February 2018

February 23rd, 2018

Canada Meat Market Report - Supply and Price Situa on for Domes c and Imported Beef -

Prepared for Meat and Livestock Australia Steiner Consul ng Group, Manchester, NH, U.S.A

February 2018

table of contents highlights market comments pricing summary - canada imported beef prices …………………………………………

7

- canada domestic beef prices …………………………………………

9

- canada cattle prices …………………………………………………

10

- canada grain prices …………………………………………………… 12 - canada feeding margins ……………………………………………… 14 - exchange rates ………………………………………………………

15

supply statistics - canada cattle slaughter ………………………………………………

17

- steer carcass weights …………………………………………………… 20 - fed and non-fed production …………………………………………… 21 - cattle on feed …………………………………………………………

23

- canada cattle exports to US …………………………………………… 24 - canada beef imports …………………………………………………

26

- canada beef exports …………………………………………………

28

- imported beef stocks in Canada ……………………………………… 30

February 2018

Canada Monthly Meat Market Report

Page 3

At a Glance: Imported Beef Market Market Situation

YTD Canadian Beef Imports from the US Data is through week ending February 17th, 2018 vs. Same Period in 2017

12,000 Similar to the US imported beef availability in Canada has Total -12.0% been limited and prices have been trending higher in re10,000 cent weeks. Participants continue to note a shortfall in -27.2% offerings from all suppliers, particularly New Zealand. 8,000 Increased competition from China and lower than ex6,000 pected slaughter have limited offerings. Currently over6.7% seas packers are well sold in March and early April and 4,000 looking to book product for April arrival. Seasonally cow 7.8% 2,000 slaughter in New Zealand is higher in March and April but good moisture conditions could impact availability, simiFresh/Chilled Frozen Processed lar to what happened a year ago. Asian markets have also been more active to start the year and this is seen as impacting availability in Canada. New Zealand exports to YTD Canadian Beef Imports from Australia Data is through week ending February 17th, 2018 vs. Same Period in 2017 China were up 50% y/y in December and participants 2,500 speculate that January shipments into that market conTotal: 79.1% 75% tinued to trend higher. Demand for round cuts reported 2,000 as good, especially for spring deliveries. Inquiries for flats were not countered, as this product is currently get1,500 ting higher prices in Asian markets.

Imported Prices: Imported prices were up across the board for January, averaging roughly 8% higher for trimmings and 2% for cuts vs the same time last year. 65CL trim was up 25% to US$1.49 /lb. Higher prices for domestic fat trim bolstered imported trim values. Imported Beef Volume:

2018

74.2%

Beef Fat

2017 2018

1,000

500 146%

#DIV/0!

-

Fresh/Chilled

Frozen

Processed

YTD Canadian Beef Imports from New Zealand Data is through week ending February 17th, 2018 vs. Same Period in 2017 2,500

Imported beef volumes are s ll down for the period ending 18th February, 2018 compared to last year. Product from the USA is down 12% to 15,380 MT; the decline coming exclusively from fresh/chilled beef. A er a slow 2017, New Zealand and Australian imports are up on a year on year basis, albeit from a small baseline. Frozen beef from New Zealand was up 20% to 2,334 MT, while 2,129 MT frozen beef arrived from Australia, up 75% from the same me last year. Overall imports from Australia and New Zealand are pre y much even at this point. Uruguay is off to a very slow start, with imports down 75% from last year. China now buys about half of all Uruguayan beef exports.

2017

2,000

21%

2017

Total: 18.6%

2018 1,500

1,000

500 -79%

-34%

-

Fresh/Chilled

Frozen

Processed

Prepared by: Steiner Consulting Group 800.526.4612

February 2018

Canada Monthly Meat Market Report

Page 4

At a Glance: Canadian Domes c Beef Market Fed and non-fed Slaughter Trends:

Canada Weekly Steer/Heifer Slaughter, head 65,000

Steer and heifer slaughter has been tracking well above year ago levels, largely a func on of higher on feed numbers but also robust demand in both domes c and export markets. A larger on feed inventory should con nue to support higher fed ca le slaughter in the spring. Steer slaughter in the last four weeks averaged 23,053 head/wk, 8.4% above year ago levels and also 1.3% higher than the five year average. Heifer slaughter, on the other hand, averaged 14,651 head/wk, only slightly higher than a year ago. Combined steer/heifer slaughter in the last four weeks was on average 39,639 head/wk, 5.3% higher than the same period a year ago and 3.3% higher than the five year average. The strong marke ng rate and lighter weight placements last year have contributed to a decline in average steer weights and a slower growth in beef produc on. The average steer weights in the last four weeks was 910 lb./dressed carcass, 0.9% lower than the same period a year ago. Non-fed ca le slaughter has been similar to year ago levels so far this year. For the last four weeks nonfed ca le slaughter has averaged 11,290 head/wk, just 0.2% higher than last year but s ll some 6.2% higher than the five year average.

60,000 55,000 50,000 45,000 40,000 35,000 30,000 25,000 2016

2017

2018

5-Yr Avg.

20,000 Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Cattle on Feed in Alberta and Saskatchewan. 1st of the Month Inventory Source: CanFax. '000 Head

1,000 950 900 850 800 750 700 650 600 2017

550

2018

5-Yr Avg.

500 Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Ca le on Feed Inventories

Dry condi ons in Alberta and Saskatchewan last summer and fall forced producers to push ca le into feedlots earlier than normal and bolstered on feed supplies in the process. However, the Canadian calf crop has been near 4.3 million head in the last two years and we do not expect to see a significant increase in ca le on feed placements in 2018. Indeed, following the sharp increase in placements between July and November, placements have been trending lower. Total placements in January were 76,053 head, 5% lower than a year ago. This follows a 20% decline in placements in December. Total ca le on feed on February 1 were 879,701, 5.7% higher than a year ago. On December 1 the total on feed supply was 974,881 head, 12% higher on a y/y basis.

Placements

80% 60% 40% 20% 0% -20% -40% -60%

J FMAM J J A SOND J FMAM J J A SOND J FMAM J J A SOND 201 6

201 7

201 8

Prepared by: Steiner Consulting Group 800.526.4612

February 2018

Canada Monthly Meat Market Report

Page 5

Pricing Summary

Prepared by: Steiner Consulting Group 800.526.4612

February 2018

Canada Monthly Meat Market Report

Page 6 Canada Imported Prices

Chisholm Imported Beef Prices, Monthly Average, Canadian $ per Kilogram Trimmings 95CL Bull 90CL 2016

2017

2018

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

6.28 6.72 6.53 6.29 6.33 6.51 6.77 6.65 6.77 6.17 6.35 5.98 6.24 6.76 7.11 7.12 7.33 7.39 7.00 6.42 6.25 6.36 6.58 6.28 6.24

5.84 6.27 5.92 5.76 5.83 6.03 6.24 6.12 6.24 5.70 6.15 5.75 5.90 6.16 6.38 6.42 6.67 6.73 6.47 5.93 5.76 5.93 6.14 5.88 5.87

85 Fore

85CL

5.16 5.45 5.35 5.27 5.29 5.40 5.57 5.55 5.57 5.45 5.64 5.17 5.46 5.66 5.86 5.94 6.25 6.31 6.03 5.61 5.37 5.53 5.64 5.44 5.42

5.14 5.43 5.33 5.25 5.27 5.38 5.55 5.54 5.55 5.43 5.61 5.34 5.44 5.64 5.84 5.93 6.24 6.31 6.03 5.59 5.35 5.52 5.62 5.42 5.40

Cuts 85 Chuck 80CL 5.57 5.73 5.62 5.58 5.57 5.53 5.76 5.60 5.76 5.60 5.82 5.58 5.70 5.89 5.97 6.07 6.44 6.49 6.27 5.86 5.56 5.73 5.87 5.65 5.61

4.54 4.71 4.60 4.58 4.74 4.93 5.15 5.12 5.15 4.93 5.09 4.83 4.84 5.00 5.17 5.26 5.62 5.77 5.52 5.18 5.06 5.09 5.15 4.71 4.79

75CL

65CL

Clods

4.20 4.29 4.29 4.23 4.23 4.40 4.85 4.81 4.85 4.79 4.89 4.64 4.57 4.64 4.78 4.83 5.14 5.22 5.07 4.86 4.75 4.76 4.83 4.81 4.70

3.19 3.07 3.11 3.06 3.09 3.24 3.49 3.53 3.49 3.94 3.92 3.70 3.49 3.56 4.02 4.27 4.53 4.47 4.16 3.81 3.67 3.66 3.99 4.16 4.10

n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a

Eyes 8.69 8.55 7.93 8.17 8.14 7.95 7.50 7.45 7.50 7.50 7.50 7.42 7.31 7.22 7.27 7.56 7.62 7.53 7.27 7.18 7.06 7.08 7.15 7.08 6.94

Flats

Knuckles Insides

6.70 6.71 6.70 6.66 6.75 7.02 7.21 7.26 7.21 7.38 7.31 7.11 7.03 7.12 7.65 7.88 7.70 7.47 7.37 7.35 7.22 7.11 6.87 6.60 6.68

7.96 7.94 7.63 7.49 7.54 7.30 7.65 7.68 7.65 7.54 7.61 7.57 7.53 7.46 7.80 7.92 7.94 7.82 7.64 6.95 7.13 7.39 7.49 7.38 7.24

7.56 7.59 7.51 7.45 7.45 7.42 7.65 7.28 7.65 7.33 7.36 7.39 7.39 7.38 7.64 7.72 7.72 7.74 7.61 7.05 7.11 7.16 7.32 7.28 7.28

Source: Chisholm

Chisholm Imported Beef Prices, Weekly, Canadian $ per Kilogram 2/15/2018

2/8/2018

change

2/16/2017

change

Bullmeat 95CL Cow meat 90CL Cow meat 85CL Chucks 85CL Trimmings 85CL Trimmings 80CL Trimmings 75CL Trimmings 65CL

6.5500 6.1300 5.6900 5.8200 5.6700 4.9600 4.8100 4.2300

6.5500 6.1300 5.6400 5.7800 5.6200 4.9400 4.8100 4.2300

0.05 0.04 0.05 0.02 -

6.8800 6.2200 5.6900 5.9800 5.6600 5.0300 4.6300 3.5900

(0.33) (0.09) (0.16) 0.01 (0.07) 0.18 0.64

Steer EyeRounds Steer Flats Steer Knuckles Steer Insides

7.1200 7.1000 7.3900 7.3200

7.1000 7.0500 7.3900 7.3200

0.02 0.05 -

7.1600 7.2100 7.5000 7.3900

(0.04) (0.11) (0.11) (0.07)

Source: Chisholm

Prepared by: Steiner Consulting Group 800.526.4612

days numbers

February 2018

Canada Monthly Meat Market Report

Page 7 Canada Imported Prices

Chisholm Imported Beef Prices, Monthly Average, US $ per Pound Trimmings 95CL Bull 90CL 2016

2017

2018

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

2.00 2.22 2.25 2.23 2.22 2.29 2.35 2.33 2.35 2.11 2.15 2.03 2.14 2.34 2.41 2.40 2.45 2.52 2.47 2.31 2.31 2.29 2.34 2.23 2.27

1.86 2.07 2.03 2.04 2.04 2.12 2.17 2.14 2.17 1.95 2.06 1.95 2.03 2.13 2.17 2.16 2.22 2.30 2.28 2.14 2.13 2.14 2.18 2.09 2.14

85 Fore

85CL

1.64 1.80 1.84 1.87 1.85 1.90 1.93 1.94 1.93 1.86 1.90 1.75 1.88 1.96 1.99 2.00 2.09 2.15 2.13 2.02 1.98 1.99 2.01 1.94 1.97

1.64 1.79 1.83 1.86 1.85 1.89 1.93 1.94 1.93 1.86 1.89 1.81 1.87 1.95 1.98 2.00 2.08 2.15 2.13 2.01 1.98 1.99 2.00 1.93 1.97

Cuts 85 Chuck 80CL 1.77 1.89 1.93 1.98 1.95 1.94 2.00 1.96 2.00 1.91 1.96 1.89 1.96 2.04 2.03 2.05 2.15 2.21 2.21 2.11 2.05 2.07 2.09 2.01 2.04

1.44 1.55 1.58 1.62 1.66 1.73 1.79 1.79 1.79 1.69 1.71 1.64 1.66 1.73 1.75 1.78 1.88 1.97 1.94 1.86 1.87 1.83 1.83 1.67 1.74

75CL

65CL

1.34 1.41 1.47 1.50 1.48 1.55 1.69 1.68 1.69 1.64 1.65 1.57 1.57 1.61 1.62 1.63 1.71 1.78 1.79 1.75 1.75 1.72 1.72 1.71 1.71

1.02 1.01 1.07 1.08 1.08 1.14 1.21 1.23 1.21 1.35 1.32 1.26 1.20 1.23 1.37 1.44 1.51 1.52 1.47 1.37 1.36 1.32 1.42 1.48 1.49

Clods 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Eyes

Flats

2.77 2.82 2.73 2.90 2.85 2.79 2.61 2.61 2.61 2.57 2.53 2.52 2.51 2.50 2.47 2.55 2.54 2.57 2.56 2.58 2.61 2.55 2.54 2.52 2.53

Knuckles Insides

2.13 2.21 2.30 2.36 2.37 2.47 2.51 2.54 2.51 2.52 2.47 2.41 2.42 2.47 2.60 2.66 2.57 2.55 2.60 2.65 2.67 2.56 2.44 2.35 2.43

2.53 2.62 2.62 2.65 2.64 2.57 2.66 2.69 2.66 2.58 2.57 2.56 2.59 2.59 2.65 2.67 2.65 2.67 2.69 2.50 2.63 2.66 2.66 2.63 2.64

2.41 2.50 2.58 2.64 2.61 2.61 2.66 2.55 2.66 2.51 2.48 2.50 2.54 2.56 2.59 2.60 2.57 2.64 2.68 2.54 2.62 2.58 2.60 2.59 2.65

Exchange Rate US$/1CAD 0.70 0.73 0.76 0.78 0.77 0.78 0.77 0.77 0.77 0.75 0.74 0.75 0.76 0.76 0.75 0.74 0.74 0.75 0.78 0.79 0.81 0.79 0.78 0.78 0.80

Source: Chisholm

Chisholm Imported Beef Prices, Weekly, US $ per Pound 2/15/2018

2/8/2018

Bullmeat 95CL Cow meat 90CL Cow meat 85CL Chucks 85CL Trimmings 85CL Trimmings 80CL Trimmings 75CL Trimmings 65CL

2.3734 2.2212 2.0618 2.1089 2.0545 1.7973 1.7429 1.5327

2.3578 2.2066 2.0302 2.0806 2.0230 1.7782 1.7314 1.5227

0.02 0.01 0.03 0.03 0.03 0.02 0.01 0.01

2.3894 2.1602 1.9761 2.0769 1.9657 1.7469 1.6080 1.2468

(0.02) 0.06 0.09 0.03 0.09 0.05 0.13 0.29

Steer Steer Steer Steer

2.5799 2.5727 2.6778 2.6524

2.5558 2.5378 2.6602 2.6350

0.02 0.03 0.02 0.02

2.4867 2.5040 2.6048 2.5665

0.09 0.07 0.07 0.09

EyeRounds Flats Knuckles Insides

change

2/16/2017

change

Source: Chisholm

Prepared by: Steiner Consulting Group 800.526.4612

February 2018

Canada Monthly Meat Market Report

Page 8

Canada Domestic Beef Prices Chisholm Canada Domestic Beef Prices, Monthly Average, Canadian $ per Kilogram Trimmings

2015

2016

2017

2018

90CL frozen

85CL frozen

85cl fresh

60CL fresh

8.24 7.69 7.23 6.68 6.71 8.12 8.00 7.66 7.36 7.03 6.66 6.49 6.54 6.61 6.59 6.78 6.65 6.49 6.51 6.49 6.51 6.16 6.05 6.23 6.26 6.57 6.75 6.94 7.24 7.17 7.11 6.80 6.73 6.48 6.36 6.39 6.40

7.65 7.34 7.78 7.67 6.52 7.15 6.43 6.80 6.64 6.11 5.64 5.82 6.03 5.86 5.79 5.96 5.80 5.64 5.83 5.72 5.83 5.97 5.58 5.71 5.74 5.92 6.12 6.12 6.98 6.80 6.37 6.07 5.77 5.70 5.76 5.61 5.61

7.53 7.25 7.49 7.50 6.96 6.85 6.73 6.60 6.49 5.36 2.83 3.19 4.18 5.07 6.06 5.91 5.84 5.72 5.25 5.49 5.25 5.52 5.53 5.54 5.59 5.73 5.93 5.91 6.38 6.54 6.16 5.88 5.57 5.48 5.50 5.40 5.37

NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA

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 Mar Apr May Jun Jul Aug Sep Oct Nov Dec

60CL frozen NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA

50CL fresh 3.49 2.63 2.82 3.36 2.62 2.57 2.17 2.21 1.92 1.81 1.58 1.35 2.28 1.88 2.64 2.31 1.74 2.72 2.77 2.09 2.77 1.27 1.88 1.40 1.76 2.38 3.13 3.35 5.28 4.15 2.91 2.32 1.61 1.80 2.25 1.88 2.45

50CL frozen 3.45 3.01 2.92 3.21 2.96 2.77 2.54 2.28 2.19 1.98 2.10 1.58 2.11 1.66 1.92 1.78 1.70 2.02 2.54 2.02 2.54 1.62 1.94 1.95 2.05 2.53 3.09 3.20 5.24 4.81 3.27 2.64 1.84 1.89 2.47 2.09 2.48

Source: Chisholm

Prepared by: Steiner Consulting Group 800.526.4612

February 2018

Canada Monthly Meat Market Report

Page 9

Canada Cattle Statistics Fed Steer & Heifer Prices in Canada, CND/cwt Alberta Fed Steer 2016

2017

2018

200.0

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

178.1 172.8 167.9 165.4 158.7 151.6 147.3 142.2 130.8 132.8 143.3 154.2 159.5 157.8 167.8 173.9 178.3 159.7 143.5 140.6 133.4 137.2 149.0 158.5 164.8

Y/Y % Ch

Ontario

Fed Heifer

-5% -8% -14% -18% -21% -24% -21% -23% -24% -22% -12% -4% -10% -9% 0% 5% 12% 5% -3% -1% 2% 3% 4% 3% 3%

177.1 171.6 166.4 163.1 159.4 148.4 145.2 140.7 130.2 132.0 141.4 158.7 157.1 167.4 171.6 175.1 158.9 141.9 139.7 132.2 137.4 148.1 156.8 163.5

Y/Y % Ch

Fed Steer

-5%

172.2 168.9 166.4 151.6 154.1 152.6 149.4 141.3 126.8 124.4 127.0 134.0 145.5 145.7 155.2 159.4 172.3 171.6 151.5 139.2 124.6 132.2 137.7 137.1 141.6

-14% -18% -21% -25% -21% -23% -25% -21% -13% -10% -8% 1% 5% 10% 7% -2% -1% 2% 4% 5% 3%

Alberta

CND/cwt

175.0 165.0

140.0

155.0

120.0

145.0

100.0

135.0

80.0

125.0

60.0

115.0

0.0

171.6 168.9 165.4 151.6 153.4 153.0 148.0 139.1 123.6 121.5 125.9 134.6 143.9 144.4 153.0 154.2 170.1 167.4 149.7 137.0 122.7 128.8 136.4 137.6 141.1

-6% -9% -13% -22% -20% -22% -23% -26% -29% -24% -20% -13% -16% -14% -7% 2% 11% 9% 1% -1% -1% 6% 8% 2% -2%

Ontario

CND/cwt

160.0

Fed Steer

20.0

-7% -11% -14% -24% -22% -23% -23% -25% -27% -23% -20% -13% -16% -14% -7% 5% 12% 12% 1% -1% -2% 6% 8% 2% -3%

Y/Y % Ch

185.0

180.0

40.0

Y/Y % Ch Fed Heifer

105.0

Fed Heifer

95.0

J F M A M J J A S O N D J F M A M J J A S O N D 2017

2018

85.0

Fed Steer J F M A M J

Fed Heifer

J A S O N D J F M A M J

2017

J A S O N D

2018

Source: CanFax

Prepared by: Steiner Consulting Group 800.526.4612

February 2018

Canada Monthly Meat Market Report

Page 10

Canada Cattle Statistics Cow and Bull Prices in Canada, Canadian Dollars per CWT Alberta

2016

2017

2018

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

Ontario

D1,D2 Cow

Y/Y % Ch

D1,D2 Cow

Y/Y % Ch

108.60 106.06 105.23 101.42 100.61 99.63 96.55 100.57 92.07 88.10 84.90 91.70 97.25 94.79 101.26 106.49 110.49 110.92 104.65 98.28 87.62 88.90 86.63 88.90 91.62

-18% -23% -27% -32% -32% -30% -30% -29% -32% -24% -22% -10% -10% -11% -4% 5% 10% 11% 8% -2% -5% 1% 2% -3% -6%

99.85 98.23 93.39 91.50 93.86 99.72 94.68 89.37 84.24 76.98 74.70 70.63 76.79 81.56 84.62 86.96 97.12 101.71 96.33 86.43 74.96 73.46 65.91 68.49 68.90

-18% -24% -30% -30% -28% -24% -24% -27% -25% -22% -18% -18% -23% -17% -9% -5% 3% 2% 2% -3% -11% -5% -12% -3% -10%

C$/cwt

Alberta

120.00

110.00

100.00

100.00

80.00

90.00

60.00

80.00

40.00

70.00

20.00

60.00

J F M A M J J A S O N D J F M A M J J A S O N D 2017

2018

Ontario

C$/cwt

120.00

0.00

J F MAM J J A S ON D J F MAM J J A S ON D 2017

2018

Source: CanFax

Prepared by: Steiner Consulting Group 800.526.4612

February 2018

Canada Monthly Meat Market Report

Page 11

Canada Grain Price Statistics Grain Prices in the US and Canada Ontario Corn

1/7/2017 1/14/2017 1/21/2017 1/28/2017 2/4/2017 2/11/2017 2/18/2017 2/25/2017 3/4/2017 3/11/2017 3/18/2017 3/25/2017 4/1/2017 4/8/2017 4/15/2017 4/22/2017 4/29/2017 5/6/2017 5/13/2017 5/20/2017 5/27/2017 6/3/2017 6/10/2017 6/17/2017 6/24/2017 7/1/2017 7/8/2017 7/15/2017 7/22/2017 7/29/2017 8/5/2017 8/12/2017 8/19/2017 8/26/2017 9/2/2017 9/9/2017 9/16/2017 9/23/2017 9/30/2017 10/7/2017 10/14/2017 10/21/2017 10/28/2017 11/4/2017 11/11/2017 11/18/2017 11/25/2017 12/2/2017 12/9/2017 12/16/2017 12/23/2017 12/30/2017

13-17 Avg 2017 2018 --- Canadian Dollar per Tonne --196.1 180.3 179.5 196.1 180.7 170.5 203.3 181.1 170.5 203.1 181.5 174.4 206.5 179.5 176.4 205.2 181.9 177.5 203.8 185.0 181.9 204.1 184.6 204.5 184.6 205.6 185.0 206.0 181.1 208.3 179.9 206.9 178.7 199.0 181.1 201.2 185.0 202.7 187.0 199.0 187.0 201.4 187.4 198.6 185.4 200.6 186.2 200.4 188.2 202.3 185.8 203.8 190.5 201.5 191.3 203.8 190.5 204.6 186.6 203.6 190.5 203.8 186.6 196.8 186.6 188.6 186.6 188.4 176.8 187.8 185.0 189.7 177.5 194.6 190.9 192.7 168.9 194.9 180.3 198.5 176.4 188.3 177.9 181.7 177.9 178.3 177.2 176.0 177.2 175.7 177.5 175.7 177.5 176.8 177.2 175.4 177.2 178.8 177.2 178.9 176.0 180.4 174.0 183.4 180.7 183.6 179.1 183.4 179.1 183.6 179.1

Average

194.4

182.1

Omaha Corn % ch. 0% -6% -6% -4% -2% -2% -2%

Alberta Barley

13-17 Avg 2017 2018 % ch. --- US Dollars per Bushel --4.38 3.32 3.29 -1% 4.36 3.34 3.30 -1% 4.47 3.45 3.35 -3% 4.44 3.40 3.37 -1% 4.53 3.40 3.44 1% 4.47 3.42 3.47 1% 4.45 3.39 4.41 3.32 4.49 3.40 4.51 3.23 4.51 3.24 4.54 3.18 4.47 3.22 4.38 3.26 4.48 3.40 4.45 3.28 4.46 3.40 4.52 3.40 4.57 3.40 4.49 3.40 4.56 3.43 4.57 3.44 4.59 3.59 4.52 3.47 4.50 3.32 4.43 3.32 4.31 3.56 4.32 3.34 4.22 3.54 3.83 3.38 3.80 3.29 3.82 3.23 3.91 3.20 3.91 3.17 3.93 3.19 3.73 3.20 3.63 3.19 3.61 3.10 3.44 3.12 3.11 3.09 3.15 3.09 3.44 3.12 3.47 3.16 3.45 3.16 3.38 3.04 3.47 3.11 3.51 3.17 3.53 3.17 3.60 3.22 3.63 3.22 3.62 3.26 3.58 3.28 4.08

3.29

13-17 Avg 2017 2018 % ch. --- Canadian Dollar per Tonne --243 208 170 225 32% 205 170 225 32% 204 170 224 32% 204 170 225 32% 203 168 225 34% 205 165 225 36% 208 165 207 163 162 208 210 162 211 165 215 168 218 168 218 165 217 165 218 170 219 173 220 175 221 175 224 180 223 183 225 185 220 183 220 183 220 181 222 182 226 195 228 212 221 208 216 200 210 200 205 200 199 200 194 197 194 197 192 200 191 200 187 205 189 210 190 212 192 212 195 212 196 213 198 215 199 217 199 220 202 221 202 225 202 225 195 225 191 208.2

189.7

Source: CanFax

Prepared by: Steiner Consulting Group 800.526.4612

February 2018

Canada Monthly Meat Market Report

Page 12

Ontario Corn, Canadian $/tonne, CanFax 220.0 200.0 180.0 160.0 140.0 120.0 13-17 Avg

2017

2018

100.0 Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Omaha Corn, US $/bu., CanFax 5.00 4.50 4.00 3.50 3.00 2.50 13-17 Avg 2.00

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

2017 Oct

Nov

2018 Dec

Alberta Barley, Canadian $/tonne, CanFax 260 240 220 200 180 160 140 13-17 Avg 120

Jan

Feb

Mar

Apr

May

Jun

Jul

2017

Aug

Sep

Oct

2018 Nov

Dec

Prepared by: Steiner Consulting Group 800.526.4612

February 2018

Canada Monthly Meat Market Report

Page 13

Canada Cattle Feeding Feeding Margins: Yearling Steer 2013

2014

2015

2016

2017

Jan

(131.2)

122.6

306.5

(448.4)

198.7

Feb

(178.2)

196.7

258.4

(386.0)

218.0

Mar

(173.5)

202.4

168.7

(375.8)

319.8

Apr

(183.1)

280.6

182.3

(317.8)

557.1

May

(128.0)

374.9

233.4

(160.6)

627.3

Jun

(96.5)

349.7

244.7

(95.1)

455.8

Jul

(95.9)

324.9

110.0

(348.9)

227.1

Aug

(79.2)

388.5

(31.4)

(181.7)

140.4

Sep

(30.9)

313.5

(161.3)

(240.7)

(6.2)

Oct

(4.5)

260.0

(340.8)

(157.4)

(268.4)

Nov

75.3

289.4

(404.2)

(152.0)

(258.3)

Dec

123.9

301.1

(569.0)

88.1

(110.9)

2018

128.2

5-Yr Avg.

9.6

vs. yr. ago

(70.42)

vs. 5-yr avg.

118.61

Source: CanFax

Note: In Oct. 2013, CanFax updated their trend assumptions, and revised numbers back to Jan 2012

Feeding Margins: Yearling Steer, CanFax 800 600 400 200 0 -200 -400 -600 -800

Prepared by: Steiner Consulting Group 800.526.4612

February 2018 AUD PER 1 CND 1.10

Canada Monthly Meat Market Report

Australian Dollar to 1 Canadian Dollar

NZD PER 1 CND 1.50

Page 14

New Zealand to 1 Canadian Dollar

1.40

1.05

1.30 1.00 1.20 0.95

1.10

0.90

USD PER 1 CND 1.10

1.00

US Dollar to 1 Canadian Dollar

Euro PER 1 CND 0.85

1.00

0.80

0.90

0.75

0.80

0.70

0.70

0.65

0.60

0.60

YEN PER 1 CND 130.00 120.00

Japanese Yen to 1 Canadian Dollar

POUND PER 1 CND 0.70

Euro to 1 Canadian Dollar

British Pound to 1 Canadian Dollar

0.65

110.00 100.00

0.60

90.00

0.55

80.00 70.00 60.00

0.50 0.45

APPRECIATION/DEPRECIATION OF AUSTRALIAN $ vs. THE US $ AND CANADIAN $, % CH. SINCE JAN 2, 2009 70% 60% 50% 40% AUD VS. CAD

30% 20% 10% 0% -10%

AUD VS. USD

-20%

Prepared by: Steiner Consulting Group 800.526.4612

February 2018

Canada Monthly Meat Market Report

Page 15

Supply Statistics

Prepared by: Steiner Consulting Group 800.526.4612

February 2018

Canada Monthly Meat Market Report

Page 16 Canada Cattle Statistics

Canadian Cattle Inventory, Slaughter & Exports Cattle Inventory, 000 Head

1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 F 2018 F

Source: USDA

Cattle Slaughter, 000 Head

Exports, 000 Head

Dairy Cow

Beef Cow

Calf Crop

Total Cattle

Cow

Calf

Total Cattle

Total

2,908 2,921 2,936 2,853 2,794 2,761 2,696 2,598 2,508 2,445 2,401 2,295 2,195 2,155 2,068 2,042 2,023 1,974 1,907 1,825 1,773 1,764 1,780 1,736 1,679 1,618 1,547 1,433 1,408 1,394 1,373 1,328 1,283 1,223 1,224 1,245 1,237 1,231 1,184 1,157 1,103 1,091 1,084 1,066 1,055 1,041 1,019 998 985 966 966 966 958 961 959 954 945 945 945

2,080 2,181 2,304 2,431 2,619 2,841 2,927 2,903 2,893 2,838 2,977 3,208 3,454 3,766 4,152 4,492 4,401 3,891 3,650 3,463 3,462 3,467 3,498 3,430 3,376 3,282 3,180 3,138 3,256 3,360 3,479 3,617 3,795 3,912 3,982 4,252 4,381 4,387 4,631 4,386 4,452 4,602 4,636 4,752 5,019 5,284 5,247 4,991 4,906 4,521 4,226 4,046 3,990 3,935 3,903 3,831 3,773 3,748 3,850

0 0 0 0 0 0 4,734 4,586 4,795 4,545 4,574 4,740 4,914 5,151 5,088 5,065 5,361 5,208 4,825 4,600 4,580 4,725 4,750 4,600 4,500 4,400 4,300 4,524 4,829 4,867 4,838 5,199 5,036 4,937 5,216 5,507 5,593 5,515 5,435 5,276 5,505 5,582 5,705 5,671 5,444 5,518 5,327 5,420 5,278 4,888 4,758 4,640 4,462 4,516 4,606 4,298 4,297 4,300 4,400

10,387 10,696 10,933 11,223 11,678 12,128 11,902 11,723 11,677 11,401 11,626 11,985 12,324 12,847 13,481 14,278 14,011 13,362 12,526 11,996 12,126 12,166 12,163 11,861 11,629 11,330 10,956 10,667 10,756 10,984 11,220 11,289 11,869 11,860 12,025 12,709 13,402 13,412 13,360 13,211 13,201 13,608 13,752 13,466 14,555 14,925 14,655 14,135 13,755 13,030 12,670 12,155 12,245 12,305 12,220 11,925 11,900 11,850 11,715

0 0 0 0 0 0 0 526 742 626 579 628 607 610 601 794 828 827 729 549 581 604 704 712 746 815 730 662 593 666 553 547 564 493 475 475 603 590 530 507 481 507 527 364 469 618 735 746 792 643 605 535 449 490 448 380 423 475 430

712 690 710 671 750 895 766 1,152 1,051 891 857 811 644 510 608 963 1,004 977 772 533 531 562 598 619 652 632 620 510 491 503 462 428 399 350 340 355 363 373 350 347 339 343 321 349 377 357 329 330 322 299 294 292 283 269 248 223 235 225 210

3,553 3,602 3,663 3,728 4,120 4,670 4,385 4,394 4,442 4,078 4,021 4,212 4,037 3,894 4,245 5,201 5,480 5,352 4,764 3,967 4,057 4,253 4,386 4,328 4,218 4,235 4,150 3,704 3,578 3,624 3,354 3,153 3,232 3,033 3,065 3,146 3,506 3,631 3,755 3,935 3,836 3,804 3,851 3,574 4,450 4,400 3,972 3,820 3,849 3,705 3,735 3,394 3,111 3,066 3,167 2,912 3,092 3,300 3,140

273 503 492 279 222 613 537 262 354 242 247 245 300 426 153 224 478 436 469 369 359 351 504 383 407 381 248 267 508 499 884 930 1,307 1,235 1,017 1,136 1,513 1,383 1,315 986 965 1,307 1,688 506 0 559 1,032 1,412 1,598 1,067 1,065 696 821 1,044 1,245 832 766 665 730

Prepared by: Steiner Consulting Group 800.526.4612

February 2018

Canada Monthly Meat Market Report

Page 17

Canada Cattle Statistics Cattle Slaughter by Class in Canada, Monthly, Head Steers head 2016

2017

2018

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

97,175 90,765 112,671 92,131 109,585 153,090 142,395 180,476 151,688 127,203 123,296 85,521 86,388 98,278 125,619 90,586 142,173 140,609 153,433 175,409 144,823 119,017 133,783 89,769 124,616

Heifers % Ch -4% -2% 20% -9% 12% 36% -6% 38% -9% 4% 13% -22% -11% 8% 11% -2% 30% -8% 8% -3% -5% -6% 9% 5% 44%

head 56,708 49,182 80,771 74,417 62,022 63,955 48,846 68,622 61,092 63,013 90,642 58,359 56,753 54,107 92,385 78,239 87,454 56,199 56,053 78,850 58,735 74,314 101,536 71,422 72,042

Steer + Heifer (Fed) % Ch

12% -28% 8% -27% 8% 38% -7% 46% -4% 16% 64% -7% 0% 10% 14% 5% 41% -12% 15% 15% -4% 18% 12% 22% 27%

head 153,883 139,947 193,442 166,548 171,607 217,045 191,241 249,098 212,780 190,216 213,938 143,880 143,141 152,385 218,004 168,825 229,627 196,808 209,486 254,259 203,558 193,331 235,319 161,191 196,658

1% -13% 15% -18% 10% 37% -6% 40% -7% 8% 30% -16% -7% 9% 13% 1% 34% -9% 10% 2% -4% 2% 10% 12% 37%

head 37,114 37,019 38,462 27,965 22,686 31,055 23,944 29,784 22,944 28,006 56,662 36,199 41,334 41,495 44,069 32,215 35,925 29,428 27,314 34,690 27,957 32,383 54,789 45,363 54,376

Bulls % Ch

head

-5% 5% 51% -3% 8% 37% -18% 21% -14% 14% 79% -5% 11% 12% 15% 15% 58% -5% 14% 16% 22% 16% -3% 25% 32%

838 973 1,303 936 931 1,027 826 1,427 1,229 1,147 1,705 1,214 938 1,204 1,570 1,550 1,769 1,475 1,429 1,808 1,407 1,965 2,407 1,348 1,654

. % Ch 138% 172% 503% 17% -18% -1% -41% 40% 12% 9% 54% 56% 12% 24% 20% 66% 90% 44% 73% 27% 14% 71% 41% 11% 76%

Cow Slaughter

head 60,000

280,000 260,000

50,000

240,000 220,000

40,000

200,000

30,000

180,000 160,000

20,000

140,000 120,000 Monthly

100,000 80,000

% Ch

Fed Slaughter

head

Cow s

10,000

4-Month MA

J F M AM J J A S ON D J F MAM J J A S ON D J F MAM J J A S ON D 2016

2017

2018

-

Monthly

4-Month MA

J F M AM J J A S ON D J F M AM J J A S ON D J F M AM J J A S ON D 2016

2017

2018

Source: CanFax

Prepared by: Steiner Consulting Group 800.526.4612

February 2018

Canada Monthly Meat Market Report

Page 18 Canada Cattle Statistics

Cow Slaughter in Canada, Weekly, Head 2013 1/5/13 1/12/13 1/19/13 1/26/13 2/2/13 2/9/13 2/16/13 2/23/13 3/2/13 3/9/13 3/16/13 3/23/13 3/30/13 4/6/13 4/13/13 4/20/13 4/27/13 5/4/13 5/11/13 5/18/13 5/25/13 6/1/13 6/8/13 6/15/13 6/22/13 6/29/13 7/6/13 7/13/13 7/20/13 7/27/13 8/3/13 8/10/13 8/17/13 8/24/13 8/31/13 9/7/13 9/14/13 9/21/13 9/28/13 10/5/13 10/12/13 10/19/13 10/26/13 11/2/13 11/9/13 11/16/13 11/23/13 11/30/13 12/7/13 12/14/13 12/21/13 12/28/13

9,140 12,203 12,403 11,785 10,949 11,246 10,496 9,000 10,371 9,927 7,923 7,051 5,057 6,983 8,234 7,296 7,116 8,682 7,726 7,719 4,429 7,905 7,767 5,194 5,248 7,274 7,509 7,524 6,195 6,786 8,166 6,564 7,294 6,745 5,658 5,113 7,178 7,518 8,025 8,523 9,572 11,001 9,550 11,348 12,000 12,440 12,890 14,061 11,100 12,653 14,362 7,278

2014 1/4/14 1/11/14 1/18/14 1/25/14 2/1/14 2/8/14 2/15/14 2/22/14 3/1/14 3/8/14 3/15/14 3/22/14 3/29/14 4/5/14 4/12/14 4/19/14 4/26/14 5/3/14 5/10/14 5/17/14 5/24/14 5/31/14 6/7/14 6/14/14 6/21/14 6/28/14 7/5/14 7/12/14 7/19/14 7/26/14 8/2/14 8/9/14 8/16/14 8/23/14 8/30/14 9/6/14 9/13/14 9/20/14 9/27/14 10/4/14 10/11/14 10/18/14 10/25/14 11/1/14 11/8/14 11/15/14 11/22/14 11/29/14 12/6/14 12/13/14 12/20/14 12/27/14

9,220 10,916 11,304 11,604 10,582 9,473 10,627 8,335 9,289 9,388 7,099 8,287 7,695 6,914 7,869 5,676 6,963 6,864 5,906 6,022 6,102 6,897 6,601 6,588 6,167 7,214 5,738 7,869 6,628 7,060 6,675 5,773 5,220 6,315 6,253 5,467 6,198 6,159 7,555 6,837 7,327 7,570 7,332 8,541 9,222 10,618 11,007 12,960 11,959 9,681 9,528 4,839

2015 1/3/15 1/10/15 1/17/15 1/24/15 1/31/15 2/7/15 2/14/15 2/21/15 2/28/15 3/7/15 3/14/15 3/21/15 3/28/15 4/4/15 4/11/15 4/18/15 4/25/15 5/2/15 5/9/15 5/16/15 5/23/15 5/30/15 6/6/15 6/13/15 6/20/15 6/27/15 7/4/15 7/11/15 7/18/15 7/25/15 8/1/15 8/8/15 8/15/15 8/22/15 8/29/15 9/5/15 9/12/15 9/19/15 9/26/15 10/3/15 10/10/15 10/17/15 10/24/15 10/31/15 11/7/15 11/14/15 11/21/15 11/28/15 12/5/15 12/12/15 12/19/15 12/26/15

2016

5,782 8,788 8,806 11,036 10,360 9,782 9,476 7,483 8,588 8,389 6,165 5,867 5,085 5,391 6,587 5,843 6,089 4,852 5,804 4,310 5,350 5,487 5,995 5,189 5,769 5,709 5,184 5,825 6,202 5,957 5,880 5,935 6,571 7,074 4,991 5,342 5,239 5,466 5,353 5,261 4,909 5,502 7,075 7,097 6,720 7,672 7,232 9,949 9,385 7,403 8,990 6,800

1/2/16 1/9/16 1/16/16 1/23/16 1/30/16 2/6/16 2/13/16 2/20/16 2/27/16 3/5/16 3/12/16 3/19/16 3/26/16 4/2/16 4/9/16 4/16/16 4/23/16 4/30/16 5/7/16 5/14/16 5/21/16 5/28/16 6/4/16 6/11/16 6/18/16 6/25/16 7/2/16 7/9/16 7/16/16 7/23/16 7/30/16 8/6/16 8/13/16 8/20/16 8/27/16 9/3/16 9/10/16 9/17/16 9/24/16 10/1/16 10/8/16 10/15/16 10/22/16 10/29/16 11/5/16 11/12/16 11/19/16 11/26/16 12/3/16 12/10/16 12/17/16 12/24/16 12/31/16

5,512 8,607 9,111 9,140 10,256 9,669 10,233 8,160 8,957 9,046 9,095 7,231 6,794 6,296 6,406 6,721 7,573 7,265 6,238 5,218 5,137 6,093 7,040 6,782 6,642 4,836 5,755 6,573 6,458 5,739 5,174 5,109 5,939 6,051 6,130 6,555 4,601 5,277 6,228 6,838 6,538 6,148 6,743 8,577 11,362 11,449 11,210 11,053 11,588 8,396 11,056 9,097 7,650

2017 1/7/17 1/14/17 1/21/17 1/28/17 2/4/17 2/11/17 2/18/17 2/25/17 3/4/17 3/11/17 3/18/17 3/25/17 4/1/17 4/8/17 4/15/17 4/22/17 4/29/17 5/6/17 5/13/17 5/20/17 5/27/17 6/3/17 6/10/17 6/17/17 6/24/17 7/1/17 7/8/17 7/15/17 7/22/17 7/29/17 8/5/17 8/12/17 8/19/17 8/26/17 9/2/17 9/9/17 9/16/17 9/23/17 9/30/17 10/7/17 10/14/17 10/21/17 10/28/17 11/4/17 11/11/17 11/18/17 11/25/17 12/2/17 12/9/17 12/16/17 12/23/17 12/30/17

5-Yr Avg. '18 vs. '17 '18 vs. 5-Yr

2018

8,032 10,074 11,103 12,125 10,938 10,909 11,108 8,540 9,633 8,309 8,422 8,921 8,784 8,790 6,982 8,669 7,774 7,170 6,868 7,633 5,798 8,456 8,131 7,159 6,887 7,251 6,284 7,916 6,571 6,543 6,842 5,898 7,694 8,427 5,829 6,196 7,316 7,203 7,242 7,217 8,217 9,001 7,948 9,608 11,145 10,439 11,462 12,135 12,516 12,465 12,161 8,221

1/6/18 1/13/18 1/20/18 1/27/18 2/3/18 2/10/18 2/17/18 2/24/18 3/3/18 3/10/18 3/17/18 3/24/18 3/31/18 4/7/18 4/14/18 4/21/18 4/28/18 5/5/18 5/12/18 5/19/18 5/26/18 6/2/18 6/9/18 6/16/18 6/23/18 6/30/18 7/7/18 7/14/18 7/21/18 7/28/18 8/4/18 8/11/18 8/18/18 8/25/18 9/1/18 9/8/18 9/15/18 9/22/18 9/29/18 10/6/18 10/13/18 10/20/18 10/27/18 11/3/18 11/10/18 11/17/18 11/24/18 12/1/18 12/8/18 12/15/18 12/22/18 12/29/18

8,511 11,060 11,268 11,296 12,245 10,351

7,704 10,241 10,648 11,213 10,849 10,401 10,545 8,599 9,700 9,210 7,952 7,916 7,257 7,233 7,556 7,145 7,157 7,127 6,767 6,369 5,690 6,856 7,002 6,273 6,148 6,393 6,322 7,096 6,406 6,289 6,451 5,754 6,285 6,538 5,584 5,793 5,944 6,041 6,426 6,666 7,014 7,417 7,446 8,538 9,522 10,304 10,503 11,995 11,492 10,511 10,990 7,083

6% 10% 1% -7% 12% -5%

10% 8% 6% 1% 13% 0%

13,000 12,000

5-Yr Avg

2017

2018

11,000 10,000 9,000 8,000 7,000 6,000 5,000 4,000 Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Prepared by: Steiner Consulting Group 800.526.4612

February 2018

Canada Monthly Meat Market Report

Page 19 Canada Cattle Statistics

Steer Carcass Weights in Canada, Weekly, Pounds 2013 1/8/13 1/16/13 1/23/13 1/30/13 2/6/13 2/13/13 2/20/13 2/27/13 3/6/13 3/13/13 3/20/13 3/27/13 4/3/13 4/10/13 4/17/13 4/24/13 5/1/13 5/8/13 5/15/13 5/22/13 5/29/13 6/5/13 6/12/13 6/19/13 6/26/13 7/3/13 7/10/13 7/17/13 7/24/13 7/31/13 8/7/13 8/14/13 8/21/13 8/28/13 9/4/13 9/11/13 9/18/13 9/25/13 10/2/13 10/9/13 10/16/13 10/23/13 10/30/13 11/6/13 11/13/13 11/20/13 11/27/13 12/4/13 12/11/13 12/18/13 12/25/13 1/1/14

2014 887 883 881 884 890 888 889 893 890 896 896 885 873 895 893 882 875 874 878 869 854 845 838 838 846 846 847 842 853 869 866 873 877 872 881 892 892 887 885 883 888 898 880 889 889 874 884 867 876 857 849 847

1/8/14 1/16/14 1/23/14 1/30/14 2/6/14 2/13/14 2/20/14 2/27/14 3/6/14 3/13/14 3/20/14 3/27/14 4/3/14 4/10/14 4/17/14 4/24/14 5/1/14 5/8/14 5/15/14 5/22/14 5/29/14 6/5/14 6/12/14 6/19/14 6/26/14 7/3/14 7/10/14 7/17/14 7/24/14 7/31/14 8/7/14 8/14/14 8/21/14 8/28/14 9/4/14 9/11/14 9/18/14 9/25/14 10/2/14 10/9/14 10/16/14 10/23/14 10/30/14 11/6/14 11/13/14 11/20/14 11/27/14 12/4/14 12/11/14 12/18/14 12/25/14 1/1/15

2015 848 850 846 848 846 852 849 861 868 857 859 869 844 856 860 855 843 850 835 825 824 828 830 821 827 822 829 838 840 840 854 860 865 870 877 879 885 877 889 901 900 909 915 909 917 905 905 901 878 881 885 879

1/8/15 1/16/15 1/23/15 1/30/15 2/6/15 2/13/15 2/20/15 2/27/15 3/6/15 3/13/15 3/20/15 3/27/15 4/3/15 4/10/15 4/17/15 4/24/15 5/1/15 5/8/15 5/15/15 5/22/15 5/29/15 6/5/15 6/12/15 6/19/15 6/26/15 7/3/15 7/10/15 7/17/15 7/24/15 7/31/15 8/7/15 8/14/15 8/21/15 8/28/15 9/4/15 9/11/15 9/18/15 9/25/15 10/2/15 10/9/15 10/16/15 10/23/15 10/30/15 11/6/15 11/13/15 11/20/15 11/27/15 12/4/15 12/11/15 12/18/15 12/25/15 1/1/16

2016 875 876 874 875 881 871 869 882 877 886 877 894 891 881 877 875 870 865 862 854 851 848 850 845 857 867 868 868 870 873 893 898 907 906 917 917 921 916 929 930 935 925 946 941 936 951 935 942 944 936 936 940

1/8/16 1/16/16 1/23/16 1/30/16 2/6/16 2/13/16 2/20/16 2/27/16 3/5/16 3/12/16 3/19/16 3/26/16 4/2/16 4/9/16 4/16/16 4/23/16 4/30/16 5/7/16 5/14/16 5/21/16 5/28/16 6/4/16 6/11/16 6/18/16 6/25/16 7/2/16 7/9/16 7/16/16 7/23/16 7/30/16 8/6/16 8/13/16 8/20/16 8/27/16 9/3/16 9/10/16 9/17/16 9/24/16 10/1/16 10/8/16 10/15/16 10/22/16 10/29/16 11/5/16 11/12/16 11/19/16 11/26/16 12/3/16 12/10/16 12/17/16 12/24/16 12/31/16

2017 942 946 935 926 941 944 943 943 939 937 941 936 936 942 952 942 912 907 891 882 874 872 882 886 890 884 894 896 901 905 913 911 914 924 921 932 926 928 931 936 932 930 923 928 933 935 932 935 930 929 921 914

1/7/17 1/14/17 1/21/17 1/28/17 2/4/17 2/11/17 2/18/17 2/25/17 3/4/17 3/11/17 3/18/17 3/25/17 4/1/17 4/8/17 4/15/17 4/22/17 4/29/17 5/6/17 5/13/17 5/20/17 5/27/17 6/3/17 6/10/17 6/17/17 6/24/17 7/1/17 7/8/17 7/15/17 7/22/17 7/29/17 8/5/17 8/12/17 8/19/17 8/26/17 9/2/17 9/9/17 9/16/17 9/23/17 9/30/17 10/7/17 10/14/17 10/21/17 10/28/17 11/4/17 11/11/17 11/18/17 11/25/17 12/2/17 12/9/17 12/16/17 12/23/17 12/30/17

2018 918 915 919 920 918 913 907 911 913 921 912 914 904 900 905 880 857 859 842 839 839 838 845 846 852 858 862 860 868 868 877 885 890 907 906 918 913 924 922 927 922 929 924 936 922 925 925 925 912 910 916 912

1/6/18 1/13/18 1/20/18 1/27/18 2/3/18 2/10/18 2/17/18 2/24/18 3/3/18 3/10/18 3/17/18 3/24/18 3/31/18 4/7/18 4/14/18 4/21/18 4/28/18 5/5/18 5/12/18 5/19/18 5/26/18 6/2/18 6/9/18 6/16/18 6/23/18 6/30/18 7/7/18 7/14/18 7/21/18 7/28/18 8/4/18 8/11/18 8/18/18 8/25/18 9/1/18 9/8/18 9/15/18 9/22/18 9/29/18 10/6/18 10/13/18 10/20/18 10/27/18 11/3/18 11/10/18 11/17/18 11/24/18 12/1/18 12/8/18 12/15/18 12/22/18 12/29/18

5-Yr Avg. '18 vs. '17 '18 vs. 5-Yr 912 911 911 913 902 913

894 894 891 891 895 894 886 894 893 894 890 894 885 892 893 887 873 872 867 857 851 850 851 849 856 857 861 861 866 871 881 883 889 892 896 903 903 901 906 911 910 913 913 913 914 911 910 905 904 899 895 892

-1% 0% -1% -1% -2%

3% 2% 3% 3% 3% 2%

960 940 920 900 880 860 840 820

5-Yr Avg

800

2017

2018

780 Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Prepared by: Steiner Consulting Group 800.526.4612

February 2018

Canada Monthly Meat Market Report

Page 20 Canada Cattle Statistics

Fed Beef Production in Canada, Weekly, Million Pounds 2013 1/12/13 1/19/13 1/26/13 2/2/13 2/9/13 2/16/13 2/23/13 3/2/13 3/9/13 3/16/13 3/23/13 3/30/13 4/6/13 4/13/13 4/20/13 4/27/13 5/4/13 5/11/13 5/18/13 5/25/13 6/1/13 6/8/13 6/15/13 6/22/13 6/29/13 7/6/13 7/13/13 7/20/13 7/27/13 8/3/13 8/10/13 8/17/13 8/24/13 8/31/13 9/7/13 9/14/13 9/21/13 9/28/13 10/5/13 10/12/13 10/19/13 10/26/13 11/2/13 11/9/13 11/16/13 11/23/13 11/30/13 12/7/13 12/14/13 12/21/13 12/28/13 1/4/14

2014 24.6 29.8 29.1 29.7 33.6 32.6 33.4 29.6 35.4 36.6 37.8 43.2 29.5 40.4 36.8 40.2 39.6 37.8 38.7 39.0 31.2 38.9 38.4 35.9 21.2 34.8 27.4 38.0 36.5 38.6 36.9 32.2 41.1 36.5 40.5 36.4 38.6 42.6 39.4 39.5 37.3 34.3 33.1 37.9 33.8 34.2 29.8 35.8 32.8 31.8 30.3 18.3

1/11/14 1/18/14 1/25/14 2/1/14 2/8/14 2/15/14 2/22/14 3/1/14 3/8/14 3/15/14 3/22/14 3/29/14 4/5/14 4/12/14 4/19/14 4/26/14 5/3/14 5/10/14 5/17/14 5/24/14 5/31/14 6/7/14 6/14/14 6/21/14 6/28/14 7/5/14 7/12/14 7/19/14 7/26/14 8/2/14 8/9/14 8/16/14 8/23/14 8/30/14 9/6/14 9/13/14 9/20/14 9/27/14 10/4/14 10/11/14 10/18/14 10/25/14 11/1/14 11/8/14 11/15/14 11/22/14 11/29/14 12/6/14 12/13/14 12/20/14 12/27/14 1/3/15

2015 22.9 32.0 33.1 35.1 35.0 33.5 35.0 29.5 36.8 41.6 35.9 42.1 38.0 36.3 40.5 31.9 38.8 39.6 36.5 37.7 31.4 38.6 38.5 37.2 39.7 38.6 29.6 36.0 35.3 36.9 35.8 34.5 40.3 41.9 40.8 36.3 42.2 41.3 39.6 41.2 41.1 39.0 36.4 40.7 36.5 31.5 36.5 36.5 35.1 34.4 n/a n/a

1/10/15 1/17/15 1/24/15 1/31/15 2/7/15 2/14/15 2/21/15 2/28/15 3/7/15 3/14/15 3/21/15 3/28/15 4/4/15 4/11/15 4/18/15 4/25/15 5/2/15 5/9/15 5/16/15 5/23/15 5/30/15 6/6/15 6/13/15 6/20/15 6/27/15 7/4/15 7/11/15 7/18/15 7/25/15 8/1/15 8/8/15 8/15/15 8/22/15 8/29/15 9/5/15 9/12/15 9/19/15 9/26/15 10/3/15 10/10/15 10/17/15 10/24/15 10/31/15 11/7/15 11/14/15 11/21/15 11/28/15 12/5/15 12/12/15 12/19/15 12/26/15

2016 26.7 33.3 30.5 34.7 31.3 33.2 36.0 30.4 36.9 36.6 34.3 36.6 36.1 29.7 37.8 34.6 34.5 35.0 33.9 32.2 29.9 34.2 33.8 33.7 32.0 32.9 28.9 35.9 36.0 37.2 35.8 34.1 39.5 41.4 41.9 40.8 36.1 46.8 40.7 41.8 41.5 33.4 44.6 40.5 37.2 40.2 35.7 36.7 36.4 31.9 n/a n/a

1/2/16 1/9/16 1/16/16 1/23/16 1/30/16 2/6/16 2/13/16 2/20/16 2/27/16 3/5/16 3/12/16 3/19/16 3/26/16 4/2/16 4/9/16 4/16/16 4/23/16 4/30/16 5/7/16 5/14/16 5/21/16 5/28/16 6/4/16 6/11/16 6/18/16 6/25/16 7/2/16 7/9/16 7/16/16 7/23/16 7/30/16 8/6/16 8/13/16 8/20/16 8/27/16 9/3/16 9/10/16 9/17/16 9/24/16 10/1/16 10/8/16 10/15/16 10/22/16 10/29/16 11/5/16 11/12/16 11/19/16 11/26/16 12/3/16 12/10/16 12/17/16 12/24/16 12/31/16

2017 26.4 34.1 34.7 33.7 36.8 34.2 31.3 29.7 32.3 35.6 34.8 37.7 32.3 34.7 37.1 38.1 36.5 39.0 37.3 40.4 39.9 31.3 37.6 36.1 37.1 44.4 31.9 39.7 38.2 44.8 45.4 37.2 44.9 48.1 45.2 46.4 44.2 49.8 47.5 51.0 47.6 42.4 41.8 39.7 40.5 39.9 37.3 36.9 37.3 35.6 36.9 27.2 26.2

1/7/17 1/14/17 1/21/17 1/28/17 2/4/17 2/11/17 2/18/17 2/25/17 3/4/17 3/11/17 3/18/17 3/25/17 4/1/17 4/8/17 4/15/17 4/22/17 4/29/17 5/6/17 5/13/17 5/20/17 5/27/17 6/3/17 6/10/17 6/17/17 6/24/17 7/1/17 7/8/17 7/15/17 7/22/17 7/29/17 8/5/17 8/12/17 8/19/17 8/26/17 9/2/17 9/9/17 9/16/17 9/23/17 9/30/17 10/7/17 10/14/17 10/21/17 10/28/17 11/4/17 11/11/17 11/18/17 11/25/17 12/2/17 12/9/17 12/16/17 12/23/17 12/30/17

5-Yr Avg '18 vs. '17 '18 vs. 5-Yr

2018 27.8 31.8 33.4 33.0 31.6 34.7 37.3 30.7 39.4 37.0 37.0 39.4 38.8 37.2 31.5 38.5 37.5 39.0 36.3 39.4 31.8 42.2 40.0 38.8 43.7 41.0 37.3 45.1 45.3 49.7 43.1 37.6 46.5 47.2 45.9 44.9 45.8 46.2 45.8 46.5 37.4 44.2 45.3 44.6 42.2 39.1 44.4 39.7 40.7 38.7 38.4 24.4

1/6/18 1/13/18 1/20/18 1/27/18 2/3/18 2/10/18 2/17/18 2/24/18 3/3/18 3/10/18 3/17/18 3/24/18 3/31/18 4/7/18 4/14/18 4/21/18 4/28/18 5/5/18 5/12/18 5/19/18 5/26/18 6/2/18 6/9/18 6/16/18 6/23/18 6/30/18 7/7/18 7/14/18 7/21/18 7/28/18 8/4/18 8/11/18 8/18/18 8/25/18 9/1/18 9/8/18 9/15/18 9/22/18 9/29/18 10/6/18 10/13/18 10/20/18 10/27/18 11/3/18 11/10/18 11/17/18 11/24/18 12/1/18 12/8/18 12/15/18 12/22/18 12/29/18

28.2 40.6 34.4 33.7 36.5 35.4

25.7 32.2 32.2 33.2 33.7 33.6 34.6 30.0 36.2 37.5 36.0 39.8 34.9 35.7 36.7 36.7 37.4 38.1 36.5 37.7 32.8 37.0 37.7 36.3 34.7 38.3 31.0 38.9 38.3 41.4 39.4 35.1 42.5 43.0 42.9 41.0 41.4 45.3 42.6 44.0 41.0 38.7 40.2 40.7 38.0 37.0 36.7 37.1 36.5 34.5 35.2 23.3

1% 28% 3% 2% 16% 2%

10% 26% 7% 1% 8% 5%

55.0 50.0 45.0 40.0 35.0 30.0 25.0 20.0

5-Yr Avg

2017

2018

15.0 Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Prepared by: Steiner Consulting Group 800.526.4612

February 2018

Canada Monthly Meat Market Report

Page 21 Canada Cattle Statistics

Non Fed (Cow + Bull) Beef Production in Canada, Weekly, Million Pounds 2013 1/12/13 1/19/13 1/26/13 2/2/13 2/9/13 2/16/13 2/23/13 3/2/13 3/9/13 3/16/13 3/23/13 3/30/13 4/6/13 4/13/13 4/20/13 4/27/13 5/4/13 5/11/13 5/18/13 5/25/13 6/1/13 6/8/13 6/15/13 6/22/13 6/29/13 7/6/13 7/13/13 7/20/13 7/27/13 8/3/13 8/10/13 8/17/13 8/24/13 8/31/13 9/7/13 9/14/13 9/21/13 9/28/13 10/5/13 10/12/13 10/19/13 10/26/13 11/2/13 11/9/13 11/16/13 11/23/13 11/30/13 12/7/13 12/14/13 12/21/13 12/28/13 1/4/14

2014 6.1 8.1 8.4 8.1 7.4 7.6 7.2 6.1 7.0 6.8 5.4 4.8 3.4 4.7 5.7 5.1 4.8 6.0 5.4 5.3 3.0 5.4 5.3 3.6 3.4 5.0 5.2 5.3 4.3 4.8 5.7 4.7 5.1 4.8 4.0 3.5 4.9 5.3 5.6 5.9 6.6 7.5 6.5 7.7 8.2 8.3 8.5 9.4 7.3 8.4 9.4 4.8

1/11/14 1/18/14 1/25/14 2/1/14 2/8/14 2/15/14 2/22/14 3/1/14 3/8/14 3/15/14 3/22/14 3/29/14 4/5/14 4/12/14 4/19/14 4/26/14 5/3/14 5/10/14 5/17/14 5/24/14 5/31/14 6/7/14 6/14/14 6/21/14 6/28/14 7/5/14 7/12/14 7/19/14 7/26/14 8/2/14 8/9/14 8/16/14 8/23/14 8/30/14 9/6/14 9/13/14 9/20/14 9/27/14 10/4/14 10/11/14 10/18/14 10/25/14 11/1/14 11/8/14 11/15/14 11/22/14 11/29/14 12/6/14 12/13/14 12/20/14 12/27/14 1/3/15

2015 6.3 7.3 7.6 7.8 7.4 6.5 7.1 5.6 6.3 6.4 4.9 5.4 5.5 4.7 5.3 3.9 4.8 4.7 4.1 4.4 4.3 4.9 4.7 4.7 4.4 5.1 4.0 5.6 4.7 5.1 5.0 4.1 3.7 4.5 4.5 4.0 4.5 4.5 5.4 4.8 5.2 5.4 5.2 6.0 6.5 7.4 7.6 9.0 8.3 6.8 0.0 0.0

1/10/15 1/17/15 1/24/15 1/31/15 2/7/15 2/14/15 2/21/15 2/28/15 3/7/15 3/14/15 3/21/15 3/28/15 4/4/15 4/11/15 4/18/15 4/25/15 5/2/15 5/9/15 5/16/15 5/23/15 5/30/15 6/6/15 6/13/15 6/20/15 6/27/15 7/4/15 7/11/15 7/18/15 7/25/15 8/1/15 8/8/15 8/15/15 8/22/15 8/29/15 9/5/15 9/12/15 9/19/15 9/26/15 10/3/15 10/10/15 10/17/15 10/24/15 10/31/15 11/7/15 11/14/15 11/21/15 11/28/15 12/5/15 12/12/15 12/19/15 12/26/15 1/2/16

2016 4.2 6.1 6.3 8.0 7.4 7.1 7.0 5.5 6.3 6.4 4.6 4.4 3.7 4.0 4.9 4.4 4.7 3.8 4.4 3.5 4.2 4.4 4.6 3.9 4.5 4.5 4.0 4.4 4.8 4.6 4.6 4.6 5.1 5.6 3.8 4.0 3.9 4.3 4.0 4.0 3.6 4.1 5.3 5.4 5.1 5.8 5.4 7.5 6.9 5.5 0.0 0.0

1/2/16 1/9/16 1/16/16 1/23/16 1/30/16 2/6/16 2/13/16 2/20/16 2/27/16 3/5/16 3/12/16 3/19/16 3/26/16 4/2/16 4/9/16 4/16/16 4/23/16 4/30/16 5/7/16 5/14/16 5/21/16 5/28/16 6/4/16 6/11/16 6/18/16 6/25/16 7/2/16 7/9/16 7/16/16 7/23/16 7/30/16 8/6/16 8/13/16 8/20/16 8/27/16 9/3/16 9/10/16 9/17/16 9/24/16 10/1/16 10/8/16 10/15/16 10/22/16 10/29/16 11/5/16 11/12/16 11/19/16 11/26/16 12/3/16 12/10/16 12/17/16 12/24/16 12/31/16

2017 4.2 6.8 6.9 7.2 8.3 8.1 8.6 6.6 7.2 7.5 7.6 6.0 5.6 5.2 5.1 5.5 6.2 6.0 5.1 4.3 4.2 4.7 5.5 5.3 5.3 3.6 4.6 5.3 5.2 4.7 4.1 4.1 4.7 4.9 4.5 5.2 3.7 4.1 4.7 5.2 5.0 4.7 5.1 6.3 8.3 8.5 8.2 8.2 8.6 6.3 8.1 6.6 5.7

1/7/17 1/14/17 1/21/17 1/28/17 2/4/17 2/11/17 2/18/17 2/25/17 3/4/17 3/11/17 3/18/17 3/25/17 4/1/17 4/8/17 4/15/17 4/22/17 4/29/17 5/6/17 5/13/17 5/20/17 5/27/17 6/3/17 6/10/17 6/17/17 6/24/17 7/1/17 7/8/17 7/15/17 7/22/17 7/29/17 8/5/17 8/12/17 8/19/17 8/26/17 9/2/17 9/9/17 9/16/17 9/23/17 9/30/17 10/7/17 10/14/17 10/21/17 10/28/17 11/4/17 11/11/17 11/18/17 11/25/17 12/2/17 12/9/17 12/16/17 12/23/17 12/30/17

5-Yr Avg. '18 vs. '17 '18 vs. 5-Yr

2018 6.0 7.3 8.3 9.3 8.3 8.3 8.6 6.9 7.6 6.6 6.6 6.9 6.8 6.9 5.5 6.9 6.2 5.7 5.4 6.0 4.5 6.7 6.4 5.7 5.5 2.8 5.1 6.5 5.3 5.3 5.5 4.7 6.2 6.8 4.7 4.7 5.9 5.7 5.6 5.6 6.4 6.9 5.9 7.3 8.3 7.8 8.5 9.0 9.3 9.1 9.3 6.3

1/6/18 1/13/18 1/20/18 1/27/18 2/3/18 2/10/18 2/17/18 2/24/18 3/3/18 3/10/18 3/17/18 3/24/18 3/31/18 4/7/18 4/14/18 4/21/18 4/28/18 5/5/18 5/12/18 5/19/18 5/26/18 6/2/18 6/9/18 6/16/18 6/23/18 6/30/18 7/7/18 7/14/18 7/21/18 7/28/18 8/4/18 8/11/18 8/18/18 8/25/18 9/1/18 9/8/18 9/15/18 9/22/18 9/29/18 10/6/18 10/13/18 10/20/18 10/27/18 11/3/18 11/10/18 11/17/18 11/24/18 12/1/18 12/8/18 12/15/18 12/22/18 12/29/18

6.6 8.5 8.5 8.5 9.5 8.0

5.4 7.1 7.5 8.1 7.8 7.5 7.6 6.2 6.9 6.9 5.8 5.6 5.1 5.0 5.6 5.0 5.2 5.2 5.0 4.6 4.2 4.8 5.0 4.5 4.4 4.6 4.7 5.2 4.8 4.7 4.8 4.3 4.5 4.7 4.1 4.3 4.2 4.4 4.5 4.7 4.8 5.1 5.2 5.9 6.5 7.2 7.2 8.4 7.9 7.1 4.1 2.3

10% 16% 2% -9% 14% -4%

23% 19% 13% 5% 22% 6%

14.0

5-Yr Avg

2017

2018

12.0 10.0 8.0 6.0 4.0 2.0 Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Prepared by: Steiner Consulting Group 800.526.4612

February 2018

Canada Monthly Meat Market Report

Page 22

Canada Cattle Statistics Cattle on Feed in Alberta and Saskatchewan Feedlots Total Cattle on Feed

Placed on Feed

000 head Y/Y % Ch 2016

2017

2018

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

937.7 919.1 928.3 941.1 914.1 838.9 752.5 656.7 576.7 579.6 741.9 870.6 858.1 831.9 872.0 906.3 914.1 881.4 789.8 671.3 607.2 635.0 799.1 974.9 929.7 879.7

3.7% 5.8% 7.2% 7.1% 8.3% 3.8% 0.3% -2.6% -9.0% -17.7% -14.9% -9.9% -8.5% -9.5% -6.1% -3.7% 0.0% 5.1% 5.0% 2.2% 5.3% 9.6% 7.7% 12.0% 8.3% 5.7%

000 head Y/Y % Ch 98.7 138.6 161.5 102.9 73.6 61.6 35.4 80.4 175.6 300.0 269.9 94.0 80.1 148.5 185.8 128.8 121.5 64.5 47.2 125.8 202.1 323.8 321.3 75.6 76.1

9% 9% 4% 1% -20% -16% -41% -18% -19% -1% 19% 6% -19% 7% 15% 25% 65% 5% 33% 56% 15% 8% 19% -20% -5%

Total on Feed

15.0%

< 600 lb. 600-699 lb. 700-799 lb. + 800 lb. 11.3 13.4 14.4 3.9 3.8 0.8 1.8 1.8 7.4 91.8 86.4 23.2 8.6 16.6 21.7 11.8 9.0 2.4 2.3 3.5 19.9 136.0 128.6 19.9 10.9

60%

5.0%

40%

0.0%

20%

-5.0%

0%

-10.0%

-20%

-15.0%

-40% J FMAM J J A SOND J FMAM J J A SOND J FMAM J J A SOND 201 6

201 7

201 8

17.2 27.1 30.8 13.5 6.2 2.7 1.3 3.4 6.9 62.3 89.7 28.2 22.0 30.1 35.9 17.1 12.5 5.2 1.1 3.1 12.5 53.2 48.2 16.1 12.9

25.3 34.8 35.4 25.5 12.1 4.7 3.2 6.7 18.3 24.6 30.2 13.7 21.5 33.8 46.0 27.9 23.9 5.9 3.1 9.4 18.4 29.5 82.3 11.2 22.0

44.8 63.2 80.9 60.1 51.5 53.5 29.0 68.5 143.0 121.2 63.6 28.9 28.1 68.1 82.2 72.0 76.2 51.1 40.7 109.8 151.2 105.2 62.2 28.3 30.2

-60%

000 head Y/Y % Ch 101.3 117.5 131.1 116.9 120.5 128.5 125.9 157.8 167.9 133.8 127.1 99.3 100.1 100.3 135.8 105.1 138.1 140.5 152.8 181.1 167.4 151.6 131.9 111.5 116.3

-7% -1% 1% 0% -9% 3% -5% 16% 23% 6% 5% -8% -1% -15% 4% -10% 15% 9% 21% 15% 0% 13% 4% 12% 16%

Placements

80%

10.0%

-20.0%

Cattle Marketed

Placements by Weight Group

J FMAM J J A SOND J FMAM J J A SOND J FMAM J J A SOND 201 6

201 7

201 8

Source: CanFax

Prepared by: Steiner Consulting Group 800.526.4612

February 2018

Canada Monthly Meat Market Report

Page 23

Canada Cattle Statistics Canada Cattle Exports to the US Market Slaughter Cow s, Head 5-Yr Avg. 1/7/2017 1/14/2017 1/21/2017 1/28/2017 2/4/2017 2/11/2017 2/18/2017 2/25/2017 3/4/2017 3/11/2017 3/18/2017 3/25/2017 4/1/2017 4/8/2017 4/15/2017 4/22/2017 4/29/2017 5/6/2017 5/13/2017 5/20/2017 5/27/2017 6/3/2017 6/10/2017 6/17/2017 6/24/2017 7/1/2017 7/8/2017 7/15/2017 7/22/2017 7/29/2017 8/5/2017 8/12/2017 8/19/2017 8/26/2017 9/2/2017 9/9/2017 9/16/2017 9/23/2017 9/30/2017 10/7/2017 10/14/2017 10/21/2017 10/28/2017 11/4/2017 11/11/2017 11/18/2017 11/25/2017 12/2/2017 12/9/2017 12/16/2017 12/23/2017 12/30/2017

2017

1,794 4,516 5,852 6,086 5,917 5,531 5,284 4,872 5,088 4,311 4,394 4,483 4,374 3,909 4,176 4,108 3,757 3,913 3,449 3,565 3,539 3,783 3,983 4,059 4,413 3,934 3,242 3,792 3,563 3,040 3,756 3,412 3,717 3,752 4,196 4,361 4,504 4,915 4,785 4,663 4,553 4,637 4,972 5,933 6,398 6,605 6,461 6,712 7,216 6,758 6,783 3,302

2,187 3,142 3,166 3,551 3,343 2,373 2,387 2,895 2,971 2,871 2,057 2,928 3,172 3,215 2,715 2,232 2,573 2,823 2,474 2,564 2,129 2,515 2,945 2,949 1,987 3,126 2,267 2,352 2,048 2,204 1,992 2,400 2,917 2,792 2,864 3,031 3,176 3,096 2,491 2,450 2,086 2,801 2,477 2,634 2,527 2,446 2,359 2,295 2,172 2,064 2,064 375

Total

239,123

133,670

YTD

24,167

15,389

2018 1,026 1,726 1,914 2,066 1,841

8,573

Slaughter Steer/Heifers, Head % ch. -53% -45% -40% -42% -45%

-44%

5-Yr Avg.

2017

3,304 4,941 5,664 6,303 6,183 6,357 7,308 7,032 7,455 8,834 9,730 9,925 10,283 9,117 9,081 9,692 8,477 7,277 7,139 6,195 5,193 4,282 4,115 3,459 4,929 4,740 3,560 4,316 4,165 4,695 3,922 4,761 5,101 4,629 5,688 5,749 5,804 5,895 6,994 7,753 8,149 9,497 8,809 8,281 7,865 7,691 7,246 5,322 6,367 6,206 6,076 4,181

3,914 5,309 4,434 4,834 5,424 3,919 7,209 6,739 7,844 7,142 8,721 7,237 9,060 6,094 4,606 5,385 5,422 5,507 8,978 6,218 6,580 3,063 4,899 5,861 6,397 8,372 4,544 5,860 7,410 6,253 5,966 6,032 4,258 5,939 6,267 7,686 7,231 6,887 7,830 7,539 6,751 9,045 5,567 7,203 8,100 8,436 6,026 9,409 8,201 5,590 5,526 1,641

335,738

330,365

26,394

23,915

2018 4,217 4,707 4,152 4,705 4,373

22,154

% ch. 8% -11% -6% -3% -19%

-7%

Feeder Cattle, Head 5-Yr Avg.

2017

658 1,572 3,862 4,970 5,713 6,689 7,690 7,017 9,608 9,198 9,727 12,033 12,292 10,631 10,035 9,365 7,574 8,263 6,104 5,306 4,909 4,130 3,903 2,724 2,781 1,873 714 1,989 2,616 1,777 1,083 1,507 2,114 2,366 2,682 3,312 5,676 5,591 5,741 6,095 5,168 4,901 6,320 6,319 7,030 6,052 6,538 4,939 5,860 3,876 2,347 453

228 327 942 2,028 2,378 1,213 2,263 3,708 4,723 3,419 4,879 7,847 7,180 6,081 5,304 6,045 5,396 2,032 2,991 1,316 1,328 1,262 2,211 827 1,658 1,372 1,418 981 1,652 1,901 2,543 1,153 1,843 1,925 2,232 754 336 3,165 2,220 1,581 2,110 1,364 1,353 2,106 549 973 2,010 1,709 1,028 867 517 110

271,693

117,358

16,775

5,903

2018

% ch.

285 982 2,662 3,667 1,629

25% 200% 183% 81% -31%

9,225

56%

Source: USDA

Prepared by: Steiner Consulting Group 800.526.4612

February 2018

Canada Monthly Meat Market Report

Page 24

CANADIAN CATTLE EXPORTS TO THE US: SLAUGHTER COWS WEEKLY SHIPMENTS, HEAD, USDA

8,000 7,000

5-Yr Avg.

2017

Apr

Jun

2018

6,000 5,000 4,000 3,000 2,000 1,000 -

Jan

Feb

Mar

May

Jul

Aug

Sep

Oct

Nov

Dec

CANADIAN CATTLE EXPORTS TO THE US: FED STEER & HEIFER WEEKLY SHIPMENTS, HEAD, USDA

12,000

5-Yr Avg.

2017

2018

10,000

8,000

6,000

4,000

2,000

-

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Prepared by: Steiner Consulting Group 800.526.4612

February 2018

Canada Monthly Meat Market Report

Page 25

Canada Trade Statistics Beef Imports from Top Markets United States

2014

2015

2016

2017

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 Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Australia

New Zealand

Uruguay

MT

Y/Y % Ch

MT

Y/Y % Ch

MT

Y/Y % Ch

MT

Y/Y % Ch

8,803 7,575 4,901 6,025 9,665 11,091 9,902 7,941 6,359 6,660 6,922 7,138 6,251 5,891 5,536 5,832 7,875 9,516 8,703 6,517 4,973 6,139 7,117 7,259 6,069 5,371 5,264 5,455 8,633 8,707 6,840 5,590 5,940 5,873 8,106 8,408 7,047 7,282 7,045 6,251 5,705 8,053 7,328 6,690 6,678 7,020 6,390 7,710

-30% -33% -49% -19% -19% -18% -31% -30% -37% -33% -12% -22% -29% -22% 13% -3% -19% -14% -12% -18% -22% -8% 3% 2% -3% -9% -5% -6% 10% -9% -21% -14% 19% -4% 14% 16% 16% 36% 34% 15% -34% -8% 7% 20% 12% 20% -21% -8%

2,252 1,562 2,890 3,355 2,213 2,500 2,811 2,762 3,946 3,743 2,712 3,683 1,933 1,727 3,819 4,834 4,220 4,577 3,457 5,254 3,859 3,328 2,105 1,228 5,932 2,973 3,054 3,601 2,302 1,201 1,531 1,953 2,056 1,342 840 925 696 732 1,625 2,391 2,120 2,028 1,440 816 1,254 1,809 2,131 1,743

29% 56% 298% 74% 114% 171% 153% 82% 122% 105% 36% 117% -14% 11% 32% 44% 91% 83% 23% 90% -2% -11% -22% -67% 207% 72% -20% -26% -45% -74% -56% -63% -47% -60% -60% -25% -88% -75% -47% -34% -8% 69% -6% -58% -39% 35% 154% 88%

1,095 806 2,082 2,014 1,687 1,093 1,601 1,087 1,648 1,070 858 890 920 963 2,685 3,471 2,040 1,533 2,045 1,713 1,836 2,801 2,745 2,373 2,136 1,786 1,847 1,731 1,581 1,492 1,815 1,968 2,119 1,538 845 1,314 910 1,361 2,350 1,800 1,727 1,502 1,367 1,656 1,482 1,299 1,652 1,362

-16% -36% 48% 31% 21% -19% -25% -27% 54% 66% 154% 15% -16% 19% 29% 72% 21% 40% 28% 58% 11% 162% 220% 167% 132% 85% -31% -50% -23% -3% -11% 15% 15% -45% -69% -45% -57% -24% 27% 4% 9% 1% -25% -16% -30% -16% 95% 4%

1,150 1,133 2,446 2,361 1,858 2,413 636 75 25 1,444 1,771 3,214 5,880 2,217 1,442 1,223 275 321 126 101 244 501 654 619 2,963 2,495 3,263 1,150 323 215 50 432 1,416 1,077 1,945 769 5,369 1,620 422 77 75 537 496 390 380 681 1,054 1,276

-50% -24% 133% 53% 18% 234% -53% -84% -97% 856% 196% 5852% 411% 96% -41% -48% -85% -87% -80% 35% 876% -65% -63% -81% -50% 13% 126% -6% 17% -33% -60% 328% 480% 115% 197% 24% 81% -35% -87% -93% -77% 150% 892% -10% -73% -37% -46% 66%

Source: Stat Can

Prepared by: Steiner Consulting Group 800.526.4612

February 2018

Canada Monthly Meat Market Report

Page 26

CUMULATIVE ENTRIES OF NZ BEEF IN CANADA

CUMULATIVE ENTRIES OF URUGUAYAN BEEF IN CANADA MT

MT

18,000

35,000 5 Yr Avg

2016

2017

MFN TRQ LEVEL

5 Yr Avg

16,000

2016

2017

MFN TRQ LEVEL

30,000 14,000 25,000 12,000 20,000

10,000

8,000

15,000

6,000 10,000 4,000 5,000

2,000

0

0

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

CUMULATIVE ENTRIES OF US BEEF IN CANADA

CUMULATIVE ENTRIES OF AUSTRALIAN BEEF IN CANADA MT

MT

120,000

40,000 5 Yr Avg

2016

2017

MFN TRQ LEVEL

5 Yr Avg

2016

2017

35,000 100,000 30,000 80,000 25,000

60,000

20,000

15,000 40,000 10,000 20,000 5,000

0

0

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Prepared by: Steiner Consulting Group 800.526.4612

February 2018

Canada Monthly Meat Market Report

Page 27

Canada Trade Statistics Beef Exports to Top Markets United States

2014

2015

2016

2017

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 Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Hong Kong

Mexico

Japan

MT

Y/Y % Ch

MT

Y/Y % Ch

MT

Y/Y % Ch

MT

Y/Y % Ch

13,954 14,448 20,913 17,164 16,289 16,990 14,276 15,888 17,503 17,575 19,057 16,078 16,563 15,915 19,604 18,017 16,463 15,150 15,371 21,048 19,560 18,444 17,093 15,664 18,000 17,513 20,113 20,418 19,141 18,712 20,299 23,940 22,903 23,947 18,268 17,156 14,758 16,115 19,949 21,500 20,584 22,203 23,970 24,190 22,543 22,498 22,077 18,184

2% 6% 20% 6% 6% 21% 9% 12% 17% 2% 14% 23% 19% 10% -6% 5% 1% -11% 8% 32% 12% 5% -10% -3% 9% 10% 3% 13% 16% 24% 32% 14% 17% 30% 7% 10% -18% -8% -1% 5% 8% 19% 18% 1% -2% -6% 21% 6%

1,406 1,252 510 2,226 1,700 2,009 2,174 1,386 2,056 1,739 1,758 1,353 845 703 1,423 805 918 820 239 330 428 667 408 733 1,018 1,390 1,533 1,575 1,505 1,863 1,536 1,914 1,821 2,872 2,949 1,841 1,683 1,289 1,540 1,161 1,590 1,391 886 1,575 1,603 2,049 3,107 2,592

27% -19% -80% 10% 8% 62% 37% -16% 88% 16% 16% 4% -40% -44% 179% -64% -46% -59% -89% -76% -79% -62% -77% -46% 20% 98% 8% 96% 64% 127% 543% 480% 325% 331% 623% 151% 65% -7% 0% -26% 6% -25% -42% -18% -12% -29% 5% 41%

1,122 1,293 1,547 840 1,599 1,024 1,184 1,499 1,305 1,812 1,546 1,091 1,425 1,608 670 1,187 792 790 1,188 1,118 1,394 879 1,120 860 510 756 813 1,159 1,050 768 862 1,270 1,363 1,496 970 750 675 1,019 1,243 1,194 867 920 1,107 1,273 1,216 897 923 1,029

920% 332% 37% -35% 45% 5% 52% 36% 22% 12% 92% -7% 27% 24% -57% 41% -50% -23% 0% -25% 7% -51% -28% -21% -64% -53% 21% -2% 33% -3% -27% 14% -2% 70% -13% -13% 32% 35% 53% 3% -17% 20% 28% 0% -11% -40% -5% 37%

618 722 466 498 1,341 1,961 2,271 2,016 1,043 1,424 1,359 1,157 984 605 1,343 913 1,138 726 575 372 122 268 457 1,934 274 858 1,009 889 1,777 1,735 876 1,152 1,823 1,457 756 1,137 907 1,029 1,499 1,849 2,187 2,329 1,983 2,253 1,555 1,484 1,784 1,412

-21% 66% 110% -31% -12% 9% 98% 121% 44% 57% 87% 54% 59% -16% 188% 83% -15% -63% -75% -82% -88% -81% -66% 67% -72% 42% -25% -3% 56% 139% 52% 210% 1394% 444% 65% -41% 231% 20% 49% 108% 23% 34% 126% 96% -15% 2% 136% 24%

Source: Stat Can

Prepared by: Steiner Consulting Group 800.526.4612

February 2018

Canada Monthly Meat Market Report

Page 28

CUMULATIVE BEEF SHIPMENTS TO HONG KONG

CUMULATIVE BEEF SHIPMENTS TO UNITED STATES MT

MT

300,000

25,000 5 Yr Avg

2016

2017

5 Yr Avg

2016

2017

250,000 20,000

200,000 15,000 150,000 10,000 100,000

5,000

50,000

0

0

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Nov

Dec

CUMULATIVE BEEF SHIPMENTS TO JAPAN

CUMULATIVE BEEF SHIPMENTS TO MEXICO MT

MT 25,000

16,000 5 Yr Avg

2016

5 Yr Avg

2017

2016

2017

14,000 20,000 12,000

10,000

15,000

8,000 10,000

6,000

4,000 5,000 2,000

0

0

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Prepared by: Steiner Consulting Group 800.526.4612

February 2018

Canada Monthly Meat Market Report

Page 29

Canada Meat Statistics Imported Beef Stocks in Canada, Quarterly, Tonnes

2010

2011

2012

2013

2014

2015

2016

2017

2018

Beef, bone-in

Beef, boneless

Total Beef

Y/Y % ch.

Veal

Y/Y % ch.

Mutton

Lamb

Mutton + Lamb

Y/Y % ch.

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

320 389 214 293 325 434 471 444 503 440 478 524 666 593 525 636 723 753 1,054 1,431 1,394

5,627 5,214 3,107 3,860 5,354 5,918 6,106 5,251 5,447 6,266 5,344 5,219 6,129 5,221 5,626 3,760 4,240 4,434 5,991 5,777 10,311

5,947 5,603 3,321 4,153 5,679 6,352 6,577 5,695 5,950 6,706 5,822 5,743 6,795 5,814 6,151 4,396 4,963 5,187 7,045 7,208 11,705

18% 12% -20% -11% -5% 13% 98% 37% 5% 6% -11% 1% 14% -13% 6% -23% -27% -11% 15% 64% 136%

108 136 88 109 96 69 65 102 80 133 115 123 132 156 177 473 265 155 87 634 675

-28% -14% -63% -49% -11% -49% -26% -6% -17% 93% 77% 21% 65% 17% 54% 285% 101% -1% -51% 34% 155%

74 103 147 211 20 128 152 182 116 67 64 27 49 77 82 83 150 73 139 301 203

1,998 1,825 1,670 1,608 1,821 2,951 1,987 1,260 1,483 1,547 1,157 1,007 1,232 1,454 1,267 1,239 1,488 1,494 1,342 1,928 1,452

2,072 1,928 1,817 1,819 1,841 3,079 2,139 1,442 1,599 1,614 1,221 1,034 1,281 1,531 1,349 1,322 1,638 1,567 1,481 2,229 1,655

15% -1% 19% 4% -11% 60% 18% -21% -13% -48% -43% -28% -20% -5% 10% 28% 28% 2% 10% 69% 1%

Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

1,763 1,499 1,512 1,740 1,443 652 1050 945 708 858 680 579

13,082 10,636 10,942 11,906 12,575 15,824 12,183 13,679 12,393 10,839 9,308 8,120

14,845 12,135 12,454 13,646 14,018 16,476 13,233 14,624 13,101 11,697 9,988 8,699

186% 72% 73% 17% -6% 36% 6% 7% -7% -29% -25% -41%

427 556 820 785 579 1,124 951 1,238 1,370

175% 539% 29% 16% 36% 102% 16% 58% 137%

2,313 2,138 2,063 2,423 2,430 1,587 2,040 2,871 1,486

559

-41%

366 82 202 258 146 316 135 99 128 108 89

2,679 2,220 2,265 2,681 2,576 1,903 2,175 2,970 1,614 108 1,892 1,944

71% 50% 2% 62% -4% -14% -4% 11% -37% -94% -13% -35%

Imported Beef, metric ton

mt

1,803 1,944

Imported Mutton/Lamb, metric ton 3,500

18,000 16,000

Series1

14,000

Series2

3,000 2,500

12,000 10,000

2,000

8,000

1,500

6,000

1,000

4,000

Mutton + Lamb Series2

500

2,000 0

0 2011

2012

2013

2014

2015

2016

2017

2018

2011

2012

2013

2014

2015

2016

2017

2018

Source: Statistics Canada

Prepared by: Steiner Consulting Group 800.526.4612