MHP Released Pre-Close Trading Update for 3Q and 9M of 2011

OREANDA-NEWS. October 19, 2011. MHP S.A. (LSE: MHPC) (“MHP” or “The Company”), one of the leading agro-industrial companies in Ukraine, focusing on the production of poultry and the cultivation of grain, is pleased to announce today its pre-close trading update for the third quarter and nine months ended 30 September 2011.

Poultry and Poultry Related Operations

Poultry	Q3 2011	Q3 2010	% change	9M 20111	9M 2010	% change
Sales volume, third parties
tonnes	99,900	81,000	23%	282,000	249,500	13%
Price per 1 kg net VAT, UAH	16.11	14.05	15%	14.39	13.43	7%

During the third quarter of 2011, the volume of chicken meat sales to external consumers increased by 23% to 99,900 tonnes compared to the third quarter of 2010, and by 13% to 282,000 tonnes during the first nine months of 2011 mainly as a result of the production increase due to more effective use of existing capacity as well as due to decrease in stocks.

Domestic demand for chicken meat during the first nine months of 2011 remained high and the Company was able to sell close to 100% of the chicken produced. Export sales for the first nine months of 2011 increased by almost 2 times compared to the same period last year.

The average chicken meat price through the third quarter of 2011 increased by 15% to UAH 16.11 per kg of adjusted weight (excluding VAT) when compared to the third quarter of 2010 that is in line with world poultry price trends and which is a procrastinated growth as a consequence of the grain price increase (majority of the production costs) in Ukraine and worldwide at end

2010.    Through the nine months of 2011 average chicken prices increased by 7% to UAH 14.39 per kg (9M 2010: UAH 13.43 per kg) as prices were almost flat in the first half of 2011. In Q3

2011,    40,900 tones of sunflower oil were sold mainly for export at an average price of USD  1,284 per tone, which was an increase of 49% on Q3 2010 (USD  862 per tone). For the nine months of 2011, 125,400 tones of sunflower oil were sold at an average price of USD  1,297 per tone, which was an increase of 54% on 9M 2010 (USD  841 per tone).

Grain Growing Operations

Currently the Company cultivates approximately 280,000 hectares of land under control (total land bank in 2010 was 180,000 hectares) and this year is to harvest an additional 100,000 hectares in its grain growing segment.

	2011		2010* (for land under control as of 01.01.2010)
	Production, tones	Cropped hectares*	Production, tonnes	Cropped hectares*
Corn	In process	In process	492,642	63,165
Wheat	267,250	52,210	183,785	39,360
Sunflower	73,530	27,000	65,455	25,630
Rapeseed	25,400	9,150	9,010	3,020
Other**	In process	In process	162,166	15,442
Total:	n/a	n/a	960,480	146,617

* - Actual hectares under crop and excluding land left fallow as part of crop rotation ** - Includes soybean, barley and sugar beet

The Company's harvest is on track. The Company forecasts strong harvest and yields for corn, taking into account current crop conditions. In general, MHP's yields are significantly higher than Ukraine's average and compared to yields in 2010.

			2010* (for land under control
	2011		as of 01.01.2010)
	MHP's	Ukraine's	MHP's	Ukraine's
	average*	average*	average*	average*
Corn	In process	In process	7.8	4.3
Wheat	5.1	3.4	4.7	2.9
Sunflower	2.8	1.9	2.6	1.6
Rapeseed	2.8	1.7	3.0	1.7
* - Tonnes per hectare

The Company has now completed its wheat, rapeseed, and sunflower harvests.

From land was under Company's control as of 01.01.2011 about 52,200 hectares (2010: 39,360 hectares) of land cropped with wheat 267,250 tones (2010: 183,785 tones) were harvested. Wheat net yields averaged 5.1 tones per hectare (2010: 4.7 tones per hectare) compared to Ukraine's average of 3.4 (2010: 2.9 tones per hectare) tonnes per hectare (Source: Committee of Statistics).

From 9,150 hectares (2010: 3,020 hectares) of land cropped with rapeseed, 25,400 tones (2010: 9,000 tones) were harvested. Rapeseed net yields averaged 2.8 tones per hectare (2010: 3.0 tones per hectare) compared to Ukraine's average of 1.7 (2010: 1.7 tones per hectare) tones per hectare (Source: Committee of Statistics).

As of today the Company has completed its sunflower harvest. From 27,000 hectares (2010: 25,630 hectares) of land cropped, 73,530 tones (2010: 65,455 tones) were harvested. Sunflower yields averaged 2.8 tones per hectare (2010: 2.6 tones per hectare) compared to Ukraine's average of 1.9 tones per hectare (Source: Committee of Statistics). The Company will use its entire sunflower yield to produce protein for fodder and sunflower oil will be exported.

The Company's corn harvest is ongoing and as of today it is 30% complete. The current net yield is averaging about 9.5 tones per hectare (2010: 7.8 tones per hectare) compared to Ukraine's average of 5.5 tones per hectare (Source: Committee of Statistics).

Other Agricultural Operations

Meat processing products	Q3 2011	Q3 2010	change	9M 2011	9M 2010	change
Sales volume, third parties
tonnes	10,900	9,900	10%	28,200	24,100	17%
Price per 1 kg net VAT, UAH	20.60	17.57	17%	19.57	17.26	13%

Through the first nine months of 2011 the Company continued to execute its strategy of growing its local meat processing market share. During the third quarter of 2011, sausage and cooked meat production volumes increased by 10% to 10,900 tones compared to 9,900 tones during the third quarter of 2010. During the first nine months of 2011 volumes increased by 17% to 28,200 tonnes (9M 2010: 24,100 tonnes).

Average sausage and cooked meat prices during the third quarter of 2011 increased by 17% to UAH 20.60 per kg. excluding VAT (Q3 2010: UAH 17.57) and through the first nine months of 2011 increased by 13% to UAH 19.57 per kg. excluding VAT (9M 2010: UAH 17.26 per kg).

MHP is a market leader in meat processing in Ukraine and management expects the Company's market share to increase further. More than 50% of the raw materials required by the Company's meat processing operations are internally produced chicken meat.