Gordon Food Service Market Updates for July 1, 2022

Gordon Food Service Market
Updates for July 1, 2022

Dairy | Eggs

Large - Up

Medium - Up

Small - Up

Retail demand good to very good. Supplies short. Market firm.

Dairy | Butter

Butter- Up

Inventories are tight on butter and it continues to remain elevated with expectation
of only temporary relief scattered throughout the year, many see any dip an
opportunity to buy thus driving markets higher.

Dairy | Cheese

Barrel - Down

Block - Up

The CME Block market looks to have found a comfortable range. Speculators feel
this will be around in the short term but relief should persist through the summer.

Grocery & Bakery | Sugar

Beet sugar continues to be unavailable beyond what we have secured for the rest of
2022 so at this time, we are unable to take on any new business. Cane sugar is
pretty scarce on the market currently which is causing pricing to be at a 50 year
high for spot purchases. There is very limited sugar being offered at this time as
both beet and cane growers await to see how their crops progress.

Grocery & Bakery | Flour

Wheat futures have dropped quite a bit over the last 2 weeks bringing pricing closer
to March/April than the high May pricing. As winter wheat crops are harvested at a
solid rate with conditions slightly better than they were 4 weeks ago, it has relieved
some pressure on the market. Prices continue to drop weekly though we may see
that bottom out here over the next 1-3 weeks.

Grocery & Bakery | Frying Oil

Last week's sell-off in crude oil and the stock market drew all commodity markets
lower. This week we may have found firm footing, though, as fundamentals try to
take center-stage once again. From a crop perspective it's a pure weather market.
The western side of the Mississippi is drying out and the eastern side is doing well.

It's still early in the growing season but so far we are off to a good start. Look for oil
prices to take direction along with the financial markets and any surprises from
USDA progress reports for the next 30 days.

Meat | Pork

Meat | Beef

Cattle harvest is holding steady at inflated levels from previous years. Ranchers and
feeders are both in a position where moving cattle quickly is the top priority. The
continuation of drought conditions has forced cattle off pasture and onto feedlots.
Feedlots are forcing cattle to harvest due to high feed costs. Much anticipated tight
cattle supplies in the fourth quarter are still in the forecast as the herd is thin out
front based on light placements in previous months and herd reduction over the
past year. Beef demand has slowed as consumer spending has shifted to other
basic necessities.

We did see some action for the Spring grilling season and with a break in demand,
pricing came back off. There is now steady demand with some items moving back
to somewhat eleveated levels for this time of year. We have seen a majority of
items soften over the past months as consumer confidence has been low and
there's less disposable income circulating. Ribeyes, strips, and tenderloins took a
small run with good forward sales going into Memorial Day but quickly softened
with consumer demand for higher-end middle meats backing off. End cuts are
mostly flat with forward sales mostly in line with the current market. The end cuts
are primarily being supported by high ground beef costs. Thin means such as skirt
meat are steady to higher due to seasonal demand. Grinds have seen good demand
and are now moving sideways as they are finding support with competing proteins.
Grinds are also still being supported by high-priced 90% and 50% trim levels. The
main driver is the reduced supply of imported boneless beef used for ground beef.

Seafood | Imported Seafood - High Level Summary

Imported seafood continues to improve with many species although customers

need to continue to be flexible as inventories rebound . Limson has finalized their
warehouse transition which has improved our in stock and delivery service levels.
US trucking and warehouse logistics have improved slightly but continue to be a
hurdle.

Seafood | Fin Fish
Cod, 2x Frozen Atlantic and Pacific::

New production of United States Pacific Cod loins and N. Atlantic Cod Loins from
Europe continue to trickle into DC's and outside warehouses. Supplies remain tight
and pricing elevated for the foreseeable future. Please be aware that in an effort to
not change item codes you will witness brands other than Gordon Choice or Kitchen
Essentials in the slots. 2x Frozen products from Asia remain to be short but has
started to trickle into the US Asia but has not bounced back fully as of yet.

Cod, Atlantic 1x:

North Atlantic 1x Frozen product is in decent supply for most items. Fillets are on
allocation due to Russia supply but New stock is coming from Greenland, Iceland
and Norway. New season loins are in good supply coming from Norway currently
and moving to Canada as their season gets underway.

Pollock:

Good supply and stable pricing for 1x Frozen IQF Alaskan product. The Government
has reduced the Total Allowable Catch (TAC) 39% due to the pollock stocks being
extremely low. 2X frozen imported supplies remain very short and unavailable.

Haddock:

The 10-12z size is still tight but available while the 8-10z is starting to arrive in
warehouses. Lions continue to be short.

Hake:

Supply is good and pricing consistent.

Salmon:

Norwegian; Supplies are currently keeping up with high demand and pricing have
started to trickle up as demand continues to increase.

Chilean; Currently supply is good and pricing is stable.

Swai:

Imports are slowly getting back to normal but operating costs have skyrocketed.
The bottleneck with supply is the USDA inspections which are taking twice as long
to complete due to Government labor shortages for inspectors. We have witnessed
a little softening in pricing as inventories improve.

Tilapia:

Tilapia frozen fillets supplies are meeting demand but expect prices to remain
elevated due to logistical issues, freight, costs, tariffs and a strong U.S. demand.

Mahi Mahi:

Supply is meeting current demand and GFS should be in a good position well into
the new year. Most product is out of Asia as the South American harvest has been
very poor. Pricing has been stable.

Tuna:

Portioned Tuna steak supply has improved. We have sourced some CO treated to
help the supply situation. Saku Block 10z is back in stock but note it is in short
supply. Prices will remain elevated into the summer.

Lake Fish:

Lake Fish- GFS has inventory on all species but as summer demand grows there is
potential for supply shorts.

Yellow Perch -Heavy demand continues to challenge supply. Michigan Sized
Butterflied continue to be the most abundant and some Splits are available, but
costs are very high. Ohio sizes is non existent. Overall category is still short.

Walleye -Supply meeting demand is good for all sizes with pricing stable.

Whitefish -Supply is currently meeting demand but fisherman have noted the catch

is slow this season. Filets larger than 8-10 are becoming hard to source.

Zander and Euro Lake Perch - Struggle to source with most of the supply coming
from Poland and Kazakhstan is now compounded by the ban on Russian raw
material. Zander sizes 20-40 and 40-60 are still a challenge. There is availability of
the larger sizes of Pike/Perch available as an option for walleye. Pricing is beginning
to increase in the US.

Ocean Perch:

Skinless product continues to be non existent. Skin On product is available.

Sea Bass:

Light inventories are keeping prices elevated.

Seafood | Shrimp
Imported White Shrimp:

Supply on most sizes is meeting demand. Pricing is still fluctuating weekly but is
settling down a little. Larger sizes 8-12 nonexistent.

Imported Tiger Shrimp:

Ample supply to demand. Larger 4-6, 6-8 are hard to come by and pricing is
elevated. Other sizes are stable.

Domestic White & Brown Shrimp:

Ample supply to demand. Larger U-15 and above are hard to come by and pricing is
elevated. Other sizes are stable.

PUD Shrimp:

Supply is tight and producers are reporting higher pricing, as the demand is higher
and product is getting bid up at the docks.

Seafood | Lobster & Crab
North Atlantic Lobster:

Solid landings in Canada have helped stock up freezers and reduced pricing a little
for both tails and meats.

Warm Water Lobster:

In good supply currently and Limson has supply of warm water Lobster and prices
have remained firm.

South African:

Supplies are good and currently all skus are available.

Snow Crab:

Supply is in a good position for the current demand. Limson is currently stocked
with 5/8, 8 ups and 10 ups. The harvest has outpaced the demand and pricing has
softened but remains high.

King Crab:

As customers have removed King Crab from menus due to the ultra high prices, the
limited supply is covering demand. Prices remain elevated but have softened in
recent weeks to try to stimulate summer demand.

Note; GFS stocks from 50th street a South American Red King Crab which is a
substantial value to the Russian and US products. The species is Santolla and the
quality is fantastic. GFS item numbers include; #312579, #312578, #312583,
#312584.

Seafood | Specialty Seafood
Scallops:

Supplies are good on all sizes. Pricing has trickled down slightly.

Squid:

Demand continues to be very strong. Supply has improved and pricing is softening.

IQF Oysters:

Small quantities available, coming into stock very soon.

Mussels and Clams:

Great inventory across the board.

Alligator Meat:

Wild is extremely hard to come by due to weather effecting the season.