Livestock update: Q4 2011

Livestock update: Q4 2011

During the past quarter October – December 2011, the milk volumes produced by
the livestock branch of Alpcot Agro decreased by 11.7 percent which reflects a
normal seasonal variation. At the same time, the total cattle herd grew by 1,268
heads to a total of 7,588 animals.  

Highlights for the period

During Q4 2011, the livestock herd increased by in total 1,268 heads due to the
delivery from quarantine of the western heifers that were acquired earlier
during the year as well as a significant birth surplus. The herd is expected to
be reduced somewhat during Q1 2012 following the planned culling of lower
producing animals.

At 31 December 2011, the livestock herd amounted to 7,588 animals, whereof 1,988
milking cows, 4,367 heifers/dry cows and 1,233 bulls and calves, compared to
2,290 milking cows, 3,270 heifers/dry cows and 760 bulls and calves at the end
of the previous quarter.

During Q4 2011, the average milk production on all of the Company’s farms
amounted to 31.9 tons per day, a decrease by 12 percent from 36.2 tons per day
in the preceding quarter. The average production per cow fell from 480 liters
per month during Q3 to 464 liters per month during Q4, which reflects a normal
seasonal variation. However in December 2011 in isolation the average production
per cow though reached 520 liters, as the higher yielding animals are now
calving and entering production.

During Q4 2011, sales of livestock related produce amounted to RUB 44.7 million
including VAT (about SEK 9.8 million), a decrease by 11 percent compared to the
previous quarter.

The livestock branch has also commenced operations in Kursk oblast with the
opening of a production unit in Bereoza with focus on meat production. The unit
will be gradually expanded during 2012.

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

“The 2011 investment program in our Livestock operation has been well executed.
We have better winter facilities and expanded housing capacity compared to last
year, and the feed situation is excellent.
We have a clear management focus on feeding, fertility and health. We have made
further advances in animal health, and mortality numbers are steadily
decreasing.
The process of improving our genetic stock is proceeding as planned. The
pregnant Holstein heifers have now started to calve, and going forward we are
expecting substantial growth in productivity.”

Stockholm, 25 January 2012

For additional information, please contact:
Investor Relations: Tel: 46 8 463 3940

About Alpcot Agro’s dairy business:

Alpcot Agro operates four large dairy farms in Russia, located in the
Kaliningrad, Lipetsk and Voronezh oblasts. The business also includes meat
production.