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Industry information session

Industry information session. Cape Town Investec – 28 January 2011. Chris Schutte Daan Ferreira. USA maize ending stocks and STU ratio. SA maize ending stocks and STU ratio. USA soybean ending stocks and STU ratio. SA soybean ending stocks and STU ratio. Yellow Maize vs Corn Rand Ratio.

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Industry information session

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  1. Industry information session Cape Town Investec – 28 January 2011 Chris Schutte Daan Ferreira

  2. USA maize ending stocks and STU ratio

  3. SA maize ending stocks and STU ratio

  4. USA soybean ending stocks and STU ratio

  5. SA soybean ending stocks and STU ratio

  6. Yellow Maize vs Corn Rand Ratio

  7. Poultry imports : Up 26% yoy

  8. Number of broilers slaughtered, per capita consumption and producers price

  9. Total broiler sales realisation (fresh and frozen)

  10. Quality control • Supreme media debacle • Injection of brine • Rework and process / packed by dates • Ethical behaviour • Consumer Protection Act

  11. Myths 1. Do chickens grow so fast because they are injected with growth hormones? No, definitely not! No chickens produced by any of Astral’s poultry operations are injected, fed or in any way whatsoever subjected to hormones. In order to obtain the desired growth and weight targets, a perfect combination of superior genetics, scientific nutrition and best farming practices are ethically applied. Be assured, eating our chicken products is perfectly safe for you! 2. Are all chickens injected with water before being sold? No, not entirely true! Our fresh chicken, never frozen, is 100% natural. In fact, excess moisture is removed from fresh chicken through an air chilling process before being packed.   However, we do flavour enhance IQF frozen portions (Individually Quick Frozen) with a water based brine, to improve meat tenderness and succulence by means of a scientifically applied injection method. 3. Are chickens restricted from movement by being kept in small wire cages? Not true at all! In Astral, our chickens are raised in large poultry sheds designed to keep them as comfortable as possible. The disinfected floors are bedded with wood shavings, sunflower husks or wheat straw which allows them to scratch and move around as they please. Our chickens also have unrestricted access to light, clean water and nutritious feed 24 hours a day. 4. Are chickens reared on a diet of maize only? No, only approximately half of the ration is maize! Maize, the main energy source in a chicken’s diet, comprises approximately 50% of the feed ration. In addition, specially formulated protein ingredients, together with key vitamins and minerals, are added to create the perfect balanced diet and is fed to our chickens in the form of easily digested crumbles or pellets. 5. Do antibiotics administered to chickens remain in the meat and are they dangerous to our health? No, completely untrue!    No Astral poultry meat or product containing antibiotic residues is sold for human consumption.    Antibiotics are administered to our chickens when necessary through feed intake and under the strict guidance of a registered veterinary practitioner. It is standard practice to withdraw antibiotics from feed according to the manufacturers’ guidelines. This is done at least five days prior to slaughter to ensure no residues remain in the meat. Astral additionally tests the livers and muscles of slaughtered chickens through an independent laboratory for traces of antibiotic residues. This practice ensures that no antibiotic residues reach the consumer. 11

  12. Outlook 2011 Raw materials and feed : Upward trend Poultry imports : Increase Local production : Downward trend Chicken pricing : Sideways / firm Consumer spending : More willing Supply / demand : Better balance

  13. Q & A THANK YOU

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