JOINT PRESS RELEASE

ASTRAL A N D P I O N E E R F O O D S

A N N O U N C E A L O N G T E R M S U P P L Y A G R E E M E N T

3 April 2014: Astral Foods Limited (Astral) a leading South African poultry producer and leading FMCG company Pioneer Food Group Limited (Pioneer Foods) today announced a long term supply agreement whereby Quantum Foods (Quantum), a wholly-owned subsidiary of Pioneer Foods, will supply Astral’s operation in the Western Cape with up to 550 000 broilers per week, should Quantum close its Durbanville Tydstroom abattoir. Quantum has commenced a restructuring process of its operations which is aimed at ceasing broiler processing in the Western Cape and will supply a large percentage of its production of live broilers to Astral’s County Fair abattoir, where the birds will be processed and distributed to the greater Western Cape market. The long term supply agreement is subject to various conditions precedent that have to be fulfilled on the Quantum side by 15 May 2014, the most important being the conclusion of consultation with affected staff members.

Chris Schutte, Chief Executive Officer of Astral elaborates: "Tydstroom Poultry, a business unit of Quantum operating out of the Western Cape, will to a large extent become a contract broiler grower for Astral. Quantum has investigated options to exit from its broiler processing and marketing of chicken in terms of its current restructuring process in the Western Cape without exiting from primary agriculture in total."

The tough market conditions over the past two to three years have resulted in significant margin compression leading to numerous poultry business closures and imminent industry consolidation. Phil Roux, Chief Executive Officer of Pioneer Foods comments: “This is the logical next step for Quantum as we attempt to position the business to optimise value for shareholders. Quantum, a leading supplier of day old chicks and animal feed, will maintain its breeding operations as well as the rearing of broilers together with the feed supply in the value chain, with Astral processing, distributing and marketing the chicken.” Chris Schutte continues: "Astral will have to increase capacity at its County Fair operation to accommodate the additional broilers, and to this end will invest approximately R80 million in expanding its facilities. With this expansion Astral will create a significant number of jobs at County Fair and Tydstroom will preserve jobs in the farming value chain." The new arrangement will provide critical mass to both Astral and Quantum with the consequent efficiencies. Phil Roux adds: “This arrangement will afford both parties the opportunity to strengthen core competencies thereby alleviating industry pressure to some degree.”

Chris Schutte concludes: "The agreement will be fully implemented following fulfillment of the conditions precedent, and completion of the expansion of the facilities at County Fair which is expected to take approximately five months. Astral Foods’ total broiler processing capacity will increase to approximately 5 million birds per week and it is expected that the project will deliver good value to all stakeholders and provides an opportunity to protect jobs in the agricultural sector in the Western Cape."

Ends

Contact: Astral Foods Limited

Chris Schutte, Chief Executive Officer

Tel: (012) 667-5468

Theo Delport, Managing Director: Poultry Division

Tel: (021) 884 3114

Issued and released by: KeyterRech Investor Solutions

MarlizeKeyter (011) 447-2993 / 083 701 2021

Issue date: 3 April 2014

JSE code: ARL

Web-site: www.astralfoods.com

Company background

Astral Foods Limited (Astral), a leading South African integrated poultry producer, with key

activities in animal feed pre-mixes, manufacturing of animal feeds, broiler genetics, production

and sale of day-old chicks and hatching eggs, with integrated breeder and broiler production

operations, abattoirs as well as sales and distribution of various key poultry brands. The brands

in the Astral stable include:

Earlybird Tiger Chicks (Zambia)

Festive Meadow Feeds

Goldi Meadow Feeds Mozambique

County Fair Tiger Animal Feeds (Zambia)

Mountain Valley Central Analytical Laboratories

Ross Poultry Breeders Mozpintos (Mozambique)

National Chicks Provimi SSA