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AR#1417-FM

AUTHORIZATION REQUEST FOR FY 2014

CBB Budget Category(s): Foreign marketingName of Contractor: NCBAName of Organizations Subcontracting: USMEF

I. OVERVIEW

A. AR Description: In support of the Beef Industry Long Range Plan, USMEF organizes its programs in the international markets around the following strategic priorities:

Market Development – Introduce U.S. beef to new buyers in untapped sectors in each market while expanding the volume and range of cuts purchased by current buyers.

Market Access – Minimize the impact of government requirements and emerging consumer issues on U.S. beef exports.

As USMEF develops tactics to achieve its strategic objectives, it breaks each market into four unique sectors roughly corresponding to the distribution flow of product as follows: Trade (importers, distributors, processors), HRI (Hotel, Restaurant, Institution), Retail, and Consumer. The more developed the market, the further down this distribution chain USMEF’s activities will reach. To create further opportunities for U.S. beef, USMEF divides each of these sectors into smaller segments. For example, the HRI sector may be divided into family style eateries, BBQ chains, white tablecloth restaurants, local cuisine, and catering. The opportunities presented in these submarkets provide new areas for growth.

The activities that USMEF conducts in support of its objectives are similar in all markets, though their implementation and the specific messages delivered through these activities are tailored to fit target audiences in each market and sector. A brief description of the types of activities conducted is provided below:

Trade Servicing – trade servicing encompasses the ongoing activities that are conducted in a market to stay current on intelligence, connect buyers and sellers, communicate the commitment of the U.S. industry, stay in touch with target accounts, and build and maintain relationships.

Trade Shows – trade shows bring buyers and sellers together to discuss business needs, reinforce personal relationships, become informed about trends, and demonstrate current and new products. Trade shows often feature a U.S. or meat pavilion in which USMEF and U.S. beef suppliers have booths for displaying product samples and meeting buyers. Trade shows range from large-scale events, to smaller shows focused on specific sectors or regions, as well as very targeted importer-hosted shows.

Trade Teams – trade teams give participants (typically importers/distributors and decision-makers from targeted hotel, restaurant, and retail companies) a thorough overview of U.S. beef production techniques and the industry so they are better informed about topics such as quality attributes, the range of products available from the U.S., safety and inspection procedures, and trends in food service and retail industries. In many cases, trade teams are an important means to facilitate business relationships between buyers and sellers.

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Seminars/Training – seminars are used to deliver relevant information about U.S. beef to target audiences. As buyer education is one of the cornerstones of market development, seminars allow USMEF to reach buyers in a very direct manner. Seminars range from large-scale presentations to hands-on training and company-specific visits.

Communications – a variety of communications activities may be utilized to create a positive image for U.S. beef among targeted buyers and to stimulate purchases. The activities can help introduce new products, provide information about where to purchase U.S. beef, generate goodwill, and promote the quality and safety of the product. Specific activities may include advertising, article placements, and public relations events to keep U.S. beef top-of-mind among the target audience.

Promotions – promotions are used in conjunction with a full range of activities to encourage retailers and foodservice operators to become first-time/regular buyers of U.S. beef and then to expand the range of products they include in their menus and meat cases. Promotions also provide a means for delivering messages about the quality, taste, safety and versatility of U.S. beef directly to targeted consumers. USMEF participates jointly with HRI and retail partners in promotions that take many different forms, including new menu features, in-store tastings, and events/contests designed to increase purchases.

Issue Monitoring, Analysis and Reporting – USMEF updates U.S. exporters, industry trade associations and government agencies with information and analysis on import policies and requirements that could restrict U.S. beef exports. Specific activities include structured conferences, formal communications with relevant parties, and informal meetings.

Government and External Relations – USMEF communicates information about U.S. meat safety systems, U.S. government export requirements, U.S. production practices, and science-based assurances about the U.S. meat industry to foreign government authorities, opinion leaders, the media, the trade, and the general public in international markets. Specific activities include seminars, teams, educational materials, relationship-building, public relations and research.

Technical Support – USMEF provides details to the trade and local authorities on U.S. export specifications, certification procedures, safety inspection measures and quality assurance programs. Specific activities include seminars, educational materials and teams.

B. Costs Requested from this AR:Source of Funding Total Direct Costs Implementation

Beef Board/BPOC $7,934,898 $5,738,026 $2,196,872Federation of SBCs (FSBCs) $1,741,402 $1,259,274 $482,128Other Sources (describe)

Total Funds Requested $9,676,300 $6,997,300 $2,679,000

C. Start date: 10/1/13 Completion date: 9/30/14

II. PLANNING INFORMATION FOR THIS AR

A. Long Range Plan Core Strategies/Demand Drivers Addressed by This AR: Capitalize on global growth opportunities

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B. Committee(s) recommendations for work plan funded by this AR: The Global Growth Committee recommends this AR for funding by the Beef Promotion Operating Committee.

III. PROGRAM INFORMATION FOR THIS AR

A. Long Range Plan Core Strategy 1: Capitalize on global growth opportunities

Strategy 4 Proposed Cost: $9,676,300

Specific Tactic Information:

Tactic 4A: Market Development – ASEAN

ASEAN BackgroundIn 2012, exports of U.S. beef plus variety meat to the ASEAN region decreased 30 percent in volume to 55,280 mt and 16 percent in value to $231 million. This decline was driven by a steep drop in exports to Indonesia where U.S. beef faces significant import barriers. Exports to Vietnam performed well through the first eight months of 2012 but then slowed, finishing down 10 percent to 40,305 mt. Export volume to the Philippines was down 9 percent, but value increased 18 percent to $45 million.

Export forecasts for 2013 and 2014 are 50,844 mt valued at $212.9 million and 61,549 mt valued at $249.5 million, respectively.

ASEAN Market Trends & USMEF Tactical ResponseSeveral markets in the region show solid potential for U.S. beef exports, as the rapidly growing middle class can now afford to spend more on imported food including beef. Beef consumption continues to increase in the region, particularly as more international restaurant and retail franchise outlets open. Tactical Response: USMEF’s top priority will be the foodservice sector, including

large volume users such as catering establishments. USMEF will work with key accounts to explore the use of secondary cuts that only require simple preparation but present a higher perceived value of the finished product. The skill level of chefs in some countries is limited, so basic preparation instruction would provide immediate benefits.

Retail opportunities are growing in the Philippines, Indonesia, Singapore and Vietnam as the developing retail sector transitions to modern shopping centers and large supermarkets. Tactical Response: USMEF will work to increase U.S. beef’s presence in modern

supermarkets, providing merchandising assistance and developing strategies with distributors to help retailers effectively promote U.S. beef products. Many ASEAN countries are also showing growth in Internet shopping, and USMEF will assist importers/distributors and their retail customers with tools to strengthen promotions and use new technologies to increase sales.

As the cost of local manufacturing material continues to increase, processors in the Philippines, Vietnam and Indonesia are looking for a consistent supply of quality input materials.

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Tactical Response: USMEF will maintain close contact with processors to influence and educate them on using U.S. beef variety meat such as hearts and livers as standard input material.

Recent changes to Japan’s U.S. beef under-twenty-month age restriction have significantly increased the amount of U.S. beef eligible for Japan, especially variety meats, and the ASEAN region may face price increases or supply challenges as more product flows to the higher margin market. Tactical Response: USMEF will further explore expanded use of sirloin and round

cuts in the ASEAN region, as well as work to increase the market for over-thirty-month and no-roll items for the Philippines and Indonesia.

ASEAN Continuing Tactical ObjectivesEducate key accounts about the quality and value of a wide range of U.S. beef products to a) mitigate the perception that U.S. beef is not price competitive, b) encourage expanded purchases among trade, HRI and retail accounts, and c) maintain strong relationships with existing buyers. Develop the image of U.S. beef as the premier beef available in the market, from

five-star establishments to family-style outlets. Educate HRI end-users about the profitability of underutilized U.S. beef cuts and

teach them how to incorporate these cuts into their restaurant concepts. Work with targeted food distributors, chefs, purchasing managers and restaurant

owners to identify and address company-specific opportunities and challenges. Continue to focus on new opportunities, including expanding the marketing reach to

new HRI and retail subsectors in targeted markets.

Measurable Objectives: (Target Audiences for Evaluation adjusted for 2014)o 83% of targeted trade accounts will understand the profit potential of and have a

favorable attitude towards U.S. beef based on information provided by USMEF.o 73% of targeted HRI accounts will regularly feature/promote U.S. beef.o 86% of targeted retailers will regularly stock U.S. beef.

Proposed Cost: $348,277 (Direct + Estimated Implementation)

Tactic 4B: Market Access – ASEANUSMEF will contribute to and support initiatives to eliminate trade-restrictive policies and requirements in the ASEAN region and keep the U.S. industry informed on critical changes in government regulations and emerging consumer issues.

ASEAN Noteworthy Market Access Issues include a) BSE-related restrictions on imports of U.S. beef in Singapore, Thailand and Vietnam; b) Vietnam’s “white offal” ban and revised acceptable residue levels for selected chemical compounds in meat; c) Indonesia’s introduction of WTO-inconsistent quantitative restrictions on beef imports and lack of a transparent and consistent system for approving plants; and d) other non-science based barriers throughout the region.

Measurable Objectives:o USMEF will contribute to and support initiatives to eliminate trade restrictive policies.o 80% of USMEF members will report that they receive the information they need from

USMEF related to market access.

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Tactic 4C: Market Development – Caribbean

Caribbean BackgroundIn 2012, exports of U.S. beef plus beef variety meat to the Caribbean region were 17,624 mt valued at $94.4 million—down 20 percent in volume, but 7 percent higher in value than 2011. Exports to Jamaica, the Caribbean’s leading volume destination, were consistent with the pattern as volume (5,559 mt) was down 26 percent, but value ($17.9 million) was up 6 percent. The Bahamas was the region’s leading value destination, up 8 percent to $22 million, despite a drop in volume (down 18 percent to 3,557 mt).


Caribbean Market Trends & USMEF Tactical ResponseThe sluggish global economy has impacted tourism and employment rates in the Caribbean, leading to increased importance placed on price/value by restaurateurs. Buyers and chefs are looking at methods to provide quality offerings to their customers while keeping price points low. Tactical Response: USMEF will work with chefs to introduce and highlight the profit

potential of cost-effective U.S. beef cuts and showcase how quality and culinary integrity can be maintained when using alternative cuts, especially compared to that of the competition.

The U.S. is the only significant exporter of fresh beef to the Caribbean market, so there is room to expand import volumes of fresh U.S. beef products. Target islands for development and expansion of fresh U.S. beef offerings are beginning to understand the quality and taste benefits of fresh product. Tactical Response: USMEF will work with retail chains to educate employees on the

value/quality benefits of U.S. chilled beef as well as to train them on the proper handling and marketing of the product.

Jamaica recently implemented a consumption tax on some raw food items, including beef. This tax is applied to each transaction in the distribution/production process, and is estimated to increase the final tax/duties for imported beef up to 120%. This has severely limited the market for all beef imports outside the manufacturing sector, which was granted duty-free status. Tactical Response: USMEF will educate local processors on using U.S. beef for

manufacturing to capitalize on the duty-free status, while also promoting more value-added, economical cuts by focusing on their profit potential for HRI and retail buyers.

Caribbean Continuing Tactical ObjectivesKeep U.S. beef top-of-mind among purchasers in terms of quality, consistency and eating experience in order to: a) distinguish it from the competition and other alternative protein sources; and b) further develop demand for a wide range of items. Expand the range and volume of U.S. beef cuts sold by educating importers and

their downstream customers about the value and profitability of featuring U.S. beef for its versatility, safety and taste.

Present the maximum SKUs (individual items) from each cut and identify ways distributors can work with their customers to broaden their menu or retail offerings.

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Demonstrate how to profitably handle an expanded range of U.S. beef cuts to foodservice distributors, dining establishments and lodging properties.

Work with all sectors, especially foodservice, on basic principles of meat science and handling practices.

Showcase the versatility of U.S. beef products by demonstrating to targeted HRI accounts how certain cuts like brisket can be used as both a beef roast and barbeque menu item, as well as for staff meals.

Continue to focus on new opportunities, including hotel chain growth, especially with some of the higher-end chains, and the consolidation of retail chains across the islands which allows for more targeted programs.

Measurable Objectives:o 100% of targeted importers/distributors will understand the supply/quality/value

relationships of U.S. beef based on information provided by USMEF.o 88% of targeted HRI accounts will promote new ways to use popular cuts or an

alternative cut of U.S. beef to their customers.o 90% of targeted retailers will understand how to properly merchandise U.S. beef.


Tactic 4D: Market Access – CaribbeanUSMEF will contribute to and support initiatives to eliminate trade-restrictive policies and requirements in the Caribbean region and keep the U.S. industry informed on critical changes in government regulations and emerging consumer issues.

Caribbean Noteworthy Market Access Issues include BSE-related restrictions on imports of U.S. beef in St. Lucia.




Tactic 4E: Market Development – Central America + Dominican Republic

Central America + DR Background In 2012, exports of U.S. beef plus variety meat to the Central America + DR region were about even with 2011 at 10,691 mt, though value was up 19 percent to $69 million. Guatemala was the largest volume market in the region at 3,781 mt (up 8 percent) valued at $19 million (up 18 percent). Although the DR was a close second in terms of volume at 3,707 mt, it was by far the largest value market at $33 million (up 13 percent).


Central America + DR Market Trends & USMEF Tactical Response

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Most countries in the region continue to increase imports of beef, though in many markets, the U.S. is not the leading supplier. This is creating opportunities for U.S. beef to fill the resultant supply shortfall. However, high U.S. beef prices and restricted supplies remain constraints to tapping these opportunities. Tactical Response: USMEF is working to increase buyer knowledge through the

promotion of beef value cuts in the HRI and retail sectors (e.g. top blade “California cut,” sliced shoulder clod “Texas steak,” arm roast, and petite tender), while also educating importers and distributors on the range of U.S. beef products available.

The U.S.-Panama free trade agreement, entered into force in October 2012, immediately eliminated duties on Choice and Prime graded U.S. beef as well as variety meats. Other duty reductions will begin in year 6 and will reach zero by year 15. Panama has the highest per capita income in the region, and the U.S.-Panama FTA represents new export opportunities for the U.S. beef industry. Tactical Response: USMEF will leverage the benefits of the FTA by identifying niche

HRI and retail segments for high grade U.S. beef as well as additional areas for variety meats.

Growth is expected to continue in Guatemala with the CAFTA-DR free trade agreement, which provides duty-free access for a limited quantity (1,480 mt in 2013) of U.S. beef exports to Guatemala, and an 8 percent out-of-quota duty. There is no duty for Choice and Prime beef cuts. Despite favorable market conditions, U.S. beef is still challenged by high prices and limited availability of many cuts. Tactical Response: USMEF will continue to work with the leading buyers to

encourage them to source alternative U.S. beef products such as inside round. There will also be an increased emphasis on the retail sector as more consumers will likely purchase beef through this channel rather than the restaurant and hotel sector due to high U.S. beef prices.

The tourism sector in the Dominican Republic, where 60 percent of all U.S. beef is consumed, continues to represent growth opportunities. Additionally, the modern supermarket sector is expanding not only in Santo Domingo, but also in other population centers. Tactical Response: USMEF will continue to work with the hotel and restaurant sector

to help them increase their use of U.S. beef value cuts, while also further penetrating the retail market by working with additional supermarket chains and focusing on will meat department training and education to improve U.S. beef merchandising.

Central America + DR Continuing Tactical Objectives Communicate the quality, consistency and profit potential of U.S. beef across sectors, and introduce U.S. beef value cuts and variety meats to buyers. Educate importers, distributors and other market stakeholders about the profitability

of U.S. beef value cuts and provide training on the proper handling and merchandising of unfamiliar cuts.

Increase buyer knowledge about beef variety meats and low-cost alternative cuts (e.g. chuck tender, shoulder clod, and top sirloin butt) and how to fabricate, package and promote them to increase margins.

Facilitate sales by conducting activities that directly bring buyers together with U.S. suppliers.

Continue to focus on new opportunities, including expanding into new market subsectors.

Measurable Objectives: (Target Audiences for Evaluation adjusted for 2014)

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o 30% of targeted importers/distributors consistently source and successfully promote U.S. beef to their downstream customers.

o 40% of targeted retailers will consistently incorporate suggested merchandising methods to promote the quality attributes of U.S. beef.


Tactic 4F: Market Access – Central America + Dominican RepublicUSMEF will contribute to and support initiatives to eliminate/prevent trade-restrictive policies and requirements in the Central America + Dominican Republic region and keep the U.S. industry informed of critical changes in government regulations and emerging consumer issues.

Central America + DR Noteworthy Market Access Issues include a) BSE-related restrictions on U.S. beef imports in some countries in the region; b) lack of trust among some Central American authorities regarding U.S. export documentation; c) confusion in El Salvador about the rule of origin of U.S. pork due to the U.S. Country of Origin Labeling law, which could also affect U.S. beef and spread beyond El Salvador; and d) possible discriminatory application of a consumption tax on U.S. Choice and Prime beef cuts in Honduras.




Tactic 4G: Market Development – China/Hong Kong

China/Hong Kong BackgroundIn 2012, Mainland China remained closed to U.S. beef, but new records were set for U.S. beef plus variety meat exports to Hong Kong of 65,033 mt (up 28 percent) valued at $340 million (up 43 percent). This was achieved despite U.S. beef restrictions in Hong Kong throughout 2012. However, in February 2013, Hong Kong began accepting U.S. boneless beef from cattle of all ages, and bone-in beef from cattle less than 30 months of age.


China/Hong Kong Market Trends & USMEF Tactical ResponseSeveral trends have been identified in the region’s foodservice sector, including a) increased eating-out, business dining and wedding catering, for which beef dishes have been very popular; b) expansion of leading restaurant chains on a nationwide basis; c) enhanced growth in burger and local fast food restaurants; and d) increased development of hotel chains. Continued growth in each of these areas sets a strong foundation for the potential to increase U.S. beef market share. Tactical Response: USMEF will target fast food restaurants and family-style dining,

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also continue to assist select high-end users to showcase U.S. beef’s quality image. Specific to China, educational information provided through USMEF’s Chefs Cookism Club on the safety, quality and versatility of U.S. beef will aid in accelerating demand upon alleviation of the import ban.

Beef is widely considered a healthy, premium protein, and the demand for higher quality beef (due in part to the region’s strong economic growth and growing middle class) has hotels and restaurants adding it to their menus. Additionally, China’s declining cattle herd is creating a shortage in fresh beef supplies to Hong Kong, which further presents growth opportunities for U.S. beef in this market. This trend is an indication of the market growth potential in Hong Kong and China (once open). Tactical Response: In Hong Kong, USMEF will work with importers and distributors,

as well as high-end foodservice and retail chains, to educate them on the profitability and range of high quality U.S. beef products available. In China, until the market opens, information on the quality and safety attributes of U.S. beef will be disseminated via USMEF-China’s website, blogger activities and printed materials.

China/Hong Kong Continuing Tactical ObjectivesA) Build customer loyalty by educating buyers about U.S. beef safety and inspection systems, new regulatory and operating structures, unique production capabilities, profitability, product quality, and the range of product specifications; B) Reestablish distribution channels in China (once the market opens) and identify untapped and underdeveloped segments in the China/Hong Kong region, focusing on developing awareness of additional U.S. beef cuts and specifications to ensure that U.S. beef remains affordable for a growing set of buyers. Reinforce supply links between U.S. suppliers and local importers, wholesalers, HRI

operators and retailers. Promote U.S. beef in Hong Kong and Macau by raising awareness in foodservice

and retail outlets, emphasizing chilled and frozen portion control products at retail, and chilled and frozen sub-primal cuts for foodservice.

Work with importers to develop cuts/packaging to meet Hong Kong retailers’ needs. Conduct trade education on new cuts such as clod heart, eye of round and skirt

meat that will not compete with growing demand by other Asian markets (i.e. Japan). Expand communications with China’s large foodservice operators to further

understand their beef supply needs in order to position the U.S. beef industry as a consistent and reliable supplier to this sector as it presents one of the largest opportunities for U.S. beef exports once the market opens.

Develop relationships with key officials, influencers and beef industry partners to build confidence in the safety of U.S. beef.

Continue to focus on new opportunities, including foodservice growth, retail expansion, and increased distributor training.

Measurable Objectives:o 77% of targeted importers/distributors will understand the supply capabilities and

quality attributes of U.S. beef based on information provided by USMEF.o 81% of targeted Hong Kong HRI outlets/chains will regularly use U.S. beef and

actively participate in and/or contribute to USMEF promotions.o 100% of targeted Hong Kong retailers will regularly feature two U.S. loin cuts and

one underutilized cut.

Proposed Cost: $384,555 (Direct + Estimated Implementation)9

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Tactic 4H: Market Access – China/Hong KongUSMEF will contribute to and support initiatives to eliminate/prevent trade-restrictive policies and requirements in the China/Hong Kong region and keep the U.S. industry informed of critical changes in government regulations and emerging consumer issues.

China/Hong Kong Noteworthy Market Access Issues include a) China’s ban on beef imports from the U.S., and BSE-related restrictions on U.S. beef imports in Hong Kong; and b) China’s zero tolerance policy on the presence of beta-agonists, hormones and pathogens in red meat imports.




Tactic 4I: Market Development – Europe

Europe BackgroundAccording to U.S. Census data, 2012 exports of U.S. beef plus variety meat to the EU were down 23 percent in volume to 25,003 mt compared to 2011, with value down 3 percent to $236 million. However, according to EU import data, which is considered a more accurate measure of U.S. trade in this unique market, imports of U.S. beef were about even with 2011, totaling 16,093 mt, while value grew 8 percent to $201.7 million.


Europe Market Trends & USMEF Tactical ResponseThe range of U.S. beef cuts supplied to Europe is expanding as tight EU domestic supply pushes prices higher. Distributors are encouraging restaurants and retailers to consider U.S. alternative cuts as the surge in beef prices is likely to steer consumers away from pricier traditional cuts. Even in the current economic environment, the demand for quality is growing. Tactical Response: USMEF will continue concentrating its efforts on the higher-end

segment of the market where buyers recognize U.S. beef as a top product with a strong reputation for quality and consistency. Despite higher prices, importers and distributors, along with their foodservice customers, take a longer-term view toward U.S. beef, and USMEF will continue supporting their efforts to build demand.

The duty free quota was expanded from 20,000 mt to 45,975 mt on August 1, 2012. At the same time, the requirement to obtain an import license prior to receiving the goods has been removed and customs clearance takes place on a first-come, first-served basis. The increase of the quota combined with the removal of the requirement for an import license has greatly facilitated the importing process. Tactical Response: The quota is now sufficiently large to accommodate significant

growth in business, and USMEF will work on assuring that the benefit of this quota remains to the advantage of the U.S. and does not get dispersed amongst the other countries to which the EU also approved access.

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Europe Continuing Tactical ObjectivesBuild demand for U.S. beef in Europe by educating targeted buyers on the potential profitability and enhanced culinary experience available from both high-demand and underutilized cuts of U.S. beef. Strengthen relationships with approved suppliers and targeted buyers and work to

establish distribution links for U.S. beef and build product loyalty. Continue working with the trade to expand demand for a range of U.S. beef cuts,

specifically forequarter sets. Increase the number of chefs, HRI suppliers, and targeted retailers, that understand

the unique attributes of U.S. beef and include it as part of their regular product mix. Develop online and social media communications with consumers on U.S. beef

quality attributes and provide information on where to find U.S. beef. Work toward the elimination of technical and sanitary barriers, as well as a

significant expansion of the duty-free quota, and continue to support revocation of restrictive European trade barriers.

Continue to focus on new opportunities, including HRI and retail expansion, and the growth potential in the broader region including Eastern Europe.

Measurable Objectives:o 80% of targeted importers/distributors will consistently purchase U.S. beef year-

round, including cuts other than traditional loin steak cuts.o 83% of targeted HRI distributors and retailers will make trial purchases of U.S. beef.o 75% of targeted HRI distributors and retailers will regularly offer U.S. beef.


Tactic 4J: Market Access – EuropeUSMEF will contribute to and support initiatives to eliminate/prevent trade-restrictive policies and requirements in Europe and keep the U.S. industry informed of critical changes in government regulations and emerging consumer issues.

Europe Noteworthy Market Access Issues include a) restrictions on the use of most pathogen reduction treatments used in the U.S.; b) the ban on the use of beta-agonists and hormones in red meat production; c) high tariffs and relatively small tariff rate quotas; and d) the tendency to adopt restrictive measures regarding animal welfare, cloned animals, and the environmental impact of meat production.




Tactic 4K: Market Development – Japan

Japan Background

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In 2012, U.S. beef plus variety meat exports to Japan decreased 4 percent in volume to 152,763 mt, but increased 18 percent in value, reaching $1.03 billion, and surpassing the $1 billion mark for the first time since 2003. Despite continued limitations on U.S. beef imports to beef from cattle 20 months of age and younger, Japan remained the third-largest market for U.S. beef exports. The February 2013 opening of Japan to U.S. beef from cattle less than 30 months of age will help boost exports to this key market.

Export forecasts for 2013 and 2014 are 220,819 mt valued at $1.490 billion and 250,950 mt valued at $1.719 billion, respectively.

Japan Market Trends & USMEF Tactical ResponseThe change in Japan’s U.S. beef age restriction to less than 30 months of age (LT30) will significantly increase the amount of U.S. beef available for the market, especially variety meats. Tactical Response: USMEF will capitalize on the opportunity to increase U.S. beef’s

market share through an integrated U.S. beef campaign. USMEF will also focus on expanding U.S. beef’s reach by increasing usage in national and regional retail chains, highlighting the opportunities for retailers to provide greater volumes and selection of quality U.S. beef to their customers. However, with increased access, there may be new concerns and questions, and USMEF will continuously educate influential figures from the industry, political, regulatory and media realms who play important roles in the overall acceptance of U.S. beef.

Prior to 2003, Japan imported over 60,000 mt of beef variety meat, including tongue, from the U.S. that was primarily used by the yakiniku industry. Since then, competitors have not been able to meet Japan’s beef variety meat needs, and as a result, this restaurant segment has significantly declined. Tactical Response: Japan’s yakiniku industry is now poised for rapid expansion with

the increase of U.S. beef variety meat imports, and USMEF will work with industry organizations and major chains to reeducate buyers on the quality of U.S. beef variety meat and promote items including tongue, outside skirt, hanging tenders and intestine.

Value is a priority as Japanese consumers expect lower prices for unchanged quality. At the same time, healthy/functional food purchases are growing due to increased concerns for maintaining healthy lifestyles. Consumers are eating more meals with family at home as well as in restaurants, putting more focus on the quality of the eating experience. Tactical Response: USMEF will continue showcasing how U.S. beef can be part of

an affordable, balanced diet that is nutrient rich and flavorful compared to some competing products. Working with U.S. suppliers to build demand for alternative cuts, a wider range of grades, and middle meats, USMEF will reach more consumers with broader price points to increase U.S. beef’s market share. USMEF will also work with buyers so they have a greater understanding of how a higher cattle age limit will allow for greater supplies of prime, top choice, and other premium programs, which can replace grain-fed Aussie beef at hotels and restaurants.

Japan Continuing Tactical ObjectivesA) Increase the volume of popular cuts and the number of new cuts of U.S. beef purchased by highlighting the positive product attributes and alleviating supply, profitability and safety concerns; B) Encourage expansion of U.S. beef as a substitute

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for Japanese and other imported beef in growing, underdeveloped market segments by conveying the consistent supply, safety, quality and versatility of U.S. beef. Continue building relationships with key leaders to maintain trust in the reliability of

the U.S. beef industry. Educate the Japanese trade about merchandising alternative U.S. beef cuts to

increase sales. Actively promote a range of U.S. beef cuts and provide new marketing and menu

ideas throughout multiple departments within HRI and retail accounts. Target additional market sectors (e.g. catering, processors), which require affordable

high quality products. Continue to focus on new opportunities, including convenience stores and bento box

outlets, retail brands, high-quality middle meats in high-end hotel restaurants, and Japan’s aging demographic.

Measurable Objectives:o 50% of targeted importers/distributors will consistently purchase 2 or more U.S. beef

alternative cuts.o 56% of targeted HRI/retail accounts will consistently feature 2 or more U.S. beef cuts.o 66% of targeted bento/convenience stores will offer menu items featuring U.S. beef.o 24% of targeted consumers will have purchased U.S. beef within the past 2 weeks

prior to being surveyed.

Proposed Cost: $3,150,997 (Direct + Estimated Implementation)

Tactic 4L: Market Access – JapanUSMEF will contribute to and support initiatives to eliminate trade-restrictive policies and requirements in Japan, build and reinforce confidence among Japanese leaders in the U.S. industry as a producer and exporter of beef, distribute information about international standards and relevant global research, and keep the U.S. industry informed on critical changes in Japanese government regulations and emerging consumer issues.

Japan Noteworthy Market Access Issues include a) Japan’s BSE-related restrictions on beef imports and related domestic regulations and consumer perceptions about the safety of U.S. beef; b) very high duties on imported beef; and c) consumer concerns about the impact of production practices including GMO feed, feed additives, antibiotics, cloning, animal welfare, environmental issues, and safety and verification systems.




Tactic 4M: Market Development – Korea

Korea BackgroundIn 2012, U.S. beef plus variety meat exports to South Korea slowed in 2012 due to a sluggish economy and a large surplus of domestic meat in the market. By year’s end,

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U.S. beef exports were down 18 percent in volume to 125,614 mt and 15 percent in value to $582 million. Korea imported less beef from all sources in 2012 with total imports down 13 percent in volume and 16 percent in value. Despite these obstacles, long-term export prospects for U.S. beef in Korea brightened considerably when the U.S.-Korea Free Trade Agreement (KORUS FTA) went into effect in 2012. The reduction of beef duties to zero over 15 years is expected to help boost U.S. exports to Korea to more than $1 billion per year by the end of that time period.


Korea Market Trends & USMEF Tactical ResponseThe resumption of U.S. beef imports in Korea was originally met with serious concerns regarding U.S. beef production practices and the safety of U.S. beef products. Consumer perceptions of U.S. beef had been steadily increasing until the most recent BSE finding in April 2012. Although the latest case did not result in huge public protests as in the past, it still caused a ripple effect in the market that led to decreased U.S. beef sales. Tactical Response: USMEF’s imaging campaign based on a “To Trust” theme has

been successful in providing information to the general public and key opinion leaders. As U.S. beef educational and marketing efforts continue, the campaign’s focus will shift from addressing negative U.S. beef perceptions to focusing on U.S. beef’s positive attributes. USMEF will also work with key opinion leaders to provide factual information on the U.S. beef industry’s continued commitment to the Korean market in an effort to maintain balanced media coverage.

Following the 2012 BSE case, younger Korean consumers sought out fact-based information, resulting in a less emotional response and a more accepting and trusting attitude toward imported food than in the past. Tactical Response: To appeal to Korea’s younger consumers, USMEF will

implement marketing activities that highlight U.S. beef as part of a healthy and quality lifestyle coupled with messaging that characterizes U.S. beef as being part of a fun and chic culture.

With the KORUS FTA, over the next 15 years, U.S. beef products will continue to become more price competitive as tariffs on U.S. beef muscle cuts (previously 40%) and offal (previously 18%) decline to zero in 15 equal annual reductions. This will help U.S. beef, especially chilled beef, increase its competitive advantage in this high-value market. Tactical Response: USMEF will develop programs to capitalize on the long-term

impact the KORUS FTA will have on ensuring affordable and consistent supplies of high-quality U.S. beef products in Korea. USMEF will leverage the growth of U.S. chilled beef in the Korean market to further demonstrate its profitability and superior quality compared to that of the competition. USMEF will implement an intensive retail strategy among leading chains, working with each targeted retailer to host U.S. chilled beef promotions featuring point of sale consumer educational materials.

Korea’s domestic beef herd has grown beyond an “economically healthy” size of 2.5 million to 3.1 million head and is anticipated to reach a record high in 2013. As a result of too many Hanwoo cattle, domestic supply is exceeding normal demand, resulting in discounted wholesale prices at retail. This has created a strong incentive to push Hanwoo beef rather than U.S. or other competing beef products.

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Tactical Response: Despite the anticipated oversupply of domestic Hanwoo (which is projected to normalize in 2014), USMEF will continue to work with trade, HRI and retail buyers to demonstrate the unique taste, quality and value of U.S. grain-fed beef. USMEF will also emphasize the fact that U.S. beef has a unique and special place in the market and can continue to bring steady profits.

Korea Continuing Tactical ObjectivesA) On the supply/distribution side, reeducate key accounts about the safety, quality, profitability and versatility of reasonably priced high-quality U.S. beef, and provide information across sectors about safeguards in place in the U.S. beef industry to ensure a safe and consistent supply; B) On the demand side, alleviate lingering consumer concern over the safety of U.S. beef and inform consumers about its taste attributes and availability. Continue to regain market share lost during the U.S. beef import ban by increasing

the number of trusted end-users and securing their endorsements of U.S. beef to address buyer and consumer bias.

Facilitate linkages between U.S. suppliers and targeted trade accounts through activities associated with the “To Trust” campaign, focusing on promoting the safety, wholesomeness, and superior quality of U.S. beef, as well as increasing product placement in foodservice and retail.

Alleviate lingering consumer anxiety so as to reduce the percentage of the population still reticent to purchase and consume U.S. beef.

Form strategic alliances with high-end restaurants, Korean BBQ chains and franchised western-style family restaurants to increase the visibility and positive image of U.S. beef, especially with middle meat cuts.

Continue trade education as it relates to new cut merchandising. Increase U.S. chilled beef availability to compete with domestic Hanwoo and

Australian chilled beef, and expand U.S. beef alternative cut usage, particularly at BBQ restaurants and retail stores.

Expand U.S. beef market share by working with large-scale domestic beef distributors to feature U.S. beef in sales channels that are currently dominated by Korean Hanwoo.

Explore new marketing opportunities geared toward young consumers by promoting U.S. beef through events such as BBQ activities for camping clubs, culinary classes with cooking instructors, and dinner outings attended by young urban workers.

Continue to focus on new opportunities, including expanded U.S. beef volume and product range in major retail chains and Korea BBQ restaurants, and increased usage of U.S. beef in holiday gift sets.

Measurable Objectives:o 45% of targeted trade accounts will be confident in the consistent supply of U.S.

chilled beef.o 75% of targeted HRI accounts will feature a (new) U.S. beef item on the menu.o 58% of targeted hotel/banquet accounts will feature U.S. beef on their menus.o 50% of targeted retailers will merchandise recommended alternative U.S. beef

items.


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Tactic 4N: Market Access – KoreaUSMEF will contribute to and support initiatives to eliminate trade-restrictive, non-science-based policies and requirements in Korea, build and reinforce confidence in the U.S. industry as a producer and exporter of beef, and keep the U.S. industry informed on critical changes in Korean government regulations and emerging consumer issues.

Korea Noteworthy Market Access Issues include a) Korea’s changing feed and drug registration process, which could affect the status of beta agonists that are commonly fed to cattle in the U.S.; b) a ban on imports of U.S. beef and beef products from cattle over 30 months of age; and c) pending issues with under 30-month beef access (such as processed beef, small intestine, tongue, etc.).




Tactic 4O: Market Development – Mexico

Mexico BackgroundIn 2012, Mexico was the top volume market for U.S. beef, with exports of U.S. beef plus variety meat reaching 192,989 mt valued at $822.4 million. This represented 87.5 percent of Mexico’s imported beef market for the year (up from 84.5 percent in 2011). U.S. beef export volume decreased 25 percent in 2012, while value decreased 17 percent. High beef prices, a weak peso and a sluggish local economy continued to create a tough business climate for U.S. beef in Mexico, though this market remains a leading destination for U.S. beef.


Mexico Market Trends & USMEF Tactical ResponseMexican consumers love beef, and U.S. beef has a high-quality, safe image. However, U.S. beef is known mainly for high-end cuts, which limits the perceived culinary applications. Furthermore, high-priced U.S. beef products, compared to competing proteins, have challenged exports to the Mexican market. Tactical Response: USMEF is further expanding its reach in the market to continue

developing new users and uses for U.S. beef. For example specialty foodservice segments move large volumes of meat, offering growing opportunities for U.S. beef. In addition to education on quality and cuts, USMEF’s technical training on proper handling and cooking options for the HRI sector will help restaurants profitably use U.S. beef. Regional supermarkets also offer new opportunities as many of these chains have not consistently purchased and merchandized U.S. beef. With proper training and exposure to the product, these companies may buy larger quantities of U.S. beef, especially in light of increased scarcity of domestic beef due to the severe drought in Mexico and significant exports of Mexican feeder cattle to the U.S.

U.S. beef is valued at restaurants for its quality and consistency, which is becoming more important as prices increase and chefs consider substitute proteins. Young chefs

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in Mexico are hungry for new information and ideas to help shape their individual styles, and they offer an opportunity to create new culinary trends that will build loyalty and keep higher-priced U.S. beef on the menu. Tactical Response: Based on extensive experience working with culinary leaders in

Mexico, USMEF sees opportunities to encourage up-and-coming chefs to favor U.S. beef through training and image-building events. These activities will also help forge relationships with leading culinary schools and put U.S. beef on the curriculum. Besides cooking techniques, training will include technical information about U.S. beef such as yields, grading and consistency, which distinguish it from other beef.

Expected higher U.S. beef prices and less availability of popular cuts represent significant challenges for exports to Mexico. As such, penetrating diverse market segments with a broad range of products is now more important for finding new buyers. Tactical Response: USMEF will intensify its partnerships with high-end retailers and

selected foodservice distributors whose customers are not as affected by high U.S. beef prices. Additionally, USMEF will increase its education and promotion of U.S. beef value cuts (tri-tip, top sirloin, inside flank) for supermarket and foodservice accounts as a substitute for pricier, more-scarce, high-end middle meats.

Mexico Continuing Tactical ObjectivesA) Capitalize on USMEF’s established relationships with the trade to demonstrate to decision makers in the growing HRI and retail sectors the consistency and superior quality of U.S. beef products, as well as convey the positive attributes of U.S. beef to their customers; B) Demonstrate to a new set of accounts the profit potential of U.S. beef and how to effectively handle and merchandise its positive attributes to customers. Provide importers and distributors the tools to effectively increase sales of U.S. beef

to downstream customers, including training on proper handling practices, cutting specifications, merchandising techniques, and sales and negotiation strategies.

Expand research/education to highlight new items, possibly including top sirloin, flank steak and chuck tender.

Focus HRI and retail activities on training managers and staff to ensure U.S. beef is properly presented, promoted, merchandised, origin-identified, and labeled, and increase marketing support to further boost sales.

Communicate to consumers through direct contact with point-of-sale meat specialists and demonstrators at the meat case about the attributes of U.S. beef and provide recipes and cooking tips.

Continue to focus on new opportunities, including regional supermarkets, unique foodservice segments, and specialty meat shops.

Measurable Objectives:o 80% of targeted importers/distributors/processors will actively promote a range of

U.S. beef cuts, including value cuts, highlighting the products’ quality attributes.o 60% of targeted restaurant chains that actively feature/promote U.S. beef, including

value cuts, to their customers.o 86% of targeted retailers will consistently incorporate suggested merchandizing

methods to promote U.S. beef to their customers.


Tactic 4P: Market Access – Mexico

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USMEF will contribute to and support initiatives to eliminate/prevent trade-restrictive policies and requirements in Mexico and keep the U.S. industry informed on critical changes in Mexican government regulations and emerging consumer issues.

Mexico Noteworthy Market Access Issues include a) BSE-related under-30-month restriction for beef imports; b) possible animal ID and traceability requirements, which could impede U.S. beef exports; c) yet to be implemented maximum residue levels; and d) proposed changes to inspection procedures.




Tactic 4Q: Market Development – Middle East

Middle East BackgroundFollowing a record breaking year in 2011, U.S. beef plus variety meat exports to the Middle East region in 2012 were 152,333 mt valued at $331 million, a decline of 13 percent in volume and 7 percent in value. Despite ongoing political tensions in Egypt, it remained by far the largest market in the region at 138,864 mt (-6 percent) valued at $217 million (-8 percent). Exports to the UAE soared in value in 2012, reaching $49 million (+27 percent), even though volume declined 36 percent to 5,226 mt. Saudi Arabia remained the region’s third-largest market, but U.S. beef was prohibited for much of the year following the April 2012 BSE case in the U.S.


Middle East Market Trends & USMEF Tactical ResponseSolid progress in U.S. beef muscle exports has been recorded in the region over the past several years, with Egypt, the UAE and Saudi Arabia buying the largest volumes (before Saudi Arabia suspended U.S. beef imports in 2012). Fast food chains, family-style restaurants and unique dining concepts are booming in the Middle East. Tactical Response: USMEF is increasing its emphasis on muscle cuts for dining

outlets, especially those producing their own burgers, as well as “Shawarma” eateries. Middle- and end-meat cuts are the focus for fine dining outlets, steakhouses and family-style chains. USMEF will also educate chefs and consumers about various muscle cuts and on proper cooking techniques to avoid overcooking—a common problem in the region.

Retail growth in the Middle East region is expected to increase 13 percent over the next two years. Retail food sales in the UAE are forecast to grow 36 percent to $10.5 billion by 2015. The UAE’s mass grocery sector is one of the region’s largest by value, with sales accounting for 69.2 percent of the total food and drink market—and forecast to jump to 73.8 percent by 2015. Tactical Response: USMEF will provide support for in-store promotional events with

a goal of consistent, year-round sales of chilled U.S. beef. A more dynamic retail sector and expansion of international and local chains are benefitting U.S. beef, in

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particular underutilized muscle cuts and deli items. Air-shipments of fresh chilled U.S. beef are making a breakthrough into this sector, particularly in the growing gourmet outlets in oil-rich markets such as the UAE and Saudi Arabia (when open).

Across the Middle East, the large proportion of young people in the region are more and more connected through the internet and social networks, and this is shaping attitudes and driving change. Tactical Response: USMEF has created a dedicated U.S. beef website in Egypt and

will continue to develop tactics for using the internet and social media to promote and support the image of U.S. beef in Egypt and across the region.

Middle East Continuing Tactical ObjectivesA) Reassure buyers of the safety inspection measures and safeguards applied in the U.S. and of the premium value of U.S. beef to retain current buyers and assist them to improve their activities with U.S. beef products; B) Expand the market by demonstrating the variety of U.S. beef and beef variety meat available and build the image of U.S. beef as the premier beef among new targeted buyers in all market segments. Build the image of U.S. beef among HRI customers and the tourist industry as the

premier beef available, and expand the number of HRI outlets which incorporate U.S. beef onto their menus by demonstrating the high profit potential, consistent quality, and safety inherent in U.S. beef products.

Further educate the trade to highlight the benefits of grain-fed U.S. beef such as grading, marbling and superior taste.

Increase demand for underutilized cuts and end-meats (e.g. shoulder clod, chuck roll, chuck tender, brisket, top round) by providing training and establishing acceptance of these items.

Establish new distribution links for U.S. beef to further access the retail sector as well as build product loyalty and improve consumer perceptions and demand.

Further expand Egypt beyond variety meats to continue increasing the proportion of muscle cuts purchased.

Continue to focus on new opportunities, including foodservice and retail expansion in the region.

Measurable Objectives: (Target Audiences for Evaluation adjusted for 2014)o 50% of targeted importers/distributors will have a favorable attitude toward U.S.

beef/bvm based on information provided by USMEF.o 72% of targeted HRI buyers will regularly purchase U.S. beef/bvm.o 44% of targeted fine dining and casual family-style restaurants/chains hold a U.S.

beef promotion or use menu promotional materials.o 40% of targeted retail chains will identify the origin of U.S. beef/bvm and actively

participate in USMEF promotions.


Tactic 4R: Market Access – Middle EastUSMEF will contribute to and support initiatives to eliminate trade-restrictive policies and requirements in the Middle East, build and reinforce the region’s confidence in the U.S. industry as a producer and exporter of beef, and keep the U.S. industry informed on critical changes in government regulations and emerging consumer issues.

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Middle East Noteworthy Market Access Issues include Saudi Arabia’s ban on U.S. beef due to the April 2012 atypical BSE finding.




Tactic 4S: Market Development – Russia / Greater Russian Region

Russia/Greater Russian Region BackgroundIn 2012, U.S. beef plus variety meat exports to Russia set new records for volume, up 10 percent to 80,408 mt, with value up 20 percent to $307 million. Russian demand for U.S. beef was at an all-time high in 2012 until a trade dispute over ractopamine residues essentially brought shipments to a halt in early December. The Russian market remains closed to U.S. beef due to Russia’s zero tolerance for ractopamine residues. However, a number of U.S. beef producers are able to supply product that meets Russia’s standards, and the U.S. government and industry are working together to create a product verification program which will allow those plants to resume exports. It is likely the market will reopen by 2014, and USMEF will again intensify its marketing activities to reassert the presence of U.S. beef in Russia. Meanwhile, USMEF has shifted its focus to expand U.S. beef’s presence in the greater Russian region.


Russia/Greater Russian Region Market Trends & USMEF Tactical ResponseThe economies of the CIS countries are growing steadily. In those countries with higher levels of beef consumption, there are opportunities for developing sales of high-quality U.S. beef. With the Customs Union coming into force, including free circulation of goods, this will facilitate delivery of chilled beef to Kazakhstan and Belarus. Tactical Response: USMEF will build demand in the region, primarily in Kazakhstan,

Ukraine, Georgia and Azerbaijan, by educating importers and processors about the attributes of U.S. beef, including variety meats and cuts for processing. USMEF will also support the promotion of U.S. beef in HRI and retail outlets.

Russia increased the U.S. tariff rate quota in 2012 to 60,000 mt with an in-quota tariff rate of 15 percent. Meanwhile, duties on chilled bvm were reduced from 25 percent to 20 percent, and duties on frozen bvm were reduced from 25 percent to 15 percent. Although most U.S. beef exports to Russia are frozen, the U.S. industry may also be able to capitalize on a new 11,000 mt quota for chilled beef from suppliers outside the EU. Additional opportunities for U.S. beef may emerge outside of the quota, at a reduced duty rate using a High Quality Beef (HQB) definition. Tactical Response: USMEF will continue working with processors, particularly those

that use the largest quantities of raw materials, on how U.S. beef can meet their needs, and gather intelligence on what attributes are most important, such as better packaging, that could contribute to more efficient production. USMEF will work with local processors on utilizing U.S. beef for portion control, as well as with importers to demonstrate the advantages of using lower grade beef muscles in processing.

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The rapidly evolving foodservice sector is now providing a full array of dining options to fit any budget, taste and food preference. This dynamic sector is almost entirely dependent on imported beef and has exhibited a keen interest in high quality beef and variety meat. Russia’s retail sector has also experienced rapid growth, with retailers expanding their operations across the country and offering a larger selection of imported meat items. Because domestic beef is not marbled, Russians typically overcook their meat, which makes it more difficult to distinguish U.S. beef from its competition. Tactical Response: USMEF trains chefs on proper cooking techniques, and will

expand this program to reach a larger audience and help differentiate high quality, marbled U.S. beef from competing product. Additionally, with the new chilled beef quota, there are opportunities to initiate larger sales in the HRI sector to fill more cost-effective full container loads. USMEF will continue educational programs to create demand for a greater variety of beef cuts and grades (e.g. no-roll), as well as expand the number of foodservice and retail outlets selling U.S. beef.

Russia/Greater Russian Region Continuing Tactical ObjectivesStrengthen the image of U.S. beef and beef variety meat by differentiating U.S. beef from the competition and reeducating buyers about the profitability and benefits of using U.S. beef products. Increase the number of importers and processors purchasing U.S. beef and beef

variety meat by demonstrating the profitability of these products. Position U.S. beef as the highest quality, preferred product among HRI customers

and help them resume U.S. beef purchases and expand the range of cuts used. Expand education and promotion activities into new, untapped regions of Russia. Continue to focus on new opportunities, including increased alternative cut usage

and growth in chilled beef at retail.

Measurable Objectives:o 77% of targeted trade accounts will understand U.S. beef’s quality attributes based

on information provided by USMEF.o 75% of targeted HRI outlets/restaurant chains will regularly stock U.S. beef.o 69% of targeted retail outlets will identify the origin of U.S. beef.o 38% of targeted retail outlets will actively promote U.S. beef and its origin.


Tactic 4T: Market Access – Russia / Greater Russian RegionUSMEF will contribute to and support initiatives to eliminate trade-restrictive policies and requirements in the greater Russian region, and keep the U.S. industry informed on critical changes in government regulations and emerging consumer issues.

Russia/Greater Russian Region Noteworthy Market Access Issues include a) Russia’s zero tolerance policy on the presence of beta-agonists in beef; b) Russia’s near zero tolerance policy on the presence of selected pathogens (e.g., Salmonella); and c) Russia’s BSE-related restrictions on imports of U.S. beef.


USMEF related to market access.21

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Tactic 4U: Market Development – South America

South America BackgroundIn 2012, exports of U.S. beef plus variety meat to the South America region increased 40 percent in volume to 26,896 mt, with value up 75 percent to $98 million. Peru was the largest volume market in the region, with exports up 18 percent to 12,887 mt, and value up 48 percent to $30 million. Chile was the largest value market, with exports up 161 percent to $59 million, and volume up 170 percent to 11,403 mt.


South America Market Trends & USMEF Tactical ResponseKey markets in South America are experiencing strong economic growth, resulting in higher incomes and a growing middle class. Peru’s GDP growth in 2012 was estimated at 6 percent, while Chile’s GDP growth was approximately 5 percent. Growing incomes and expanding populations present excellent opportunities for U.S. beef exports as the growing middle class has more money to spend on high quality food items. In Peru and Chile, consumers are already willing to pay higher prices for U.S. beef. Tactical Response: USMEF is working to substitute higher-quality alternative U.S.

beef cuts for local traditional cuts in restaurants looking to maintain both quality and margins. For example, some family-style restaurants in Peru serve a typical dish, salted loin, using local beef. USMEF has convinced the restaurants to switch from local loin to U.S. knuckle which is more tender and juicy. There are increasing opportunities to apply similar strategies for other restaurants that target middle class consumers throughout the region to help increase the usage and visibility of U.S. beef.

The lack of cold chain management in certain target markets has created challenges that could limit the delivery of a high quality product to end consumers. In particular, retailers and restaurant chains outside the capital cities are facing problems in this area as they often do not follow acceptable practices. Tactical Response: USMEF will establish a training program on proper meat

handling and cold chain development for the HRI and retail sectors to help mitigate this problem and ensure that consumers enjoy a positive experience with U.S. beef. In many cases, education on basic handling practices will result in immediate improvements.

With high meat prices—a trend that is expected to continue—some consumers are looking to purchase smaller quantities at affordable prices. Convenient sized packaging for chilled product, using the latest technologies to preserve color, would help draw more consumers to U.S. beef in the supermarket meat case. Tactical Response: USMEF will work with the importers and purveyors that portion

and repackage beef for distribution to final consumers, to familiarize them with the latest available technologies, possibly conducting demonstrations with different types of packaging and comparing appearance and shelf life.

The U.S.-Colombia FTA provides for duty-free access for unlimited volumes of high quality beef (Choice and Prime), and duty-free tariff rate quotas (TRQs) for beef other than Choice/Prime and (separately) for beef offal. Colombians have a long tradition of

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enjoying beef, though consumers are price-sensitive and must to be educated on the premium quality of U.S. beef. Tactical Response: USMEF is working to further build the image and visibility for

U.S. beef in Colombia.

South America Continuing Tactical ObjectivesCommunicate the quality, consistency and profit potential of U.S. beef across sectors, and introduce U.S. beef value cuts and variety meats to buyers. Educate importers, distributors and other market stakeholders about the profitability

of value cuts and provide training on proper handling and merchandising of unfamiliar cuts.

Increase buyer knowledge about beef variety meats and low-cost alternative cuts and how to fabricate, package and promote them to increase margins.

Facilitate sales by conducting activities that directly bring buyers together with U.S. suppliers.

Continue to focus on new opportunities, including expanding into new market sub sectors.

Measurable Objectives:o 46% of targeted importers/distributors will consistently source U.S. beef.o 60% of targeted HRI outlets/chains will regularly use U.S. beef.o 100% of targeted retailers will identify the origin and promote the attributes of U.S.

beef.


Tactic 4V: Market Access – South AmericaUSMEF will contribute to and support initiatives to eliminate trade-restrictive policies and requirements in the South America region and keep the U.S. industry informed of critical changes in government regulations and emerging consumer issues.

South America Noteworthy Market Access Issues include a) BSE-related restrictions on U.S. beef imports in some countries in the region; and b) Chile’s restrictive beef labeling requirements.




Tactic 4W: Market Development – Taiwan

Taiwan BackgroundIn 2012, U.S. beef plus variety meat exports to Taiwan declined under pressure from Taiwan’s enforcement of its zero-tolerance policy on ractopamine residues, dropping 45 percent in volume to 19,449 mt, and 36 percent in value to $128 million.

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Taiwan Market Trends & USMEF Tactical ResponseIn September 2012, Taiwan adopted a 10 ppb maximum residue level (MRL) for ractopamine in beef muscle, which is consistent with the standard approved by Codex. This policy change has not only allowed more U.S. beef to enter the market, but has also helped reduce negative media reporting and publicity surrounding U.S. beef. Tactical Response: USMEF will continue its strategy to rebuild confidence across all

market sectors as it is likely there will still be some consumer anxiety over the safety of the product. USMEF will monitor reactions and adjust program activities as necessary. However, in the near-term, USMEF will place greater emphasis on public relations and educational activities, including increased key opinion leader communication, the use of chef endorsements, placement of advertisements in mainstream media, educational seminars for importers/distributors and retailers, and a PR campaign to restore consumer confidence.

Due to the ractopamine issue, U.S. beef has been portrayed negatively in Taiwan’s media, impacting its image. Although consumer concerns about U.S. beef have not yet been fully alleviated, Taiwanese importers still want to import U.S. beef because it is regarded as a profitable item. Tactical Response: To broaden the market for importers and distributors of U.S.

beef, USMEF will work to rebuild demand by targeting new retailers and foodservice operators. Activities will include product development, expanding the chuck cuts utilized, and working with chefs to further develop and illustrate the superior quality and profitability of U.S. beef. As a tool to rebuild the overall image of U.S. beef, USMEF will also highlight the positive aspects of U.S. beef brands. Branded products, which consumers perceive as having more accountability regarding safety and quality, are a way to reestablish the safety and high quality image of U.S. beef.

After setting the ractopamine MRL, Taiwan implemented country of origin labeling requirements that extend to most beef products sold through restaurants, fast food outlets, cafeterias, street stalls and wet markets. Tactical Response: USMEF will provide information to each of these sectors and

serve as a resource to help reassure the trade and consumers that the quality and safety of U.S. beef is maintained at all times. USMEF will also produce and distribute POS materials that will provide a positive image to consumers.

Taiwan Continuing Tactical ObjectivesRegain loyalty among key buyers and identify new market players by demonstrating the safety, variety, profitability and superior quality of U.S. beef, emphasizing first and foremost the safety of the product, but also its value and versatility. Provide safety information to key commercial stakeholders of U.S. beef (importers,

restaurant owners and retailers). Continue educating the trade about the reliability and versatility of a wide range of

U.S. beef items and work to expand the market to new buyers. Help drive overall beef consumption by creating a favorable U.S. beef image and

communicating U.S. beef quality, safety and nutrition to consumers. Utilize PR events to illustrate that more and more Taiwanese consumers accept and

enjoy U.S. beef. Address market access issues by working with key influencers in academia and the

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Continue to focus on new opportunities, including U.S. beef micro-brand development for Taiwan importers.

Measurable Objectives: (Target Audiences for Evaluation adjusted for 2014)o 75% of targeted trade accounts will have a favorable attitude toward U.S. beef

based on information provided by USMEF.o 50% of targeted trade accounts will collaborate with downstream customers to

promote U.S. beef.o 30% of targeted restaurants will actively participate in and contribute to USMEF

promotions to their customers.o 31% of targeted retailers will actively promote the attributes of U.S. beef.


Tactic 4X: Market Access – TaiwanContribute to and support initiatives to eliminate trade-restrictive policies and requirements in Taiwan, build and reinforce Taiwanese confidence in the U.S. industry as a producer and exporter of beef, and keep the U.S. industry informed on critical changes in Taiwan government regulations and emerging consumer issues.

Taiwan Noteworthy Market Access Issues include a) BSE-related restrictions on imports of U.S. ground beef and variety meat; and b) Taiwan’s zero tolerance policy on the presence of zilpaterol residues in beef imports.




Tactic 4Y: New Market Research & DevelopmentExisting USMEF programs and activities cover approximately 100 countries which represent the majority of U.S. beef exports. However, as the global economy improves, additional markets continue to emerge, providing increased development opportunities for U.S. beef. In addition to these opportunities, further research in key strategic markets with high potential, such as China, will position the U.S. industry for rapid expansion and displacement of competitive products.

New Market Trends & USMEF Tactical ResponseIn 2012, 7 of the 20 fastest growing economies in the world were in Sub-Saharan Africa, with GDP growth in the region exceeding 5%, largely driven by a growing service sector, natural resource production and strong consumer spending. The region’s nearly 1 billion population is expected to double in a generation, with the middle class in Sub-Saharan Africa expected to also double by 2020, and then double again by 2030 (to reach 107 million). Tactical Response: USMEF will conduct market research and analysis to identify

those African countries that have suitable infrastructure and demographics for the importation and distribution of U.S. beef. Areas of focus include meat transportation and distribution, cold chain management, retail infrastructure, consumer

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consumption trends, identifying primary importers/distributors, etc. Resulting activities may include initial educational and market development programs.

Although mainland China is officially closed to U.S. beef, China is forecast to become the largest importer of beef in the world in 2013. Global competitors are rapidly gaining market share, while U.S. exporters do not have access to the market. Tactical Response: USMEF will conduct market research in China to develop a

deeper understanding of the perceptions among consumers regarding competing beef products, positioning by competitors, and key target sectors. Armed with the results of this research, once the market officially opens to U.S. beef, USMEF can quickly implement new and intensified marketing strategies in China to recapture market share and displace global competitors.

Shifting global dynamics and improving regional economies continue to provide new growth opportunities for the beef industry. Tactical Response: In order to identify, develop and capitalize on additional new

growth opportunities in global markets for the U.S. beef industry, USMEF will employ the following tactics: A) Conduct market, economic and technical research to identify and develop new opportunities for U.S. beef exports; and B) Educate targeted buyers in new markets about the quality of U.S. beef products and the commitment of the U.S. industry to building and maintaining supply relationships.


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IV. DETAILED BUDGET SUMMARY

Strategy & Tactic ProgramManager

Completion

Date

Total FY2014 Budget

(Direct + Estimated

Impl.)

TotalDirect Cost

Direct Cost by Funding SourceEst.Impl.CBB/BPOC FSBCs

Other *(USDA-

proposed)

Strategy 4: Global Growth Opportunities

Tactic 4A: ASEAN MD USMEF 9/30/14 $348,277 $179,500 $147,196 $32,304 $246,745 $168,777

Tactic 4B: ASEAN MA USMEF 9/30/14 $18,753 $0 - - $18,753

Tactic 4C: Caribbean MD USMEF 9/30/14 $128,411 $104,300 $85,530 $18,770 $177,655 $24,111

Tactic 4D: Caribbean MA USMEF 9/30/14 $2,679 $0 - - $2,679

Tactic 4E: Central America MD USMEF 9/30/14 $287,722 $239,500 $196,398 $43,102 $197,395 $48,222

Tactic 4F: Central America MA USMEF 9/30/14 $9,358 $4,000 $3,280 $720 $5,358

Tactic 4G: China/HK MD USMEF 9/30/14 $384,555 $264,000 $216,489 $47,511 $296,090 $120,555

Tactic 4H: China/HK MA USMEF 9/30/14 $23,395 $10,000 $8,200 $1,800 $13,395

Tactic 4I: Europe MD USMEF 9/30/14 $372,444 $276,000 $226,330 $49,670 $394,790 $96,444

Tactic 4J: Europe MA USMEF 9/30/14 $12,716 $2,000 $1,640 $360 $10,716

Tactic 4K: Japan MD USMEF 9/30/14 $3,150,997 $2,500,000 $2,050,086 $449,914 $5,023,700 $650,997

Tactic 4L: Japan MA USMEF 9/30/14 $122,333 $50,000 $41,002 $8,998 $72,333

Tactic 4M: Korea MD USMEF 9/30/14 $1,318,276 $932,500 $764,682 $167,818 $1,184,370 $385,776

Tactic 4N Korea MA USMEF 9/30/14 $82,864 $40,000 $32,801 $7,199 $42,864

Tactic 4O: Mexico MD USMEF 9/30/14 $1,416,665 $1,055,000 $865,136 $189,864 $986,975 $361,665

Tactic 4P: Mexico MA USMEF 9/30/14 $70,185 $30,000 $24,601 $5,399 $40,185

Tactic 4Q: Middle East MD USMEF 9/30/14 $553,333 $481,000 $394,437 $86,563 $444,140 $72,333

Tactic 4R: Middle East MA USMEF 9/30/14 $12,037 $4,000 $3,280 $720 $8,037

Tactic 4S Russia MD USMEF 9/30/14 $337,055 $216,500 $177,537 $38,963 $276,355 $120,555

Tactic 4T: Russia MA USMEF 9/30/14 $19,395 $6,000 $4,920 $1,080 $13,395

Tactic 4U: South America MD USMEF 9/30/14 $199,611 $175,500 $143,916 $31,584 $148,045 $24,111

Tactic 4V: South America MA USMEF 9/30/14 $7,679 $5,000 $4,100 $900 $2,679

Tactic 4W: Taiwan MD USMEF 9/30/14 $633,054 $295,500 $242,320 $53,180 $493,490 $337,554

Tactic 4X: Taiwan MA USMEF 9/30/14 $89,506 $52,000 $42,642 $9,358 $37,506

Tactic 4Y: New Markets USMEF 9/30/14 $75,000 $75,000 $61,503 $13,497


Totals - Strategy 4 $9,676,300 $6,997,300 $5,738,026 $1,259,274 $9,869,750 $2,679,000

AR Totals $9,676,300 $6,997,300 $5,738,026 $1,259,274 $9,869,750 $2,679,000

* The “Other” funding column refers to USMEF’s USDA/MAP proposed FY14 beef activity funding. To fund its U.S. beef programs globally, USMEF estimates it will need approximately $20 million in FY14 and is requesting $9,676,300 in beef checkoff funding. In addition to the funding from USDA, USMEF may also receive funding form various state beef councils and corn industry groups.

Strategy & Tactic ProgramManager

Completion

Date

Est. Implementation by source Total Est.

Impl.CBB/BPOC FSBCs

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Tactic 4A: ASEAN MD USMEF 9/30/14 138,402 30,375 $168,777

Tactic 4B: ASEAN MA USMEF 9/30/14 15,378 3,375 $18,753

Tactic 4C: Caribbean MD USMEF 9/30/14 19,772 4,339 $24,111

Tactic 4D: Caribbean MA USMEF 9/30/14 2,197 482 $2,679

Tactic 4E: Central America MD USMEF 9/30/14 39,544 8,678 $48,222

Tactic 4F: Central America MA USMEF 9/30/14 4,394 964 $5,358

Tactic 4G: China/HK MD USMEF 9/30/14 98,859 21,696 $120,555

Tactic 4H: China/HK MA USMEF 9/30/14 10,984 2,411 $13,395

Tactic 4I: Europe MD USMEF 9/30/14 79,087 17,357 $96,444

Tactic 4J: Europe MA USMEF 9/30/14 8,787 1,929 $10,716

Tactic 4K: Japan MD USMEF 9/30/14 533,840 117,157 $650,997

Tactic 4L: Japan MA USMEF 9/30/14 59,316 13,017 $72,333

Tactic 4M: Korea MD USMEF 9/30/14 316,350 69,426 $385,776

Tactic 4N Korea MA USMEF 9/30/14 35,150 7,714 $42,864

Tactic 4O: Mexico MD USMEF 9/30/14 296,578 65,087 $361,665

Tactic 4P: Mexico MA USMEF 9/30/14 32,953 7,232 $40,185

Tactic 4Q: Middle East MD USMEF 9/30/14 59,316 13,017 $72,333

Tactic 4R: Middle East MA USMEF 9/30/14 6,591 1,446 $8,037

Tactic 4S Russia MD USMEF 9/30/14 98,859 21,696 $120,555

Tactic 4T: Russia MA USMEF 9/30/14 10,984 2,411 $13,395

Tactic 4U: South America MD USMEF 9/30/14 19,772 4,339 $24,111

Tactic 4V: South America MA USMEF 9/30/14 2,197 482 $2,679

Tactic 4W: Taiwan MD USMEF 9/30/14 276,806 60,748 $337,554

Tactic 4X: Taiwan MA USMEF 9/30/14 30,756 6,750 $37,506

Tactic 4Y: New Markets USMEF 9/30/14 - -Strategy 4: Global Growth Opportunities

Totals - Strategy 4 2,196,872 482,128 $2,679,000

AR Totals 2,196,872 482,128 $2,679,000

V. SUPPLEMENTAL INFORMATION

A. Will all of the work detailed in this AR be completed by the end of the fiscal year? If not, please provide an explanation. The objectives are expected to be achieved, though they are part of longer term strategies which will continue into the next fiscal year.

B. Changes from FY 2013 Approved AR:28

AR#1417-FM

USMEF continually monitors current market conditions and adjusts strategies as appropriate. When establishing global priorities, USMEF analyzes the marketing environment in each of the primary export markets by considering a variety of factors such as market size (volume and value of exports), U.S. market share, current and medium-term (3-5 years) market access conditions, current and medium-term competitive environment, penetration of USMEF’s programs, economic conditions, and cost of doing business. This method of analysis provides a useful framework for assessing relative opportunities across different markets and is the starting point for setting global strategic priorities.

USMEF’s plans for FY14 reflect the following strategic priorities:The Japanese market represents tremendous opportunity for U.S. beef and variety meats as a result of the February 2013 increase in cattle age limits, and as such, Japan programs remain a key focus. Meanwhile, the Korean economy continues struggling and domestic meat supplies are very high, though this is expected to improve in 2014. Resources will be increased in a) the ASEAN, due to improving economies and expansion of programs; b) Taiwan, to rebuild the image of U.S. beef after it was negatively impacted by media reporting related to ractopamine; and c) Europe, to take advantage of improving access conditions and additional staff.

C. Subcontractor information (agencies, etc.): Subcontractors are selected using USMEF’s competitive bidding and vendor selection policies and procedures that include bidding all contracts greater than $25,000 at least every three years. Selection is based on qualifications and reasonableness of cost for similar services. Current contracts over $25,000 are listed below.

Exclamation Graphic POS Production ASEANUsaha Travel Agency ASEANElizabeth Wunderlich Regional Consultant CaribbeanExotic Marketing Group PR Agency Central America + DRGomez Lee Promotional Agency Design, Advertising, Promotions Central America + DRStrategos Marketing & logistics agency Central America + DRITESM Seminars Central America + DRWurmser Ogilvy & Mather Advertising Central America + DRRachel Deng Foodservice Consultant China/HKFelipe Macias Regional Consultant EuropeMonty Brown Meat Consultant EuropeRV Production POS Production EuropeTabloid Ltd Internet PR/research EuropeAdecco Staffing Agency JapanAlvis Technical Translation JapanAsatsu-DK Ad/Promotion Agency JapanCookpad Culinary Website JapanCosmo PR Public Relations JapanDaisho Sauce Maker/Processor JapanDentsu Ad Agency JapanEire Systems IT Support JapanFoodlink Corporation Distributor JapanImage Website Coordinator JapanIPSOS Research Firm JapanJTB Metropolitan Travel Agency JapanKinki Nippon Tourist Travel Agency JapanKreo PR Agency JapanKushima Jimusho Publication Development JapanLotus Marketing Agency JapanMAO international Merchandiser Japan

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MCA Traders’ Be&Po Coordinator JapanMoranbong Sauce Manufacturer/Processor JapanNihon Shokken Co., Ltd. Sauce Manufacturer/Processor JapanNihon Shokuryo Shinbunsha Publisher and Event Organizer JapanOffice K2M PR Agency JapanPasona Sourcing Staffing Agency JapanPrajunian Inc Merchandiser JapanSP Ring Marketing Agency JapanTokyu Agency Ad Agency JapanTopfield Marketing Research/Publishing JapanApple Ad Cooking Classes KoreaCDS-Daymon Worldwide In-store Promotions KoreaCreative May Ad/POS Production KoreaDesign Depth Retail Promotion/POS Production KoreaGallup Surveys KoreaHeungseo Industry Co. Booth Constructor KoreaHS Ad Advertising KoreaJNF Design Printing Design/Production KoreaKorea Sauce Sauce Manufacturer KoreaSharp Inc. Travel Agency KoreaWeber Shandwick PR/Advertising KoreaYujin Metro Subway Advertising KoreaZestn Cooking Classes KoreaAlberto de Jesus Diaz Cadena Translation MexicoBFN Consultores Legal consultants MexicoBurson Marsteller Public Relations MexicoCargraphics POS Material/Printing MexicoComercializadora VACM POS Material/Printing MexicoEric Vallejo Ramirez Meat Consultant MexicoITESM Meat Training Seminars MexicoLeon Felipe Castellanos Morales Graphic Designer/Production MexicoLitografia Gil Printing services MexicoMartin Rogelio Ceballos Muñoz Promotional/POS Materials MexicoMedia Design Latinoamericana Marketing Agency MexicoPablo Chavarria Solorio POS Material/Printing MexicoPromo Conceptos Promotions MexicoPromo Latina Promotions MexicoSylvia Basaldua Pohlenz Graphic Design/Production MexicoUniformes de Servicio Corporativo Uniforms, Logo Clothing MexicoYona Marcos Dabbah Faena Promotional/POS Materials MexicoAgri Marketing International Regional Consultant Middle EastArab Marketing & Finance, Inc. Regional Consultant Middle East, Russia RegionNational Academy of Hospitality Culinary Association Russia + Greater RegionStatus Pro Printing Russia + Greater RegionJessica Julca Regional Representative South AmericaByte-in Marketing/Event Planning TaiwanJWT Marketing Agency TaiwanNew Idea Design POS Production TaiwanTarget Exhibition Design Exhibit Design/Construction TaiwanWISE Consulting Public Relations Taiwan

D. Identify any relationships between this AR and projects previously funded by the Operating Committee: This AR is a continuation of the strategy and tactics currently underway.

E. Summary of Prior Year AR Budgets and Expenses:

Strategy&

Tactic

FY 2013 Approved Budgets FY 2013 Actual Expenses(through most recent month-end)

CBB/BPOC FSBCs Direct Cost Total CBB/BPOC FSBCs Total Impl.

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Tactic 1A: ASEAN MD $77,197 $20,003 $97,200 $97,200 $12,558 $3,254 $15,812 $73,491 Tactic 1B: ASEAN MA $0 $0 $0 $0 $0 $0 $0 $0 Tactic 1C: Caribbean MD $61,948 $16,052 $78,000 $78,000 $5,083 $1,317 $6,400 $3,179 Tactic 1D: Caribbean MA $0 $0 $0 $0 $0 $0 $0 $0 Tactic 1E: Central America MD $174,170 $45,130 $219,300 $219,300 $4,575 $1,185 $5,760 $40,415 Tactic 1F: Central America MA $3,177 $823 $4,000 $4,000 $0 $0 $0 $0 Tactic 1G: China/HK MD $180,881 $46,869 $227,750 $227,750 $47,945 $12,424 $60,369 $58,234 Tactic 1H: China/HK MA $7,943 $2,057 $10,000 $10,000 $0 $0 $0 $0 Tactic 1I: Europe MD $173,553 $51,447 $225,000 $225,000 $51,296 $15,210 $66,506 $70,447 Tactic 1J: Europe MA $1,588 $412 $2,000 $2,000 $1,629 $423 $2,052 $0 Tactic 1K: Japan MD $1,709,158 $637,815 $2,346,973 $2,346,973 $70,790 $26,422 $97,212 $453,755 Tactic 1L: Japan MA $83,842 $41,157 $124,999 $124,999 $822 $404 $1,226 $0 Tactic 1M: Korea MD $897,828 $310,372 $1,208,200 $1,208,200 $143,229 $49,516 $192,745 $169,058 Tactic 1N Korea MA $59,566 $15,434 $75,000 $75,000 $2 $1 $3 $0 Tactic 1O: Mexico MD $799,902 $229,548 $1,029,450 $1,029,450 $145,562 $41,776 $187,338 $193,598 Tactic 1P: Mexico MA $19,855 $5,145 $25,000 $25,000 $1,851 $479 $2,330 $0 Tactic 1Q: Middle East MD $255,446 $141,554 $397,000 $397,000 $30,980 $17,170 $48,150 $41,263 Tactic 1R: Middle East MA $3,177 $823 $4,000 $4,000 $10,137 $2,627 $12,764 $0 Tactic 1S Russia MD $181,564 $49,636 $231,200 $231,200 $57,401 $15,693 $73,094 $71,661 Tactic 1T: Russia MA $4,765 $1,235 $6,000 $6,000 $1,255 $325 $1,580 $0 Tactic 1U: South America MD $111,189 $28,811 $140,000 $140,000 $8,938 $2,316 $11,254 $10,286 Tactic 1V: South America MA $3,971 $1,029 $5,000 $5,000 $0 $0 $0 $0 Tactic 1W: Taiwan MD $198,553 $51,447 $250,000 $250,000 $28,116 $7,286 $35,402 $178,862 Tactic 1X: Taiwan MA $41,299 $10,701 $52,000 $52,000 $711 $184 $895 $0 Tactic 1Y: New Markets $0 $0 $0 $0 $0 $0 $0 $0 Implementation $2,373,800 $205,200 $2,579,000 $2,579,000 $1,255,657 $108,592 $1,364,249 $1,364,249 Totals - Strategy 1 $7,424,372 $1,912,700 $9,337,072 $9,337,072 $622,880 $198,012 $820,892 $1,364,249 AR Totals $7,424,372 $1,912,700 $9,337,072 $9,337,072 $622,880 $198,012 $820,892 $1,364,249

F. Historical Summary of Budgets and Expenses:Strategy

&Tactic

Total Approved Budgets Total Actual Expenses

FY2012 FY2011 FY2010 FY2012 FY2011 FY2010

Strategy 1: Global Growth Opportunities $8,255,500 $7,625,570 $7,165,384 $8,297,444 $7,925,732 $7,128,133

AR Totals $8,255,500 $7,625,570 $7,165,384 $8,297,444 $7,925,732 $7,128,133

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