2%
13.6%
11.7%
13.2%

90% BONELESS BEEF, CENTRAL, FRESH, WT. AVG., USDA 5-YR AVERAGE 2012 - 2016 234.18 237.74 240.22 220.39 233.13 2016 HISTORY 209.59 217.86 211.68 192.46 207.89 2017 HISTORY 214.17 208.98 223.54 229.77 2017 FORECAST 214.33 219.16 % CHANGE FROM 2015

0.3%

2.6% 8.5% 11.4% 5.4% % CHANGE FROM 5-Yr Avg.

10.8%
6.0%
4.4%
2.7%
6.0%

2018 FORECAST 224.67 225.33 225.33 216.00 222.83 % CHANGE FROM 2017 7.5% 0.8%

1.9%

0.8% 1.7% % CHANGE FROM 5-Yr Avg.

4.1%
5.2%
6.2%
2.0%
4.4%

SLIDE 59

2018 Meat Market Outlook Presented by: Steiner Consulting Group | (800) 526-4612

Price Forecasts: 2017 and 2018

Q1 Q2 Q3 Q4 Annual

50CL BEEF TRIM, FRESH, OMAHA BASIS, WT.AVE, USDA 5-YR AVERAGE 2012 - 2016 92.10 88.70 81.25 73.14 83.80 2016 HISTORY 70.03 69.34 61.48 40.04 60.22 2017 HISTORY 60.24 78.14 138.04 68.86 2017 FORECAST 57.00 85.51 % CHANGE FROM 2015 11.6% 99.1% 12.0% 42.4% 42.0% % CHANGE FROM 5-Yr Avg.

15.2%

55.6%

15.3%
22.1%

2.0% 2018 FORECAST 80.33 78.67 76.00 69.00 76.00 % CHANGE FROM 2017 2.8%

43.0%

10.4% 21.1%

11.1%

% CHANGE FROM 5-Yr Avg.

12.8%
11.3%
6.5%
5.7%
9.3%

7:45, E. COAST 90CL AUSTRALIAN BLENDED COW, TOP, YELLOW SHEET 5-YR AVERAGE 2012 - 2016 217.26 213.54 226.37 222.93 220.02 2016 HISTORY 200.70 206.03 210.82 207.86 206.35 2017 HISTORY 214.00 213.44 226.38 220.99 2017 FORECAST 218.00 219.70 % CHANGE FROM 2015 6.3% 9.9% 4.8% 4.9% 6.5% % CHANGE FROM 5-Yr Avg.

1.8%

6.0%

2.4%
2.2%
0.1%

2018 FORECAST 225.00 222.33 226.33 221.33 223.75 % CHANGE FROM 2017 5.4%

1.8%

2.4% 1.5% 1.8% % CHANGE FROM 5-Yr Avg. 3.6% 4.1% 0.0%

0.7%

1.7%

58 -

Spread vs. domestic

13.11
1.54
0.55

+0.9

SLIDE 60

2018 Meat Market Outlook Presented by: Steiner Consulting Group | (800) 526-4612

Price Forecasts: 2017 and 2018

59 -

Q1 Q2 Q3 Q4 Annual

NATIONAL WHOLE BIRD PRICE, USDA, WTD AVG 5-YR AVERAGE 2012 - 2016 94.09 101.11 89.31 88.63 93.28 2016 HISTORY 84.64 93.07 81.61 78.05 84.34 2017 HISTORY 84.21 88.41 104.66 95.09 2017 FORECAST 87.00 93.79 % CHANGE FROM 2015 4.5% 12.4% 16.5% 11.5% 11.2% % CHANGE FROM 5-Yr Avg.

6.0%

3.5% 6.5%

1.8%

0.5% 2018 FORECAST 91.67 102.33 93.67 88.00 93.92 % CHANGE FROM 2017 3.7%

2.2%
1.5%

1.1% 0.1% % CHANGE FROM 5-Yr Avg.

2.6%

1.2% 4.9%

0.7%

0.7% N.E. BROILER BREAST BONELESS-SKINLESS, WT.AVG., USDA 5-YR AVERAGE 2012 - 2016 130.66 156.63 154.44 123.39 141.28 2016 HISTORY 108.61 119.69 134.46 104.14 116.73 2017 HISTORY 114.22 107.10 148.96 145.36 2017 FORECAST 110.67 128.02 % CHANGE FROM 2015

1.4%

24.5% 8.1% 6.3% 9.7% % CHANGE FROM 5-Yr Avg.

18.0%
4.9%
5.9%
10.3%
9.4%

2018 FORECAST 120.33 149.33 152.33 115.33 134.33 % CHANGE FROM 2017 12.4% 0.2% 4.8% 4.2% 4.9% % CHANGE FROM 5-Yr Avg.

7.9%
4.7%
1.4%
6.5%
4.9%

SLIDE 61

2018 Meat Market Outlook Presented by: Steiner Consulting Group | (800) 526-4612

Price Forecasts: 2017 and 2018

60 -

Q1 Q2 Q3 Q4 Annual

USDA, Pork Carcass Cutout, FOB Plant 5-YR AVERAGE 2012 - 2016 83.69 91.76 94.02 85.34 88.70 2016 HISTORY 75.29 83.49 81.21 74.86 78.71 2017 HISTORY 75.50 81.49 85.15 91.02 2017 FORECAST 72.00 82.42 % CHANGE FROM 2015 8.2% 2.0% 12.1%

3.8%

4.7% % CHANGE FROM 5-Yr Avg.

2.6%
7.2%
3.2%
15.6%
7.1%

2018 FORECAST 75.33 81.67 84.00 76.67 79.42 % CHANGE FROM 2017

7.6%
4.1%
7.7%

6.5%

3.6%

% CHANGE FROM 5-Yr Avg.

10.0%
11.0%
10.7%
10.2%
10.5%

IA/MN, Base Market Hog 185 lb Carcass Basis, Plant Dlv., WT. AVG, 5-YR AVERAGE 2012 - 2016 76.92 87.38 85.46 70.88 80.16 2016 HISTORY 60.19 72.96 63.76 46.85 60.94 2017 HISTORY 65.21 66.23 69.41 71.22 2017 FORECAST 53.33 65.05 % CHANGE FROM 2013 10.0%

4.9%

11.7% 13.8% 6.7% % CHANGE FROM 5-Yr Avg.

13.9%
20.6%
16.7%
24.8%
18.9%

2018 FORECAST 64.00 75.67 72.67 60.33 68.17 % CHANGE FROM 2014

3.4%

9.0% 2.0% 13.1% 4.8% % CHANGE FROM 5-Yr Avg.

16.8%
13.4%
15.0%
14.9%
15.0%

SLIDE 62

2018 Meat Market Outlook Presented by: Steiner Consulting Group | (800) 526-4612

Price Forecasts: 2017 and 2018

61 -

Q1 Q2 Q3 Q4 Annual

TOM TURKEYS, EAST, FROZEN 16-22LBS, TOP, 5-YR AVERAGE 2012 - 2016 106.95 111.62 117.45 119.50 113.88 2016 HISTORY 119.20 122.92 126.48 123.03 122.91 2017 HISTORY 107.00 106.33 107.00 107.00 2017 FORECAST 108.33 107.17 % CHANGE FROM 2015

10.8%
12.9%
15.4%
11.9%
12.8%

% CHANGE FROM 5-Yr Avg.

0.6%
4.1%
8.9%
9.3%
5.9%

2018 FORECAST 104.67 110.67 116.33 118.33 112.50 % CHANGE FROM 2017

1.6%

3.4% 8.7% 9.2% 5.0% % CHANGE FROM 5-Yr Avg.

2.1%
0.9%
1.0%
1.0%
1.2%

UB BONELESS-SKINLESS TURKEY BREAST, TOM, FRESH, TOP, 5-YR AVERAGE 2012 - 2016 268.61 261.07 313.33 319.54 290.64 2016 HISTORY 410.92 230.42 215.00 194.73 262.77 2017 HISTORY 155.00 160.08 153.17 153.00 2017 FORECAST 157.67 155.98 % CHANGE FROM 2015

61.0%
33.5%
28.8%
19.0%
40.6%

% CHANGE FROM 5-Yr Avg.

40.4%
41.3%
51.2%
50.7%
46.3%

2018 FORECAST 155.33 180.00 227.00 231.33 198.42 % CHANGE FROM 2017

3.0%

17.5% 48.4% 46.7% 27.2% % CHANGE FROM 5-Yr Avg.

42.2%
31.1%
27.6%
27.6%
31.7%

SLIDE 63

2018 Meat Market Outlook Presented by: Steiner Consulting Group | (800) 526-4612

Live Cattle Prices

70.00 80.00 90.00 100.00 110.00 120.00 130.00 140.00 150.00 160.00 170.00

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

FIVE AREA DIRECT AVERAGE LIVE STEER

5-YR AVERAGE 2011 - 2015 2015 HISTORY 2016 HISTORY 2016 FORECAST 2017 FORECAST

US$/CWT

62 -

SLIDE 64

2018 Meat Market Outlook Presented by: Steiner Consulting Group | (800) 526-4612

US Domestic 90CL Boneless Beef Prices

70.00 120.00 170.00 220.00 270.00 320.00

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

90% BONELESS BEEF, CENTRAL, FRESH, WT. AVG., USDA

5-YR AVERAGE 2011 - 2015 2015 HISTORY 2016 HISTORY 2016 FORECAST 2017 FORECAST

US$/CWT

63 -

SLIDE 65

2018 Meat Market Outlook Presented by: Steiner Consulting Group | (800) 526-4612

US Domestic 50CL Beef Trim

0.00 20.00 40.00 60.00 80.00 100.00 120.00 140.00

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

50CL BEEF TRIM, FRESH, OMAHA BASIS, WT.AVE, USDA

5-YR AVERAGE 2011 - 2015 2015 HISTORY 2016 HISTORY 2016 FORECAST 2017 FORECAST

US$/CWT

64 -

SLIDE 66

2018 Meat Market Outlook Presented by: Steiner Consulting Group | (800) 526-4612

Imported 90CL Australian Beef

150.00 170.00 190.00 210.00 230.00 250.00 270.00

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

7:45, E. COAST 90CL AUSTRALIAN BLENDED COW, TOP, YELLOW SHEET

5-YR AVERAGE 2011 - 2015 2015 HISTORY 2016 HISTORY 2016 FORECAST 2017 FORECAST

US$/CWT

65 -

SLIDE 67

2018 Meat Market Outlook Presented by: Steiner Consulting Group | (800) 526-4612

Spread, Domestic - Imported

30.00
20.00
10.00

0.00 10.00 20.00 30.00 40.00 50.00 60.00 70.00

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

DOMESTIC 90CL FRESH, FOB CENTRAL US MINUS 90CL IMPORTED, FROZEN, FOB US EAST COAST

5-YR AVERAGE 2011 - 2015 2015 HISTORY 2016 HISTORY 2016 FORECAST 2017 FORECAST

US$/CWT

66 -

SLIDE 68

2018 Meat Market Outlook Presented by: Steiner Consulting Group | (800) 526-4612

Whole Broiler Prices

70.00 80.00 90.00 100.00 110.00 120.00 130.00 140.00 150.00 160.00 170.00

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

N.E. BROILER BREAST BONELESS-SKINLESS, WT.AVG., USDA

5-YR AVERAGE 2011 - 2015 2015 HISTORY 2016 HISTORY 2016 FORECAST 2017 FORECAST

US$/CWT

67 -