Investor Presentaiton

MVO NEDERLAND A DIFFERENT RESPONSE TO ALL-TIME LOW PRICES The most urgent issue coffee producers worldwide are facing is the low price of green coffee. This is not different for producers in Brazil. Even though the cost of production of coffee in Brazil - due to large scale and high level of mechanisation is way lower than in other producing countries, the current - Coomap is one of the cooperatives in the south of Minas that stands out in regard to social and environmental policy. It is a Fairtrade cooperative that makes the shift to growing more organic coffee, and includes more than 600 farmers of whom over 80% possess less than 20 hectare. The biggest challenges for this coop are: 1. Succession of farmers by their children 2. Low price and lack of access to finance 3. Climate change Renato Jose de Melo, general manager of Coomap: "We are committed to de-commoditising coffee from Brazil to add value as a response to unsustainable prices determined on the New York Stock Exchange. We do that by certifying Fair trade. A part of the premiums for Fairtrade coffee are used for the shift to organic production" price of 94 dollar cents per pound (October 2019) is not enough to cover even the most efficient producers' cost price. As mentioned, the majority of producers in Brazil are small producers that do not have the efficiency of the larger farms in the north of Minas Gerais. Steeper hills and the lack of capital to invest in machinery make these producers dependent on manual picking. Other than in a lot of producing countries, the cost of labour in Brazil is high, making the current situation on the world market a big problem for these small producers. Their answer to low prices is to move to high quality coffee and diversification. The reaction by large scale producers is captured perfectly in the Bloomberg article "As coffee gets cheaper, Brazil finds a way to grow more for less"9: By intensifying production, using more chemical fertilizer and planting coffee trees more densely, the low price can be compensated for by volume. INTRADAY 1W 1M 3M 6M YTD 1Y 3Y 5Y 10Y MAX INDICATORS = CHART OPTIONS = 3.00 150.00% 9 https://www.bloomberg.com/news/fea 2.75 2.50 2.25 2.00 175 1.50 1.25 1.00 125.00% 100.00% 75.00% 50.00% 25.00% 0.00% 1739% -25.00% 2010 2011 2012 2013 2014 2015 2016 2017 2018 Oct 2019 Apr Jul Oct The price of coffee. Source: https://markets.businessinsider.com/commodities/coffee-price tures/2019-06-08/as-coffee-gets-cheaper-brazil-finds-ways-to-grow-more-for-less 13

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