News Update

News Update
March 17, 2008

USPB Unitholders Vote to Approve Agreement to Sell National

U.S. Premium Beef LLC (USPB) announced March 14 that its unitholders overwhelmingly voted to approve the sale of National Beef Packing Co. LLC (National Beef) to JBS S.A. (JBS).

“Our unitholders, with more than 90% approval, have strongly stated they support our Board of Directors’ and management’s recommendation to approve our agreement with JBS,” Steve Hunt, chief executive officer (CEO) of USPB, announced at a special meeting of unitholders Friday. “Our unitholders view this as a tremendous opportunity for their company and all producers who have marketed, or may want to market cattle through USPB in the future.

“Our unitholders told us they want to position USPB to prosper for future generations, and they see combining our processing company, National Beef, with JBS as an opportunity to do just that,” Hunt added. “At the top of their list was maintaining the principles our company was founded on, which includes our access to value-added markets, quality-based pricing and ownership in processing. Those principles will continue through USPB well into the future with JBS.”

Under the terms of the agreement, JBS will acquire all of the outstanding membership interests of National Beef in exchange for JBS stock and cash. In addition, JBS will assume all of National Beef’s debt and other liabilities at closing. USPB’s portion of the total proceeds will be approximately $65 million in JBS common stock and $261 million in cash.

The sale will combine all of National Beef’s operations and facilities, including National Carriers Inc. and its ownership in Kansas City Steak Co. LLC with JBS Swift’s beef operations. National Beef President Tim Klein will become president and chief operating officer (COO) of the joint National Beef/JBS-Swift beef operations.

“We are pleased with the confidence our unitholders have shown in charting an exciting course for our company’s future, which we believe will benefit the U.S. beef industry as well as our company and our producers,” Hunt said. “The U.S. beef industry is fortunate to have such a dynamic company as JBS to partner with. JBS is committed to be in the United States long term and will contribute greatly to the U.S. beef industry’s ability to produce and market quality products domestically and internationally.”

The transaction is subject to certain conditions and will require customary regulatory approvals.

In fiscal year 2007, National Beef generated sales of $5.6 billion and processed 3.9 million head of cattle. More information about National Beef is available at www.nationalbeef.com.

More information about USPB is available at www.uspremiumbeef.com. More information about JBS S.A. is available at www.jbs.com.br/ir/.

— Information provided by USPB.

NCFC President Discusses Ag’s Role in Reducing Carbon

Jean-Mari Peltier, president and CEO of the National Council of Farmer Cooperatives (NCFC), discussed the role that forestry and agriculture can play in a reduced carbon economy and how these industries can be part of the solution to addressing global climate change during a speech at last week’s 4th National 25 x ’25 Renewable Energy Summit in Omaha, Neb.

“The agricultural industry has a real opportunity to make a positive impact on a reduced carbon economy and benefit financially while doing this,” Peltier said. “At the same time, the industry needs to be vigilant to ensure that we are maximizing opportunities for U.S. producers under any new legislative, regulatory or market-based initiatives; in particular, it is important for agriculture to emphasize the role that perennial crops, such as fruit trees, grape vines and the like, play in the carbon sequestration process.”

Peltier pointed out that the U.S. Environmental Protection Agency (EPA) estimates that the agricultural and forestry sectors have the potential to sequester as much as 25% of the nation’s greenhouse gas (GHG) emissions. In addition, she noted, the U.S. Department of Agriculture (USDA) suggests that agriculture and forestry could sequester an additional 40 million to 590 million metric tons of GHG per year. These opportunities include both soil sequestration of carbon and the use of methane capture in animal agriculture operations. The ability to do that however is contingent on the price of carbon in the marketplace, she said.

The Renewable Energy Summit at which Peltier spoke is hosted by the 25 x ’25 Coalition to further the goal of meeting 25% of the nation’s energy needs with renewable resources — biomass, biofuels, wind, solar power, geothermal energy and hydropower — by the year 2025.

Additional information about NCFC and farmer-owned cooperatives can be found at www.ncfc.org.

NCBA Announces Reorganization

The National Cattlemen’s Beef Association (NCBA) announced March 13 a staff reorganization to continue to serve cattlemen, state partners and the cattle industry in an ever-changing environment. The organization has been simplified into the following areas:

Governance, Leadership and State Services, led by Kendal Frazier;
Marketing and Communications, led by Kim Essex;
Member and Corporate Services, led by Polly Ruhland;
Research and Education, led by James Reagan; and
Government Affairs, led by Terry Stokes, interim.

NCBA’s mission is to increase profit opportunities for cattle and beef producers by enhancing the business climate and building beef demand. As a reflection of the changing industry, this restructuring occurred at the direction of NCBA’s officers to make NCBA efficient and effective at achieving this mission.

As part of this restructuring, three senior executives of NCBA are leaving the association. In addition, the vice president of government affairs has resigned from his position to pursue other opportunities.

NCBA thanked these professionals for their many years of committed service and immediately began a search to identify the new head of NCBA’s government affairs office. For more information about the opportunity, please contact NCBA at 303-694-0305.

— Release provided by NCBA.

Ag Council Announces National 2008 Ag Day Essay Contest Winner

The Agriculture Council of America (ACA) called upon seventh- to 12th-grade students nationwide to submit original essays of 450 words about the importance of agriculture in the United States. Under the theme “Agriculture — Bigger Than You Think,” students were encouraged to focus their essays on the broader scope of agriculture, showcasing the diversity of today’s American farms.

Katlin Wiest, an eighth-grader at Upper Dauphin Middle School, Lykens, Pa., was named the national winner of the 2008 contest during the Ag Day event held at the USDA Whitten Building Patio. Wiest read her essay to industry representatives, members of Congress, federal agency representatives, media and others at the Celebration of Agriculture dinner in Washington, D.C.

The contest is sponsored by CHS Inc., The Council for Agricultural Science & Technology, High Plains Journal, National Association of Farm Broadcasting (NAFB), National Agri-Marketing Association (NAMA), Country Living Association and McCormick Co.

For more information and to see a list of the 2008 state winners, visit www.agday.org.

— compiled by Crystal Albers, associate editor, Angus Productions Inc.