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Investor Presentaiton

MVO NEDERLAND Alternatively, growers can apply for an FSA-certification. This entails the certification linked to the SAI Platform, and is accepted by most of the larger food & beverage companies. The SAI Platform work with self-assessments and an ICS-model as well, but requires a smaller data sample size for verification. Organisations that can assist in this process are Peterson and Control Union. The process for obtaining the Global GAP is regarded by many smallholders as either too expensive or too complicated. This presents a challenge for smallholders in Brazil, as there are no certification schemes allowing small farmers to apply for Global GAP as a group to make the process easier. There are three main difficulties: 1. The system of day workers Government regulations dictate that day workers should register and sign a contract with employers (exact policies differ between estates). However, this also means that income taxation and mandatory insurance premiums will be levied, which may lead to a situation in which both employers and employees prefer to stay out of this system. For both, this saves administration and money. However, Global GAP also requires employers to provide contracts for their day workers. 2. Environmental requirements Another example of a threshold for Global Gap are environmental provisions. For example, local legislation and Global GAP require isolated storage facilities with secondary containments for the storage and management of agrochemicals. These facilities should be installed at least 60 meters outside a family residence. Although this seems like a very positive provision from an environmental point of view, in practice this impedes smallholders to implement Global GAP. Often, lots are not large enough, or the installation of such confinement facilities is far too expensive for smallholders. Another example is the requirement to take periodically water and waste samples to test for contamination. Again, in theory this is a logical and necessary step, but in practice this is often too much of a financial burden for smallholders. 3. Administration The use of agrochemicals need to be administrated; but many smallholders read and write poorly or lack knowledge. This also makes it difficult for many to set up an Internal Management system (IMS). Sometimes buyers do help with setting up an IMS, although this is often not coordinated; the financial investment is therefore often the most difficult part in practice. Water pump station Jaiba Another challenge is the contract administration. For example, day workers often work for several producers during a week. If a day worker needs to sign a contract with all those different producers, this will generate a significant administrative burden. WATER USE AND IRRIGATION SYSTEMS An important issue in considering the relative sustainability of producing fruit and vegetables in Jaiba Project are the benefits and disbenefits of the use of groundwater as is done in areas without extensive irrigation - and surface - 20
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