Newsletter 5^th November 2015

Shareholders’ Meeting

As previously announced, shareholders are invited to the shareholders’ meeting onWednesday 11^th November 2015 at 11.00, at Hobrovej 437, 9200 Aalborg.

This document is submitted as a paper with information on the economic and operational status, to be presented at the meeting.

This apparent, the largest negative deviations are for wheat and maize. To the extent that there may be positive deviations of prices realized on these crops in relation to specified sales prices, this does, of course, reduce the negative deviation. At the present time we have quotes for milled wheat that are above the level at the same time last year, when we achieved a price for milled wheat of 131 DKK/quintal.

With the above-mentioned assumptions, as a consequence of the reduced gross yield, an annual result can be expected of approximately minus 4 million DKK before regulating any price differences for wheat and maize.

Operational status of autumn work:

Since our analyses, logically enough, have shown that the condition of the seed-bed, and thus timeliness, is the most important prerequisite for a good result, even when compared to the influence of the time of sowing, just as root depth is, undoubtedly, of crucial importance, we have this year invested in three large articulated tractors as well as an additional two Great Plains subsoilers.

This has meant that we have been able to depth treat the soil to a considerable extent here in the autumn:

– In Oravita where, last year, we tested the new type of grubber in November as preparation of the soil sowed in autumn, this year all the soil has been grubbed in advance of sowing rape seed as well as all of the low soil in our northern enclave Gradinari, just as approximately a further 750 HA has been grubbed in preparation for the spring sowing season.

– In Mizil and Videle, all of the soil has been grubbed prior to sowing wheat and here too the grubber is working at full speed to prepare the soil for spring seeding.

We have probably been lucky with the timing of this considerable effort with the grubber, since the weather and soil moisture have been with us here in the autumn. We have, therefore, to a large extent been able to suffice with grubbing and then carry out light surface harrowing, after which we have been able to sow in well seedbed, where the seed is sown at the correct depth and covered well.

We have, without a doubt, carried out the best seeding work ever in the history of the company during this autumn. At the same time, we have chosen to sow a larger area with winter crops than in the past due to the early harvest that has made this possible and recognition of the fact that spring sowing is a challenge and requires even greater timeliness.

At the present time the status in the fields is that:

– The rape is doing really well. A few fields covering approximately 150 HA in Oravita started rather late but are assessed to be well on the way now.

– Wheat – of course, primarily the first sowed – is sprouting and really good and without doubt the best we have seen in any year so far.

The sown areas:

Wheat in Videle on 4/11, sown on 17/9

Wheat in Videle on 4/11, a field where there 
have previously been problems with water

Rape in Videle on 4/11 

Rape in Oravita on 4/11 

Wheat in Oravita on 4/11 (also in the wheat fields, thieves have to be kept away)

Kind regards Richardt Duus, CEO