Investor Presentaiton

MVO NEDERLAND cloned varieties as an answer to changing climate. The use of new and more agrochemicals for new pests and fungi (related to changing temperatures and humidity) is deemed inevitable, whereas experimenting with "climate control" through shade trees and mixed farming is barely considered an option. Sr José Edgard Pinto Paiva, (Presidente Fundacao Pro Café7): "Shade trees? It has been tried in the seventies and did not work. I do not believe that it is a realistic answer to the challenge of climate change" On the other side, some small producers are taking all options seriously. These smaller producers often have a focus on higher quality and sometimes even specialty coffee. Quite a few are making a shift from conventional to organic production. They see the limitations of the use of new varieties and chemicals. Experimenting with shade trees and mixed cropping is therefore a necessity to them. It is not clear how widespread this development is, and if there is a process in place in which individual companies profit from the experience of others. This can be further explored in the follow-up of this study as a first step towards the creation of a more innovative production environment in the area. Miriam Aguiar (Organic Plus Coffee): "I believe the mixed farming model, in small or mediun scale, is twice more resilient: first, in face of climate changes and, secondly, by allowing producers to offer quality food to the local community Soil Alive, Food Alive, Healthy People"8 SOIL DEGRADATION Closely related to climate change is soil degradation. It is more and more common knowledge that intensive use of chemical fertilisers in agricultural production in general and coffee in particular, is a race to the bottom regarding soil. It inevitably results in soil degradation and an even larger dependence on chemical fertiliser. For smaller farmers it is especially difficult to break out of this circle. In most cases the only technical assistance they have access to comes from the fertiliser manufacturer visiting the farm. It is conceivable that their goal will not be to minimalise the use of their own product. Some producers are already making this shift. Eduardo Bonella (Nepomucena TBC): "We have shifted largely towards compost as a replacement of fertiliser. It has led to saving up to 25% on fertiliser. We plan to increase the percentage of compost over the coming years" The examples of the use of compost and different kinds of ground-covering crops for the fixation of nitrogen - as an alternative or partial replacement for chemicals are evident and should be supported. Knowledge and experience should be disseminated at a higher rate to speed up a positive impact on soils and the environment. - This can be further supported as a next step towards production innovation and regional sustainable development. Dutch knowledge and innovative technology organisations can fulfil an accelerating role in this process, such as Soil and More Impacts, Plant Health Cure, Louis Bolk institute and Wageningen University. Niels Dijkman (Soil and More Impacts): "Together with farmers we aim to increase productivity per hectare through better soil management and more efficient use of natural resources. Targeted soil management reduces risk of erosion, increases water availability, and builds-up soil quality. Measures to ensure soil resilience will reduce risks on production loss, resulting in economic stability for securing land tenure for family farming" 7 Quote from discussion during fieldvisit 8 Quote from discussion during fieldvisit as part of the factfinding mission 12

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