1. Evaluations Kristy Myers Manager, Program Evaluations Presented by: Tom Lipetzky VP, International Programs Washington, D.C. – May 26, 2005

2. Evaluations Six Country Consumer Survey –BSE Omnibus – 2005 Q1 Results Japan Consumer Trend Survey Evaluation Methodology Enhancements

3. Six Country Consumer Survey BSE Omnibus – 2005 Q1 Results

4. Research Background & Methodology With the discovery of an animal with BSE in the state of Washington in late 2003, the need to stay current on consumer meat purchasing patterns has become even more important to USMEF. As such, USMEF sought to conduct research to inquire about changing behaviors regarding protein consumption, opinions of the safety of beef from various origins, as well as an awareness of BSE in general. Questions for 2004 were asked on the Ipsos Global Express quarterly omnibus survey, conducted February 7 – 24 (Q1); May 20 – June 4 (Q2); September 13 – 29 (Q3); and November 16 – December 10 (Q4) in China, Japan, Mexico, Russia, South Korea, and Taiwan. Questions for Q1 of 2005 were also asked on the Ipsos Global Express omnibus survey, conducted February 23 – March 9 in Japan, Mexico, South Korea, and Taiwan. Non-vegetarians were screened from about 500 random consumers in each country (a statistically reliable sample with a margin of error of less than 5% at the 95% confidence level). USMEF will use the findings as a trendline for the communications strategies it anticipates implementing in international markets in an effort to restore consumer confidence in U.S. Beef. Content may be reproduced only with permission from USMEF..

5. International Awareness of BSE Base: Non-vegetarians Source: USMEF/IPSOS, Feb. 2004, Jul. 2004, Oct. 2004, Dec. 2004, Feb. 2005 Great Deal or Fair Amount (Top 2 Box) How much, if anything, have you heard, read, or seen in the past month about an animal disease called 'Mad Cow' Disease, or BSE? Letters indicate a significant difference at the 95% confidence level Content may be reproduced only with permission from USMEF..

6. Now thinking specifically about the U.S. and this issue, how much, if anything, have you heard, read, or seen in the past month about an animal disease in the U.S. called 'Mad Cow' Disease, or BSE? Int’l Awareness Of BSE in U.S. Base: Non-vegetarians aware of BSE Source: USMEF/IPSOS, Feb. 2004, Jul. 2004, Oct. 2004, Dec. 2004, Feb. 2005 Great Deal or Fair Amount (Top 2 Box) Letters indicate a significant difference at the 95% confidence level Content may be reproduced only with permission from USMEF..

7. Seriousness Of Problem Base: Non-vegetarians aware of BSE who believe there is currently BSE in the U.S. Source: USMEF/IPSOS, Feb. 2004, Jul. 2004, Oct. 2004, Dec. 2004, Feb. 2005 Very or Somewhat Widespread (Top 2 Box) How widespread do you think 'Mad Cow' Disease is in the U.S.? Letters indicate a significant difference at the 95% confidence level Content may be reproduced only with permission from USMEF..

8. Consumption Changes Decrease in beef consumption is leveling off. –In most countries, fewer are eating less beef. –Taiwan is the only country with significantly more respondents eating ‘less beef’ than Q4 2004. Significant drop in BSE as reason for eating less beef Primary Reasons for eating less beef: –Price, BSE & Diet – Japan –Price & Diet – South Korea & Mexico –No Particular Reason - Taiwan Base: Non-vegetarians Source: USMEF/IPSOS, Feb. 2004, Jul. 2004, Oct. 2004, Dec. 2004, Feb. 2005 Content may be reproduced only with permission from USMEF..

9. Consumption Changes Base: Non-vegetarians Source: USMEF/IPSOS, Feb. 2004, Jul. 2004, Oct. 2004, Dec. 2004, Feb. 2005 Compared to a month ago, are you eating more, less, or about the same amount of beef? Letters indicate a significant difference at the 95% confidence level Q1 Q2 Q3 Q4 Q5 (A) (B) (C) (D) (E) Q1 Q2 Q3 Q4 (A) (B) (C) (D) Q1 Q2 Q3 Q4 (A) (B) (C) (D) Content may be reproduced only with permission from USMEF.. Q1 Q2 Q3 Q4 Q5 (A) (B) (C) (D) (E) Q1 Q2 Q3 Q4 Q5 (A) (B) (C) (D) (E) Q1 Q2 Q3 Q4 Q5 (A) (B) (C) (D) (E)

10. Reasons For Reduced Consumption Base: Non-vegetarians aware of BSE who believe there is currently BSE in the U.S. Source: USMEF/IPSOS, Feb. 2004, Jul. 2004, Oct. 2004, Dec. 2004, Feb. 2005 BSE Why are you eating less beef now compared to a month ago? PriceDiet/Nutrition Letters indicate a significant difference at the 95% confidence level Content may be reproduced only with permission from USMEF..

11. Confidence in U.S. Inspection System Base: Non-vegetarians Source: USMEF/Ipsos Public Affairs, Feb. 2004, Jul. 2004, Oct. 2004, Dec. 2004, Feb. 2005 How confident are you in the U.S. food safety inspection system? Letters indicate a significant difference at the 95% confidence level Extremely or Somewhat Confident (Top 2 Box) Content may be reproduced only with permission from USMEF..

12. Confidence in U.S. Beef Base: Non-vegetarians aware beef is imported from the U.S. Source: USMEF/Ipsos Public Affairs, Feb. 2004, Jul. 2004, Oct. 2004, Dec. 2004, Feb. 2005 How confident are you that beef from the U.S. is a safe food? Letters indicate a significant difference at the 95% confidence level Extremely or Somewhat Confident (Top 2 Box) Content may be reproduced only with permission from USMEF..

13. Historical Confidence in U.S. Beef Base: Valid respondents Source: Historical USMEF/Ipsos Public Affairs/Gallup surveys (2001-2003) Current Question: How confident are you that beef from the U.S. is a safe food? Historical Question: On a scale from 1 to 5 (5: describes perfectly; 1: does not describe at all) how well does “safe to eat” describe beef from the U.S.? Perception of U.S. Beef Safety Has Not Suffered While the survey questions are not identical and a direct comparison cannot be made, it is important to note the historical perception of the safety of U.S. beef in these countries. February 2005 Historical (Before Dec 2003) Japan14% 20% in 2002 11% in 2000 South Korea28%10% in 2001 Mexico56% 46% in 2003 32% in 2001 Taiwan56% 57% in 2003 45% in 2001 Percentages reported reflect Top- Two Box Scores (5 or 4 on 5-point scale) Content may be reproduced only with permission from USMEF..

14. Comfort With U.S. Beef Base: Non-vegetarians aware beef is imported from the U.S. Source: USMEF/Ipsos Public Affairs, Feb. 2004, Jul. 2004, Oct. 2004, Dec. 2004, Feb. 2005 Assuming U.S. beef is available in your market, how comfortable are you purchasing U.S. beef or a product that contains US beef today? Extremely or Somewhat Comfortable (Top 2 Box) Letters indicate a significant difference at the 95% confidence level Content may be reproduced only with permission from USMEF..

15. Japan Consumer Trend Survey

16. Background Telephone Population Survey –Consumer Opinions & Behaviors –Measure Progress –Customize Strategies

17. Japan Consumer Trend Survey Fish & Pork Most Frequently Purchased – Beef 1.4 x Week 39% Home Meals Include Beef Unaided Primary Purchase Consideration: –Produced Domestically (37% sig.) –Price (20% sig.) –Safety (7% eql.) Aided Primary Purchase Consideration: –Freshness (90%) –Cleanliness (90%) –Safety (88%)

18. Japan Consumer Trend Survey Beef is: Decreased Awareness of U.S. Beef: 2004: 73% Unaided + 11% Aided = 84% 2002: 80% Unaided + 17% Aided = 97% Delicious (80% sig.)Easy to Prepare (68%) Good Value (56%)Fresh (65%) Healthy & Nutritious (54% sig.)Inexpensive (34%) Safe to Eat (53% sig.)

19. Japan Consumer Trend Survey Increased Perceptions of Domestic and Some U.S. and Australia Beef Compared to 2002 Australia Beef Perceived Higher Overall  /  = significant change from 2002 TOP 2 BOX Summary Table A letter next to a value indicates it is significantly higher than the corresponding value at the 95% confidence interval.

20. Recommendations: –Target Key Segments Focus on Freshness, Safety, Quality Japan Consumer Trend Survey

21. Evaluation Methodology Enhancements

22. Background Med.-Level/ Med.-Term Export Statistics Market Share Target Accounts Low-Level/ Short-Term Promotion Results Surveys: Newsletters, Seminars, Trade Shows, Trade Teams High-Level/ Long-Term Promar: Program Evaluations Monitor Consumer Opinions

23. Methodology Assessment The Hale Group Better Measure Affect of Programs Annual Basis Satisfy Funding Source Requirements Useful Tool

24. Results The Hale Group USMEF Denver Industry Partners USMEF Overseas

25. Options Do Nothing Tweak Current Application of Target Account Measurement System Working Account (A) – Constraint/Opportunity for Each Working Account (B) – Track Volume Changes for Each Working Account (C) – Semi- Annual Survey of Each

26. Next Steps Discussed All Options With Overseas Directors Test Semi-Annual Survey Concept in a Few Markets This Summer If Good: Will Implement Approach & Phase Out Current Target Account Approach

27. Questions?