Livestock update Q3 2011

Livestock update Q3 2011

During the past quarter, the livestock branch of Alpcot Agro has
increased milk production volumes by 1.7 percent and has grown by 220
heads to a total of 6,320 animals.

Alpcot Agro (“the Company”) operates four large dairy farms with milk
and meat production in Russia. During Q3 2011, sales of livestock
related produce amounted to RUB 50.3 million (SEK 10.6 million). It is a
decrease by 0.7 percent compared to the previous quarter, mainly due to
a slight decrease in milk prices.

During Q3 2011, the average milk production on all of the Company's
farms amounted to 36.2 tons per day, an increase by 1.7 percent from
35.6 tons per day in the previous quarter. The average production per
cow fell from 499 liters per month during Q2 to 480 liters per month
during Q3, which is a normal seasonal variation.

At 30 September, the Company's livestock herd amounted to 6,320 animals,
whereof 2,290 milking cows, 3,270 heifers/dry cows and 760 bulls and
calves, compared to 2,170 milking cows, 3,160 heifers/dry cows and 770
bulls and calves at the end of the previous quarter, in total an
increase by about 220 cattle heads during the quarter. Of the 800
heifers that were ordered in June, so far 200 have been delivered from
quarantine and the remainder will be included in the herd during Q4.

Jens Peter Aabyen, Managing Director of Alpcot Agro, comments:

“During the period, we have made significant advances in animal health,
and mortality numbers are at an all-time low. The reproduction program
is running at full steam and more than 300 heifers have been impregnated
during the quarter.
And perhaps most importantly, we are now well under way with replacing
the old Simmental cows with high yielding Holstein cows, which will give
significant increases on productivity per cow going forward.”

Stockholm, 12 October 2011

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