USMEF Asia Overview

1. USMEF Asia Overview May 25, 2006 Putting U.S. Meat On The World’s Table

2. Japan Economic Situation JAPAN IS BACK • Recovery stronger than expected. (GDP growth estimated 2.7% in ‘05) • Lower unemployment rate (4.4% in 2005. Dropped .3% in 06) • Consumer price declined .3% in ‘05. Putting U.S. Meat On The World’s Table

3. GDP/Household Consumption Source: MAFF Putting U.S. Meat On The World’s Table

4. US Pork Imports Forecast M/T Putting U.S. Meat On The World’s Table

5. Consumer Activities 2006: Pork TV Produce and broadcast programs on American Pork on Foodies TV Produce original programs: “Pork TV: Attractiveness of American Pork” (30-minute program x 3 / 3-minute program x 25) TV Streaming broadcast of Foodies TV programs on USMEF site And on-air on the local TV stations in 5 areas in Japan Re-edit “American Pork TV” (3-minute program x 25 or so) and broadcast streaming video on USMEF site WEB &Local TV Re-edit Foodies TV programs and produce sales promotion DVD Re-edit “American Pork TV” for utilization as consumer education and sales promotion DVD DVD Multi-utilization of image (video)-based contents MAGAZINE Newspaper Use recipes introduced in programs in magazines and newspaper Utilize the recipe and food expert from the TV program for the magazine&Newspaper advertisements Utilize recipes in the program to produce 10 recipe cards for storefront distributions Utilize recipes video introduced on “Pork TV” to produce RECIPE CARD　 RECIPE ＣＡＲＤ Hold events introducing the recipes created for the TV program Hold events in the large shopping malls and/or reception at the kitchen studio, “kitchen @IMAGICA” EVENT Putting U.S. Meat On The World’s Table

6. Healthy Provides useful information on health, beauty, etc. Tasty Introduces the palatability of pork. Safety Introduces safety of pork from farm to table. People Introduces people engaged in pork. Restaurant Introduces restaurants offering tasty pork cuisine. Pork is healthy Low calorie and high protein pork Shabu shabu salad (Center cut loin) Recipe by Kazuo Hida 1 Pork ginger (Center cut loin) American pork safety 1 People’s effort in raising delicious pork (PQA) US style home cooking 1 (Bravard family) Hotel Patee (Iowa) Relation of pork and skin Balanced nutrition of pork Vegetable roll (Center cut loin) Recipe by Kazuo Hida 2 Pork with Touchi (Boston butt) American pork safety 2 Safety control system of world standard (HACCP) US style home cooking 2 (Snyder family) Machine shed (Iowa) Raise lively and healthy children! Pork for fast-growing children! Pork chop (Center cut loin) Recipe by Kazuo Hida 3 Herb roast (Tender loin) American pork safety 3 Chilled pork and safe logistics (Retail store) US style home cooking 3 (Sidhu family) Sapporo lion (Tokyo) Pork heals you Prevent adults from stress Pork with avocado (Single ribbed belly) Recipe by Kazuo Hida 4 Boiled spareribs (Spareribs) American pork Q&A 1 Why pork is the most consumed meat in the world? (The history of processed pork) Japanese style home cooking (Hiraki family) Baseball café (Tokyo) Pork culture supporting the longevity country Pork is one of big 3 longevity foods in Okinawa Pork with pickled plum (Boston butt) Recipe by Kazuo Hida 5 Pot-au-feu (Single ribbed belly) American pork Q&A 2 State-of-the-art technique to produce pork Chef’s recommendation (Tokyo) Otoya (Tokyo) Consumer Activities 2006: Pork TV Produced 25 x 3-minutes programs TV Mon Tue Wed Thu Fri Produced 3X30-minute programs combining all five categories Broadcast on Saturday and Sunday weekly Putting U.S. Meat On The World’s Table

7. Consumer Activities 2006: Pork TV TV Putting U.S. Meat On The World’s Table

8. Consumer Activities 2006: Pork TV TV Safety Restaurant Putting U.S. Meat On The World’s Table

9. Consumer Activities 2006: Pork TV Magazine Newspaper US Pork print advertisements carried some of the recipes from pork TV and also explains the nutrition benefits of US pork. <Magazine Ads> < Newspaper Ads> 4 Popular Women’s & Cooking Magazines (over 2 million circulations) and Newspaper (over 5 millions circulations) Putting U.S. Meat On The World’s Table

10. Consumer Activities 2006: Pork TV RECIPE CARD Putting U.S. Meat On The World’s Table

11. Star Chef Cooking SchoolSeries, March-June 2006 Consumer Activities 2005-2006 The series of cooking schools are being planned for Spring 2006. Three nationally well known chefs will introduce their special U.S. pork recipe. These events are publicized in the newspapers and magazines and it has been very popular among the targeted consumers. Chef Kumagai (French) Chef Wakiya (Chinese) Chef Sasajima (Italian) Putting U.S. Meat On The World’s Table

12. Consumer Activities 2005-2006 Pork Recipe Contest The Recipe Contest is being planed this Spring to provide the opportunity for consumers to share their ideas on the variety of usages the U.S. pork for their everyday meals. We have influential food experts such as Mr. Hattori and Ms. Akahori serving on the panel of judges. The contest was publicized in the print media as well as the on-line media. The final competition is scheduled for June 11, 2006. Putting U.S. Meat On The World’s Table

13. Consumer Web Site • 　Consumer section of the home page features US beef/pork recipes, nutrition and safety information as well as our activities. • Children’s contents were added for education purpose. Putting U.S. Meat On The World’s Table

14. Pork HRI Promotion • Expand use of US chilled pork Wako, Baseball Café, Sapporo Lion, Arcland Service etc. • New menu development Putting U.S. Meat On The World’s Table

15. Pork HRI ActivityHRI Trade Advertising Enhance demand for American chilled pork by promoting it through tie-up articles in industry magazines targeting business people who actually supply consumers with food. Promote the explanation of an advantageous point concerning the US chilled pork from the chef and the restaurant operators. Also, nutritionist provides additional information of US pork. GourmetJournal (4C/2P) May 7Kindai Shokudo (4C/2P) May 21Nikkei Restaurant (4C/2P) May 30 Putting U.S. Meat On The World’s Table

16. Branding will grow because a brand represents a promise of quality A tremendous amount of marketing and dollars will be placed behind a brand A brand can build customer loyalty & repeat buyers Store Brands in the retail market. Putting U.S. Meat On The World’s Table

17. Pork Retail • Promotion (Mini sauce campaign) Mini sauce bag design (Ｃｏｌｄ　Ｓｈａｂｕ－Ｓｈａｂｕ)(Ｇｉｎｇｅｒ　ｐｏｒｋ) Putting U.S. Meat On The World’s Table

18. Pork Retail • Promotion (Mini sauce campaign) Recipe Card (Ｃｏｌｄ　Ｓｈａｂｕ－Ｓｈａｂｕ)(Ｇｉｎｇｅｒ　ｐｏｒｋ) Putting U.S. Meat On The World’s Table

19. Korea Pork Production vs. Consumption 900,000 850,000 800,000 750,000 700,000 650,000 Pork Production(mt) 600,000 Pork Consumption(mt) 550,000 500,000 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Putting U.S. Meat On The World’s Table

20. China’s Live Hog & Pork Price Trend RMB/Kg FMD SARS Strep Suis AI Month/ Year Putting U.S. Meat On The World’s Table

21. Putting U.S. Meat On The World’s Table

22. China: Pork Exports • Roughly quadrupled from 2000 to 2004 (413 tmt) • Exports dropped 6% in 2005, 1st drop since 97 • Approx. 70% of exports are frozen boxed pork; remainder is cooked, canned • Major export destinations (2005) - Hong Kong : 114,375 tons ( 2%) - Russia : 43,274 tons ( 39 %) - North Korea : 61,609 tons ( 29 %) - Singapore : 16,327 tons ( 23 %) - Japan : 68,714 tons ( 29%) - Moldova : 14,656 tons ( 22 %) *others: Singapore, Philippines, Malaysia, Ukraine, Kazakhstan, Albania, South Korea, Vietnam U.S. Meat Export Federtation Putting U.S. Meat On The World’s Table

23. China’s Livestock and Poultry Trade with Japan Putting U.S. Meat On The World’s Table