1. An Overview of YOUR Brand: Certified Angus Beef ®
Mark McCully
Director of Supply Development

2. Increase the demand for registered Angus cattle…
The Brand’s Mission
Increase the demand for registered Angus cattle…

3. Angus Registrations

4. How?
… through a specification-based, branded beef program to identify consistent, high quality beef with superior taste!

5. Certified Angus Beef ® Brand Structure
Owned by the American Angus Association
Not-for-profit marketing organization
Only own brand – NOT product
Licensing agreements with all production and distribution channels
Revenue derived from commissions paid by packers and processors
85% of US packing base producing CAB®

6. Licensing Scope Feedlots Packers Fabricators Ground Beef Processors
Further Processors
Portion Cutters
Food Service Distributors
Retail Distributors
Restaurants
Grocery Stores

7. USDA Certified Beef Programs- In 2006*– 63 programs
*USDA G-Schedule last updated Nov-05

8. USDA Certified Beef Programs- 2006
63 total programs
48 have a breed in their name (46-Angus; 2-Hereford)
25 have Modest or higher marbling
14 are “Angus” with Modest or higher marbling
19 are USDA Select
8 are “natural” or have natural extensions
2 are USDA Standard/Commercial

9. Certified Angus Beef ® Brand Product Specifications
Live specification – “Angus-type”
At least 51% black hide OR
AngusSource® tagged - NEW
Eight carcass specifications evaluated by USDA/CBGA Graders:
Modest or higher degree of marbling
Medium or fine marbling texture
“A” maturity
Consistency: in2 REA; < 999 lb HCW - NEW
Moderately thick or thicker muscling characteristics
No hump on the neck exceeding 2-inch height
Practically devoid of internal hemorrhages
No dark cutting characteristics

10. Certified Angus Beef ® Brand Growth
Million Pounds

11. Pounds Sold by Division
Why has the miscellaneous category grown?
Quantum Foods and others are cutting/re-fabricating and marketing as non-CAB.
Grinders
Fiscal 2005
*Cannot be assigned to a specific division

12. Delivering on a promise with…
Superior eating satisfaction – flavor, juiciness, and tenderness
Consistency
Integrity
Availability
Marketing and Customer Service

13. Marketing Your Brand Dominate the 80/20 category
Promote the “Build a Better Burger” program. (Stop & Shop)
( Sarah - Have several to pass out to the Board)
Price Chopper’s ground meat program - Flavored Patties and value added items
Fresh Brands went to an 80-/20 program with great success
Ray’s offer 80/20, 85/15, 90/10 in CAB Also CAB Natural grind
Fred Meyer- 91% CAB grind
Roth’s grinds grew 21 % last year. “Fresh ground in the store”
QFC to begin grinds in About 1,000,000 pounds potential
Food City- 85/15- kick-off in October
Buehler’s five varieties CAB grinds including chubs
Giant Eagle CAB fresh flavored patties 12 varieties

14. Marketing Your Brand Dominate the 80/20 category
Promote the “Build a Better Burger” program. (Stop & Shop)
( Sarah - Have several to pass out to the Board)
Price Chopper’s ground meat program - Flavored Patties and value added items
Fresh Brands went to an 80-/20 program with great success
Ray’s offer 80/20, 85/15, 90/10 in CAB Also CAB Natural grind
Fred Meyer- 91% CAB grind
Roth’s grinds grew 21 % last year. “Fresh ground in the store”
QFC to begin grinds in About 1,000,000 pounds potential
Food City- 85/15- kick-off in October
Buehler’s five varieties CAB grinds including chubs
Giant Eagle CAB fresh flavored patties 12 varieties

15. Marketing Your Brand Dominate the 80/20 category
Promote the “Build a Better Burger” program. (Stop & Shop)
( Sarah - Have several to pass out to the Board)
Price Chopper’s ground meat program - Flavored Patties and value added items
Fresh Brands went to an 80-/20 program with great success
Ray’s offer 80/20, 85/15, 90/10 in CAB Also CAB Natural grind
Fred Meyer- 91% CAB grind
Roth’s grinds grew 21 % last year. “Fresh ground in the store”
QFC to begin grinds in About 1,000,000 pounds potential
Food City- 85/15- kick-off in October
Buehler’s five varieties CAB grinds including chubs
Giant Eagle CAB fresh flavored patties 12 varieties

16. Marketing Your Brand Dominate the 80/20 category
Promote the “Build a Better Burger” program. (Stop & Shop)
( Sarah - Have several to pass out to the Board)
Price Chopper’s ground meat program - Flavored Patties and value added items
Fresh Brands went to an 80-/20 program with great success
Ray’s offer 80/20, 85/15, 90/10 in CAB Also CAB Natural grind
Fred Meyer- 91% CAB grind
Roth’s grinds grew 21 % last year. “Fresh ground in the store”
QFC to begin grinds in About 1,000,000 pounds potential
Food City- 85/15- kick-off in October
Buehler’s five varieties CAB grinds including chubs
Giant Eagle CAB fresh flavored patties 12 varieties

17. Marketing Your Brand Dominate the 80/20 category
Promote the “Build a Better Burger” program. (Stop & Shop)
( Sarah - Have several to pass out to the Board)
Price Chopper’s ground meat program - Flavored Patties and value added items
Fresh Brands went to an 80-/20 program with great success
Ray’s offer 80/20, 85/15, 90/10 in CAB Also CAB Natural grind
Fred Meyer- 91% CAB grind
Roth’s grinds grew 21 % last year. “Fresh ground in the store”
QFC to begin grinds in About 1,000,000 pounds potential
Food City- 85/15- kick-off in October
Buehler’s five varieties CAB grinds including chubs
Giant Eagle CAB fresh flavored patties 12 varieties

18. Marketing Your Brand Dominate the 80/20 category
Promote the “Build a Better Burger” program. (Stop & Shop)
( Sarah - Have several to pass out to the Board)
Price Chopper’s ground meat program - Flavored Patties and value added items
Fresh Brands went to an 80-/20 program with great success
Ray’s offer 80/20, 85/15, 90/10 in CAB Also CAB Natural grind
Fred Meyer- 91% CAB grind
Roth’s grinds grew 21 % last year. “Fresh ground in the store”
QFC to begin grinds in About 1,000,000 pounds potential
Food City- 85/15- kick-off in October
Buehler’s five varieties CAB grinds including chubs
Giant Eagle CAB fresh flavored patties 12 varieties

19. Demand for High Quality Beef?
A Target: Mid-Choice or higher beef for the upscale domestic and export trade; must have superior eating qualities (tenderness, juiciness, and flavor). Future demand for this product will be approximately 25-30% of the market.
Dr. Harlan Ritchie, Distinguished Professor

20. The challenges ahead…..
A branded beef category – many with “Angus” in their name
SUPPLY!

21. Angus Registrations by Year

22. Angus-type Cattle Identified
12.7 million Angus-type cattle identified in fiscal 2003
Supply continues to grow through our partnerships with feedlots and producers
Fiscal Year (October 1 - September 30)

23. Carcasses Certified
2.2 million carcasses met the Certified Angus Beef ® brand’s high standards in fiscal 2003
Programs help producers better manage cattle to qualify for our brand
Fiscal Year (October 1 - September 30)

25. Thank you!