Groups growth strategy

The Group has developed a solid growth strategy that builds on its operational excellence

The Group’s management has developed a clear strategy to capture the current positive dairy market trends:

• In 2009, Väätsa Agro will complete the construction of its new integrated production complex and will consolidate its milking cows to a single location. The production complex will also include milk powder production and bio-energy plant.
• By 2011, the Company plans to complete its upstream expansion into milk-powder production. This will enable Väätsa Agro to take advantage of the global shortage of dairy products and reduce its dependency on the regional dairy market.
• Installation of a bio-energy plant that will generate energy needed for milk powder production allows Väätsa Agro to promote environmentally friendly production, while reducing the milk powder production costs.
• Väätsa Agro will continue executing its growth strategy through pursuing strategic acquisitions of larger dairy farms in Estonia and other Baltic states that have either under-valued assets or can benefit from potential synergies created by such combination.