Global Growth Committee Minutes 2014 Cattle Industry Annual Convention and Trade Show Gaylord Opryland Hotel & Convention Center Nashville, Tennessee February 6, 2014 – 12:00 pm – 4:00 pm Larry Pratt, Chairman Morgan Evans, Vice Chairman Mission Statement: Increase the volume and value of U.S. beef in foreign markets. Members (30): Larry Pratt, Morgan Evans, Jim Bostic, Heather Buckmaster, Jason Carter, Richard Wortham, Christopher Abbott, Hughes Abell, Anne Anderson, Patrick Becker, Willie Bylsma, Cliff Coddington, Chuck Crutcher, Dave Edmiston, Jerry Effertz, William Frazee, E.B. Harris, Steve Irsik Jr, Paul Kent Jr, Kristin Larson, Kenneth Leiber, Leo McDonnell Jr, Judy Reece, Steve Rehder, Darrel Sweet, Frank Thomas, Sally Thomas, Patricia Venable, Anne Wirtz, Keith York Staff (7): NCBA—Rick Husted, Camille Reents USMEF—Greg Hanes, Cheyenne Dixon, Dan Halstrom, Joe Schuele CBB—Lynn Heinze Guests (16): Tomor Yokouchi (DC), Makoto Kobayashi (DC), Peggy Biaggi (ANCW), Kay Irsik (KS), Andrew Brooks (Certified Hereford), Renee Strickland (FL), Tom Crocker (CA), Irv Petsch (WY), Jimmy Maxey (CA), Stacy Hadrick (SD), John Saunders (CO), Frank Daley (CO), Jennie Hodgen (IN), Barbara Duckworth (Calgary, Alberta, CANADA), Mark Jagels (USMEF Chairman), Leann Saunders (USMEF Vice-chair) Welcome/Call to Order Chairman Pratt called the meeting to order at 12:05 p.m. On a motion by Hughes Abell, seconded by Jerry Effertz, the committee approved the meeting agenda. On a motion by E.B. Harris, seconded by Steve Irsik, Jr., the minutes from the Summer 2013 meeting were approved. Vice Chairman Evans reviewed the committee’s mission statement and welcomed new committee members to the meeting. USMEF Overview and Recap of Beef Export Results U.S. Meat Export Federation (USMEF) Chairman Mark Jagels of Davenport, Neb., gave an overview of USMEF’s operations and global marketing programs for U.S. beef. Jagels and Greg Hanes, USMEF assistant vice president for international marketing and programs, provided the committee with a recap of beef export results for the 2013 calendar year, which set new records of $6.16 billion in total value and $245 in value per head of fed slaughter. Review of Long Range Plan and AR Scoring Process Rick Husted, NCBA vice president of strategic planning and market research, reviewed the Beef Industry Long Range Plan. He also explained the priority setting process for joint committees and the manner in which these committees provide guidance to checkoff contractors. Global Growth Committee, W2014, Page 1 of 2 USMEF FY 2014 Program Update Hanes and Dan Halstrom, USMEF senior vice president for marketing and communications, presented the committee with an overview of how USMEF analyzes each unique market to develop specialized marketing programs to take advantage of local opportunities. To demonstrate how these principles are applied, they provided updates on U.S. beef marketing activities and export results in several key markets. Hanes addressed the strategies used to capitalize on booming demand in Japan once the range of U.S. cattle eligible for the market was expanded in February 2013. He also detailed marketing efforts in South Korea and the successful rebuilding of demand in Taiwan following political controversy and negative media coverage over Taiwan’s policy on use of beta agonists. Halstrom covered the sharp increase in beef demand in China, where U.S. beef is still ineligible but imports from Australia, Uruguay and New Zealand have surged in the past year. He also addressed the importance of the Mexican market, which purchases a large volume of underutilized beef cuts. Central and South America is also a region of growing importance for U.S. beef, with Colombia and Panama emerging as key markets along with mainstay destinations Peru, Chile and Guatemala. Halstrom noted that while marketing activities in Central and South America have historically focused on foodservice and processing, U.S. beef has recently made strides in the region’s retail sector. Cheyenne Dixon, USMEF technical services manager, briefed the committee on key market access issues for U.S. beef – including renewed efforts to eliminate BSE-related restrictions now that the United States has received a negligible risk designation from the World Organization for Animal Health (OIE). She also addressed market access issues related to antimicrobial use and Russia’s restrictions on the use of beta agonists. FY 2015 Checkoff Priority Setting At this point in the meeting, small group breakout sessions allowed committee members to focus on specific international marketing initiatives, align these initiatives with the Beef Industry Long Range Plan and provide guidance on which initiatives should top priorities for the industry. Strategic initiatives designated as top priorities were: Increasing market access for U.S. beef Leveraging the U.S. beef brand, including an emphasis on beef safety Educating U.S. producers about the importance of exports On a motion by Dave Edmiston, seconded by E.B. Harris, the committee unanimously approved the priorities identified. International Beef Tasting To close the meeting, committee members were invited to sample three beef dishes featuring cuts that perform well in international markets, but command very little demand from domestic consumers. These dishes included: A liver and vegetable sauté that is popular in Egypt, the largest destination for U.S. beef livers Cau cau – a dish made with beef tripe that is popular in Peru Guydon – a “beef bowl” dish made with short plate that is widely consumed in casual restaurants in Japan Adjournment The meeting adjourned at 4:00 p.m. CC: Camille Reents Global Growth Committee, W2014, Page 2 of 2