Beef Industry Overview

Most unique and complex lifecycle of any food, includes variety of segments

Most unique and complex lifecycle of any food, includes variety of segments Takes 2-3 years to bring beef from farm to fork

1Data accessed 5/30/19 https://data.ers.usda.gov/reports.aspx?ID=17832

***Forcasted Values

ALL CATTLE AND CALVES 2010 $51,246,136 2011 $62,321,217 2012 $66,090,126 2013 $67,457,442 2014 $81,478,368 2015 $78,128,981 2016 $63,672,844 2017 $67,351,377 2018*** $66,510,424 2019*** $69,167,213

Evolution of Beef Industry

The U.S. beef production system used to be inefficient- cattle were moved around based on the location of grass at any given time

The U.S. beef production system used to be inefficient- cattle were moved around based on the location of grass at any given time The first widespread early cattle feedyards in the nation were built by cottonseed oil-mill operators in the 1850s to utilize mill by-products

Around 1914, due to a drop in the number of cattle, we started feeding cattle at an earlier age, which resulted in higher-quality meat

U.S. Beef Community

Beef Cattle are raised in all 50 states

Beef Cattle are raised in all 50 states Average age of a principle beef cattle rancher is 57.4

913,246 total cattle & calf operations 2 . Of these: 727,906 are beef farms and ranches. Of these: 91% are family-owned or individually-operated 11% are operated by women 26,586 are engaged in cattle feedlot production. Of these: 80% are family-owned or individually operated 5% are operated by women 64,098 are milk cow operations

. Of these: All Cattle and Calves 94.8 million - up slightly from 2018 (94.3 million)

All Cattle on Feed 14.4 million head - 2% increase from 2018 (14.1 million) >1000 head capacity - 81.3% of cattle on feed

Cows: Beef Cows Beef: 31.8 million - 1% increase from 2018 Dairy: 9.35 million - 1% decrease from 2018

Cows and Heifers that Calved 41.1 million - 1% increase from 2018 (40.9 million)

2018 Calf Crop 36.4 million head - 2% increase from 2017 Jan - June Calves 26.6 million - 3% increase from 2017 July - Dec Calves 9.8 million (27% of the total 2018 calf crop)

Heifers over 500lbs 20.2 million Beef Replacement Heifers 5.92 million head - 3% decrease from 2018 Milk Replacement Heifers 4.7 million head - 1% decrease from 2018 Other Heifers 9.6 million head - 3% increase from 2018

Steers over 500lbs 16.6 million - 1% increase from 2018

Bulls over 500lbs 2.26 million

Calves under 500lbs 14.5 million - 1% increase from 2018

Slaughter Commercial Slaughter: 33 million Calf: 579,800 Federally Inspected Slaughter: 32.5 million Steer: 16.6 million Heifer: 9.2 million Cow: 6.2 million Beef Cows - 3.02 million Dairy Cows - 3.2 million Bull: 537,600 Calf: 571,400 U.S. Beef Production Federally Inspected - 26.5 billion lbs Commercial - 26.9 billion lbs



Top 5 States

All Cattle Texas: 13 million Nebraska: 6.8 million Kansas: 6.35 million Oklahoma: 5.3 million California: 5.15 million

Cows and Heifers that have Calved Texas: 5.2 million California: 2.38 million Oklahoma: 2.19 million Missouri: 2.14 million Nebraska: 2 million

Beef Cows that have Calved Texas: 4.66 million Oklahoma: 2.15 million Missouri: 2.06 million Nebraska: 1.94 million South Dakota: 1.82 million

Dairy Cows that have Calved California: 1.73 million Wisconsin: 1.27 million New York: 625,000 Idaho: 614,000 Texas: 545,000

Calf Crop Texas: 4.75 million Oklahoma: 2.05 million Missouri: 1.94 million South Dakota: 1.9 million California: 1.86 million

Cattle on Feed Nebraska: 2.75 million Texas: 2.75 million Kansas: 2.43 million Iowa: 1.32 million Colorado: 1.05 million





Of the 30,320 feedlots in the U.S., those with less than 1,000 head of capacity compose the vast majority of U.S. feedlots (85.8%). 5

As of January 1, 2019, of the 14.37 million head on feed, feedlots with greater than 1,000 head capacity account for 81% of all cattle on feed. 5

The amount of beef consumed in the U.S. (i.e. purchased by consumers in foodservice and retail) in 2018 was 26.767 billion pounds. 7

The amount of beef consumed in the U.S. Per Capita in 2018 was 57.2 lbs. 7

Average price of USDA Choice beef sold in retail in 2018 was $6.24/lb 8 $4.82 was the average retail price for all beef at retail in 2018

Value of U.S. beef exports (including variety meat) in 2018: $8.332 billion, up from $7.269 billion in 2017. 6

Volume of beef export: 1.35 million metric tons in 2018 up from 1.26 metric tons in 2017. 6



Top U.S. Beef Export Markets (including variety meat) for 2017

2018 Country Metric Tons Value ($Millions) Japan 330,217 $2,077 South Korea 239,676 $1,747 Mexico 239,110 $1,058 Hong Kong 122,832 $966 Canada 114,039 $745 Taiwan 59,694 $550

Resources:

1 U.S. Department of Agriculture Economic Research Service, 2016

2 U.S. Department of Agriculture, Census of Agriculture, 2012

3 Livestock Marketing Information Center, Jan. 1, 2016

4 CattleFax Data 2016

5 CME Group Daily Livestock Report 2016

6 U.S. Meat Export Federation 2016

7USDA World Agricultural Supply and Demand estimates, June 2019

8IRI/Freshlook, Total US MULO ending 5/26/2019; Categorized by VMMeat System

2018 National Cattlemen Directions Statistics