Mexico Market Update Chad Russell Regional Director Mexico, C. America, D.R.

Overall Trends in Mexico Consumers more price sensitive U.S. pork relatively less expensive than U.S. beef Consumers significantly replacing beef with pork Importers/distributors of beef now adding pork to operations Shortened credit terms

Overall Trends in Mexico (MT) January-August Percent Change Beef121,494148, Beef Variety Meats80,476130, Total201,970279, Pork205,956154,06234 Pork Variety Meats122,84583,59347 Total328,801237,65538 Beef/Pork327,450302, BVM/PVM203,321214, Grand Total530,771517,3902.6

Percent Change Mx Peso Price 2009 versus 2008

Overall Trends in Mexico More meat purchases at supermarkets Sales of pork growing fastest in meat case Processed meats performing well Deli departments doing well Leading supermarket purchases more domestic beef

Overall Trends in Mexico Major supermarket chain moving to case- ready operations Interest in value cuts but importers/distributors hesitant Meat sales to tourist areas down 30% Many restaurants lower meat quality High-end hotels maintain meat quality Fewer & smaller meals purchased at restaurants AD duties applied to Tyson may be lifted

The Competition Mexican beef & pork production flat in 2009 & 2010 Worst drought in Mexico in 60 years –Increasing slaughter means more domestic beef & pork in market in fall & winter 2009 –However, less domestic product in spring 2010 Mexican government promoting Mexican pork post H1N1 outbreak U.S. continues to take market share from Canada CBEF invests resources in ads, shows & teams

USMEF Responds to Crises Pork –Aggressively promoting pork at retail –New regions, supermarkets & retail outlets –Renewed efforts to promote U.S. pork at restaurants –Numerous promotions to leverage holiday season –Aggressive H1N1 consumer ed. campaign Beef –Aggressively promoting beef value cuts –Launch Loyalty Program for restaurant clients –Consistently differentiating and supporting U.S. beef at 200 retail outlets throughout the year

USMEF Responds to Crises Pork & Beef (both) –Doubled Sales Force Training Seminar program –Expanded Meat Consultants to include Guadalajara –Portion control seminar for food service sector –Deploying nutritionists at retail points of sale in greater Mexico City –Targeting importers of other foreign suppliers of beef and pork

Central America Region Gerardo Rodríguez Director, Trade Development

Central America and Dominican Republic

REGIONAL BEEF IMPORTS AND SUPPLIER SHARE ,527 MT$144.2 Million USD SUPPLIER SHARE TO THE REGION TOTAL BEEF IMPORTS

REGIONAL PORK IMPORTS AND SUPPLIER SHARE ,375 MT$99.7 Million USD SUPPLIER SHARE TO THE REGION TOTAL PORK IMPORTS

Competitors Beef Exports (MT) 2008 vs ,002 MT 20,624 MT 26.5% NICARAGUA Turns to Venezuela Political Problems COSTA RICA Production Problems

Marketing Activities 2009 C. Americans attend the Sales Force Training Seminar Launched generic pork campaign Developed collaborative relations with pork producers Worked to develop supplier relations with Panama buyers

Market Opportunities Panama Free Trade Agreement (Higher Value Market) Honduras pork market Costa Rican market [Canada (pork) and Nicaragua (beef) main suppliers] El Salvador beef market Guatemala beef value cuts (California, Texas and petite tender steaks)