Brazilian poultry reaches record production levels in 2011

Brazil's poultry industry set new records in 2011 for production, consumption and exports, and saw Brazilians' per capita consumption of poultry surpass Americans' for the first time, according to year-end figures released Monday by Brazil's poultry processors and exporters association, Ubabef, during a press conference in Sao Paulo. Brazil produced 13.058 million metric tons of poultry in 2011, up 6.77 percent from 2010, placing Brazil third in global production. Seventy percent of Brazil's poultry was sold domestically in 2011, the rest exported. “With this 2011 performance, Brazil has further closed the gap that separates us from China, the No. 2 producer behind the U.S.,” said Francisco Turra, Ubabef president. The association believes Brazil can surpass China in poultry production in 2012. Poultry exports totaled 3.943 million metric tons by volume, up 3.2 percent from 2010, while sales receipts reached US$8.2 billion in 2011, up 21.2 percent from 2010 export revenue. Slight growth in 2012 Ubabef has forecasted a conservative 2 percent growth rate for poultry exports by volume for 2012, due in part to uncertainties with the European economy and a poor return from the first of Brazil's two corn harvests. Exports could grow more rapidly this year if Russia reopens its borders to more Brazilian processors, and if China's sanitation authority approves more Brazilian plants for export. Brazil's second annual corn crop also has a history of outperforming the first, Turra said. Infrastructure investment at ports along Brazil's southern coast, as well as improving highways and railways to those ports, will be key points in 2012 where Ubabef and the poultry industry try to apply pressure for public investment. The association delivered a petition with 70 infrastructure proposals to Brazil's president and Congressional leaders in 2011. Export growth is fairly limited for poultry at the industry's main ports, like Santa Catarina's Port of Itajai (Brazil's main port for frozen poultry exports), which currently has no railway points and dilapidated highway connections. Ubabef officials said the poultry industry doesn't have the financial means to build its own transport solutions, but believes they're getting through to Brasilia on the necessity of port growth for meat exporters. Source: www.meatingplace.com - January 10, 2012

Arla, Denmark & Molvest Group, Russia: New agreement paves the way for cheese production in Russia

By agreeing on the terms for a joint production of yellow cheese with Molvest Group, Russia’s third largest dairy company, Arla is taking another significant strategic step into the Russian market. The agreement is in keeping with Arla’s ambitions to become one of Russia’s leading dairy companies within yellow cheese. Following several years of growing exports to the Russian market, Arla now intends to set up local production in Russia for the first time. Production will be centered on the city of Kalacheevsky in south-west Russia where Arla’s Russian subsidiary – Arla Foods Artis – in partnership with the Molvest Group will be converting one of Molvest’s existing dairies to yellow cheese production. The two parties have agreed on terms for joint production at the dairy. The terms and conditions are subject to approval from the Russian Federal Antimonopoly Service (FAS). Molvest will be responsible for collecting the milk from farms in the area as well as weighing-in and processing the milk at the dairy. Arla will subsequently buy the milk and with its experience and expertise from its Scandinavian operations will be responsible for the production of yellow cheese at the dairy. The finished products will be distributed and sold by Arla. For Arla, the conversion of the dairy represents an investment of DKK 25 million. Prospects of doubling turnover Arla and Molvest anticipate joint production will begin in early 2013. Initially, the aim is to produce approx. 6,000 tons in 2014, with a subsequent annual volume increase of 10 per cent. ”As Russia is one of our strategic growth markets this agreement is important because it provides us with the opportunity to combine our export business to Russia with local production,” says Arla’s CEO Peder Tuborgh. “This is unlikely to be our final expansion into the Russian market but this agreement alone is expected to double our turnover in Russia before the end of 2015.” Export benefits Arla’s Russian business grew by approx. 30 per cent in 2011 to approx. DKK 500 million: growth that was largely driven by exports of Lurpak butter, Castello speciality cheese and cream cheese under the Arla Natura brand. These brands are expected to benefit further from Arla’s new production in Russia. ”The new venture in Russia means that we can offer a broader range and supply larger volumes,” explains Senior Vice President Hans Christensen, who is responsible for Arla’s operations in Russia, Poland and North America. This, in turn, will strengthen our position vis-a-vis the Russian retail sector and grow our exports from Scandinavia to Russia. We’ve already seen similar effects in other markets such as USA, Germany and Canada.” ”Russia is an attractive market for us because of the many consumers willing to pay for good quality,” he adds. “Our ambition is to become one of the leading players within the yellow cheese category in Russia. Combined with our Scandinavian expertise in making high quality cheese, we have strong opportunities for establishing a long-term presence in this rapidly growing market.” FACTS: Molvest Group: - Holding company with Headquarters in Voronezh, Russia. - Annual turnover is approx. 250 million USD. - Production at nine dairy sites, one of which is situated in Ukraine. - Produce and sell dairy products for everyday use, such as liquid milk, butter, fermented milk drinks and cheese. - Considered Russia’s third largest dairy company within traditional dairy products. Arla in Russia: - Russia is regarded as a strategic growth market in Arla’s current Strategy 2015 – along with USA, China, Middle East & Northern Africa, and Poland. - Annual turnover is approx. 500 million DKK. - In 2007 Arla Foods acquired 75 per cent of Artis Distribution and cemented its Russian business under the name Arla Foods Artis. The business is focused on selling cheese and butter from Denmark and Sweden. - Arla’s strategy in Russia is to build strong positions with high quality branded cheese and butter products, focusing on cities with more than 500.000 inhabitants, and to pursue opportunities for local production through partnerships or acquisitions. - Among the products sold by Arla in Russia are Lurpak butter, Castello speciality cheese and cream cheese under the Arla Natura brand. Source: www.arla.com - January 16, 2012

BHJ Group, Denmark prepares for acquisitions

Meat groups with international headquarters in Graasten, Denmark prepares for growth and change in management. The international meat group BHJ Group are now getting ready for growth. - The company must grow over the next five years. Revenue and earnings to be up. On the earnings we go after doubling over the next five years, says 60-year-old William Hald-Christensen, who has just left the post of CEO of BHJ Group A / S after 22 years in Gråsten to Exchange. Vilhelm Hald-Christensen instead become European business development director in Luxembourg for the Group's U.S. owner, The Lauridsen Group Inc., Iowa, USA, and has also taken over the post of chairman of BHJ Group. And plans for BHJ Group's growth is clear. - We would like to buy up. The good acquisition targets are not on the trees, and initially it is a requirement that they fit into what we are dealing with in advance, says Vilhelm Hald-Christensen and interprets the strategy as follows: - Better to grow a little slower through organic growth than running out and implement what later turns out to be faulty acquisitions. And we must constantly make sure that the acquisitions carried out at the right price, so we know that the return on investment is in order. With William Hald-Christensen's departure split leadership up, so 43-year-old Asger S. Jacobsen is the new director of the ingredients, while the 46-year-old Torben T. Matzen is Director of the meat and byproducts. Source: www.food-supply.dk - January 13, 2012

Norwegian seafood industry

Norwegian seafood exports was in 2011 at 53 billion NOK. It was exported 2.3 million tonnes of seafood, which is a decrease of 339 thousand tons compared with 2010, according to figures from the Norwegian Sjømatråd. Historical - 2011 was a historic year for the traditional fishing industry with an export value of 22 billion. This is an increase of 1.7 billion NOK. Never before has it been exported seafood from this part of the industry, says managing director Terje E. Martinussen Norway Sjømatråd. - The aquaculture industry exported seafood for 31 billion, a decline of 2.3 billion NOK compared with 2010. The decline is due to a fall in the second half of 2011. Net income is still high in historical context, and surpassed only by the record year 2010. - In the light of the international competition, Norwegian seafood industry as a whole is, well pleased with seafood exports for 2011. Decrease in the EU Exports to the EU was of 30.5 billion NOK, a decline of 366 million. EU seafood industry's main market area and constitute 57.5 percent of total exports. Exports to Russia were up by 5.2 billion NOK. This places Russia's most important market in 2011, while France retains a clear second place with an export value of 5.1 billion NOK. Japan is the market that increased the most in 2011. The growth was of 404 million NOK, or 16 percent. USA had the largest decline in export value and export to the United States totaled 1.7 billion, a decrease of 1.04 billion NOK. Aquaculture is still the greatest As a result of a sharp decline in salmon prices midway in 2011 was Norwegian exports of seafood from aquaculture reduced by 2.3 billion NOK to 31 billion NOK. Aquaculture is thus 58.5 per cent of total seafood exports in 2011. The export of salmon to a value of 29.2 billion NOK, while exports of trout amounted to 1.4 billion NOK. Export to other species from aquaculture is 400 million NOK. - After a period of extremely high salmon prices last half of 2010 and first half of 2011 has now salmon prices stabilized at the same level as the years before 2010. - This makes the fish more competitive and we now see that salmon consumption increases in several key markets, says Terje E. Martinussen. Record year for fisheries Based in one of the best management regimes in world exports of the traditional Norwegian fisheries sector for a record 22 billion NOK. This is an increase of 1.7 billion NOK compared with 2010. Species haddock, pollock, herring and mackerel can write a record for 2011. Export Value (All values in NOK) • Exports of cod increased by 431 million to 6.1 billion. • Exports of herring increased by 500 million to 4.2 billion. • Exports of mackerel increased by NOK 487 million to 3.5 billion. • Exports of saithe increased by 59 million to 2.2 billion. • Exports of dried fish for cod increased by 135 million to 2.1 billion. • Exports of haddock increased by 206 million to 1.5 billion. • Exports of dried fish from saithe increased by 58 million to $ 1.3 billion. • Exports of salted cod increased by 110 million to 891 million. • Exports of whole dried fish increased by 33 million to 644 million. Source: www.matindustrien.no - January 4, 2012

May Invest Equity becomes part owner of Vega Sea A / S

May Invest Equity has signed an agreement with the current owners of Vega Sea A / S to acquire a 45% shareholding in the company. Vega Sea Group is one of Europe's leading manufacturers of highly processed salmon products and an annual turnover of around ½ billion DKK An ambitious growth strategy to double turnover to 1 billion DKK in the next 4-5 years. "We are undergoing a significant expansion and include by constructing a new modern factory in Flensburg on 11,000 square meters, which will help to ensure a strong and competitive platform for our growth plans. We see a large international growth potential for Vega Sea's products both new and existing markets. To support this development, we therefore wanted to have a solid and experienced partner in shareholders, "says Vega Sea's CEO and co-owner, Kent Jensen. In May Invest Equity looks Managing Partner Erik Holm good opportunities to Vega Sea can realize its ambitious growth plan: "The food industry has a stable underlying growth and is only slightly affected by fluctuations in the global economy. Vega Sea has potential to become market-leading manufacturer of high value-added salmon products in selected markets. Vega Sea will primarily grow through aggressive organic growth plan that will probably be supplemented by acquisitions. To achieve this goal may include May Invest contribute with experience, networks and capital resources, "he says. "It's a challenge to bring Vega Sea to the next step in its growth phase. We've been through a long and valuable dialogue with May Invest Equity and is completely aware that they are the right partner for us and that we can realize its full potential, "says Roald Vedelgart, COO and co-owner of Vega Sea . In May Invest Equity Managing Partner Erik Holm great expectations for the investment in Vega Sea, "Vega Sea is an incredibly exciting and expansive future. The founders have done a fantastic job of building the company to its current level and created a good platform to take the next step. We are pleased to have the opportunity to invest in this team who have already proven that they can deliver strong results. " The share sale is awaiting final approval from competition authorities and expected to be completed end January 2012. The parties have agreed not to disclose the purchase price. About Vega Sea A / S Vega Sea Group was established in 2010 as a merger between Vega Salmon (Roald Vedelgart) and Seamore (Kent Jensen). The main activity consists of processing and processing of smoked and fresh salmon, most of which are exported to the European market. The Group has in average approx. 200 employees in three locations in Denmark and one in Sweden. For further information see www.vegasalmon.dk About May Invest Equity (formerly LD Invest Equity) With a total capital commitment of approximately 8.5 billion DKK, more than 30 portfolio companies and 20 investment staff is May Invest Equity, a leading private equity player in Denmark. May Invest Equity has roots in LD, as in his many years in private equity has created the foundations for May Invest Equity's strategy is focused on business development and responsible ownership. Source: www.majinvest.com - January 3, 2011

Maj Invest Equity bliver medejer af Vega Sea A/S

Maj Invest Equity bliver medejer af Vega Sea A/S 03. januar 2012 Maj Invest Equity har indgået aftale med de nuværende ejere af Vega Sea A/S om køb af en aktiepost på 45 % i selskabet. Vega Sea Gruppen er en af Europas førende producenter af højt forædlede lakseprodukter og omsætter årligt for omkring ½ mia. kr. En ambitiøs vækststrategi skal fordoble omsætningen til 1 mia. kr. i løbet af de næste 4-5 år. ”Vi er i gang med en markant ekspansion og er bl.a. ved at opføre en ny topmoderne fabrik ved Flensborg på 11.000 kvadratmeter, der skal være med til at sikre en stærk og konkurrencedygtig platform for vores vækstplaner. Vi ser et stort internationalt vækstpotentiale for Vega Sea’s produkter på både nye og eksisterende markeder. Til støtte for denne udvikling har vi derfor ønsket at få en solid og erfaren partner med i aktionærkredsen,” siger Vega Sea’s administrerende direktør og medejer, Kent Jensen. Hos Maj Invest Equity ser Managing Partner Erik Holm gode muligheder for at Vega Sea kan realisere sin ambitiøse vækstplan: ”Fødevarebranchen har en stabil underliggende vækst og er kun i mindre grad påvirket af udsving i verdensøkonomien. Vega Sea har potentiale til at blive markedsledende producent af højt forædlede lakseprodukter på udvalgte markeder. Vega Sea skal først og fremmest vokse gennem en aggressiv organisk vækstplan, der sandsynligvis vil blive suppleret med opkøb. Til at nå det mål kan Maj Invest bl.a. bidrage med erfaring, netværk og kapitalberedskab,” siger han. ”Det er en udfordring at bringe Vega Sea til næste trin i virksomhedens vækstfase. Vi har været igennem en lang og værdifuld dialog med Maj Invest Equity og er helt overbevidste om, at de er den rigtige partner for os, og at vi i fællesskab kan realisere virksomhedens fulde potentiale,” siger Roald Vedelgart, COO og medejer af Vega Sea. Hos Maj Invest Equity har Managing Partner Erik Holm store forventninger til investeringen i Vega Sea: ”Vega Sea går en utrolig spændende og ekspansiv fremtid i møde. Grundlæggerne har gjort et fantastisk stykke arbejde med at opbygge virksomheden til det nuværende niveau og skabt en god platform for at tage det næste skridt. Vi er glade for at have fået muligheden for at investere i dette team, som allerede har bevist, at de kan levere stærke resultater.” Aktiesalget afventer endelig godkendelse fra konkurrencemyndighederne og forventes gennemført ultimo januar 2012. Parterne har besluttet ikke at oplyse købesummen. Om Vega Sea A/S Vega Sea koncernen blev etableret i 2010 som en fusion mellem Vega Salmon (Roald Vedelgart) og Seamore (Kent Jensen). Hovedaktiviteten består af forarbejdning og forædling af røget og fersk laks, hvoraf hovedparten eksporteres til det europæiske marked. Koncernen har i gns. ca. 200 medarbejdere, fordelt på tre lokaliteter i Danmark og en i Sverige. For yderligere information se www.vegasalmon.dk Om Maj Invest Equity (tidligere LD Invest Equity) Med et samlet kapitaltilsagn på omkring 8,5 mia. kr., mere end 30 porteføljevirksomheder og 20 investeringsmedarbejdere er Maj Invest Equity en ledende private equity aktør i Danmark. Maj Invest Equity har rødder i LD, som i sit mangeårige virke indenfor unoterede aktier har skabt grundstenene til Maj Invest Equity's strategi, som er fokuseret på virksomhedernes udvikling og ansvarligt ejerskab. Source:www.majinvest.com - January 3, 2011