1. USMEF General Session U.S. Meat Export Federation

2. Western Hemisphere Thad Lively Senior Vice President, Policy, Planning & Research

3. USMEF’s Staff in the Western Hemisphere Region Caribbean –Liz Wunderlich, Caribbean Consultant Central & South America –Ricardo Vernazza-Paganini, Director Mexico, Dominican Republic & Cuba –Gilberto Lozano, Director

4. Importance of the Region to U.S. Pork, Beef & Lamb Exports The region is a major export market for U.S. pork, beef & lamb today and in the future “Good neighbor” policy Home to some of our primary competitors

5. Demographics Population of the region is 500 million today and projected to grow to nearly 600 million by 2010 Population is young – 50% of Mexicans are under the age of 25 Majority of population lives in urban areas More women entering workforce

6. Political and Economic Situation Spreading political and economic stability Growing political & economic ties to the U.S. through trade agreements & investment Growing modern retail sector

7. Trade Policy & Market Access Environment Trend toward trade liberalization throughout the region -- FTAs with Mexico, Chile & CAFTA countries Politically active producer sectors result in protectionist policies Rising importance of Brazil in the WTO

8. Mexico

9. Mexico: General Market Situation Mexico is currently our second largest export market for pork and our leading export destination for beef. Young, rapidly growing population and rising per capita incomes make Mexico a key growth market for the future. The U.S. enjoys preferential access to Mexico under NAFTA and benefits from its close proximity to the market. Still, we face determined competition, especially from Canada for beef and pork and Chile for pork.

10. Mexico: Top Priorities for U.S. Pork Improve consumer perception of pork in general (health and nutrition) while positioning U.S. pork as a leader. Expand the penetration of fresh pork into the market by developing new distribution channels to overcome supply bottlenecks. Foster relationships with domestic producers. U.S. Pork Export Forecast Metric Tons (1,000’s)

11. Mexico: Top Priorities for U.S. Beef Develop market for new cuts (not only rounds and variety meats). Further educate consumers on food safety and “freshness.” Foster relationships with domestic producers. U.S. Beef Export Forecast Metric Tons (1,000’s)

12. Central/South America

13. Central & South America: General Market Situation Growing populations and steadily increasing per capita incomes result in rising red meat consumption in many countries in the region. FTAs give U.S. preferential access to many of the markets in the region. But some of our main competitors also are located in the region.

14. Central & South America: Top Priorities for U.S. Pork Focus resources on priority markets in the region Build demand for U.S. processed pork items in the upper-end retail segment Position pork as an affordable source of protein with consumers in the medium/low socioeconomic group, many of whom have negative perceptions of pork Collect and report market intelligence on competitor countries in the region U.S. Pork Export Forecast Metric Tons (1,000’s)

15. Central & South America: Top Priorities for U.S. Beef Focus resources on priority markets in the region Build demand for U.S. high quality cuts in the high-end HRI and retail segments Identify opportunities for adding value and “de- commoditizing” selected offal items that are exported to the region Collect and report market intelligence on competitor countries in the region U.S. Beef Export Forecast Metric Tons (1,000’s)

16. Caribbean

17. Caribbean: General Market Situation U.S. pork and beef have established a strong market presence in the islands Compete in the import market with Canada, Brazil and the EU for pork and with Brazil, Argentina and Australia for beef Diversity of the island cultures fosters creative and innovative marketing strategies High recognition of U.S. brands throughout the region.

18. Caribbean: Top Priorities for U.S. Pork Support the introduction of U.S. brands Build demand for value- added items and boutique pork (e.g., Kurobuta) Develop the market for specialty and non- traditional cuts U.S. Pork Export Forecast Metric Tons (1,000’s)

19. Caribbean: Top Priorities for U.S. Beef Support the introduction of U.S. brands Build demand for underutilized cuts and value-added items Develop market for portion control cuts U.S. Beef Export Forecast Metric Tons (1,000’s)

20. Market Priorities and/or Areas for Greatest Growth for U.S. Pork Favorable quota allocation gives good potential for growth of US pork exports to Russia The improving economy expands opportunities for US enhanced pork in the HRI sector Demand for high-quality US pork exists in the growing retail sector U.S. Pork Export Forecast Metric Tons (1,000’s)

21. Market Priorities and/or Areas for Greatest Growth for U.S. Beef The trade are waiting for the ban to be lifted No replacement for quantity and quality of US beef variety meats US high quality beef will quickly regain its premium niche in the HRI sector U.S. Beef Export Forecast Metric Tons (1,000’s)