Sugar division

The volume of sugar produced by the Company on its seven sugar plants located in Belgorod and Tambov regions has reached 627 thousand tons of sugar from cane and 463 thousand tons of sugar from sugar beet - up 24% and 53% respectively YoY (479 thousand tons from cane and 217 thousand tons from sugar beet in 2010). In 2011 sales volume has reached 627 thousand tons of cane sugar and 300 thousand tons of beet sugar - up 24 % and 0% respectively YoY (479 thousand tons from cane and 300 thousand tons from sugar beet in 2010)
 

Meat division

The production of our meat division has reached 63,5 thousand tons - 2% up compared to 2010 (62.4 thousand tons in 2010). The production of fodder for sale has reached 58 thousand tons (43 thousand tons in 2010  - 26% growth YoY). Sales volumes are equal to production volume.
The construction of the meat complex in Tambov and expansion of existing facilities in Belgorod are going according to initial plans. The animal has already delivered to Belgorod farm and to one farm in Tambov.
 

Oil and fats division

The Company has launched production of vegetable oil at the newly acquired oil extraction plant in Samara region. The production of vegetable oil has reached 68 thousand tons in 2011.
The production volumes of mayonnaise and margarine have increased by 1% YoY and by 8% YoY respectively. The mayonnaise output has reached approximately 57 thousand tons (56,8 thousand tons in 2010) while the margarine output has reached 35 thousand tons (32 thousand tons in 2010). Sales volumes of margarine, mayonnaise and vegetable oil are very similar to production volumes.

Agricultural division

The Company harvested 2 300 thousand tons of sugar beet – up 60% YoY (930 thousand tons in season 2010). Due to good weather condition in season 2011 and usage of modern agricultural technologies allow to reach record net yield 35 tons per ha (16 tons per ha in 2010). All sugar beet was refined on Company’s sugar plants.
Harvest of sunflower was 71 thousand tons in 2011 (51 thousand tons in 2010) and yield was 2.2 tons per ha in 2011 – up 44% compared to 1.3 tons per ha in 2010
The total amount of harvested grain amounted to 502 thousand tons, whereof 268 thousand tons of winter wheat, 175 thousand tons of barley, 59 thousand tons of peas. The Company targets to use up to 62 thousand tons of grains to seed, 26 thousand tons for the rent payment and 9 thousand tons for fodder.
As a result, the following amount of harvest will be used for sale: 231 thousand tons of wheat; 125 thousand tons of barley; 39 thousand tons of peas; 10 thousand tons of grain scrap. The Company has planted 93 thousand hectares of winter crops which is 20% YoY more than in 2010-2011 season.

Note that all data provided in this announcement can differ from the year report since it has been taken from the management accounts.

Prepared by:
Sergey Tribunsky
Tel.: +7 495 363 1661
e-mail: ir@rusagrogroup.ru