China-Farming Technology.

CHINA-JOINT VENTURE IN FARMING TECHNOLOGY.

Genus, a world leading animal genetics company, announced significant advances in its strategy for expansion in China with progress being made in both the bovine and porcine sectors. These initiatives represent major steps forward in the company’s strategic focus on growth in emerging markets while maintaining its leading status in the developed world.

Genus has made an important breakthrough in its strategy to enter the local market in China. An agreement in principle has been made with Mengniu, a market-leading Chinese dairy company, to establish a joint venture to produce elite bovine genetics in China. The local semen that will be produced will be marketed and sold in China to Mengniu’s substantial existing farmer supplier base through already established distribution channels.

The joint venture will be confirmed by a formal agreement, and in anticipation of the formation of the joint venture, Genus is transferring 14 progeny-tested bulls from its Australian stud to China as well as a quantity of semen from the U.S. to represent opening stock.

Also, following Genus’ September 2008 announced expansion of its porcine breeding stock production network in China, the company further announced today an increase in this capacity. Genus has contracted to lease production nucleus capacity in Liaoning province to meet forecast increases in demand as more world-class pig units are established as a result of Chinese government initiatives to promote modernization in the agricultural sector. This investment underpins Genus’ position as a market leader in China for the supply of elite genetics to China’s foremost farmers and pork producers.

The new production nucleus farm is expected to commence activities in October 2010 and, when completed, Genus will have established sufficient production capacity to enable its customers to breed an estimated 17 million pigs per year in China.

Genus’ worldwide sales are made in 70 countries under the trade marks ABS (dairy and beef cattle) and PIC (pigs) and comprise semen and breeding animals with superior genetics to those animals currently in production.