1. Meat Sector Situation andChallengesSituacin y Retos del SectorCrnico J. Patrick Boyle PresidentAmerican Meat Institute

2. Agenda Who Is AMI? Importance of International Trade for Meat andLivestock Industry U.S.-Mexico Trade Review U.S.-Mexico Meat Processing Industry Collaboration AMI and Food Safety and Inspection AMI and Worker Safety Animal Handling and Welfare Customer Outreach Meat Myth Crushers 2012 AMI Expo in DallasAMERICAN MEAT INSTITUTE 3. Who Is AMI? 4. Who We Are Represent 95% of red meat and 70% ofturkey processing companies in the U.S Monitor Legislation, Regulations andMedia Activity that impacts our industry Governed by our elected Officers,Executive Committee and Board ofDirectors Staffed by 32 professionals. Policy CommitteesAMERICAN MEAT INSTITUTE 5. Importance ofInternational Trade to Meat and Livestock Industry 6. Global Outlook on Meat Industry World meat production is not keeping up withconsumer demand Demand is decreasing in the U.S., but increasingrapidly in developing economies Supplies of some meats, especially beef, will beseverely constrained over the short term International trade is essential to the industryAMERICAN MEAT INSTITUTE 7. Source: CMEAMERICAN MEAT INSTITUTE 8. U.S. Cattle Inventory Declining Source: CMEAMERICAN MEAT INSTITUTE 9. U.S. Cattle Inventory Declining Source: CMEAMERICAN MEAT INSTITUTE 10. U.S. Meat Production Declining Source: CMEAMERICAN MEAT INSTITUTE 11. U.S. Meat Production Declining The decline in production has been exacerbated bythe recent drought in the Southern Plains states ofthe U.S.AMERICAN MEAT INSTITUTE 12. U.S. Drought Further ReducingCattle SuppliesAMERICAN MEAT INSTITUTE 13. Top Cattle Slaughtering StatesAMERICAN MEAT INSTITUTE 14. Global Outlook on Meat Industry Meat consumption is trending down in the U.S. However, more consumers from emerging economiesare entering the market, sending prices for meathigher For North American meat producers, internationaltrade will be increasingly important in the comingyears.AMERICAN MEAT INSTITUTE 15. U.S. Meat Consumption DecliningSource: CMEAMERICAN MEAT INSTITUTE 16. More Consumers, Higher Prices Source: CMEAMERICAN MEAT INSTITUTE 17. Result: Increasing Reliance on TradeAMERICAN MEAT INSTITUTE 18. U.S. Trade Snapshot The U.S. is the third largest beef exporter in the world,exporting 1,287,372 metric tons in 2011 for a valueof close to $5.41 billion. Top markets for U.S. beefwere Canada, Mexico, and Japan. The U.S. is the worlds largest pork exporter, withexports topping 2.26 million metric tons, worth $6.1billion in 2011. Top markets include Japan, Mexicoand China/Hong Kong. Poultry exports in 2011 reached 3.9 million metrictons, valued at $5 billion. Top three markets wereChina, Mexico, and Canada.AMERICAN MEAT INSTITUTE 19. U.S.-Mexico MeatTrade 20. U.S.-Mexico Meat Trade Mexico is the U.S.s second largest market for exportsof beef, pork and poultry products. The U.S. exported a combined $2.8 billion in meatproducts to Mexico in 2011. The U.S. also imported $371.6 million in meatproducts from Mexico in 2011, and $619 million incattle.AMERICAN MEAT INSTITUTE 21. U.S.-Mexico Meat Trade under NAFTA Source: FASAMERICAN MEAT INSTITUTE 22. U.S.-Mexico MeatProcessing Industry Collaboration 23. U.S.-Mexico Industry Collaboration U.S.-Mexico Cross-Border Trucking Dispute AMI Supported Mexicos position Submitted comments to the U.S. government in May2011 reinforcing the importance of the U.S. honoringits NAFTA commitmentsAMERICAN MEAT INSTITUTE 24. U.S.-Mexico Industry Collaboration The industry supports science as the basis for alltrade and market access decisions Opportunities exist for further collaboration onMexicos current U.S. beef restrictions 30 month age limit Export Verification Program Mechanically Separated and Ground Beef Tripe (small intestines)AMERICAN MEAT INSTITUTE 25. NAFTA Regulatory Cooperation Initiative U.S. and Mexican industries have come together tosupport progress under the 21st Century BorderInitiative Goal: Reduce Unnecessary, Redundant and ExpensiveRegulatory Burdens on the meat industry in theNAFTA Region. AMI is working closely with Guillermo Maynez andLuis Musi Letayf of COMECARNE on this initiative.AMERICAN MEAT INSTITUTE 26. NAFTA Regulatory Cooperation Initiative Initiative Currently Focused on Three MainAreas: Reducing Border Inspection Delays Reducing Microbial Testing at the Border Implementing an E-Documentation System forExport Certificates in all Three NAFTA CountriesAMERICAN MEAT INSTITUTE 27. AMI and Food Safetyand Inspection 28. AMI Foundation The American Meat Institute Foundation (AMIF) is anon-profit research, education and informationfoundation established by the American MeatInstitute. AMIF seeks to identify technologies and practicesthat enable meat and poultry companies to producesafer and more nutritious meat and poultry products. The Foundation also provides resources to consumersto empower them with information to select andprepare safe and nutritious meat and poultryproducts for their families.AMERICAN MEAT INSTITUTE 29. AMERICAN MEAT INSTITUTE 30. AMI Foundation U.S. meat is some of the safest meat in the world.AMERICAN MEAT INSTITUTE 31. Incidence of Foodborne Illness2000-2010: E. coli* 2.5 55% DecreaseIncidence per 100,000 Population2 1.51 0.502000 2010 Year*Vital Signs: Incidence and Trends of Infection with Pathogens Transmitted Commonly Through Food Foodborne DiseasesActive Surveillance Network, 10 U.S. Sites, 19962010AMERICAN MEAT INSTITUTE 32. Prevalence of E. coli O157:H7 inGround Beef*10.9 72% Reduction0.8Percent Positives0.70.60.50.40.30.20.10 20002010* Microbiological results of raw ground beef products analyzed for Escherichia coli O157:H7.AMERICAN MEAT INSTITUTE 33. Incidence of Foodborne Illness 2000-2010: Salmonella* 1824% Increase 17Incidence per 100,000 Population 16 15 14 13 12 11 10 2000 2010Year *Vital Signs: Incidence and Trends of Infection with Pathogens Transmitted Commonly Through Food Foodborne Diseases Active Surveillance Network, 10 U.S. Sites, 19962010AMERICAN MEAT INSTITUTE 34. Prevalence of Salmonella in Ground Beef*3.533% Reduction 3Percent Positives2.5 21.5 10.5 02000 2010 *FSIS results of ground beef analyzed for SalmonellaAMERICAN MEAT INSTITUTE 35. Prevalence of Salmonellain Pork*76 61% ReductionPercent Positives543210 2000 2010*FSIS results of market hogs analyzed for SalmonellaAMERICAN MEAT INSTITUTE 36. Prevalence of Salmonellain Chicken* 109 26% Reduction8 Percent Positives7654321020002010*FSIS results of broilers analyzed for SalmonellaAMERICAN MEAT INSTITUTE 37. Incidence of Foodborne Illness 2000-2010: Listeria* 0.32Unchanged0.3Incidence per 100,000 Population 0.28 0.26 0.24 0.220.2 20002010 Year*Vital Signs: Incidence and Trends of Infection with Pathogens Transmitted Commonly Through Food Foodborne DiseasesActive Surveillance Network, 10 U.S. Sites, 19962010AMERICAN MEAT INSTITUTE 38. Prevalence of Listeria in RTE Meat and Poultry Products*1.61.480% ReductionPercent Positives1.2 10.80.60.40.2 020002010* FSIS results of ready-to-eat products analyzed for Listeria monocytogenes summary by all projectsAMERICAN MEAT INSTITUTE 39. BSE SafeguardsAMERICAN MEAT INSTITUTE 40. BSE Safeguards Import control: Since 1989, U.S. has banned importsof cattle and beef products from any country withBSE. Animal Surveillance: USDA veterinarians stationed atevery plant to check cattle for diseases includingBSE. Feed restrictions: Feeding of protein derived fromruminant animals has been banned since 1997. All non-ambulatory cattle are removed fromprocessing. Specified Risk Materials are removed from cattle 30months of age and older, and small intestine andtonsils are removed from cattle of all ages.AMERICAN MEAT INSTITUTE 41. AMI & Worker Safety 42. Employment/Wages In 2010 there were over 500,000 workers directlyemployed in the U.S. meat and poultry packing andprocessing industries. Their combined salaries totaled more than $19billion. The meat and poultry industry impacts firms in all509 sectors of the U.S. economy, in every state andcongressional district in the country. Industrys economic ripple effect generates $832.4billion annually to the U.S. economy or roughly 6% ofthe entire GDP.AMERICAN MEAT INSTITUTE 43. AMERICAN MEAT INSTITUTE 44. OSHA Occupational Safety and Health Act of 1970developed to ensure safe working conditions for allemployees in all industries Because the meat and poultry industry is laborintensive and because meat processing requiressharp tools and repetitive motion, selecting properequipment for the job is critical and required by OSHAstandards.AMERICAN MEAT INSTITUTE 45. AMERICAN MEAT INSTITUTE 46. Voluntary Ergonomic Guidelines 1990, U.S. meat industry with OSHA and the UnitedFood and Commercial Workers union, developedVoluntary Ergonomic Guidelines for the Meat PackingIndustry. Prevent occurrence of Musculoskeletal Disorders(MSDs) in the workplace through: Worksite Analysis Hazard Prevention and Control Medical Management Training and Education AMIF Conference on Worker Safety and Health Website: www.workersafety.orgAMERICAN MEAT INSTITUTE 47. AMERICAN MEAT INSTITUTE 48. Occupational Injury and Illness RatesAMERICAN MEAT INSTITUTE 49. Animal Handling &Welfare 50. Animal Handling AMI works closely with Dr. Temple Grandin Developed the AMI Audit. Criteria includes: Livestock vocalizations that may indicate stress Slips and falls that can cause injury The accuracy of stunning The effectiveness of stunning techniques in animals that areinsensitive to pain The use of electric prods Animal Care and Handling Annual Conference AMI members share information on how to enhanceanimal welfare Website: www.animalhandling.orgAMERICAN MEAT INSTITUTE 51. AMERICAN MEAT INSTITUTE 52. Animal Welfare Industry embraces the idea that enhanced animalwelfare has distinct additional benefits: Enhanced meat quality Enhanced plant efficiency Improved worker safety Enhanced moraleAMERICAN MEAT INSTITUTE 53. Customer Outreach 54. Customer Outreach Examples of AMIs Customer Outreach EffortsInclude: Meat & Poultry Facts Booklet MeatMattersInfo.org MeatMythCrushers.com SafeFoodInc.com SustainableMeatIndustry.org CornforFoodnotFuel.comAMERICAN MEAT INSTITUTE 55. Customer OutreachAMERICAN MEAT INSTITUTE 56. Meat Myth Crushers 57. Meat MythCrushers Fewer than five percent of Americans live on farms.The majority are separated from farming by multiplegenerations. Americans are vulnerable to media myths andmisinformation. Meat MythCrushers goal is to crush the myths andprovide referenced facts to make informed choicesthat are right for the consumer.AMERICAN MEAT INSTITUTE 58. Meat MythCrushersAMERICAN MEAT INSTITUTE 59. 2012 AMI Expo 60. AMI Expo May 1 3, 2012 Dallas Convention Center Dallas, Texas AMI Expo is co-locating with the FMI 2012 Show,UFPAs United Fresh and the U.S. Food Showcase,bringing together almost 1,200 exhibitors and25,000 attendees in Dallas.AMERICAN MEAT INSTITUTE 61. WWW.AMIEXPO.COMAMERICAN MEAT INSTITUTE 62. WWW.AMIEXPO.COMJoin Us!May 1 3, 2012Dallas, TexasAMERICAN MEAT INSTITUTE