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Meat & Poultry Outlook Meat & Poultry Outlook Tyson Foods, IncTyson Foods, Inc..

February 24, 2012February 24, 2012

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Company OverviewCompany Overview

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Per Capita Consumption Per Capita Consumption

0

20

40

60

80

100

120

140

200

210

220

230

240

250

260

270

280

290

Poun

ds P

er C

apita

Poun

ds P

er C

apita

Combined Per Capita Domestic Meat Disappearance 1970-2011Beef, Pork, Chicken, Turkey (Carcass Weight Equivalent)

Combined Meat (l-axis) Beef (r-axis) Turkey (r-axis) Pork (r-axis) Chicken (r-axis)

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Paradigm ShiftParadigm Shift

Old: Demand driven

New: Producer profitability

Increase in exports

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Protein Production DriversProtein Production Drivers

Contract grower

Feed conversion1.92 : 1

3.7 bushels of cornto produce 100 lbs. of boneless skinless meat

Independent producer

Feed conversion3.5 : 1

Approx. 8 bushels of corn to produce 100 lbs. of boneless skinless meat

Independent feedlot

Feed conversion7-9 : 1

Yearling (750 lbs.) fed beef (300 lbs.) 11 bushels corn to produce 100 lbs. of boneless fed beef

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Live Cost ~ $0.25/lb.

Live Cost ~ $0.45/lb.

Live Cost ~ $0.35/lb.

Corn Futures/Chicken Live CostCorn Futures/Chicken Live Cost

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U.S. Corn UsageU.S. Corn Usage

Source: USDA

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Energy Costs Energy Costs

Gas: Most expensive January ever

2012: $3.37 2011: $3.10 2010: $2.71

Diesel: 57% increase since 2007

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Meat & Poultry Demand Meat & Poultry Demand

Prices increasing faster than inflation

Consumption declined slightly

Demand has increased

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Global Protein ConsumptionGlobal Protein Consumption

Source: USDA FAS and OECD. Includes Beef/Veal, Pork, Broilers, and Turkey

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Protein Exports a Major FactorProtein Exports a Major Factor

Pork

Source: USDA and Robert A. Brown, Inc.January 30, 2012

2011 and 2012 are RAB forecasts

Exports % of ProductionImports Exports

Beef

Chicken

% of production

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International OperationsInternational Operations

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Feeding the WorldFeeding the World

• 70% more food needed70% more food needed

• 9 billion people by 20509 billion people by 2050

• U.S.: less than 10% on foodU.S.: less than 10% on food

• ‘‘Agricultural illiteracy’Agricultural illiteracy’

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Jobs in Agriculture Jobs in Agriculture

22 million agriculture jobs

AgCareers.com: 40,000 jobs posted

Outdated stereotypes

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Regulatory Agencies - Issues Regulatory Agencies - Issues

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Purpose StatementPurpose Statement