Monthly Mexico Meat Market Report

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1 Monthly Mexico Meat Market Report Supply and Price Situation for Domestic and Traded Beef February 27, 2017 Prepared for Meat and Livestock Australia Steiner Consul ng Group, Manchester, NH, U.S.A

2 table of contents market update trade summary - total mexico beef imports beef imports from australia total mexico beef exports mexican beef trade deficit imports of mexican feeder cattle 15 mexican economy - exchange rates economic indicators inflation.. 20 pricing summary - feeder steer prices - export to u.s mexican beef trim and cut prices supply summary - beef supply, exports and use cattle inventory.. 32

3 Page 3 Market Update Produc on Update Mexico beef produc on in January was es mated by SIAP at 153,153 MT (carcass weight basis), 1.6% higher than a year ago. The two top producing states in January were Veracruz, with 19,452 MT or 12.7% of na onal produc on and Jalisco, with 18,424 MT or 12% of na onal produc on. The pace of produc on in these two states was not the same in January. Veracruz produc on was down 2% from a year ago while produc on in Jalisco was 6.9% higher than last year. Mexican beef produc on has increased in recent years in order to fill robust domes c and export demand. In 2016, reported beef produc on was million MT, 3% higher than what it was in Higher prices in the US market and a weaker peso have con nued to s mulate beef exports to the US. Also this year we have seen a significant increase in the number of Mexican feeder ca le going to the US. US imports of Mexican feeder ca le through the first six weeks of this year are up 42% compared to the same period a year ago. Trade Summary The latest export/import data for Mexico is for the month of November It shows that beef imports in November 2016 were

4 Page 4 11,696 MT, up 11% or 1,201 MT compared to a year ago. Most beef imported into Mexico comes from the US and it is in fresh/chilled form. Fresh and chilled imports from the United States were up 8% or 612 MT. Frozen imports from the US in November were 1,114 MT, 356 MT higher than the previous year. During the Jan Nov period, imports of fresh/ frozen beef from the US were up 3,316 MT, 4% higher than a year ago. Imports of frozen beef, while s ll a frac on of chilled beef, more than doubled compared to the previous year and accounted for half of the overall growth in beef imports. Exports of Mexican beef in November were 14,330 MT, 3,670 MT (+34%) higher than a year ago. Exports of chilled/fresh beef to the US in November were 13,108 MT, up 32% from a year ago. The US represents the bulk of Mexican beef shipments and it is mostly in fresh/chilled form. For the Jan Nov period fresh beef exports to the US market were 140,172 MT, 14% higher than the previous year. Total Mexican beef exports during the reference period were 153,661 MT, 14% higher than the previous year. Japan was the second largest market for Mexican beef in 2016, accoun ng for 4% of shipments.

5 February 2017 Mexico Monthly Meat Market Report Page 5 Trade Summary

6 Page YTD 2016 YTD Jan Nov Jan Nov Vol. Ch. % Ch. Nov 15 Nov 16 Vol. Ch. % Ch. Fresh/Chill MT MT MT MT MT MT MT MT MT United States 144, ,963 95,607 86,340 89,656 3,316 4% 7,879 8, % Canada 13,835 18,360 14,891 13,751 12,562 (1,189) 9% 981 1, % Australia % 22 (22) N/A New Zealand N/A N/A Honduras N/A N/A Costa Rica N/A N/A Uruguay (149) 38% (29) 59% Chile N/A N/A Nicaragua 172 4,093 3,545 5,879 2,334 66% % Panama N/A N/A Other (43) N/A 1 (1) N/A Total 158, , , , ,405 4,313 4% 9,556 10, % Frozen United States 3,508 4,569 5,089 4,415 8,841 4, % 758 1, % Canada % (16) 23% Australia 896 1, (625) 98% 13 (13) N/A New Zealand (87) 18% N/A Honduras N/A N/A Costa Rica N/A N/A Uruguay (42) N/A 21 (21) N/A Chile % 4 (4) N/A Nicaragua (412) 50% % Panama N/A N/A Other (1) 25% N/A Total 5,347 6,803 7,839 6,920 10,273 3,353 48% 939 1, % Fresh/Chilled & Frozen Mexico Beef Imports Shipped Wt. Basis (Metric Ton), Annual and Monthly United States 148, , ,696 90,755 98,497 7,742 9% 8,637 9, % Canada 14,115 18,668 15,452 14,260 13,161 (1,099) 8% 1,052 1, % Australia 896 1, (581) 88% 35 (35) N/A New Zealand (87) 18% N/A Honduras N/A N/A Costa Rica N/A N/A Uruguay (191) 44% (50) 71% Chile % 4 (4) N/A Nicaragua ,040 4,377 6,299 1,922 44% 696 1, % Panama N/A N/A Other (44) 94% 1 (1) N/A Total 163, , , , ,678 7,666 7% 10,495 11,696 1,201 11%

7 February 2017 Mexico Monthly Meat Market Report Page 7 MT 30,000 Mexico Beef Imports from US and Canada Shipped Wt. Basis (MT), Monthly 2001 to ,000 20,000 15,000 USA 10,000 5,000 Canada

8 Page 8 MT, swt 140, , ,000 9% Mexican Fresh, Chilled & Frozen Beef Imports Year-to-Date 2015 vs YTD 2016 YTD 7% 80,000 60,000 40,000 20, % -88% -18% United States Canada Australia New Zealand Total 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Mexican Beef Imports by Country Share of Total Imports (% as of November 2016) Canada United States Canada 14.6% Australia 0.2% Other 6.3% United States 78.9%

Page 9 Share of Mexican Beef Imports 2015 vs.

States 83% Canada 12% Nicaragua 5% Nicaragua 4% Frozen Imports YTD, 2015 Frozen Imports YTD, 2016 United States 64%

Chile includes and Nicaragua Chile and and Nicaragua make up 12.2 makes up 12.

9 Page 9 Share of Mexican Beef Imports 2015 vs. 2016, Year-to-Date Fresh/Chilled Imports YTD, 2015 Fresh/Chilled Imports YTD, 2016 United States 83% Canada 13% United States 83% Canada 12% Nicaragua 5% Nicaragua 4% Frozen Imports YTD, 2015 Frozen Imports YTD, 2016 United States 64% Canada 7% Australia New 9% Zealand 7% United States 86% Canada 6% Other shares Other of frozen shares include of frozen Chile includes and Nicaragua Chile and and Nicaragua make up 12.2 makes up 12.2 Fresh vs Frozen Beef Imports, 2015 YTD Other shares of frozen include Australia and Chile and makes up 0.3% New Zealand 4% Nicaragua 4% Fresh vs Frozen Beef Imports, 2016 YTD Fresh/Chill 93.8% Fresh/Chill 91.3% Frozen 6.2% Frozen 8.7%

10 Page 10 MT, swt 160 Australian Beef Exports to Mexico Metric Tons, Shipped Weight Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year Average Yea r Avg 2016 vs 2015 Ja n Feb Ma r Apr Ma y Jun Jul Aug Sep Oct Nov Dec Source: Australian Government, Department of Agriculture, Fisheries and Forestry 2016 vs 5 Yr Avg

11 Page YTD 2016 YTD Jan Nov Jan Nov Vol. Ch. % Ch. Nov 15 Nov 16 Vol. Ch. % Ch. Fresh/Chill MT MT MT MT MT MT MT MT MT United States 84, , , , ,172 16,778 14% 9,933 13,108 3,175 32% Japan 2,323 2,918 2,767 2,345 2,086 (259) 11% (7) 3% South Korea N/A N/A Puerto Rico 50 N/A N/A Costa Rica N/A N/A Panama N/A N/A Angola N/A N/A Russia N/A N/A Hong Kong (16) N/A N/A Vietnam 21 N/A N/A Other , % % Total 87, , , , ,571 16,936 13% 10,287 13,465 3,178 31% Frozen United States 9,546 8,066 12,080 11,234 13,489 2,255 20% 727 1, % Japan 16,164 9,896 7,451 6,891 4,500 (2,391) 35% (108) 24% South Korea ,531 1, % % Puerto Rico N/A N/A Costa Rica % 183 (183) N/A Panama (162) 96% 24 1 (23) 96% Angola N/A N/A Russia N/A N/A Hong Kong 409 7,344 3,711 3,429 3,287 (142) 4% % Vietnam 2, (72) N/A N/A Other % (3) 2% Total 29,910 26,986 24,361 22,472 23,975 1,503 7% 1,963 2, % Fresh/Chilled & Frozen Mexico Beef Exports Shipped Wt. Basis (Metric Ton), Annual and Monthly United States 94, , , , ,661 19,033 14% 10,660 14,330 3,670 34% Japan 18,487 12,814 10,218 9,236 6,586 (2,650) 29% (115) 16% South Korea ,531 1, % % Puerto Rico 50 N/A N/A Costa Rica % 183 (183) N/A Panama (162) 96% 24 1 (23) 96% Angola N/A N/A Russia N/A N/A Hong Kong 409 7,344 3,727 3,445 3,287 (158) 5% % Vietnam 2, (72) N/A N/A Other 99 1,108 1,210 1,056 2,080 1,024 97% % Total 117, , , , ,546 18,439 12% 12,251 15,753 3,502 29%

12 Page 12 MT, swt 180, , ,000 Mexican Fresh, Chilled & Frozen Beef Exports Year-to-Date, 2016 vs % 2015 YTD 2016 YTD 12% 120, ,000 80,000 60,000 40,000 20, % 441% N/A United States Japan South Korea Russia Total Mexican Beef Exports by Country Share of Total Imports (% as of November 2016) 100% 90% 80% 70% Japan South Korea Russia S. Korea 1.1% Japan 2.9% Other 4.7% 60% Other 50% 40% United States 91.2% 30% 20% United States 10% 0%

Page 13 Shares of Mexican Beef Exports 2015 vs.

Fresh/Chilled Exports YTD, 2016 United States 97%

Frozen Exports YTD, 2016 Other 1% Japan 1% Japan 31%

15% United States 56% Hong Kong 14% Other shares of

shares of frozen include Costa Rica, Panama and

13 Page 13 Shares of Mexican Beef Exports 2015 vs. 2016, Year-to-Date Fresh/Chilled Exports YTD, 2015 Fresh/Chilled Exports YTD, 2016 United States 97% United States 98% Frozen Exports YTD, 2015 Japan 2% Frozen Exports YTD, 2016 Other 1% Japan 1% Japan 31% Japan 19% South Korea 6% United States 50% Hong Kong 15% United States 56% Hong Kong 14% Other shares of frozen includes Panama, South Korea, and Vietnam and makes up 3.1% Fresh vs Frozen Beef Exports, 2015 YTD Other shares of frozen include Costa Rica, Panama and other and make up 4.9% Fresh vs Frozen Beef Exports, 2016 YTD Fresh/Chill 85% Fresh/Chill 86% Frozen 15% Frozen 14%

14 Page 14 MT 10,000 Mexico Beef Trade Deficit/Surplus with the US Net Beef Trade, Exports minus Imports (MT) 5,000 - (5,000) (10,000) (15,000) (20,000) (25,000) (30,000)

15 Page 15 Imports Of Mexican Feeder Cattle As % Of US Cattle Placements US Monthly Imports, USDA Male Calves Female Calves Total Feeders...head.. US 5 State Placements Placements head.. Total Feeders as % US Total Placements Total Feeders as % 5 State Placements Jan 13 63,397 18,087 81,484 1, % 16% Feb 13 88,966 21, ,874 1, % 25% Mar 13 89,918 20, ,174 1, % 16% Apr 13 73,952 15,826 89,778 1, % 16% May 13 59,254 10,325 69,579 1, % 9% Jun 13 34,914 5,157 40,071 1, % 7% Jul 13 36,316 5,746 42,062 1, % 7% Aug 13 31,905 4,394 36,299 1, % 6% Sep 13 36,575 3,833 40,408 1, % 7% Oct 13 78,601 14,455 93,056 2, % 14% Nov 13 99,432 28, ,686 1, % 24% Dec ,041 29, ,976 1, % 29% Jan 14 68,144 13,205 81,349 1, % 15% Feb 14 79,651 19,408 99,059 1, % 19% Mar 14 86,044 18, ,959 1, % 17% Apr 14 79,291 18,834 98,125 1, % 18% May 14 67,306 18,041 85,347 1, % 12% Jun 14 56,036 12,557 68,593 1, % 15% Jul 14 59,027 15,181 74,208 1, % 15% Aug 14 39,841 11,452 51,293 1, % 10% Sep 14 50,895 10,846 61,741 1, % 11% Oct 14 76,898 16,994 93,892 2, % 14% Nov ,274 32, ,087 1, % 26% Dec ,798 31, ,315 1, % 37% Jan 15 65,541 13,765 79,306 1, % 16% Feb 15 88,922 13, ,611 1, % 26% Mar ,368 15, ,482 1, % 22% Apr 15 82,353 11,856 94,209 1, % 19% May 15 95,388 13, ,075 1, % 18% Jun 15 93,814 12, ,479 1, % 22% Jul 15 81,528 9,368 90,896 1, % 19% Aug 15 60,653 6,670 67,323 1, % 14% Sep 15 73,111 6,038 79,149 1, % 14% Oct 15 91,742 12, ,160 2, % 18% Nov 15 82,519 11,841 94,360 1, % 22% Dec 15 93,412 8, ,027 1, % 24% Jan 16 48,256 4,225 52,481 1, % 11% Feb 16 77,032 6,592 83,624 1, % 17% Mar ,486 15, ,520 1, % 24% Apr ,279 12, ,437 1, % 20% May 16 57,200 4,724 61,924 1, % 9% Jun 16 56,736 4,288 61,024 1, % 12% Jul 16 37,400 4,255 41,655 1, % 9% Aug 16 42,237 3,225 45,462 1, % 9% Sep 16 39,260 3,854 43,114 1, % 9% Oct 16 48,678 3,456 52,134 2, % 9% Nov 16 99,722 13, ,952 1, % 22% Dec ,091 12, ,602 1, % 25% 1. 5 states: California, Arizona, New Mexico, Texas and Oklahoma

16 Page 16 Imports Of Mexican Feeder Cattle As % of Southern Placements as % of Placements in 5 States (CA, AZ, NM, TX and OK) 40% 35% 30% 25% 20% 15% 10% 5% 0% as % of All US Placements 14% 12% 10% 8% 6% 4% 2% 0%

17 February 2017 Mexico Monthly Meat Market Report Page 17 Mexican Economy

18 Page % 1.50% 1.00% 0.50% 0.00% -0.50% -1.00% -1.50% -2.00% -2.50% -3.00% -3.50% Appreciation/Depreciation of Mexican Peso vs. US $ and Canadian $, % Ch Since Jan 2, 2009 MXN vs. CAD MXN vs. USD More imports Fewer exports Fewer imports More exports USD per 1 MXN US Dollar to 1 Mexican Peso 0.03 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 CND per 1 MXN Canadian Dollar to 1 Mexican Peso NZD per 1 MXN 0.11 New Zealand Dollar to 1 Mexican Peso Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 AUD per 1 MXN 0.12 Australian Dollar to 1 Mexican Peso RUB per 1 MXN 5.00 Russian Ruble to 1 Mexican Peso Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 KRW per 1 MXN 110 South Korean Won to 1 Mexican Peso JPY per 1 MXN 10 Japanese Yen to 1 Mexican Peso Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 5 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17

19 Page Real GDP, Annual Growth Annual % Ch Inflation, general Annual % Ch Inflation, food Annual % Ch Exchange Rate MXN per USD Unemployment Rate % Interest Rate, target % Consumer Confidence Index = Industrial Production Annual % Ch Sources: IMF, Bank of Mexico, OECD, Moody's/Economy.com 1. Moody's/Economy.com forecasts, latest update 2/6/2017 Economic Indicators: Mexico % Ch GDP Growth: Annual % Change Mexico, U.S. and Canada Comparison Fcst Mexico U.S. Canada

20 Page 20 Y/Y % Ch 5.0% Inflation in Mexico: CPI 2017, 2016 and 5 Yr Avg 4.5% 4.0% 3.5% 3.0% 2.5% 2.0% 1.5% Yr Avg ( ) 1.0% 0.5% 0.0% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan % Jan % 5-Yr Avg 3.49% Y/Y % Ch 6.0% Inflation in Mexico: Food CPI 2016, 2015 and 5 Yr Avg 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% Yr Avg ( ) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan % Jan % 5-Yr Avg 5.51% Source: INEGI

21 Page Base 2011 Avg. = 100 Mexico Price Inflation in Main Protein Groups Reindexed with 2011 Avg. = 100 Beef Chicken Pork Jan 11 Apr 11 Jul 11 Oct 11 Jan 12 Apr 12 Jul 12 Oct 12 Jan 13 Apr 13 Jul 13 Oct 13 Jan 14 Apr 14 Jul 14 Oct 14 Jan 15 Apr 15 Jul 15 Oct 15 Jan 16 Apr 16 Jul 16 Oct 16 Jan 17 Apr 17 Jul 17 Oct Y/Y % Ch 25% Inflation in Mexico: Meat 2017, 2016 and 5 Yr Avg. Y/Y % Ch 25% Inflation in Mexico: Beef 2017, 2016 and 5 Yr Avg. 20% 20% 15% 15% 10% 10% 5% 5% 0% 0% -5% -5% -10% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec -10% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Yr Avg. ( ) Yr Avg ( ) Y/Y % Ch Inflation in Mexico: Pork 2017, 2016 and 5 Yr Avg. Y/Y % Ch Inflation in Mexico: Chicken 2017, 2016 and 5 Yr Avg. 25% 25% 20% 20% 15% 15% 10% 10% 5% 5% 0% 0% -5% -5% -10% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec -10% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Yr Avg ( ) Yr Avg ( ) Source: INEGI

22 February 2017 Mexico Monthly Meat Market Report Page 22 Pricing Summary

23 Page 23 Feeder Cattle Shipments: Mexico to United States Monthly Average Prices Feeder Steer Feeder Heifers lbs y/y% ch lbs y/y% ch lbs y/y% ch lbs y/y% ch US$/cwt US$/cwt US$/cwt US$/cwt Jan % % % % Feb % % % % Mar % % % % Apr % % % % May % % % % Jun % % % % Jul % % % % Aug % % % % Sep % % % % Oct % % % % Nov % % % % Dec % % % % % % % % Jan % % % % Feb % % % % Mar % % % % Apr % % % % May % % % % Jun % % % % Jul % % % % Aug % % % % Sep % % % % Oct % % % % Nov % % % % Dec % % % % % % % % Jan % % % % Feb % % % % Mar % % % % Apr % % % % May % % % % Jun % % % % Jul % % % % Aug % % % % Sep % % % % Oct % % % % Nov % % % % Dec % % % % % % % % Jan % % % % Feb 17 Mar 17 Apr 17 May 17 Jun 17 Jul 17 Aug 17 Sep 17 Oct 17 Nov 17 Dec YTD *Price uses Medium and Large 1& 2 Feeder Steers and Fed Heifers; shipments to New Mexico and Texas US$/cwt Feeder Steer ( lbs) Prices: Shipments from Mexico to US

24 Page 24 Mexican Beef Trim Prices vs. US Domestic and Imported Prices 80% Trim 90% Trim..Mexico....US..Mexico....US MX (Pesos/kg) US$/l Imported Imported USDA 1 MX (Pesos/kg) US$/lb USDA 1 b (YS) 2 (YS) 2 low high avg. Conv. US$/lb US$/lb low high avg. Conv. US$/lb US$/lb 2015 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Source: Urner Barry % Boneless Beef, National Fresh; 2. YS Imported Aust/NZ Mixed Trimmings 80%, EC 7:45; 3. 90% Boneless Beef, National, Fresh; 4. YS Imported Aust/NZ Blend Cow 90% EC 7:45

25 Page 25 Mexican Beef Prices vs. US Market Prices Beef Carcass (100, 1) Bnls Ribeye, Lip-On (112A, 3) Shoulder Clod (114, 1)...Mexico.. US...Mexico.. US...Mexico.. US MX (Pesos/kg) US$/lb USDA 1 MX (Pesos/kg) US$/lb USDA 2 MX (Pesos/kg) US$/lb USDA 3 low high avg. Conv. US$/lb low high avg. Conv. US$/lb low high avg. Conv. US$/lb 2015 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Source: Urner Barry. 1. Five Area Direct Average Dressed Steer; 2. Boner/Breaker 112A Rib, ribeye roll-lip-on, 8-dn lbs; 3. Choice Chuck Shoulder Clod

26 Page 26 Mexican Beef Prices vs. US Market Prices Chuck Roll, Neck Off (116A, 3) Chuck Tender (116B, 1) Chuck Short Rib (130, 1)...Mexico.. US...Mexico.. US...Mexico.. US MX (Pesos/kg) US$/lb USDA 1 MX (Pesos/kg) US$/lb USDA 2 MX (Pesos/kg) US$/lb USDA low high avg. Conv. US$/lb low high avg. Conv. US$/lb low high avg. Conv. US$/lb 2015 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Source: Urner Barry. 1. Choice 116A 3 Chuck Roll 1x1 neck/off; 2. Choice 116B 1 Chuck Chuck tender

27 Page 27 Mexican Beef Prices vs. US Market Prices Knuckle, Pld (167A, 4) Top Round, Cap Off (169A, 3) Outside Round (171B, 3)...Mexico.. US...Mexico.. US...Mexico.. US MX (Pesos/kg) US$/lb USDA 1 MX (Pesos/kg) US$/lb YS 2 MX (Pesos/kg) US$/lb USDA 3 low high avg. Conv. US$/lb low high avg. Conv. US$/lb low high avg. Conv. US$/lb 2015 Jan ##### - ##### ##### ##### 3.17 Feb ##### - ##### ##### ##### 2.85 Mar ##### - ##### ##### ##### 2.84 Apr ##### - ##### ##### ##### 2.57 May ##### - ##### ##### ##### 2.62 Jun ##### - ##### ##### ##### 2.81 Jul ##### - ##### ##### ##### 2.73 Aug ##### - ##### ##### ##### 2.69 Sep ##### - ##### ##### ##### 2.56 Oct ##### - ##### ##### ##### 2.36 Nov ##### - ##### ##### ##### 2.27 Dec ##### - ##### ##### ##### Jan #N/A - #N/A #N/A #N/A 3.00 Feb ##### - ##### ##### ##### 2.85 Mar ##### - ##### ##### ##### 2.84 Apr ##### - ##### ##### ##### 2.57 May ##### - ##### ##### ##### 2.62 Jun ##### - ##### ##### ##### 2.81 Jul ##### - ##### ##### ##### 2.73 Aug ##### - ##### ##### ##### 2.69 Sep ##### - ##### ##### ##### 2.56 Oct ##### - ##### ##### ##### 2.36 Nov ##### - ##### ##### ##### 2.27 Dec ##### - ##### ##### ##### Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Source: Urner Barry. 1. Choice 167A 4 Round Knuckle Peeled; 2. YS 169A 5 Inside Round, Cap-Off Choice-(TL); 3. Choice 171B 3 Round outside round

28 Page 28 Mexican Beef Prices vs. US Market Prices Eye of Round (171C, 3) Tenderloin, Full, Defatted (189A, 4)...Mexico.. US...Mexico.. US MX (Pesos/kg) US$/lb USDA 1 MX (Pesos/kg) US$/lb YS 2 low high avg. Conv. US$/lb low high avg. Conv. US$/lb 2015 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Source: Urner Barry. 1. Choice 171C 3 Round eye of round; 2. YS 189A 4 Loin, Tenderloin, PSMO, Defat Dn No-Roll-(LTL)

29 February 2017 Mexico Monthly Meat Market Report Page 29 Supply Summary

30 Page MT, Carcass Wt. Eq. 2,500 Mexico: Beef Supply, Exports and Domestic Use Exports 2,000 1,500 1,000 Total Domestic Consumption Total Supply Imports 1000 MT, Carcass Wt. Eq. 300 Mexico: Beef Exports (f) - USDA forecast

31 Page Yr Avg 2017 vs vs. 5 Yr Avg Jan 144, , , , , , ,188 2% 4% Feb 145, , , , , ,450 Mar 144, , , , , ,490 Apr 142, , , , , ,367 May 149, , , , , ,654 Jun 151, , , , , ,023 Jul 151, , , , , ,028 Aug 154, , , , , ,326 Sep 152, , , , , ,041 Oct 156, , , , , ,851 Nov 161, , , , , ,583 Dec 164, , , , , ,975 Year 1,819,827 1,808,284 1,827,322 1,850,133 1,879,318 1,836,977 Source: SAGARPA Carcass (MT) 180,000 Domestic Mexican Beef Supply Monthly Volume, Carcass (MT) Domestic Mexican Beef Supply Monthly Volume (MT), 2003 to , , , , , , , ,000

32 Page 32 Dairy Cow Inv. Mexican Cattle Inventory, Slaughter and Exports Beef Cow Inv. Calf Crop Total Cattle Inventory Cow Slaughter Calf Slaughter Total Cattle Slaughter Total Exports....Thousand Head ,338 9,108 7,195 29,200 1,285 1,225 5, ,370 9,340 7,360 29,900 1,435 1,035 5, ,460 9,470 7,490 30,410 1, , ,536 9,747 7,725 31,300 1,093 1,393 5, ,597 10,016 7,930 32,150 1,156 1,473 5, ,627 10,615 8,315 33,000 1,240 1,580 6, ,340 11,113 8,400 34,000 1,330 1,695 6, ,341 11,364 8,550 34,700 1,445 1,075 6, ,272 10,920 8,233 33,873 1,984 1,088 6, ,783 11,120 8,023 33,917 1,400 1,760 6, ,643 11,235 7,885 33,853 1,575 2,055 7, ,933 11,696 9,036 32,167 1,356 1,579 5,755 1, ,116 11,979 9,514 33,603 1,378 1,605 5,837 1, ,276 12,808 9,773 35,378 1,714 1,915 8, ,050 12,720 9,569 34,999 2,802 1,930 10, ,070 11,860 9,018 31,747 1,750 1,900 8,720 1, ,090 12,210 9,450 29,847 1,610 1,720 7,450 1, ,150 12,500 6,573 31,822 1,620 1,700 5, ,250 12,850 7,000 31,158 1,620 1,700 6,074 1, ,200 13,000 7,500 30,341 1,630 1,730 6,174 1, ,000 12,000 8,300 30,151 1,750 1,700 6,928 1, ,000 11,500 6,775 29,637 1,630 1,650 6, ,000 11,000 7,400 28,601 1,700 1,700 6, ,200 11,200 7,240 29,051 1,600 1,600 6, ,200 10,700 8,400 25,425 1, ,975 1, ,200 10,800 8,460 25,220 1, ,925 1, ,350 10,800 8,600 25,328 1, ,075 1, ,450 10,000 8,200 25,349 1, , ,550 9,500 8,000 26,011 1, ,025 1, ,650 9,000 7,800 25,199 1, ,775 1, ,750 8,000 7,275 24,309 1, ,150 1, ,850 7,000 6,925 23,669 1, ,475 1, ,966 6,711 6,732 23,316 1, ,690 1, ,060 6,810 6,754 22,850 1, , ,157 6,909 6,875 22,666 1, , ,175 6,960 7,000 22,192 1, ,050 1, ,185 7,000 6,900 21,456 1, ,347 1, ,200 6,900 6,800 20,090 1, ,375 1, ,200 6,750 6,700 18,521 1, ,200 1, ,215 6,700 6,750 17,760 1, ,000 1, ,250 6,700 6,850 17,120 1, ,975 1, F 3,275 6,800 7,000 16,615 1, ,925 1, F 3,275 6,900 7,100 16,500 1, ,910 1,000 Source: USDA

33 Page 33 Thous. Head Total Mexican Cattle Inventory 40,000 35,000 30,000 25,000 20,000 15, , , ,500 10,000 Thous. Head 16,000 14,000 Mexican Beef Cow Inventory and Calf Crop Beef Cow Inv. Calf Crop 12,000 10,000 8,000 6,000 4,000 2,000 - Source: USDA

Monthly Mexico Meat Market Report

Monthly Mexico Meat Market Report Supply and Price Situation for Domestic and Traded Beef June 21, 2018 Prepared for Meat and Livestock Australia Steiner Consul ng Group, Manchester, NH, U.S.A table of