Investor Presentaiton

COFFEE Observations from desk study, interviews and field visits MVO NEDERLAND A large part of the mission program was dedicated to visiting coffee farms and sector organisations. In this section you will find a short overview of our observations, a general overview of the challenges the sector faces and some specific themes that deserve attention and that provide opportunities for innovation and business development for Brazilian coffee growers and their international partners. When considering sourcing countries for high quality coffee, Brazil is a rising star. Recent trends show that medium sized and big estates are increasingly shifting to high quality coffee. Brazilian specialty naturals add a specific profile to roasters' range of coffees. Although low coffee prices make it difficult to invest in new farm practices - and farmers in general are more traditional and not prone to change - there are young farmers and entrepreneurs that are showing vision and initiative to work towards a more sustainable sector. Friso Spoor (The Coffee Quest): "Among the plantation owners we see large middle-class farmers who have been able to send their children to universities in, for example, Rio de Janeiro, São Paulo and Belo Horizonte. Just like other coffee countries, there is a large emigration from the coffee areas to the big cities, yet we see a lot of this younger generation coming back to the rural areas. They often come back with good ideas to increase production through efficiency, quality improvement, sustainable production and a more global sense of trading their coffee directly in consumer countries." 10

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