DRAFT MINUTES * National Cattlemen’s Beef Association (NCBA)

Joint International Markets Committee Meeting * July 12, 2006 * Reno, NV

Committee Chairman Ed Blair called the meeting to order at 12:35 a.m.Julie McWright, NCBA Manager of International Markets, served as the recording secretary.

Due to time constraints, USDA Farm and Foreign Agricultural Services Floyd Gaibler addressed the committee before any business was discussed. Mr. Gaibler discussed several pertinent issues concerning the beef industry, including BSE, export market updates, and the Administration’s upcoming trade agenda. Mr. Gaibler gave market updates on Japan, South Korea, Mexico, Canada, China, Hong Kong, Taiwan, and Thailand. He stressed that the Administration would continue to work on regaining access to export markets and that a major concern for the future will be Russia. Mr. Gaibler also discussed the current and upcoming free trade agreements and the WTO Doha Round negotiations before indulging the committee in a short question and answer period.

The committee was then given the chance to do beginning business. Bob McCan moved to approve the agenda and accept the minutes; Howard Hardecke seconded the motion, and the motion passed by voice vote.

The next speaker was Brett Stuart of Global AgriTrends. LP was the next speaker. Mr. Stuart provided an extensive economic perspective on global beef trade. He addressed numerous issues including worldwide beef consumption, currency impacts on trade, and economicand population growth rates in several key export markets. Mr. Stuart addressed the issue of the recovery of U.S. beef trade after the discovery of BSE. He mentioned key competitors, including Australia (in our Asian market), and Brazil (in our Russian market). A question and answer period also followed his presentation.

Cara Gerken of IMI Global was the third speaker. Mrs. Gerken gave an explanation of the Non-Hormone Treated Cattle (NHTC) program for exporting beef to the European Union.She also discussed Quality System Assessment (QSA) requirements for exporting, and how to use these marketing tools to expand beef export markets. There was a short question and answer period.

Next, Lynn Heinze and Tom Lipetzky from the United States Meat Export Federation (USMEF)presented information on the marketing programs and efforts of USMEF.They discussed the importance of the marketing programs and efforts in ensuring the success of our product in the foreign market place, even after that market opens to U.S. beef.Twelve budge Authorization Requests (AR) were presented to the committee on continuing/expanding USMEF marketing and research in Mexico, the Caribbean, Central and South America, Europe, the Middle East, Russia, Japan, Korea, Taiwan, Greater China, the Association of Southeast Asian Nations (ASEAN), and New & Emerging Markets. Alan Albright moved to approve all twelve ARs, Ross Herwin seconded the motion and it passed by a voice vote. (All twelve ARs are available upon request.)

Gregg Doud, NCBA’s Chief Economist, gave a quick update on the WTO Doha Development Round, current and future FTAs, and export markets affected by BSE.

Chairman Blairthen provided committee members with copies ofall proposed resolutions.Chairman Blair asked if there was a motion to adopt the followingproposed resolution:

IM Interim Policy

Trade and Retaliatory Measures

2006/New

WHEREAS, the U.S. trade deficit continues to grow, and

WHEREAS, the United States is now a net beef importer both in terms of tonnage and dollar value, and

WHEREAS, other countries have closed borders to U.S. meat products due to either unscientific food safety concerns or incorrect paperwork, and

WHEREAS, a single U.S. shipment bound for export that fails to meet agreed upon requirements should not be grounds for closing off the entire country’s exports,

THEREFORE BE IT RESOLVED, NCBA use all means necessary to lobby the U.S. Congress and Administration to pursue swift and appropriate trade retaliatory measures against countries who implement such trade practices as mentioned above.

Bill Donald moved to adopt the proposedresolution. Bob McCan seconded the motion, and the resolution passed by a voice vote.

Chairman Blair then asked if there was a motion to adopt the following proposed resolution:

IM Interim Policy
U.S.A. Beef for U.S. Troops Serving Overseas

2006/New

WHEREAS, our United States Troops are serving overseas to protect U.S. citizens and interests domestically and worldwide, and

WHEREAS, the beef sourced from outside the U.S. is not subject to USDA inspection and does not meet the same quality standards as U.S. beef, and

WHEREAS, contractors may not always use U.S. sourced beef for supplying troops in Iraq and otherU.S. bases overseas,

THEREFORE BE IT RESOLVED, NCBA will work to supply U.S. troops with U.S. beef.

After a brief discussion, Bob McCan moved to adopt the resolution with the following amendments:

IM Interim Policy
U.S.A. Beef for U.S. Troops Serving Overseas

2006/New

WHEREAS, our United States Troops are serving overseas to protect U.S. citizens and interests domestically and worldwide, and

WHEREAS, the beef sourced from outside the U.S. is not subject to USDA inspection and does not meet the same quality standards as U.S. beef, and

WHEREAS, contractors may not always use U.S. sourced beef for supplying troops in Iraq and other U.S. bases overseas,

THEREFORE BE IT RESOLVED, NCBA will work to supply U.S. troops with U.S. beefy require suppliers for our U.S. troops worldwide to provide U.S. produced beef.

Cevin Jones moved to adopt the resolution as amended.Bill Donald seconded the motion, and the resolution was adopted by a voice vote.

Chairman Blair then asked for any other business that needs attention, and seeing none, adjourned the meeting at 4:30 p.m.

Members in attendance included:

Susie Magnuson, American National

Cattlewomen

Jim Almond, Cattlemen’s Beef Board

Ed Blair, Cattlemen’s Beef Board

Mike Brooks, Cattlemen’s Beef Board

Dan Dierschke, Cattlemen’s Beef Board

Robert Fountain, Cattlemen’s Beef Board

Ross Garwood, Cattlemen’s Beef Board

Dana Hauck, Cattlemen’s Beef Board

Chuck Markley, Cattlemen’s Beef Board

Frank Phelps, Cattlemen’s Beef Board

James Webb, Cattlemen’s Beef Board

Stanley Zylstra, Cattlemen’s Beef Board

Bill Gray, Colorado Cattlemen’s Association

Don Anderson, (substitute for Mark Gustafson),

Colorado Livestock Association

Cevin Jones, Idaho Cattle Association

Randy Faber, Illinois Beef Association

James Culp, Indiana Beef Cattle Association

Bill Scheitler,Iowa Cattlemen’s Association

Matt Teagarden (substitute for Tom Moxley),

Kansas Livestock Association

Nevil Speer, Kentucky Cattlemen’s Association

Howard Hardecke (vacant), Missouri

Cattlemen’s Association

Bill Donald, Montana Stockgrowers Association

Alan Albright, NCBA Federation

Jim Peterson, NCBA Policy

Pete McClymont (vacant), NebraskaCattlemen

Melvin Leland (substitute for Steve Brooks),

North Dakota Stockmen’s Association

Keith Burgett, Ohio Beef Council

Luisa Munsee,NCBA Region V Representative

Myron Openshaw (substitute for Chris Nelson),

California Cattlemen’s Association
Marshall Edleman (substitute for Chad Blair),

South Dakota Cattlemen’s Association

Bob McCan, TX & Southwestern Cattle Raisers

David Owen, (substitute for John Gillcrist),

Texas Cattle Feeders Association

Larry Traun, (substitute for Steve Van Lannen),

Wisconsin Beef Council

Guests in attendance included:

Wanda Blair, South Dakota

Larry Jefcoat, Mississippi

Davis Hurt, Mississippi

JB Douglas, Texas

Floyd Gaibler, USDA

Bryan Prins, South Dakota

Rod Smith, Feedstuffs

Tracy Thomas, Kansas

Wythe Willey, Iowa

AliBay, California

Stephanie Norrell, Virginia

S. Tamborini, Washington, DC

Jon Kirkbridge, Wyoming

Chris Clayton, Nebraska

Bob Aitcth, Alberta

Raymond Newhouse, South Dakota

Rachel Buzzetti, Nevada

Rosalee Coleman, Texas

Stanley Miller, Kansas

Fred Gorrell, Washington, DC (Canada)

Sid Sumner, Florida

Matt Bishop, Meat & Livestock Australia (DC)

Kelvin Whall, Meat & Wool New Zealand (DC)

John Masswhol, Canada

Brad Wildeman, Canada

Dennis Laycraft, Canada

Stan M. Kristy, Oklahoma

Chris Calkins, Nebraska

Mark Armentrout, Georgia

Dina C. Reitzel, New Mexico Beef Council

Jon Ferguson, Kansas Beef Council

Carolyn Carey, California

Graeme Goodsir, Pennsylvania