1. Beef Checkoff Successes & Challenges

2. 2 Successes and Challenges Consumers and beef safety Consumers and beef’s nutrition Consumers and lifestyle/socio-economic issues

3. 3 SOURCES: Peter Hart Research – 2000; IPSOS 2001 - 2009

4. 4 Supermarket Foods of Highest Safety Concerns Supermarket Foods of Highest Safety Concerns Percent of consumers naming a specific food as highest concern Q: When you think of the safety of foods you might buy in the supermarket, which one of the following types of food are you most concerned about?

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7. 7 Beef’s Nutrition And the challenges… 56% “Can be eaten every day” (76%) 48% “ Fits a health-conscious diet” (81%) 32% “Low in sat fat” (64%) 30% “Low in cholesterol” (60%) The successes… 62% “Great source of vitamins and minerals (57%) 84% “Provides energy and fuel” (83%) 86% “Great source of protein” (85%) Consumer Beef Index – July '09

8. 8 Importance of Purchase Activities Lean cuts of meat “most important” activity when shopping for food IPSOS – 12/2009

9. 9 2010 Dietary Guidelines Nutrition research program has submitted nine sets of scientific comments: –Explaining the leanness of beef –Explaining beef’s excellent nutrient package –Demonstrating beef intake is not associated with heart disease –Clarifying beef’s contribution to the total saturated fat in the American diet –Clarifying beef’s sustainability / environmental impact

10. 10 50% of consumers say will be frugal long-term after the recession is over Recession is Over Lag Time Consumer Confidence Rebounds Lag Time Spending Improves 65% (3) “38 th Annual Forecast and Outlook Seminar: 2010: A Year of Challenge & Success” Technomic Survey, August, 2009

11. 11 Consumer Beef Index – July '09 11 Question: Q.35: Considering all you know about beef, would you say the positives of beef outweigh the negatives or do the negatives of beef outweigh the positives? Q.36: Considering all you know about chicken, would you say the positives of chicken outweigh the negatives or do the negatives of chicken outweigh the positives? Bucket 1 – Positives strongly outweigh negatives Bucket 2 – Positives somewhat outweigh negatives Bucket 3 – Negatives somewhat outweigh positives Bucket 4 – Negatives strongly outweigh positives Chicken 5% 7% 42% 46% Overall Perceptions of Beef Return to higher level of last summer

12. 12 Consumer Beef Index – July '09 12 Question: Q.20: How many times did you eat this type of food in the past week?  – Beef positives strongly outweigh negatives – Positives somewhat outweigh negatives – Negatives somewhat outweigh positives – Negatives strongly outweigh positives Per Week Average Number of Beef Servings (by consumer belief) * Consumers saying:

13. 13 Consumer Beef Index – July '09 13 Great tasting Extremely safe to eat A good value for the money Delivers good results consistently Feel good about eating Balance of taste and nutrition Know how to prepare well Always tender Options are quick and easy to prepare Provides energy and fuel Food you crave Great starting point for meal options Smart choice Great source of protein Easy to pick the right cuts Can be eaten every day Importance and Perceptions of Main Dish – at Home Base: Among Those Answering (N=504) Questions: Q.13a: How important is each of the following characteristics when choosing whether to have beef, chicken, fish, pork or other main dish alternatives for dinner at home? Q.32a: How much do you agree or disagree with each of the following statements when eating each food type at home. Extremely/Very ImportantBeef PerformanceChicken Performance Agree Completely/Somewhat (Page 1 of 2)

14. 14 Consumer Beef Index – July '0914 Does not contribute to heart health problems Excellent total package of nutrients Many lean cuts available Great source of vitamins and minerals Low in saturated fat Fits a health-conscious diet Does not contain hormones For special occasion meals Worth paying more for Low in cholesterol Important part of children’s diets Comes from humanely-raised animals Produced with low impact on environment Can be eaten on the go Associated with “the good life” Been in the news recently Importance and Perceptions of Main Dish – at Home Base: Among Those Answering (N=504) Questions: Q.13a: How important is each of the following characteristics when choosing whether to have beef, chicken, fish, pork or other main dish alternatives for dinner at home? Q.32a: How much do you agree or disagree with each of the following statements when eating each food type at home. N/A Extremely/Very ImportantBeef PerformanceChicken Performance Agree Completely/Somewhat (Page 2 of 2)

15. 15 Food expenditure retail vs. foodservice Food purchased for at-home consumption accounted for 55.7% total food expenditure, 2009 (↑ from 2008) Food purchased away-from-home accounted 44.3% total food expenditure (↓ from 2008) USDA, 2009

16. 16 Beef production

17. 17 Consumers Don’t Know Us… IPSOS Public Affairs 5/2009 Percent of consumers saying how well they know beef industry

18. 18 …in a void, others will define us HSUS “ Farm animals are mutilated. They’re crammed into tiny cages. They endure often-agonizing slaughter. Farms routinely abuse them. No federal law protects them from cruelty while on the farm, and most states exempt common agricultural practices from animal cruelty laws, regardless of how abusive. " -HSUS Web site PETA “Animals on factory farms do not see the sun or get a breath of fresh air until they are prodded and crammed onto trucks for a nightmarish ride to the slaughterhouse, often through weather extremes and always without food or water. Many die during transport, and others are too sick or weak to walk off the truck after they reach the slaughterhouse. The animals who survive this hellish ordeal are hung upside-down and their throats are slit, often while they're completely conscious. Many are still alive while they are skinned, hacked into pieces.” -PETA Web site

19. 19 Advocacy GroupBudget Consumers Union$206.6 HSUS$124.9 Environmental Defense$69.5 PETA$31.1 Sierra Club$29.3 CSPI$17.3 Greenpeace$10.7 PCRM$7.2 Farm Sanctuary$5.3 $224 mil

20. 20 Esteem Belonging Safety Physiological High-End Luxury Natural and organics Animal Welfare Safety Nutrition Sustainability SA

21. 21 Beef Report Card Questions: Q.32a/b: Thinking only about beef, how much do you agree or disagree with each of the following statements when eating this food type at home/a full-service restaurant? At HomeAt Restaurant 1-075-072-087-083-097-091-075-072-087-083-097-09 Great tasting85%82%84%85%84%87%80%81%86%83%84%85% Extremely safe to eat55%60%50%57%54%63%52%62%55%60% 58% A good value for the money60%54%62% 67%57%54%61%60%63% Food you crave62%59%63%69%67% 60%58%65%66%68% Source: Consumer Beef Index: July, 2009 Safety Solid Value Bounces Back Taste an Ongoing Passion

23. 23 Beef Industry LRP Goal: Become a Net Exporter by 2010 Source: USDA/FAS; Million USD 2007 Net Imports $780 million 2008 Net Exports $453 million 2009 Jan-May Net Imports $40 million (million $)