WEEKLY MARKET TRENDS REPORT

August 16, 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 production last week rose 1.3% but was 1% less than the prior year. Tight cattle supplies may cause beef output to trend significantly below 2012 levels during the fall. Beef demand has been relatively light as of late with total shipments last week the smallest for any non holiday week since May. Better demand for the upcoming Labor Day holiday is expected to influence many beef markets upward during the next few weeks. U.S. beef imports during June were 10% less than last year and the smallest for the month since 2003. If sluggish beef imports persist it could influence lean beef trim prices higher.

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 Increasing Increasing Increasing Decreasing Increasing Increasing Increasing Increasing Decreasing Increasing Increasing Decreasing Increasing Increasing Increasing Increasing Increasing Increasing Increasing Increasing Increasing Decreasing Decreasing Decreasing Decreasing Increasing Decreasing Increasing 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 Good

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

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

Decreasing Steady Steady

Good Good Good

Lower Higher Higher

Oil and Grains Report

Oil & Grains- Corn and soybean supplies are expected to improve in the coming months. Still, elevated grain
prices are anticipated to endure into September.

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 Durum Wheat

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

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

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

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Dairy Report
Dairy- The CME cheese markets have traded relatively sideways during the last week. Existing cheese supplies are adequate and the premium in the international markets has softened as of late. The restart of the school season should tighten the available supply of milk in the coming weeks which could influence cheese prices modestly upward. Still, any cheese market gains are likely to be tempered by existing sufficient stocks. The butter market remains depressed trading near fourteen month lows. Typically the butter market tracks 4% higher during the next three weeks.

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 Decreasing Decreasing Increasing Increasing Increasing Increasing Increasing Decreasing Increasing Decreasing Steady Decreasing Increasing Decreasing

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

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

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Pork Report
Pork- Pork output last week declined .2% and was .2% smaller than the same week a year ago. Hog supplies are expected to become more available later this month which should lead to a seasonal increase in pork production. Last year hog slaughter in September was 7.9% larger than the previous month. The pork markets remain elevated but history suggests that modestly lower pork prices can be anticipated as the fall nears. In June, U.S. pork exports were 4% smaller than last year but the second biggest for the month since 2008.

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 Increasing Increasing Increasing Increasing Increasing Increasing Decreasing Increasing Decreasing Decreasing

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

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

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

Canned Tomato Report

Tomato Products, Canned- The California tomato for canning harvest is seasonally strong at a modestly better
pace than 2012. The markets are steady.

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

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

Poultry Report
Poultry- Chicken production for the week ending August 3rd was 3.5% larger than the same week a year ago. Good gains in broiler egg set numbers versus 2012 suggest that strong chicken output expansion will persist. The six-week moving average for broiler egg sets is trending 3% above last year. Improving profitability for chicken processors should aid pending chicken production as well. Spot feed costs for chicken producers last week were the lowest for any week since October 2010. The chicken breast markets have remained relatively elevated which is the norm for this time of the year. The chicken breast markets are expected to move lower next month. Last September the boneless skinless chicken breast market declined 8%.

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 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

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

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

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

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

Seafood Report
Seafood- U.S. salmon imports have been strong due in part to a higher valued U.S.
dollar and improving output from Chile. The U.S. imported 6% more salmon in June compared to the previous year marking a record high for the month. U.S. salmon imports from Chile during June were 14% more than last year. Salmon prices typically move higher in the coming months but solid trade could temper any seasonal price expansion.

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 N/A N/A N/A Increasing Increasing Steady Steady Steady Steady Steady Decreasing

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

Price vs. Last Year N/A N/A N/A Higher Higher Higher Higher Higher Lower Lower Higher

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 Decreasing Increasing Steady Increasing 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 Increasing Decreasing Steady Steady

Supplies Good Good Good Good Good

Price vs. Last Year Higher Higher Higher Higher Higher

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 Jun-13 Increasing Decreasing Increasing Increasing Increasing Decreasing May-13 Increasing Decreasing Increasing Decreasing Decreasing Increasing Apr-13 Decreasing Increasing Decreasing Increasing Increasing Decreasing

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

Processed Fruits and Vegetables Report

Processed Fruits and Vegetables- Processed vegetable supplies are seasonally improving with the summer
harvests. 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 Lower Higher Lower Higher Higher Higher Lower

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

Produce Report
Produce- The iceberg lettuce market continues to trade at inflated levels.
Iceberg lettuce supplies are improving and demand has been lackluster. Iceberg lettuce shipments last week rose 21%. Modestly lower iceberg lettuce prices could be forthcoming. The fall Idaho potato harvest is underway but new supplies are quickly being gobbled up by buyers. The Idaho potato markets, although they have likely peaked, may not turn significantly lower until better supplies are realized next month. Heat in California has slowed the tomato harvests. Erratic tomato prices could persist next week.

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)

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

Supplies 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 Lower Lower Higher Lower Higher Higher Lower Lower Higher Higher Higher Higher Higher Lower Lower Lower Lower Higher Higher

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

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.

Increasing Decreasing Increasing Increasing Increasing Increasing Decreasing Decreasing

Good Good Good Good Good Good Good Good

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 Increasing Increasing Increasing Increasing Decreasing Decreasing Increasing Increasing Decreasing Decreasing Good Good Good Good Good Good Good Good Good Good Good Good Good Lower Lower Lowe Higher Higher Higher Higher Higher Higher Higher Higher Lower Higher

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