1. Outlook for the U.S. Meat Sector in 2011 Presented By Shayle D. Shagam World Agricultural Outlook Board U.S. Department of Agriculture Outlook 2011 Canberra, Australia March 2, 2011

2. Situation Facing Livestock and Poultry Producers in 2011 Higher feed prices –Corn:$5.60/bu in 2011/12 $5.05-$5.75/bu in 2010/11 $3.55 in 2009/2010 –Soybean meal: $360/short ton $340-380/ton in 2010/11 $311 in 2009/2010 Shrinking returns

3. Higher Feed Bites into Gains in Livestock and Poultry Prices * Forecast

4. Highlights for Livestock & Poultry in 2011 Offsetting meat production –Beef, lamb & mutton, and turkey lower –Pork and broilers higher

5. Red Meat and Poultry Production Will Increase 0.1 Percent in 2011 * Forecast

6. Total Meat Production Fractionally Higher in 2011 Million metric tons 20102011% Change Beef 11.93811.755-1.5 Pork 10.17710.2190.4 Broiler Meat 16.73916.9191.1 Total Red Meat And Poultry 41.77741.8040.1

7. Highlights for Livestock & Poultry in 2011 Offsetting meat production Stronger red meat exports but weaker broiler exports –Rising incomes fuel increased demand for meat protein –Relatively weak U.S. dollar will support meat exports –Trade issues remain irritants

8. Million metric tons 20102011% Change Beef 1.0431.0642.0 Pork 1.9172.12110.6 Broiler Meat 3.0723.016-1.8 Red Meat Exports Higher in 2011

9. Red Meat Exports Represent Increasing Share of Production * Forecast

10. Highlights for Livestock & Poultry in 2011 Offsetting meat production Stronger red meat exports but weaker broiler exports Domestic supply impacts mixed –Larger broiler meat net supplies –Smaller beef, pork, and turkey net supplies

11. Total Per Capita Retail Basis Meat Disappearance in 2011 at about 94 Kilos * Forecast

12. Highlights for Livestock & Poultry in 2011 Offsetting meat production Stronger red meat exports but weaker broiler exports Domestic supply impacts mixed Gradual economic improvement –U.S. GDP growth about 3 percent –Unemployment gradually declining

13. 20102011% Change* Cattle, $/cwt ($/100kg) 95.38 (43.26) 102-109 (46-49) 10.3 Hogs, $/cwt ($/100kg) 55.06 (24.97) 58-61 (26-28) 8.1 12-City Broilers, ¢/lb (¢/kg) 82.9 (37.6) 80-85 (36-39) -0.5 Livestock & Poultry Prices Mostly Higher in 2011 * At midpoint

14. Despite Price Increase, Chicken Will Maintain Pricing Advantage at Retail * Forecast

15. Cattle Herd at 92.6 Million on Jan 1, 2011; Further Contraction Likely Million Head * Forecast

16. Beef Cows 1 Percent Lower Jan. 1, 2011. Calf Crop Declines in 2010 Million Head * Forecast Calf Crop

17. Cattle for Feeding Lower on January 1 Million Head -3.3% +2.8% -1.3%

19. Cow Slaughter Will Decline In 2011 * Forecast Million Head

20. Cattle Imports Decline to 2.1 Million Head In 2011 * Forecast Million Head

21. Herds in Canada and Mexico Shrink Million Head

22. Average Cattle Carcass Weights Near Record in 2011 * Forecast Kilograms

23. Beef Exports Increase 2 Percent Beef Imports Increase 4 Percent * Forecast Million metric tons

24. 2010 Exports Higher to Several Major Markets * Forecast

25. Additional information about the 2011 outlook is available at the following websites: World Agricultural Outlook Board (WAOB) World Agricultural Supply and Demand Estimates –www.usda.gov/oce/commodity/wasde/index.htm Economic Research Service (ERS) Livestock, Dairy, and Poultry Situation and Outlook –www.ers.usda.gov/publications/ldp/ Foreign Agricultural Service (FAS) Livestock and Poultry: World Markets and Trade –www.fas.usda.gov/dlp/livestock_poultry.asp