Investor Presentaiton

FRUITS AND AVOCADO Observations from desk study, interviews and field visits MVO NEDERLAND Besides its coffee production, Minas Gerais is or can be of great interest to private sector parties from Europe for its production of tropical fruits and the potential to be a big player for Hass avocado production. In this section opportunities and challenges for sustainable sector and business development will be discussed. None of the interviewed companies are currently sourcing from Minas Gerais. The most common sourcing region is Petrolina, in the state of Pernambuco. The most important products are avocado, mango, papaya, figs and limes. All companies mentioned the overload of different certifications for sustainability standards. On the other hand, enterprises experience that the knowledge of local producers of certification practices is quite developed, especially compared to other countries. According to various traders, opportunities for sustainability lie in long term partnership building aimed at joint capacity building, among others. The local climate presents an important challenge for organic production. Due to high temperatures and relatively high levels of precipitation, many commodities need phytosanitary treatment after harvesting. This differs per ecosystem and region. Furthermore, it is challenging to find fully certified products. This is partly due to lack of EU market information available for local growers to match their production method. 17

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