20201013 MICA Presentation by Len Steiner, Final, Final

Presented by: Len Steiner Steiner Consulting Group, 800.526.4612 supporting and promoting imported meat

2020 Annual General Meeting & ConferenceVirtual Meetings

October 13 - 19, 2020

2021 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: Demand /Supplies in Other Markets #7: China Protein Demand Discussion #8: Demand in US Domestic Market #9: Alternative Protein Supplies #10:US Lamb Business #11: Price Forecasts

- 1 -


Global Situation – Last Year

- 2 -Source: Moody's Economy.com, Steiner

Canada: Economic growth stalled at the end of 2018 and in Q1. A sharp correction in exports caused GDP to jump 3.7% in Q2, however, supported in part by normalization of trade relationship with US.

USA: The US economy has slowed down considerably and recent estimates is for growth in 2019 to be at 2.6%, down from almost 3% expected earlier this year. 2020 growth has been revised down to 2%. Odds of recession for 2020 now at highest point since 2008

Brazil: The economy has been very cautiously expanding. Growth so far has fallen well short of expectations, in part due to the global slowdown but also the inability of current government to implement fiscal reforms.

EUGermany and UK

remain problem spots for the European

Union. Consumer demand remains in good shape but a

slowdown in exports has negatively

impacted overall growth

Russia:The economy has decelerated

significantly in the last two quarters. Q2 growth was up

only 0.7% compared to 2.3% for all of 2018. Lower oil output, low oil prices and weak gas demand have negatively impacted growth

Japan:Growth slowed down in Q2

and it appears Q3 output growth was even weaker,

dragged down by weak exports to US, China and EU. PMI manufacturing

index in September pointed to sector contraction.

China:Exports to the US were

sharply lower in September and GDP

growth expected to slow down again.

Other indicators, from industrial production to

retail trade to fixed asset investment all

pointed to a significant deceleration

India:Growth has slowed

down at a much faster pace than

expected. Q2 GDP was up 5% y/y, the slowest pace in six

years.

Mexico: Conditions have deteriorated and Q2 growth was down 0.8% y/y. A slowdown in global demand and fiscal reforms have all contributed to the recent slowdown.

Australia:While the economy has been affected by the global slowdown, growth remains on track, supported by robust domestic demand and an accommodating monetary policy.

New Zealand: Q2 growth slowed down from the

previous quarter and economy expanded at the slowest pace in over three

years. A broad slowdown in global economic activity

has negatively impacted NZ


Global Situation – Current

- 3 -Source: Moody's Economy.com, Steiner

Canada: Economy is coming out of a sharp contraction and it is growing again. Unemployment is expected to remain at 9% through end of the year. COVID over the winter months remains a wild card.

USA: Economy contracted at an annualized rate of 32% in Q2 but it is expected to rebound in second half of the year. Retail and housing sectors have recovered but spending on services and international trade remains depressed. Lack of additional stimulus could result in a high rate of layoffs into the winter.

Brazil: The economy contracted by an annualized 11.4% in Q2. Industrial production has rebounded but unemployment remains high. Expectations are for the economy to expand in second half of the year.

EUSouthern Europe, especially Spain and Italy, remain mired

in recession due to COVID impact on tourism. German

economy contracted in Q2 but by less than expected and government support has

helped the recovery.

Russia:Weak oil prices due to collapse in

demand during spring have significantly impacted growth. Consumer spending

has rebounded but there’s a lot of uncertainty about this winter.

Japan:COVID hammered the

economy and in the June quarter the economy

contracted at an annualized 28%. Exports

remain a key area of uncertainty going forward.

China:The economy has

recovered faster than in other countries, in part

because of the success to contain COVID

spread. Exports were sharply higher in

September thanks to strong global demand for PPE and medical

equipment.

India:Virus continues to

spread in India adding to market

uncertainty in near term. Q2 GDP was

down 23.9%.

Mexico: Economy posted a sharp annual contraction of 18.7% in Q2. Industrial activity declined by 25.7% due to lockdowns and collapse in demand from US. The economy is expected to rebound in Q3 but it will still be in negative territory for the year.

Australia:Social distancing rules resulted in a sharp contraction in Q2 but economy is expected to rebound just as quickly in Q3. But GDP will remain under pre-pandemic levels until late 2021.

New Zealand: COVID impact in April and May

was significant but leading indicators suggest a strong

rebound in economic activity across the board. Higher dairy/beef prices also seen as supportive.

Argentina: The economy contracted by 13.2% y/y in the first five months of 2020. Impact of lockdowns has eased recently but for all of 2020 the economy is expected to contract by 10% following a 2.2% decline in 2019.


#1 Economic Situation in US and WorldSlowdown across all regions

- 4 -

Source: Moody's Economy.com

World N. Am. S. Am. Euro Asia Oceania2018 3.0 2.9 0.0 1.9 4.5 2.82019 2.4 2.0 -0.2 1.3 4.1 1.92020 Fcst Jul -5.1 -6.4 -9.2 -8.8 -1.4 -3.2

Sep -4.6 -4.9 -8.9 -7.7 -1.6 -4.42021 Fcst Jul 4.3 1.7 3.7 3.6 7.0 3.9

Sep 5.0 3.4 4.4 3.9 7.2 2.8

Last update: September 8, 2020

-12.0

-10.0

-8.0

-6.0

-4.0

-2.0

0.0

2.0

4.0

6.0

8.0

10.0

World N. Am. S. Am. Euro Asia Oceania

REAL GDPGROWTH % GLOBAL GROWTH OUTLOOK

2018 2019 2020 Fcst 2021 Fcst


#1 Economic Situation in US and WorldEconomy expected to rebound in Q3 but will not be back to pre-COVID levels until late 2021

Positives- Stimulus helped prevent a

collapse in demand- Some sectors, like housing, are

back to normal and growing- Election uncertainty will come

to an end soon- Low interest rates

Negatives- Unknown path of the pandemic,

with vaccines still unproven- Widening wealth gap and

heightened political tension- Service economy remains in

shambles- Weak global demand

- 5 -

* Forecast: Moody’s-40.0

-30.0

-20.0

-10.0

0.0

10.0

20.0

30.0

'00 '01 '02 '03 '04 2005 '06 '07 '08 '09 2010 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21

% Ch.ANNUAL GROWTH RATE OF GDP

Annualized Quarterly Growth RateFcst


#1 Economic Situation in US and WorldLabor Markets Tell the Story

- 6 -

From WSJ 10/5


#1 Economic Situation in US and WorldFoodservice hit hard by Covid-19 but grocery store get a boost

- 7 -

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

Dollar Sales at Retail and Foodservice. Million Dollars Total Dollar Sales at Retail and Foodservice. Million DollarsSource: US Census Bureau. Analysis by Steiner Consulting. Updated through June 2020 Source: US Census Bureau. Analysis by Steiner Consulting. Updated through June 2020

30,032

54,644

73,714

62,905

25,000

30,000

35,000

40,000

45,000

50,000

55,000

60,000

65,000

70,000

75,000

'17 '18 '19 '20

Foodservice $

Grocery $

123,049

93,901

117,549

90,000

95,000

100,000

105,000

110,000

115,000

120,000

125,000

'17 '18 '19 '20


#1 Economic Situation in US and WorldFast Food Continues to Outperform Other Sectors

- 8 -

-60.0%

-50.0%

-40.0%

-30.0%

-20.0%

-10.0%

0.0%

10.0%

20.0%

'08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20

FOODSERVICE $ SALES : Y/Y % CH.Latest Data is for August 2020

Same Store Sales - August 2020 vs. August 2019, Tracking Survey Responses by Industry Segment Source: National Restaurant Association

FamilyDining

CasualDining

FineDining

LimitedService

QuickCasual

Higher Sales 5% 13% 0% 45% 46%Lower Sales 95% 81% 83% 45% 31%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%SAME STORE SALES

Source: US Census

Source: National Restaurant Association


#1 Economic Situation in US and WorldFoodservice inflation reflects higher labor/operational costs

- 9 -

Data updated through: August 2020

Food CPI Comparisons. Jan 2008 = 100Source: BLS. Analysis by Steiner Consulting

95.0

105.0

115.0

125.0

135.0

145.0

155.0

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Food at Limited Service Restaurants

Food away from home

Food at Home


# 2 Currency MarketsPerformance of US$ vs. Imported Beef Currencies in last 12 months

- 10 -

Positive for US importsNegative for US exports

Negative for US importsPositive for US exports

US Dollar vs. Currencies of Top Meat Trading Partners & Compe tors% change in the last 12 months (Sep. 19 - Sep. 20)

80%

90%

100%

110%

120%

130%

140%

150%

160%

Sep '19 Oct '19 Nov '19 Dec '19 Jan '20 Feb '20 Mar '20 Apr '20 May '20 Jun '20 Jul '20 Aug '20 Sep '20

BRL/1USD

EUR/1USD

ARS/1USD

NZD/1USDAUD/1USD

CAD/1USD

UYU/1USD



- 11 -

Brazilian Real per 1 US Dollar Argen ne Peso per 1 US DollarPrevious 12 months (Sep. 19 - Sep. 20) Previous 12 months (Sep. 19 - Sep. 20)

50

55

60

65

70

75

80


3

3.5

4

4.5

5

5.5

6

6.5




- 12 -

Uruguayan Peso vs. 1 US Dollar Canadian Dollar per 1 US DollarPrevious 12 months (Sep. 19 - Sep. 20) Previous 12 months (Sep. 19 - Sep. 20)

1.2000

1.2500

1.3000

1.3500

1.4000

1.4500

1.5000


30

35

40

45

50




- 13 -

New Zealand Dollar per 1 US Dollar Australian Dollar per 1 US DollarPrevious 12 months (Sep. 19 - Sep. 20) Previous 12 months (Sep. 19 - Sep. 20)

1.3000

1.3500

1.4000

1.4500

1.5000

1.5500

1.6000

1.6500

1.7000

1.7500

1.8000


1.4000

1.4500

1.5000

1.5500

1.6000

1.6500

1.7000

1.7500

1.8000



# 2 Currency MarketsPrice of Imported 90CL Beef in US$ Trending Higher

- 14 -

US $222/cwt9/30/2020

100

150

200

250

300

350

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Price of 90CL Imported Beef in US Market (CIF) Prices in US$/cwt

USD/cwt

Price inUSD


# 2 Currency MarketsPrice of Imported 90CL Beef in US$ Terms & AUD Terms

- 15 -

Price of 90CL Imported Beef in US Market (FOB East Coast) Prices in US$/cwt and AUD/cwt. Price data: Urner Barry. Exchange rate data: Federal Reserve. Analysis by Steiner Consul ng

$310/cwt

464.91

$222/cwt

311.00

100

150

200

250

300

350

400

450

500

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

USD/cwt

Price inUSD and AUD

AUD/cwt


#3 Feed Input CostsLess corn supply than earlier expected. Now focus shifts to demand

- 16 -

Higher Yield

Sharply Higher exports

Lower S/U but still comfortable carryout

2018/19 2019/20

USDA USDA

EstUSDA Sep Est

USDA Oct Est

vs. 2018/19

vs. 2019/20

.

Planted 88.9 89.7 92.0 91.0 2.4% 1.4%Harvested 81.3 81.3 83.5 82.5 1.5% 1.5%

Yield per harvested acre 176.4 167.5 178.5 178.4 1.1% 6.5%

Beginning stocks 2,140 2,221 2,253 1,995 -6.8% -10.2%Production 14,340 13,620 14,900 14,722 2.7% 8.1%Imports 28 42 25 25 -10.7% -40.5%

Supply, total 16,509 15,883 17,178 16,742 1.4% 5.4%

Feed and residual 5,429 5,827 5,825 5,775 6.4% -0.9%Ethanol for fuel 5,378 4,852 5,100 5,050 -6.1% 4.1%Food, seed and residual 1,415 1,430 1,425 1,425 0.7% -0.3%

Domestic use, total 12,222 12,109 12,350 12,250 0.2% 1.2%

Exports 2,066 1,778 2,325 2,325 12.5% 30.8%

Use, total 14,288 13,887 14,675 14,575 2.0% 5.0%

Ending stocks 2,221 1,995 2,503 2,167 -2.4% 8.6%

Avg. farm price ($/bu) 3.61 3.56 3.50 3.60 -0.3% 1.1%

Ending Stocks/Use 15.5% 14.4% 17.1% 14.9%Source: USDA Monthly WASDE Report.

** Corn crop marketing year starts September 1.

% Change2020/21

U.S. Corn Supply and Use


#3 Feed Input Costs

- 17 -

Nearby corn futures


#4 Meat Production Has Been on a Growth Path but growth will stall in 2021 and 2022

- 18 -

Combined USA Beef, Pork, Broiler and Turkey ProductionMillion Pounds. Carcass Wt. Basis. USDA Actual + Steiner Forecasts

90,929

105,517 106,266

40,000

50,000

60,000

70,000

80,000

90,000

100,000

110,000 +16.1%


#4 Minimal Growth in Output Expected for the next Two Years

- 19 -

2018 2019 % CH. 2020 % CH. 2021 % CH. 2022 % CH.

BEEF 26,872 27,155 1.1% 27,261 0.4% 26,845 -1.5% 26,411 -1.6%

PORK 26,315 27,572 4.8% 28,294 2.6% 28,416 0.4% 28,499 0.3%

BROILERS 42,147 43,453 3.1% 44,291 1.9% 44,601 0.7% 45,443 1.9%

TURKEYS 5,802 5,742 -1.0% 5,670 -1.2% 5,822 2.7% 5,913 1.6%

LAMB 153 149 -3.1% 147 -1.2% 149 1.3% 152 2.5%

VEAL 76 75 -1.6% 68 -8.3% 66 -3.8% 68 3.0%

TOTAL 101,365 104,144 2.7% 105,732 1.5% 105,899 0.2% 106,486 0.6%


#5 USA Cattle/Beef SuppliesCattle Inventory Near Its Cyclical Peak

- 20 -

INVENTORY (000 OMITTED) 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020% Ch. vs.

20192021

Estimate% Ch. vs.

2020

ALL CATTLE AND CALVES 94,081 92,887 91,160 90,095 88,243 89,173 91,888 93,625 94,298 94,805 94,413 -0.4% 94,292 -0.1%

COW AND HEIFERS THAT HAVE CALVED 40,526 40,068 39,517 38,853 38,165 38,644 39,476 40,539 40,898 41,044 40,651 -1.0% 40,438 -0.5%

BEEF COWS 31,440 30,913 30,282 29,631 28,956 29,332 30,164 31,171 31,466 31,691 31,317 -1.2% 31,066 -0.8%

DAIRY COWS 9,087 9,156 9,236 9,221 9,209 9,312 9,312 9,369 9,432 9,353 9,335 -0.2% 9,372 0.4%

HEIFERS 500LBS. AND OVER 19,778 19,650 19,445 19,256 18,919 19,266 19,902 20,112 20,218 20,210 20,114 -0.5% 20,166 0.3%

BEEF COW REPLACEMENT 5,443 5,135 5,281 5,429 5,556 6,086 6,335 6,363 6,108 5,885 5,772 -1.9% 5,743 -0.5%

DAIRY COW REPALCEMENT 4,551 4,577 4,618 4,546 4,539 4,710 4,814 4,754 4,768 4,702 4,637 -1.4% 4,650 0.3%

OTHER HEIFERS 9,784 9,938 9,546 9,281 8,824 8,469 8,753 8,995 9,341 9,624 9,706 0.9% 9,773 0.7%

STEERS 500 LBS. AND OVER 16,568 16,394 15,957 15,931 15,623 15,630 16,305 16,374 16,528 16,758 16,671 -0.5% 16,821 0.9%

BULLS 500 LBS. AND OVER 2,190 2,165 2,100 2,074 2,038 2,109 2,137 2,244 2,252 2,253 2,237 -0.7% 2,231 -0.3%

HFRS, STRS AND BULLS UNDER 500 LBS 15,019 14,610 14,141 13,983 13,498 13,524 14,067 14,356 14,401 14,540 14,739 1.4% 14,636 -0.7%

ANNUAL CALF CROP 35,740 35,357 34,469 33,630 33,522 34,087 35,063 35,758 36,313 36,060 35,700 -1.0%

Note: Shaded numbers represent Steiner estimates

JANUARY 1st U. S. CATTLE INVENTORY


#5 USA Cattle/Beef SuppliesNext Year Will Be The 7th Year of Current Cycle

- 21 -

Comparing US Cattle Cycles of the Last +50 YearsY/Y Change in Cattle Inventories.

-6.0%

-4.0%

-2.0%

0.0%

2.0%

4.0%

6.0%

0 +1 +2 +3 +4 +5 +6 +7 +8 +9 +10 +11 +12 +13 +14

1958 - 1967 (9 yrs)

1967 - 1979 (12 yrs)

1979 - 1990 (11 yrs)

1990 - 2004 (14 yrs)

2004 - 2014 (10 yrs)

2014 - Current (6 yrs)

# of years from the start of the cycle


#5 Cattle/Beef SuppliesUS Cattle Inventories were -0.4% in Jan 2020 and Forecast -0.1% in Jan 2021

- 22 -

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

TOTA

L IN

VEN

TORI

ES, 0

00 O

MIT

TED

CATTLE INVENTORIES, 000 HEAD, 1920 - 2020 + 2021 Forecast

Jan 1, 202194.2 mil head


#5 Cow/Bull Slaughter in 2020

- 23 -

WEEKLY COW & BULL SLAUGHTER. '000 HEADSource: USDA-AMS

90

100

110

120

130

140

150

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

5-Yr Avg. 2018 2019 2020

Limited dairy cow slaughter has reduced overall kill this year, especially in second half of the year.


#5 Cattle/Beef SuppliesSteer weights are now back to trend line, in part due to backup this summer

- 24 -

650

680

710

740

770

800

830

860

DRES

SED

WEI

GHTS

, POU

NDS

FI CATTLE AVERAGE DRESSED WEIGHTS: 1990 - 2020Dressed Carcass Weights. Weekly. USDA


#5 Cattle/Beef SuppliesUS Productivity (feedlot based) vs. Other Key Producers/Exporters

- 25 -

BEEF KILOGRAM PRODUCED (DRESSED WT.) PER ANIMAL IN THE HERD. ANNUALSOURCE: USDA

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0USA

Australia

Brazil

N. Zealand

UruguayArgentina


#5 Cattle/Beef SuppliesUS Cattle Prices Have Been Extremely Volatile in Last 3 Years

- 26 -


#5 Cattle/Beef SuppliesSlaughter disruptions caused wholesale price spike in Apr/May

Meat prices are normally inelastic. This means that a one percent increase/decrease in per capita consumption results in a larger than one percent change in price the other direction. For instance, the choice beef cutout doubled in price when COVID-19 outbreaks at packing plants caused beef production in the US to decline by 29% for three weeks in late April and early May. The average cutout in May 2019 was $223/cwt and it was $230/cwt in March 2020. By May 12, 2020 the cutout hit $475/cwt, more than double what it was in March or the previous year.

- 27 -

Weekly US Beef Production. Million Pounds. Carcass Wt. BasisSource: USDA-NASS and USDA-AMS. Analysis by Steiner Consulting

320.0

370.0

420.0

470.0

520.0

570.0

620.0

Jan Feb Mar Apr May Jun Jul Ag Sep Oct Nov Dec

2020 5-Yr Avg (2015-19) 2019

Apr 5 - May 30-824M (-20%)

Weekly Choice Beef Cutout Value. $/cwt.Data source: USDA-AMS. Analysis by Steiner Consulting

150

190

230

270

310

350

390

430

470


5-Yr Avg. 2019 2020


#5 Cattle/Beef SuppliesLack of profitability resulted in some liquidation in last two years. Will things improve in 2021?

-200

-100

0

100

200

300

400

500

600

ESTIMATED AVERAGE COW-CALF RETURNSReturns over cash costs (includes pasture rent), Annual, US$/cow

forecast

Source: LMIC

- 28 -


#5 Cattle/Beef SuppliesFemale Slaughter Ratio Still Suggests Liquidation, But at a Slower Pace

- 29 -

Liqu

idat

ion

Reb

uild

ing

0.47


#5 Cattle/Beef SuppliesCow Slaughter Outlook for rest of 2020 & in 2021

- 30 -

2020 cow slaughter for Jan – Aug = 4.163MM head, -1.1% higher than a year ago

Forecast for cow slaughter in 2020 = -0.9%

Forecast for cow slaughter in 2021 = -2.6%

2021 Meat Market Outlook Presented by: Steiner Consulting Group | (800) 526-4612- 31 -

BEEFQUARTERLY SLAUGHTER, PRODUCTION, IMPORTS, EXPORTS AND DISAPPEARANCE

=A x BA B C D E F G =C+D-E+F+G

Year & QuarterCommercial

Slaughter

Percent Change From

Year Ago

Average Carcass

Weights

Percent Change From

Year Ago

Commercial Meat

Production

Percent Change From

Year Ago Imports

Percent Change From

Year Ago Exports

Percent Change From

Year AgoFarm

Production

Adjustments to Ending Stocks to Balance

Total Disappearance

Percent Change From

Year Ago(1,000 Head) Lbs. (Million Lbs.) (Million Lbs.) (Million Lbs.) (Million Lbs.) (Million Lbs.) (Million Lbs.)

20161st Qtr. 7,184 3.1% 826 1.7% 5,938 4.8% 792 -9.7% 535 2.2% 25 41 6,261 4.5%2nd Qtr. 7,631 5.6% 811 0.1% 6,187 5.7% 831 -16.0% 621 2.4% 8 24 6,429 2.8%3rd Qtr. 7,845 7.6% 825 -0.9% 6,472 6.6% 751 -15.6% 660 21.9% 8 -73 6,497 1.7%4th Qtr. 7,919 9.0% 837 -0.5% 6,625 8.4% 638 4.1% 740 24.3% 25 -66 6,482 5.7%Year 30,578 6.4% 825 0.1% 25,221 6.4% 3,012 -10.6% 2,557 12.8% 67 74 25,817 3.5%

20171st Qtr. 7,714 7.4% 817 -1.1% 6,303 6.2% 700 -11.7% 653 21.9% 26 141 6,516 4.1%2nd Qtr. 8,076 5.8% 793 -2.2% 6,407 3.5% 812 -2.3% 680 9.5% 9 63 6,610 2.8%3rd Qtr. 8,254 5.2% 816 -1.1% 6,736 4.1% 814 8.4% 746 12.9% 9 -107 6,705 3.2%4th Qtr. 8,145 2.9% 828 -1.1% 6,742 1.8% 668 4.7% 781 5.5% 26 11 6,665 2.8%Year 32,189 5.3% 814 -1.4% 26,187 3.8% 2,993 -0.6% 2,859 11.8% 68 -108 26,281 1.8%

20181st Qtr. 7,878 2.1% 821 0.5% 6,466 2.6% 721 3.1% 731 12.0% 26 32 6,515 0.0%2nd Qtr. 8,426 4.3% 798 0.6% 6,726 5.0% 805 -0.9% 801 17.8% 9 22 6,761 2.3%3rd Qtr. 8,361 1.3% 816 -0.1% 6,819 1.2% 807 -0.8% 828 11.0% 9 -85 6,722 0.3%4th Qtr. 8,341 2.4% 823 -0.6% 6,862 1.8% 664 -0.5% 800 2.5% 26 -110 6,641 -0.4%Year 33,005 2.5% 814 0.1% 26,872 2.6% 2,998 0.2% 3,161 10.5% 70 141 26,921 2.4%

20191st Qtr. 7,935 0.7% 808 -1.5% 6,414 -0.8% 738 2.4% 696 -4.8% 27 58 6,541 0.4%2nd Qtr. 8,576 1.8% 795 -0.4% 6,817 1.4% 836 3.9% 790 -1.4% 9 64 6,936 2.6%3rd Qtr. 8,542 2.2% 810 -0.6% 6,923 1.5% 771 -4.5% 788 -4.8% 9 -85 6,830 1.6%4th Qtr. 8,503 2.0% 823 0.1% 7,001 2.0% 711 7.1% 748 -6.5% 27 -17 6,974 5.0%Year 33,555 1.7% 809 -0.6% 27,155 1.1% 3,057 2.0% 3,022 -4.4% 71 -20 27,241 1.2%

20201st Qtr. 8,399 5.9% 825 2.1% 6,929 8.0% 774 4.8% 769 10.5% 27 -28 6,932 6.0%2nd Qtr. 7,393 -13.8% 819 3.0% 6,054 -11.2% 848 1.4% 607 -23.2% 9 99 6,404 -7.7%

* 3rd Qtr. 8,670 1.5% 827 2.0% 7,170 3.6% 820 6.4% 765 -2.9% 9 -104 7,130 4.4%* 4th Qtr. 8,554 0.6% 831 0.9% 7,108 1.5% 745 4.7% 800 6.9% 27 -50 7,030 0.8%* Year 33,016 -1.6% 825 2.0% 27,261 0.4% 3,187 4.2% 2,941 -2.7% 71 83 27,661 1.5%

2021* 1st Qtr. 8,144 -3.0% 829 0.5% 6,751 -2.6% 795 2.7% 755 -1.9% 27 125 6,943 0.2%* 2nd Qtr. 7,984 8.0% 811 -1.0% 6,475 7.0% 860 1.4% 795 31.0% 9 50 6,599 3.1%* 3rd Qtr. 8,262 -4.7% 822 -0.6% 6,792 -5.3% 815 -0.6% 800 4.6% 9 -65 6,751 -5.3%* 4th Qtr. 8,176 -4.4% 835 0.5% 6,827 -4.0% 750 0.7% 825 3.1% 27 15 6,794 -3.4%* Year 32,566 -1.4% 824 -0.1% 26,845 -1.5% 3,220 1.0% 3,175 7.9% 71 -125 26,836 -3.0%

2022* 1st Qtr. 8,025 -1.5% 832 0.4% 6,677 -1.1% 780 -1.9% 750 -0.7% 27 35 6,768 -2.5%* 2nd Qtr. 7,777 -2.6% 814 0.4% 6,330 -2.2% 820 -4.7% 800 0.6% 9 40 6,399 -3.0%* 3rd Qtr. 8,072 -2.3% 826 0.5% 6,668 -1.8% 790 -3.1% 790 -1.3% 9 10 6,687 -0.9%* 4th Qtr. 8,029 -1.8% 839 0.5% 6,736 -1.3% 695 -7.3% 820 -0.6% 27 15 6,653 -2.1%* Year 31,903 -2.0% 828 0.4% 26,411 -1.6% 3,085 -4.2% 3,160 -0.5% 71 -100 26,307 -2.0%

* Estimates


#6 Demand/Supplies in Other MarketsKey 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 94,760 331 0.29 34,018 0.36 12,289 361 1,418 12%

CANADA 11,440 37 0.31 3,675 0.32 1,330 362 570 43%

MEXICO 16,699 126 0.13 6,250 0.37 2,030 325 355 17%

AUSTRALIA 25,734 26 1.01 8,500 0.33 2,300 271 1,657 72%

N. ZEALAND 10,107 5 2.00 4,375 0.43 686 157 650 95%

BRAZIL 238,158 211 1.13 40,575 0.17 10,210 252 2,250 22%

URUGUAY 11,396 4 3.24 2,255 0.20 568 252 470 83%

ARGENTINA 53,805 45 1.19 13,500 0.25 3,040 225 700 23%

INDIA 306,700 1352 0.23 38,800 0.13 4,287 110 1,600 37%

Data source: USDA

- 32 -


#6 Demand/Supplies in Other MarketsJanuary Inventory trends in Australia, New Zealand, Uruguay & Brazil

- 33 -

10,183

10,368

10,033

10,152 10,14610,107

10,15110,116

10,140

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 2017 2018 2019 2020F 2021F 2022F

NEW ZEALAND CATTLE INVENTORIES: JANUARY 1 STOCKSSource: USDA Foreign Agricultural Service. Analysis by Steiner Consulting000 head

-3.2%

0.4%-0.3%

1.2% -0.1%-0.4%

0.2%

29,291 29,102

27,413

24,971

26,17625,734

23,69023,165 22,965

20,000

21,000

22,000

23,000

24,000

25,000

26,000

27,000

28,000

29,000

30,000

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020F 2021F 2022F

AUSTRALIA CATTLE INVENTORIES: JANUARY 1 STOCKSSource: USDA Foreign Agricultural Service. Analysis by Steiner Consulting000 head

-5.8%

-8.9%

4.8%-1.7%

-7.9%

-2.2% -0.9%

11,903

12,053 12,016

11,864

11,744

11,39611,477

12,15712,257

10,600

10,800

11,000

11,200

11,400

11,600

11,800

12,000

12,200

12,400

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020F 2021F 2022F

URUGUAY CATTLE INVENTORIES: JANUARY 1 STOCKSSource: USDA Foreign Agricultural Service. Analysis by Steiner Consulting000 head

-0.3%

-1.3%

-1.0%

-3.0%0.7%

5.9%

0.8%

219,180226,045

232,350238,158

244,144

252,289

260,419

150,000

170,000

190,000

210,000

230,000

250,000

270,000

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020F 2021F 2022F

BRAZIL CATTLE INVENTORIES: JANUARY 1 STOCKSSource: USDA Foreign Agricultural Service. Analysis by Steiner Consulting000 head

3.1%2.8%

2.5%

2.5%

3.2%

3.1%

2.9%

53,118

54,16354,793 55,008

54,46154,000 54,000

45,000

46,000

47,000

48,000

49,000

50,000

51,000

52,000

53,000

54,000

55,000

56,000

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020F 2021F 2022F

ARGENTINA CATTLE INVENTORIES: JANUARY 1 STOCKSSource: USDA Foreign Agricultural Service. Analysis by Steiner Consulting000 head

1.8%

2.0%

0.4%-1.0%

1.2%

-0.8% 0.0%

16,615 16,490 16,584 16,699 16,900 17,050 17,190

14,000

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 2017 2018 2019 2020F 2021F 2022F

MEXICO CATTLE INVENTORIES: JANUARY 1 STOCKSSource: USDA Foreign Agricultural Service. Analysis by Steiner Consulting000 head

-2.9% 0.6% 0.7%1.2% 0.9%

-0.8%

0.8%


#6 Demand/Supplies in Other MarketsChina not a factor in Australian market this year.

- 34 -

Key Markets for Australian Beef: 2012 - 2020Metric Ton. Shipped Weight Basis

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

Jan

Mar

May Ju

lSe

pNo

vJa

nM

arM

ay Jul

Sep

Nov

Jan

Mar

May Ju

lSe

pNo

vJa

nM

arM

ay Jul

Sep

Nov

Jan

Mar

May Ju

lSe

pNo

vJa

nM

arM

ay Jul

Sep

Nov

Jan

Mar

May Ju

lSe

pNo

vJa

nM

arM

ay Jul

Sep

Nov

Jan

Mar

May Ju

lSe

pNo

v

2012 2013 2014 2015 2016 2017 2018 2019 2020

China

USA

ROW

Japan

S. Korea


#6 Demand/Supplies in Other MarketsNZ exports to China have declined…for now

- 35 -

Share of New Zealand Beef Exports to USA and China Share of New Zealand Beef Exports During Jan-Aug2020Data Source: Stats NZ. Analysis by Steiner Consulting

0%

10%

20%

30%

40%

50%

60%

70%

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

USA39%

China33%

Japan5%

S. Korea4%

Canada4%

ROW15%

339,733 metric ton s.w.

China

USA


#7 China Protein Demand OutlookHog Supplies Slowly Recovering in China but Still Below Pre-ASF Levels

- 36 -

China Sow Inventory M/M % ChangeSource: Ministry of Agriculture of China

-9.1%

-2.8%

0.6%

4.0%

2.2%2.8%

5.0%4.3%

3.5%

-10.00%

-8.00%

-6.00%

-4.00%

-2.00%

0.00%

2.00%

4.00%

6.00%

2017 2018 2019 2020

China Live Hog Inventory M/M % ChangeSource: Ministry of Agriculture of China

-9.4%-9.8%

-3.0%

2.0%2.8%

4.5% 4.8% 4.7%

-12.00%

-10.00%

-8.00%

-6.00%

-4.00%

-2.00%

0.00%

2.00%

4.00%

6.00%

2017 2018 2019 2020

Sow Inventories:Jul 2018 (pre-ASF): 40.7MSep 2019: 24.6M (-40%)Jan 2020: 26.6MAug 2020: 34.1M (+39% vs. Jan) but

(-16% vs. pre-ASF)

Hog Inventories:Jul 2018 (pre-ASF): 418MSep 2019: 264M (-37%)Jan 2020: 283MAug 2020: 375M (+33% vs. Jan) but

(-10% vs. pre-ASF)


#7 China Protein Demand OutlookChina Prices Skyrocket

- 37 -

Piglet: +174% Hog: +136% Retail Pork: +112%

Y/Y Price Changeas of Oct 23, 2019

China Price of Baby Pigs, Live Hogs and Retail Pork, Yuan per KG.Source: China Ministry of Agriculture. Analysis by: Steiner Consulting

5.0010.0015.0020.0025.0030.0035.0040.0045.0050.0055.0060.0065.0070.0075.0080.0085.0090.0095.00

100.00105.00110.00115.00

Piglet PriceLive Hog PricePork Price


#7 China Protein Demand OutlookChina Beef Imports, Metric Ton, Carcass wt. basis

- 38 -

China this year accounts for:

- +75% of Argentina exports- +55% of Uruguay exports- +60% of Brazil exports (incl.

HK)- +45% of New Zealand

exports- +20% of Australia exports

China Annual Beef Imports: 2000 - 2020Source: USDA-FAS, Actual + Estimates

1,369

2,177

2,600

0

500

1,000

1,500

2,000

2,500

3,000 '000 MT


#7 China Protein Demand OutlookChina Pork Imports, ‘000 Metric Ton, Carcass wt. basis

- 39 -

China Annual Pork Imports: 2000 - 2020Source: USDA-FAS, Actual + Estimates

1,457

2,451

4,400

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000 '000 MT


#7 China Protein Demand OutlookChina Chicken Imports, ‘000 Metric Ton, Carcass wt. basis

- 40 -

China Annual Chicken Imports: 2000 - 2020Source: USDA-FAS, Actual + Estimates

342

580

925

0

100

200

300

400

500

600

700

800

900

1,000 '000 MT


#8 Demand in US Domestic MarketStrong equity and housing markets suggest continued strong consumer food demand

All-Transactions House Price IndexIndex 1980: Q1 = 100. Quarterly. Not Seasonally Adjusted

270

290

310

330

350

370

390

410

430

450

470

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

- 41 -

S&P 500 IndexData updated through: October 2,2020

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020


#8 Demand in US Domestic MarketHow quickly will job market recover?

Current 7.9% (Sep 2020)

Dec 2020: 8.1%Jun 2021: 7.1%Dec 2021: 6.3%Jun 2022: 5.7%Dec 2022: 5.2%

42

USA Unemployment Rate: % of Labor ForceSource: Bureau of Labor Statistics. Forecasts are Median of Economist Survey from WSJ

Sept 2020= 7.908.1

7.1

6.35.7

5.2

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00


#8 Demand in US Domestic MarketLower participation rate is part of the reason for the recent decline in unemployment rate

43

66.8

63.6

60.0

61.4

57.0

59.0

61.0

63.0

65.0

67.0

69.0

% o

f 16

and

over

look

ing f

or w

ork

USA Civilian Participation Rate in Labor ForcePercent, Monthly, Seasonally Adjusted. Latest update: December 2018

The labor force participation rate is the percentage of the civilian non-institutional population 16 years and older that is working or actively looking for work.


#8 Demand in US Domestic MarketDemand Drivers: Income

- 44 -

46,925

30,000

35,000

40,000

45,000

50,000

55,000

2000 '01 '02 '03 '04 2005 '06 '07 '08 '09 2010 '11 '12 '13 '14 2015 '16 '17 '18 '19 '20

Real Per Capita Disposable Income, US$Latest data is for: August 2020

recession


#8 Demand in US Domestic MarketUSA Per Capita Meat Protein Consumption

- 45 -

276.5

200

210

220

230

240

250

260

270

280

290

1971

1973

1975

1977

1979

1981

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

2015

2017

2019

POUN

DS

PER

PERS

ON

PER

YEA

R

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

Record: Year 2004276.7 lbs.

2020

2021

Forecast

276.6273.0


#8 Demand in US Domestic MarketUSA Per Capita Beef Consumption

- 46 -

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

2017

2019

POU

NDS

PER

PER

SON

PER

YEA

R

BEEF PER CAPITA DISAPPERANCE (Carcass wt. Basis)

2020

2021

Forecast

83.780.7


#8 Demand in US Domestic MarketUSA Per Capita Lamb Consumption

- 47 -

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

2017

2019

POU

ND

S PE

R PE

RSO

N P

ER Y

EAR

LAMB, PER CAPITA CONSUMPTION (Carcass wt. Basis)

1.29 1.26

2020

2021

Forecast


#8 Competing Proteins – Plant Based Protein

- 48 -


#8 Competing ProteinsPork Situation and Outlook

Supplies ( Y/Y % change)

Production: +2.6% in 2020

+0.4% in 2021

+0.3% in 2022

Exports: +18.1% in 2020

+2.0% in 2021

+2.0% in 2022

Per Capita: -2.7% in 2020

-1.0% in 2021

-1.2% in 2022

22,843

26,315

27,572

28,294 28,416 28,499

15,000

17,000

19,000

21,000

23,000

25,000

27,000

29,000

31,000

PORK PRODUCTION: MILLION POUNDS


#8 Competing ProteinsRatio of Beef Cutout vs. Pork Cutout

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

5.00

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020


#8 Competing ProteinsPrice Ratio of Ground Beef vs. Pork Chops

- 51 -

2.05

-

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

2019

2020

Ratio

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

52wk Mo. Avg.

2009-10 Avg = 1.22


#8 Competing ProteinsLong Run Price of B/S Chicken Breasts

- 52 -

60

110

160

210

260

310

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 2019 2020

LONG TERM PRICE CHART: 1990 -2019$/cwt

Price History and Forecast for B/S Chicken Breast Price. USDA-AMS. $/cwt


#8 Competing ProteinsBroiler Situation and Outlook

38,154

42,147

43,45344,29144,601

45,443

30,000

32,000

34,000

36,000

38,000

40,000

42,000

44,000

46,000

48,000

MILL

ION

PO

UN

DS

BROILER PRODUCTION: MILLION POUNDS

- 53 -

Forecast Source: Steiner Consulting Group

Supplies ( Y/Y % change)

Production: +1.9% in 2020

+0.7% in 2021

+1.9% in 2022

Exports: +4.4% in 2020

+6.0% in 2021

+4.6% in 2022

Per Capita: +1.1% in 2020

-0.9% in 2021

+0.4% in 2022


#8 Competing ProteinsGround Beef vs. Chicken Breasts

- 54 -

Forecast Source: Steiner Consulting Group78CL 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.

1.86

-

0.50

1.00

1.50

2.00

2.5019

9019

9119

9219

9319

9419

9519

9619

9719

9819

9920

0020

0120

0220

0320

0420

0520

0620

0720

0820

0920

1020

1120

1220

1320

1420

1520

1620

1720

1820

1920

20

Ratio

Ratio: 78CL Meat Block (Using Dom 90LC and 50CL) /Bnls Skinless Chicken Breast

52wk Mo. Avg.


#8 Competing ProteinsBroiler Supplies

- 55 -

60,821

50,000

52,000

54,000

56,000

58,000

60,000

62,000

64,000


LAYERS ON 1ST OF MONTH: BROILER TYPE HATCHING'000

2018

2019

2017

5-Yr. Avg.

Source: USDA/NASS Chicken and Eggs Monthly Report

2020

US WEEKLY BROILER EGG SETS Source: USDA Broiler Hatchery Report

185,000

195,000

205,000

215,000

225,000

235,000

245,000


5 Yr. Avg (2012-16) 2019 2020

1000 eggs


#9 USA Lamb/Mutton/Goat Market SituationUS Lamb Inventories Remain Flat

- 56 -

0

2,000

4,000

6,000

8,000

10,000

12,000

US LAMB INVENTORYmil head


#9 USA Lamb/Mutton/Goat Market SituationDomestic Lamb Prices Above Year Ago This Fall

Slaughter Lamb Price, Sioux Falls, SD BasisMonthly Average Prices, 100-150 lb. Wooled and Shorn, Choice & Prime 2-3 . $ per 100 lb.

100

110

120

130

140

150

160

170

180


5-Yr. Avg. 2019 2020


#9 USA Lamb/Mutton/Goat Market SituationImported Racks Now Below 2017 Price Levels

- 58 -

Australian Lamb Racks, Fresh, Cap-off, 28 oz/up. 4-WK Moving Avg.Weekly Prices. Source: USDA

700

800

900

1,000

1,100

1,200

1,300


2017 2018 2019 2020


#9 USA Lamb/Mutton/Goat Market SituationLamb Imports Share Continues to Expand. 2020 Share @63.3%

- 59 -

0

50

100

150

200

250

300

350

400

450

500

Domestic Lamb Production + Importsmil lb.

US domestic production

Imports


#9 USA Lamb/Mutton/Goat Market SituationTrade Flows so Far in 2020

- 60 -

Quantity of US Imports of Fr/Frz Mutton, Goat, Lamb: World TotalSource: USDA/FAS. Units: Metric Ton. Analysis by: Steiner Consulting (800.526.4612)

-

5,000

10,000

15,000

20,000

25,000

5-Yr Avg 2018 2019 2020


CURRENT FORECAST


Price Forecasts: 2020 and 2021

- 62 -

Close on Oct 9, 2020 Q1 Q2 Q3 Q4 Annual

LIVE STEERS

FIVE AREA DIRECT AVERAGE LIVE STEER5-YR AVERAGE 2015-19 133.84 131.05 118.01 115.49 124.602019 HISTORY 125.33 119.99 108.26 114.23 116.952020 HISTORY 107.42 118.62 107.62 101.102020 FORECAST 111.33 109.67% CHANGE FROM 2017 -5.4% -10.3% -6.6% -2.5% -6.2%% CHANGE FROM 5-Yr Avg. -11.4% -17.9% -14.3% -3.6% -12.0%2021 FORECAST 115.33 115.33 109.67 114.00 113.58% CHANGE FROM 2018 -2.8% 7.2% 8.5% 2.4% 3.6%% CHANGE FROM 5-Yr Avg. -13.8% -12.0% -7.1% -1.3% -8.8%

90% BONELESS BEEF, CENTRAL, FRESH, WT. AVG., USDA5-YR AVERAGE 2015-19 227.97 235.55 231.08 208.91 225.882019 HISTORY 209.65 221.77 223.06 232.99 221.872020 HISTORY 198.55 233.76 269.65 227.962020 FORECAST 206.67 234.51% CHANGE FROM 2019 11.5% 21.6% 2.2% -11.3% 5.7%% CHANGE FROM 5-Yr Avg. 2.5% 14.5% -1.3% -1.1% 3.8%2021 FORECAST 223.33 233.33 226.33 220.00 225.75% CHANGE FROM 2020 -4.5% -13.5% -0.7% 6.5% -3.7%% CHANGE FROM 5-Yr Avg. -2.0% -0.9% -2.1% 5.3% -0.1%


Price Forecasts: 2020 and 2021Close on Oct 9, 2020 Q1 Q2 Q3 Q4 Annual

50CL BEEF TRIM, FRESH, OMAHA BASIS, WT.AVE, USDA5-YR AVERAGE 2015-19 80.04 94.94 68.29 54.24 74.382019 HISTORY 68.14 88.29 82.53 66.27 76.312020 HISTORY 50.09 59.36 115.26 49.212020 FORECAST 53.00 69.21% CHANGE FROM 2019 -12.9% 30.5% -40.4% -20.0% -9.3%% CHANGE FROM 5-Yr Avg. -25.8% 21.4% -27.9% -2.3% -7.0%2021 FORECAST 75.33 91.00 69.67 59.00 73.75% CHANGE FROM 2020 26.9% -21.0% 41.6% 11.3% 6.6%% CHANGE FROM 5-Yr Avg. -5.9% -4.2% 2.0% 8.8% -0.8%

7:45, E. COAST 90CL AUSTRALIAN BLENDED COW, TOP, YELLOW SHEET5-YR AVERAGE 2015-19 217.84 221.14 221.10 216.78 219.222019 HISTORY 213.02 226.93 228.89 268.65 234.372020 HISTORY 220.00 229.93 238.28 228.902020 FORECAST 226.33 230.86% CHANGE FROM 2019 7.9% 5.0% 0.0% -15.8% -1.5%% CHANGE FROM 5-Yr Avg. 5.6% 7.8% 3.5% 4.4% 5.3%2021 FORECAST 233.67 232.67 233.00 233.00 233.08% CHANGE FROM 2020 1.6% -2.4% 1.8% 2.9% 1.0%% CHANGE FROM 5-Yr Avg. 7.3% 5.2% 5.4% 7.5% 6.3%

- 63 -



- 64 -


CME 1-DAY Cash Hog Index5-YR AVERAGE 2015-19 65.34 74.30 71.65 59.98 67.822019 HISTORY 57.06 80.94 70.69 60.29 67.252020 HISTORY 77.50 59.52 54.70 48.062020 FORECAST 72.67 58.74% CHANGE FROM 2019 4.3% -32.4% -32.0% 20.5% -12.7%% CHANGE FROM 5-Yr Avg. -8.9% -26.4% -32.9% 21.1% -13.4%2021 FORECAST 70.67 78.67 75.33 64.33 72.25% CHANGE FROM 2020 18.7% 43.8% 56.7% -11.5% 23.0%% CHANGE FROM 5-Yr Avg. 8.2% 5.9% 5.1% 7.3% 6.5%

NEW YORK BROILER WEIGHTED AVERAGE, WTD AVG, USDA5-YR AVERAGE 2015-19 92.34 101.86 88.26 81.46 90.982019 HISTORY 95.54 96.46 82.82 80.49 88.832020 HISTORY 62.03 84.96 66.04 64.952020 FORECAST 67.33 70.82% CHANGE FROM 2019 -11.1% -31.5% -21.6% -16.3% -20.3%% CHANGE FROM 5-Yr Avg. -8.0% -35.2% -26.4% -17.3% -22.2%2021 FORECAST 79.33 93.33 81.00 75.67 82.33% CHANGE FROM 2020 -6.6% 41.3% 24.7% 12.4% 16.3%% CHANGE FROM 5-Yr Avg. -14.1% -8.4% -8.2% -7.1% -9.5%



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USDA, Carcass Pork Cutout, FOB Plant5-YR AVERAGE 2015-19 75.40 81.12 81.96 76.78 78.812019 HISTORY 67.98 83.30 77.34 79.68 77.082020 HISTORY 94.58 70.63 80.01 74.942020 FORECAST 92.33 79.48% CHANGE FROM 5-Yr Avg. 3.9% -3.9% -3.1% 15.9% 3.1%2021 FORECAST -6.3% -1.4% -8.6% 20.3% 0.8%% CHANGE FROM 2020 84.00 88.67 89.00 84.00 86.42% CHANGE FROM 5-Yr Avg. 18.9% 10.8% 18.8% -9.0% 8.7%2022 FORECAST 11.4% 9.3% 8.6% 9.4% 9.6%

CME 1-DAY Cash Hog Index5-YR AVERAGE 2015-19 65.34 74.30 71.65 59.98 67.822019 HISTORY 57.06 80.94 70.69 60.29 67.252020 HISTORY 77.50 59.52 54.70 48.062020 FORECAST 72.67 58.74% CHANGE FROM 2017 4.3% -32.4% -32.0% 20.5% -12.7%% CHANGE FROM 5-Yr Avg. -8.9% -26.4% -32.9% 21.1% -13.4%2021 FORECAST 70.67 78.67 75.33 64.33 72.25% CHANGE FROM 2018 18.7% 43.8% 56.7% -11.5% 23.0%% CHANGE FROM 5-Yr Avg. 8.2% 5.9% 5.1% 7.3% 6.5%



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USDA HEN TURKEYS, EAST, FROZEN 8-16LBS, WTD. AVG.5-YR AVERAGE 2015-19 95.67 99.14 104.51 102.40 100.432019 HISTORY 83.23 86.12 91.52 97.25 89.532020 HISTORY 113.00 97.62 104.69 111.622020 FORECAST 115.67 107.40% CHANGE FROM 2019 17.3% 21.6% 22.0% 18.9% 20.0%% CHANGE FROM 5-Yr Avg. 2.0% 5.6% 6.8% 13.0% 6.9%2021 FORECAST 102.00 103.00 104.67 109.33 104.75% CHANGE FROM 2020 4.5% -1.6% -6.2% -5.5% -2.5%% CHANGE FROM 5-Yr Avg. 6.6% 3.9% 0.2% 6.8% 4.3%

USDA TOM TURKEYS, EAST, FROZEN 16-24LBS, WTD. AVG. 5-YR AVERAGE 2015-19 96.09 99.72 103.67 102.35 100.462019 HISTORY 82.63 84.55 90.49 97.69 88.842020 HISTORY 114.84 97.33 103.59 110.602020 FORECAST 115.33 106.71% CHANGE FROM 2019 17.8% 22.5% 22.2% 18.1% 20.1%% CHANGE FROM 5-Yr Avg. 1.3% 3.9% 6.7% 12.7% 6.2%2021 FORECAST 101.00 102.00 104.33 108.33 103.92% CHANGE FROM 2020 3.8% -1.5% -5.7% -6.1% -2.6%% CHANGE FROM 5-Yr Avg. 5.1% 2.3% 0.6% 5.8% 3.4%


Live Cattle Prices

70.00

80.00

90.00

100.00

110.00

120.00

130.00

140.00

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

FIVE AREA DIRECT AVERAGE LIVE STEER

5-YR AVERAGE 2015-19 2019 HISTORY 2020 HISTORY 2020 FORECAST 2021 FORECAST

US$/CWT

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US Domestic 90CL Boneless Beef Prices

170.00

190.00

210.00

230.00

250.00

270.00

290.00

310.00


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


US$/CWT

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US Domestic 50CL Beef Trim

0.00

50.00

100.00

150.00

200.00

250.00


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


US$/CWT

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Imported 90CL Australian Beef

160.00

180.00

200.00

220.00

240.00

260.00

280.00

300.00


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


US$/CWT

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Spread, Domestic - Imported

-50.00

-40.00

-30.00

-20.00

-10.00

0.00

10.00

20.00

30.00

40.00

50.00


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


US$/CWT

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Whole Broiler Prices

50.00

60.00

70.00

80.00

90.00

100.00

110.00


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


US$/CWT

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20201013 MICA Presentation by Len Steiner, Final, Final

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Transcript of 20201013 MICA Presentation by Len Steiner, Final, Final