In re Farmland Foods, Inc.                                                                                                                                      Case No. 02-50561

MONTHLY OPERATING REPORT SUMMARY

FOR THE MONTH OF JUNE, 2003

REVENUE

Gross Income

 $        124,171,129.03 

Less Cost of Goods Sold

 $          87,154,681.82 

Materials

 $       84,189,209.99 

Direct Labor

 -  

Overhead

 $         2,965,471.83 

Gross Profit

 $       37,016,447.21 

OPERATING EXPENSES

Owner/Officer-Draws/Salaries

 $                            -  

Other Employee Salaries

 $       16,546,601.94 

Advertising and Marketing

 $         2,920,395.66 

Insurance

 $            281,897.05 

Payroll Taxes

 $         1,335,263.45 

Lease and Rent

 $            484,231.52 

Telephone and Utlities

 $         1,801,868.38 

Attorney and other Professional Fees

 $              41,462.37 

UST Quarterly Fees

 $                            -  

Other Expenses

 $       13,822,824.72 

Total Operating Expenses

 $      37,234,545.09 

Net Income (Loss)

 $          (218,097.88)

CURRENT ASSETS

Accounts Receivable at end of month

 $        74,948,056.53 

Increase (Decrease) in AR for month

 $          2,292,674.96 

Inventory at end of month

  $        91,069,093.91 

Increase (Decrease) in Inventory for month

 $          3,602,041.60 

Cash at end of the month

 $        (5,330,061.41)

Increase (Decrease) in Cash for month

 $             (86,705.49)

LIABILITIES

Increase (Decrease) in pre-petition debt

 $           (272,954.17)

Increase (Decrease) in post-petition debt

 $          2,105,121.54 

Taxes Payable:

Federal Payroll Taxes

 $           (735,214.59)

State Payroll Taxes

 $           (684,442.09)

Local Payroll Taxes

 $                  (940.53)

State Sales Taxes

 $             (22,262.06)

Real Estate and Personal

 $        (1,627,466.17)

Property Taxes

 $              14,310.78 

Other (footnote)

 $            (37,230.15)

Total Taxes Payable

 $        (3,093,244.81)

Footnote:

Use Tax Payable

 $            (37,230.15)