Investor Presentaiton

MVO NEDERLAND Average water footprint of various product groups in l/kg²1 Mango 1800 Banana 790 Avocado 1981 Lime 642 Coffee (green) 15897 water. In all cases water use is a negative footprint for production and water savings should be part of the common practice. Various of the product groups in this market study have a considerable water footprint. The depletion of groundwater through pumping up water out of aquifers offers different challenges and the effect is less visible than low river water levels. Furthermore, only farmers able to drill extremely deep can reach deeper confined aquifers. The replenishing process of aquifers (especially the confined aquifers deeper under the grounds) takes a long time, so depletion of these sources has a negative effect in the long run. Other risks mentioned by local producers are salination and over use of brackish groundwater, which both affect crop quality. Due to weather conditions and intensive water use, the irrigation system of Jaiba was closed down for one day a week during periods in 2018. This indicates that the water is not available unlimitedly and producers should be stimulated to save water. Examples of such measures are site drip irrigation and increasing the absorption capacity of soil. Measures to save water in any case are - from a sustainability point of view - essential. In order to promote Jaiba as a sustainable option for sourcing fruits and vegetables, it needs to be further explored how the region wants to sustainably develop in terms of irrigation and water management systems. For example, a more in-depth study into the local benefits and disbenefits of either surface water or ground water irrigation systems is recommended. This presents a good opportunity for Dutch technology and knowledge partners. ORGANIC FRUIT PRODUCTION AND ITS LIMITATIONS There are two ways to get organic certification in Brazil: Certificação por Auditoria (OAC) through the Sistema Participativo de Garantia e Controle Social. This method is best compared with organic certification requirements in the Netherlands. The second one is more of the “do-it-among-ourselves" certification. Sistema Participativo de Garantia is caracterised by collective responsibility of the organisation and members. The organisation can consist of producers, consumers, and technicians (agronomists, SEABRA, SEASA, among others). For this system to work, the organisation must have an Organismo Participativo de Avaliação da Conformidade (OPAC). This is a legal body that is responsible for evaluating if the production follows the guidelines and norms of organic production. 22 However, Soil and More impact, a Dutch based specialist in (conversion to) organic production, stated in an interview: Lara Vallejo (Soil and More Impacts): "The limitations of this system are that it was designed to sustain "agricultura familiar", so generally not for business or exports, but rather for producers with access to local markets." This would explain why the organic production that was encountered in fruit as well as in coffee was only destined for local markets (for now). Cross pollination between conventional and organic One trend was evident during the field visits. A number of practices from organic production were used in conventional production for some very practical reasons. Compost, for instance, as an alternative for chemical fertiliser might cause a slight decrease in production volumes, but it provides a significant cost reduction and improves the health and stamina of the crop in the long run, making banana trees and other crops more climate resilient and 21 Accumulation of green, blue and grey water use. Water Footprint, Product gallery, 2017. 22 For more information, consult http://planetaorganico.com.br/site/index.php/sistemas-participativos/. 21

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