WEEKLY MARKET TRENDS REPORT

February 8, 2013

Individual Reports on: Beef, Veal and Lamb Oil and Grains Dairy Pork Canned Tomato Poultry Seafood Bean, Rice, Coffee and Sugar Processed Fruits and Vegetables Produce

Beef, Veal and Lamb Report

Beef, Veal & Lamb- Beef output last week declined .9% but was 6.5% more than last year.
The total U.S. cattle herd on Jan 1 was 1.6% smaller than a year ago indicating tight cattle supplies for this year. The USDA is forecasting Q1 beef production to be 1.8% less than '12. This should provide support to the beef markets. Still, beef demand remains poor which is currently pressuring beef prices lower. Russia confirmed it will halt U.S. beef imports effective this month. The 50% trim market usually rises sharply over the next six weeks but any gains this year could be tempered by the Russian embargo on U.S. beef.

Live Cattle (Steer) Ground Beef 81/19 Ground Chuck 109 Export Rib (choice) 109 Export Rib (prime) 112a Ribeye (choice) 112a Ribeye (prime) 116 Chuck (choice) 120 Brisket (choice) 121c Outside Skirt (ch/sel.) 167a Knckle, Trimmed (choice) 168 Inside Round (choice) 174 Short Loin (choice 0x1) 174 Short Loin (prime 2x3) 180 1x1 Strip (choice) 180 1x1 Strip (prime) 180 0x1 Strip (choice) 184 Top Butt, boneless (choice) 184 Top Butt, boneless (prime) 185a Sirloin Flap (choice) 185c Loin, Tri-Tip (choice) 189a Tender (select, 5 lb & up) 189a Tender (choice, 5 lb &up) 189a Tender (prime, heavy) 193 Flank Steak (choice) 50% Trimmings 65% Trimmings 75% Trimmings 85% Trimmings 90% Trimmings

Market Trend Increasing Decreasing Decreasing Decreasing Decreasing Decreasing Decreasing Decreasing Decreasing Decreasing Decreasing Decreasing Decreasing Increasing Decreasing Decreasing Decreasing Decreasing Decreasing Increasing Increasing Increasing Decreasing Decreasing Increasing Decreasing Decreasing Increasing Decreasing Increasing

Supplies Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good

Price vs. Last Year Higher Higher Higher Higher Lower Higher Lower Lower Lower Higher Lower Lower Higher Lower Lower Lower Lower Higher Higher Higher Lower Higher Higher Lower Higher Lower Lower Higher Lower Higher

Market Report provided by American Restaurant Associationwww.AmericanRestaurantAssociation.com- 888-423-4411

90% Imported Beef (frozen) Veal Rack (Hotel 7 rib) Veal Top Round (cap off)

Decreasing Steady Steady

Good Good Good

Higher Higher Higher

Oil and Grains Report

Oil & Grains- The USDA's rating of the Kansas winter wheat crop is the worst since 1985 due to the persistent
drought. The grain markets are likely to remain supported this winter.

Soybeans Crude Soybean Oil Soymeal Corn Crude Corn Oil Distillers Grain, Dry Crude Palm Oil Hard Red Winter Wheat Dark Northern Spring Wheat High Fructose Corn Syrup Durum Wheat

Market Trend Increasing Increasing Increasing Decreasing Increasing Increasing Increasing Decreasing Decreasing Decreasing Increasing

Supplies Good Good Good Good Good Good Good Good Good Good Good

Price vs. Last Year Higher Lower Higher Higher Lower Higher Lower Higher Lower Higher Higher

Market Report provided by American Restaurant Associationwww.AmericanRestaurantAssociation.com- 888-423-4411

Dairy Report
Dairy- The CME cheese markets are mostly steady. Last week the U.S. dollar fell to its lowest value versus the ARA dairy currency index since Nov '11. This should encourage cheese exports. The cheese block market normally trends 5.8% higher during the next two weeks. The CME butter market is firm. The international butter market is currently pricing at a hefty premium to its U.S. counterpart. This usually motivates butter exports which would temper any seasonal weakness for butter this month. Butter prices usually fall 1.6% over the next two weeks before bottoming.

Market Trend Cheese Barrels- CME Cheese 40 lb Blocks- CME American Cheese Cheddar Cheese Mozzarella Cheese Provolone Cheese Parmesan Cheese Butter- One lb Solids Nonfat Dry Milk Whey, Dry Class I Milk Base Class II Cream (Heavy Cream) Class III Milk- CME Class IV Milk- CME Increasing Increasing Decreasing Decreasing Decreasing Decreasing Decreasing Steady Increasing Decreasing Steady Increasing Increasing Increasing

Supplies Good Good Good Good Good Good Good Good Good Good Good Good Good Good

Price vs. Last Year Higher Higher Lower Higher Higher Higher Higher Higher Higher Lower Higher Higher Higher Higher

Market Report provided by American Restaurant Associationwww.AmericanRestaurantAssociation.com- 888-423-4411

Pork Report
Pork- Pork production last week increased 1.1% and was 2% more than the same week last year. Yet, pork output this week is slowing due in part to challenged profitability for pork producers and tight hog supplies. These factors could support the USDA pork cutout value which usually moves up 3.3% during the next two weeks. Russia has decided to halt U.S. pork exports this month. This could limit the upside price risk for the 72% pork trim market which tends to appreciate 7.9% during the next five weeks.

Live Hogs Belly (bacon) Spare Rib (4.25 & down) Ham (23-27 lb) Loin (bone-in) Baby Back Rib (1.75 & up) Tenderloin (1.25 lb) Boston Butt, untrimmed 4-8 lb. Picnic, untrimmed SS Picnic, smoker trim boxed 42% Trimmings 72% Trimmings

Market Trend Increasing Decreasing Decreasing Decreasing Decreasing Increasing Decreasing Decreasing Decreasing Increasing Decreasing Decreasing

Supplies Good Good Good Good Good Good Good Good Good Good Good Good

Price vs. Last Year Higher Higher Higher Lower Lower Lower Lower Lower Lower Lower Higher Higher

Market Report provided by American Restaurant Associationwww.AmericanRestaurantAssociation.com- 888-423-4411

Canned Tomato Report

Tomato Products, Canned- The '13 California tomato crop is likely to be 2.9% larger than '12 and the second
largest on record. Canned tomato prices are firm.

Whole Peeled Standard Diced, Fancy Ketchup, 33% Tomato Paste- Ind.

Market Trend Steady Steady Steady Steady

Supplies Good Good Good Good

Price vs. Last Year Same Same Same Same

Poultry Report
Poultry- Chicken producers appear to be expanding chicken production. Broiler type-egg sets for week ending Jan 26 were 2% larger than the same week in '12. The six-week moving average for broiler egg sets is 1.4% above the prior year, the biggest increase since Dec '10. Still, feed costs have risen which could eventually hamper chicken production. The chicken wing markets may have topped. Since '09, chicken wing prices have peaked no later than this week. Last year the jumbo cut chicken wing market fell 9.4% over the next four weeks. The chicken breast markets are steady. Since '08, the average move for the chicken breast market during the next eight weeks is up 9.1% but any gains this year could be mitigated.

Whole Chicken (2.5-3 lb-GA) Chicken Wings, Whole Chicken Wings, Jumbo Cut Chicken Breast, Bone-In Chicken Breast, Bnless Sknless Chicken Tender (random) Chicken Tender (sized) Chicken Legs (whole) Chicken Leg Quarters Chicken Thighs, bone in

Market Trend Increasing Steady Decreasing Steady Steady Decreasing Steady Decreasing Steady Decreasing

Supplies Good Good Good Good Good Good Good Good Good Good

Price vs. Last Year Higher Higher Higher Higher Higher Higher Lower Lower Higher Lower

Market Report provided by American Restaurant Associationwww.AmericanRestaurantAssociation.com- 888-423-4411

Chicken Thighs, boneless Large Eggs Medium Eggs Whole Eggs- Liq Egg Whites- Liq Egg Yolks- Liq Whole Turkey (8-16 lb) Turkey Breast- Bnls/Sknls

Increasing Decreasing Steady Decreasing Increasing Steady Increasing Decreasing

Good Good Good Good Good Good Good Good

Higher Higher Higher Higher Higher Higher Lower Lower

Seafood Report
Seafood- The U.S. shrimp (9%), salmon (20%) and snow crab leg (4%) markets remain
below year ago levels. The Japanese Yen is trading at its lowest level versus the U.S. dollar since May '10. This should support U.S. seafood imports especially for shrimp where the U.S. is the largest importer, while Japan is second. Still, if the U.S. dollar depreciates this year it could bring support to the shrimp and other seafood markets.

Salmon, Whole (10-12 lb) Catfish, Filets Trout, Drn. (8-14 oz) Shrimp (16-20 count) Shrimp (61-70 count) Shrimp, Tiger (26-30 count) Snow Crab Legs (5-8 oz) Snow Crab Legs (8 oz up) Cod Tails, 3-7 oz. Frz. Cod Loins, 3-12 oz. Frz. Salmon Portions, 4-8 oz. Frz.

Market Trend Steady Steady Steady Steady Steady Steady Steady Steady Steady Steady Steady

Supplies Good Good Good Good Good Good Good Good Good Good Good

Price vs. Last Year Same Lower Higher Lower Higher Lower Lower Lower Lower Lower Lower

Market Report provided by American Restaurant Associationwww.AmericanRestaurantAssociation.com- 888-423-4411

Bean, Rice, Coffee and Sugar Report

Pinto Beans Black Beans Rice, Long Grain Coffee Beans Sugar Honey Market Trend Steady Deceasing Increasing Decreasing Increasing Steady Supplies Good Good Good Good Good Good Price vs. Last Year Lower Lower Higher Lower Lower Higher

Paper Product Report

Wood Pulp (paper)

NBSK- Paper napkin 42 lb. Linerboard-corrugated box

Plastic Resins (plastic, foam)

Market Trend Decreasing Decreasing Steady Steady

Supplies Good Good Good Good Good

Price vs. Last Year Higher Higher Higher Higher Same

PS-CHH-utensils, cups, to-go cont. PP-HIGP-heavy grade utensils PE-LLD-can liners, film, bags

Steady

Retail Price Change from Prior Month

Beef and Veal Dairy Pork Chicken Fresh Fish and Seafood Fresh Fruits and Vegetables Apr-11 Increasing Increasing Decreasing Increasing Increasing Decreasing Mar-11 Increasing Increasing Increasing Decreasing Increasing Increasing Feb-11 Increasing Increasing Increasing Increasing Increasing Increasing

Market Report provided by American Restaurant Associationwww.AmericanRestaurantAssociation.com- 888-423-4411

Processed Fruits and Vegetables Report

Processed Fruits and Vegetables- 2013 farmer-processor contracting plans and negotiations are persisting for
processed vegetables. The processed vegetable markets remain firm.

Canned 6/10 Corn, Fancy Whole Kernel Green Beans, Fancy 4 sv Green Peas, Fancy 4 sv/blend Frozen Corn, Cob 96 count Corn, Kernel 12/2.5 lb. Green Beans, Cut 12/2 lb. Green Peas, 12/2.5 lb. Potatoes, FF Fancy, 6/5 lb.

Market Trend

Steady
Steady Steady Steady Steady Steady Steady Steady

Supplies Good Good Good Good Good Good Good Good

Price vs. Last Year Higher Higher Higher Higher Higher Higher Higher Higher

Produce Report
Produce- The iceberg lettuce markets remain elevated due to weight and quality problems caused by recent weather challenges. However, warmer temperatures are expected in the Yuma-Imperial Valley region this week which could improve lettuce production. History points to higher iceberg lettuce prices in Feb but any price appreciation this year may be limited. Solid potato inventories and modest demand for potatoes are keeping the potato markets depressed. The downside price risk for the ID potato market (70ct) from here is small. The tomato markets typically rise over the next three weeks.

Market Report provided by American Restaurant Associationwww.AmericanRestaurantAssociation.com- 888-423-4411

Limes (150 count) Lemons (95 count) Lemons (200 count) Honeydew (6 ct.) Cantaloupe (15 count) Blueberries (12 count) Strawberries (12 pints) Avocados, Hass (48 count) Bananas (40 lb)-Term. Pineapple (7 ct.)- Term. Idaho Potato (60 count) Idaho Potato (70 count) Idaho Potato (70 count)-Term. Idaho Potato (90 count) Idaho Potato #2 (6 oz. min.) Processing Potato (100 lb) Yellow Onions (50 lb) Yellow Onions (50 lb)-Term. Red Onions (25 lb)-Term. White Onions (50 lb)-Term. Tomatoes, (large- case) Tomatoes, (5x6, 25 lb.)-Term. Tomatoes, Vine Ripe, (4x5) Roma Tomatoes (large- case) Roma Tomatoes (xlarge- case) Green Peppers (large- case) Red Peppers (large- 15 lb. cs.) Iceberg Lettuce (24 count) Iceberg Lettuce (24 cnt)-Term.

Market Trend Increasing Steady Steady Decreasing Decreasing Decreasing Increasing Decreasing Decreasing Increasing Decreasing Decreasing Increasing Decreasing Decreasing Steady Decreasing Decreasing Decreasing Decreasing Increasing Decreasing Decreasing Decreasing Decreasing Decreasing Decreasing Decreasing Decreasing

Supplies Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good Good

Price vs. Last Year Same Lower Lower Lower Lower Higher Lower Lower Lower Lower Lower Lower Higher Lower Lower Lower Higher Higher Higher Higher Higher Higher Higher Higher Higher Higher Higher Higher Higher

Produce Report (continued)

Leaf Lettuce (24 count) Romaine Lettuce (24 count) Mesculin Mix (3 lb)-Term. Broccoli (14 cnt.) Squash (case) Zucchini (case) Green Beans (bushel) Spinach, Flat 24s Mushrooms (large), Term. Cucumbers, Bushel Pickles (200-300 ct.)-Term. Asparagus (small) Freight (CA to City Avg.) Decreasing Decreasing Increasing Decreasing Increasing Increasing Increasing Decreasing Steady Decreasing Increasing Steady Decreasing Good Good Good Good Good Good Good Good Good Good Good Good Good Higher Higher Higher Higher Higher Higher Lower Higher Higher Higher Higher Higher Lower

Market Report provided by American Restaurant Associationwww.AmericanRestaurantAssociation.com- 888-423-4411