XXX

SEPTEMBER 2014

THE SGS CONTINUOUS IMPROVEMENT NEWSLETTER

FOCUS ON BRAZILAN SGS CORPORATE NEWSLETTER FOR AGRICULTURAL SERVICES

Characterised by its well-developed agricultural, mining, manufacturing and service sector, Brazil’s economy is the largest in South America and ranks eighth in the world (by nominal GDP).

In just 35 years, Brazil has developed from a food importer to a major exporter, mostly by improving productivity and using just 9% of its territory. Since 1976, based on grain and oilseed production figures, agricultural productivity has increased about 250%. Between 1976 and 2014, the area planted for grain and oilseed production increased by 27%, while production increased by 213%. In the 1970s Brazilian farmers could produce food from their land for an average of 73 people. Using the same land, in 2014 that figure is 155.

The agriculture sector is responsible for 25% of Brazil’s GDP and employs some 35% of the workforce.

Already one of the world’s biggest soybean exporters, Brazil wants to build on this growth. It has the potential to become a major global food exporter, with increases expected in the livestock/dairy and coffee segments over the medium term. New markets in Asia are driving demand, despite subdued activity in the country’s traditional markets. There is concern about the country’s sugar cane sector. Mills are suffering from low profitability, linked to low global sugar prices and heavy debts. The ethanol industry alone has the potential to encourage cane production growth, but it is still unclear whether, in the medium term, Brazil’s government will continue to see biofuels as a priority in its energy mix.

In the short term, the industry is facing a risk to soybean exports in the next few years, as infrastructure bottlenecks could limit export potential. In addition, recurring weather concerns linked to climate change are expected to pose a

risk to achieving forecast harvests and global prices, as Brazil will increasingly rely on fluctuating export markets.

Established in Brazil in 1938, SGS operates across the agriculture value chain to minimise risk and maximise profitability through inspections, verification, testing and certifications of both crops and operations.

We enable clients to control the quality and quantity of products based on technical specification at all stages of production and marketing. Our unique package of added value services range from input development and soil testing, through to harvesting. We serve life science companies, plant breeders, seed producers, agro-chemical companies, distributors, fertilizer suppliers and ultimately growers.

Our Brazilian laboratories are recognised and/or approved by:

• INMETRO (National Institute of Metrology)

• ANVISA (National Sanitary Authority)

• MAPA (Ministry of Agriculture, Cattle Raising and Supply)

• GAFTA (Grain and Feed Trade Association)

• FOSFA (Federation of Oils, Seeds and Fats Associations)

SGS also audits and certifies management systems against internationally recognised standards including ISO 9000, ISO 14000 and many more. Focussed on innovative ways to deliver solutions that make a real difference to agriculture businesses, our experts work at every stage of the value chain to devise a suite of services tailor made to each client’s specific needs.

PRODUCTIVITY INCREASES DELIVER EXPORT GROWTH

Uberlândia

JaboticabalBarueriRolândia

Paranavaí

Restinga SecaRio Grande

Paranaguá

Imbituba

São Francisco Do Sul

Santos

Vitória

Ilhéus

Luis Eduardo Magalhães

Rondonopolis

Aratú

Santarém Sao Luiz Itacoatiara

Conchal

Montividiu

ALEXANDRE FONTOURA Agri Director Brazil

SGS AGRICULTURAL LOCATIONS

Headquarters

Office

Contract research field station / laboratories

Office with laboratory

To contact our team: agri.brasil@sgs.com

SGS INVESTS HEAVILY IN FACILITIES AND PERSONNEL TO SUPPORT BRAZIL’S SUGAR INDUSTRY

N° X XXXXXXXX 2008 SEPTEMBER 2014

Brazil, the world’s biggest producer of sugar, sees SGS invest heavily in its facilities and personnel.

With a presence in Brazil’s two main ports, SGS has invested in the latest equipment and technologies to ensure we can offer the highest quality sugar testing services. Staffed by experienced sugar experts, the strategic positioning of our laboratories at Santos and Paranagua facilitate full coverage of the country’s key sugar sites.

Our extensive experience in sugar analysis, meeting requirements for domestic and international markets, means we can tailor our services to meet each client’s specific needs. We deliver a full range of services, from basic analyses to contaminant testing.

“Quality is never an accident; it is always the result of intelligent effort.”

SGS has been active in the testing and analysis of sugar for Brazilian growers and mills for many years. With extensive expertise in the characterisation and quality control of sugar, our local team is able to conduct analyses against numerous test parameters in accordance with internationally recognised standards, such as the International Commission for Uniform Methods of Sugar Analysis (ICUMSA) methodology, as follows:

• Organoleptic aspects: visual aspect of the sugar, odour, taste and free flowing

• Polarisation: define the purity of the sugar and the sucrose content

• Moisture: loss on drying • Colour: determination of the colour

of the sugar (white sugar < 45 IU

-John Ruskin and the greater the colour unit and the less refined the sugar)

• Conductimetric ashes: indicate the quantity of metals in the sugar, the lower the quantity the more refined the sugar

• Invert sugar: percentage of non-sucrose content

• Insoluble matter: all insoluble matter in water

• Dextran: presence of dextran, a product of degradation by leuconostoc

• Starch: determine if sugar was well milled and refined

• Grain size: determine if sugar is fine, coarse or medium

• Admixture: identify contents other than pure sugar

• Heavy metals: determine the presence of any metals, such as iron, zinc, calcium, lead, mercury and copper

• Sulphur dioxide: determine that no food additive was added to the sugar

Keeping in mind the importance of the quality dictated by sales contracts, our laboratories and specialists are dedicated in delivering accurate results and the fastest practicable turnaround times.

To give clients clear visibility of their testing results and to preserve our efficiency, security and the timely delivery of results, our technicians work 24/7, thereby enabling our clients to receive analytical reports for shipments in “real time”.

Our skills, experience and knowledge of the local market let us operate in the most energetic and effective manner.

DOUNIA AMAMOU Global Customer Care

N° X XXXXXXXX 2008 SEPTEMBER 2014

MATO GROSSO TEAM

Frank Willian Official Classifier

Willian Gomes Official Classifier

Alison Renan Official Classifier

Fernando Zotesso Operations Coordinator

Fernando Almeida Operations Supervisor

Denir Fernandes Official Classifier

André Luiz Official Classifier

BARUERI TEAM

Giane Herberts CMA / SMA Coordinator

Dayane Gonçalves Trade / Inland Assistant

Renata Bonna Trade Coordinator

Marcia Pereira CMA / SMA / Crop Monitoring Analyst

Mariana DaMatta Inland Analyst

Luis Robles Administrative Assistant

André Gianesella CMA / SMA / Crop Monitoring Coordinator

Felipe Allemany Inland / HVI Laboratory Manager

Thiago Barreto Inland Analyst

Alexandre Fontoura Director

BARUERI

INLAND SERVICES

SGS Brazil’s headquarters are based in Barueri, São Paulo.

Supporting clients and ensuring their needs are met, as well as coordinating and delegating tasks to our local offices, laboratories and field stations are our principal activities.

We are here to ensure all your commodities testing and analysis requirements are met, for both domestic and international markets.

Our Inland Services team handle supervision for commodities including soybean complex, cotton, maize, cotton seed, livestock and lecithin.

Based in Mato Grosso, we are here to help you with inland services to supply Brazil’s domestic market.

SANTOS OFFICE

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EXECUTION TEAMGabriella Silva Executive Analyst Sheila Moraes Executive Analyst

Fabiana Lima Executive Analyst Jeferson Matos Executive Analyst

Michel Melcan Executive Analyst Paulo Dreguer Executive Analyst

Giselle Gonçalves Executive Analyst Mansur Rodrigues Executive Analyst

Eduardo Lopes Executive Analyst Maria Dalila Executive Coordinator

Udson Santos Executive Analyst Marcos Cioni Operations Manager

OPERATION TEAM Luis Alberto Inspector Edmilson Rosendo Operations Coordinator

Haroldo Silva Inspector Michel MartinsQuality Support –

ISO 9000

Alfredo Júnior Official Classifier Thiago Silva Operations Coordinator

Fábio Pacheco Inspector Marcos Cioni Operations Manager

Alberto Neto Operations Supervisor

LABORATORY TEAMDanielle Souza Analyst Gabriela Celino Quality Supervisor

Bruno Souza Anayst Harita Santos Administrative Assistant

Valdecir da Silva Administrative Assistant Elaina Gabriel Supervisor

Renan Goes Analyst Mariana Menezes Administrative Assistant

Jaqueline Mecena Analyst Luciane Queiroz Administrative Assistant

Mara Camolesi Laboratory Manager Carlos Rodrigues Supervisor

Rosangela Moreira Assistant Regiane Lima Analyst

Based in the São Paulo port of Santos, this site incorporates offices and laboratory facilities for the operation and execution. Strategically located, our Santos laboratory can support clients serving both domestic and export markets.

Principal commodities produced in this region include soybean complex, maize, sugar, barley, cotton, peanuts, citric pulp pellets, vegetable oils, lecithin and coffee. We handle all these, and more.

Contact our teams to find out more about our 24/7 services and fast turnaround times.

PARANAGUÁ

RIO GRANDE VITÓRIA

PARANAGUÁ TEAM

Daiane Costa Analyst

Menandro Júnior Analyst

Camila Silva Analyst

Wilson Junior Inspector

Renata Carvalho Assistant

Adenildo Reis Inspector

Karise Stahlschmidt Administrative Assistant

Mauro Ramos Operations Coordinator

Reginaldo Alves Official Classifier

Tiago Costa Inspector

Fábio Silva Inspector

Weverton Silva Inspector

RIO GRANDE TEAM

Fábio Alves Inspector

Leandro Zago Inspector

Alessandro Rodrigues Inspector

Gustavo Amaral Inspector

Marcus Silva Inspector

VITÓRIA TEAM

Luiz Gozzer Operations Coordinator

Osmar Vargas Official Classifier

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Supporting export markets, our offices in Paranaguá, Rio Grande and Vitória, can meet all your needs. Our Paranaguá office and laboratory is based at the port and offers services 24/7.

The Paraná region produces commodities including soybean complex, maize, sugar and vegetable oils.

For all your supervision, sampling and testing needs, contact your local office, we’re here to help.

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SANTARÉM TEAM

Luciano Corrêa dos Santos Inspector

Rodrigo Cardoso de Andrade Inspector

Willians dos santos Vieira Inspector

Marcos Andrey Silva Campos Operations Supervisor

Pedro Charles da Silva Inspector

Inacio Linhares dos Santos InspectorSÃO LUIZ TEAM

Francisco Assis Inspector

Bruemerson Diego Inspector

Danilo Costa Operations Supervisor

Paulo Roberto Inspector

ITACOATIARA TEAM

Antonio Carlos Inspector

Halbert Pena Inspector

Emerson Nobre Operations Supervisor

Joelson Rolim Inspector

ITACOATIARA

SANTARÉM

SÃO LUIZ

ARATÙ

ARATÙ TEAM

Edson Santos de Souza Inspector

Claudio Pereira dos Santos

Inspector

Josmar Pereira Souza Inspector

Based in Brazil’s northern states, our São Luis, Santarém, Aratù and Itacoatiara offices handle supervision and sampling for commodities including soybean complex and maize.

Staffed by commodities experts, our local teams are ready to support your business and deliver services quickly and efficiently.

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SEED AND CROP TEAM

Renan Gravena Director

Marcos Ferran Manager

QUARANTINE SEED LABORATORY

Paula RadaelliLaboratory Coordinator

Gustavo BacchiQuarantine Project Leader

SEED AND CROP Conducting GLP field trials from a network of field stations, our Seed and Crop Team specialise in conducting GMO field trials and resistance management studies.

Our Contract Research head office in Jaboticabal, São Paulo state, is supported by field stations in:

• Montividiu – Goiás state • Uberlândia – Minas Gerais state • Jaboticabal – São Paulo state • Conchal – São Paulo state • Rolândia – Paraná state • Restinga Seca – Rio Grande do Sul

stateAchieving regulatory compliance for new products and solutions becomes more complex every year. Our field stations can support your route to compliance.

SEED QUARANTINE LABORATORY

We are investing in a new post-entry quarantine station to perform quarantine phytosanitary analysis for research seeds in Brazil to support the safe import of new germplasms to the country.

Seed breeding programmes and the development of new varieties are highly dependent on seed and propagation materials imported from different regions of the world. The challenge for the industry is to ensure that this transit is completed safely, and without introducing destructive pests and diseases.

This investment will increase phytosanitary security for breeding programmes, seed breeding companies and agriculture.

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