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ETHICAL BEHAVIOR • OUTSTANDING EXECUTION © Logistics LatinAmerica, S.A.S.

Tierra Cafetera

Sustainable Income through

Sustainable Agriculture


Logistics LatinAmerica (LLA)

• Logistics LatinAmerica (LLA) is a

venture capital firm, investment

broker and incubator for Latin

America businesses

• LLA integrates high-value logistics

capabilities; air, marine, and ground

transportation; and technology

solutions

• Holding company for operating

divisions focused on importation &

exportation of agricultural products

www.LogisticsLatinAmerica.com

LLA´s headquarters are in

Medellín, Colombia

http://www.logisticslatinamerica.com/


Chief Executive Officer James Cummiskey

Chief Operations Officer Roger Roland

Vice President

Coffee Eduardo Zapata

Vice President Cima Coffee

Michael Forman

Director of Operations Alejandro Duque

Vice President Investments David Sewell

Director of Internet Sales Cathy O´Sullivan

Logistics LatinAmerica Leadership

= Principal Owner

Vice President Marketing/Comm

Carl Nolasco

Director Unmanned Aircraft Systems

Ralph Rodriguez

Director of Coffee Science Juan Vélez



• James Cummiskey – Chief Executive Officer (CEO), Logistics

LatinAmerica

– MBA Technology / Masters Computer Science

– Boeing Executive leading a $100M business serving the US military and intelligence community

– US Marine Corps Veteran w/ significant infantry, communications, and DoD acquisition expertise

– Executive at multiple start-up businesses funded by Microsoft, Qualcomm & Sprint

– Senior Vice President / CEO of Aerospace/Defense manufacturing business

– FAA Airline Transport Pilot (ATP) and Multi-Engine Instrument Flight Instructor

– SCAA Certificated Q-Grader


• Eduardo Zapata – Vice President of Coffee, Logistics

LatinAmerica

– B.S. Business Administration, Remington

– B.S. Management, EAFIT & Quirama

– 55 years experience in coffee farming

– Owner and manager of multiple coffee farms

– President, Association of Farm-Hotels of

Southwestern Antióquia

– Vice Chairman of the Supervisory Board of

the Coffee Growers Cooperative of Antióquia

– President, Municipal Committee of Coffee

Amagá



What is ¨Specialty Coffee?¨

• Describe coffee beans of the best

flavor with high cup quality and

little to no defects

• Specialty coffee is the term

commonly used to refer to

"gourmet," "premium" or

¨certified¨ coffee

• However, according to the

Specialty Coffee Association of

America (SCAA), only coffee

which scores 80 points or above

on a 100-point scale is graded as

"specialty."


Third Wave of Coffee Increasing

Demand for Specialty Coffee

Specialty coffee sales account for 16% of the market and are increasing 20 percent per year

Source: Specialty Coffee Retailer, http://www.specialty-coffee.com/

http://www.specialty-coffee.com/




Coffee Producers in Latin America


Tierra

Cafetera

(Producers)

Coffee

LatinAmerica

(Logistics)

Responsibilities: Property Buy/Sell Property Management Coffee Improvements Coffee Processing Producer Micro-financing

Coffee Quality

Responsibilities: Green Coffee Sales Coffee Science Virtual DirecTradeTM Coffee Export/Import Coffee Warehousing

Coffee Quality

Responsibilities: Roasted Retail Sales Roasting Cafés Roasted Wholesale Sales Coffee Store Management Coffee Roasting Facilities

Coffee Quality

Opportunities Across the Entire Value Chain “From Seed to Cup”

Cima

Coffee

(Consumers)


Tierra Cafetera (TC)

Tierra Cafetera operates Latin American coffee

farms using sustainable farming practices to

optimize the yield and quality of specialty coffee

while improving the lives of coffee workers.

www.TierraCafetera.com

http://www.tierracafetera.com/


Coffee LatinAmerica (CLA)

Coffee LatinAmerica provides the highest quality

green specialty coffee from Latin America to

international customers using both Virtual

DirecTrade™ and direct sales channels.

www.CoffeeLatinAmerica.com

http://www.coffeelatinamerica.com/


Cima Coffee

Cima Coffee provides the highest quality roasted

specialty coffee with wholesale sales to super-

markets, restaurants & distributors and retail sales

via a chain of roasting cafés and the Internet.

www.CimaCoffee.com

http://www.tierracafetera.com/


Fundamental Coffee Value Chain

Quality Quality Quality Quality Quality Quality Quality Quality Quality

Grow and Harvest

Depulp, Wash & Dry

Hull, Sort and Sack

Export and Warehouse

Roast and Package

Sell and Distribute


Coffee: An Industry in Crisis

• There are ~25 million coffee workers

in over 50 countries around the world

– 11 million hectares of the world's

farmland grows coffee

– 59% of the world´s coffee

production is from Latin America

• World production for coffee is at an all-

time high, but conditions for farmers

are at an all-time low

• Colombia´s coffee-growing regions

are threatened with mining,

deforestation and climate change

Source: International Coffee Organization; http://www.ico.org/

http://www.ico.org/

http://www.ico.org/

http://www.ico.org/


Coffee: An Industry in Crisis

• Coffee farm workers are paid less

than minimum wage with virtually no

benefits

• Coffee farm workers typically start

working in the field at 10-11 years old

and work well into their 80s

• Coffee producers and workers are kept

in a cycle of poverty by industry

dynamics designed to shift profits to

the intermediaries

• NET RESULT: There is an ongoing

global coffee crisis causing extreme

suffering among coffee farmers and

workers


A Conversation with a Colombian

Coffee Farmer

www.youtube.com/user/TierraCafetera

http://www.youtube.com/user/TierraCafetera






Coffee Industry in Crisis =

Opportunity! Problems

• Coffee is being mixed from different farms which lowers the quality

• All the intermediaries between the producer and consumer take most of the profits

• Coffee producers aren´t getting their coffee evaluated to improve quality

Solutions

• Pay premiums to incentivize single-origin segmentation of specialty coffee

• Coffee producers need to directly connect with both professional & home roasters

• Producers need incentives and training to evaluate their coffees


How our Business Model Helps

• TC pays liveable wages, medical and

retirement benefits and stock options to

TC farmers to ensure their economic

sustainability

• TC uses agronomically sustainable

farming techniques to improve the

quality & variety of specialty micro-lots

• CLA increases the quality and variety of

coffee via coffee science, technology

& optimized micro-logistics

• CLA pays significant price incentives

to grow specialty micro-lots for 3+ million

Latin America coffee farms


How our Business Model Helps

• Cima drives predictable

demand for specialty coffee

beans to assure sustainable

incomes for both farmers &

property owners

• LLA helps improve the lives of

coffee workers with training,

certification and financial support

• LLA contributes 5% of LLA´s net

profits to impoverished coffee

farm workers through various

programs


Tierra Cafetera Coffee Farms

Real Estate Agri-Investment


Tierra

Cafetera

(Producers)

Coffee

LatinAmerica

(Logistics)


Coffee Quality


Coffee Quality


Coffee Quality


Cima

Coffee

(Consumers)


Coffee Farms in Colombia


Colombia Coffee Harvests


0.5 Acres

0.5 Acres

0.5 Acres

0.5 Acres


Medellín

Geographic Diversity of Farms = Lower Risk of Cash Flows

Colombia

Antioquia

Department of Antioquia


Sustainable Income through

Sustainable Agriculture


Sustainable Agriculture for Coffee

• Healthy soils

produce healthy

coffee

• Transition from

mono-culture to bio-

diversity

• Shade-grown coffee

improves quality!


Soil Science for Optimizing Coffee


Effects of Shade Trees on Coffee

• Reducing extremes in air and soil temperatures

• Breaking the force of wind and heavy rainfall

• Controlling erosion on steep slopes

• Suppressing weeds

• Producing annually 5–15 tons organic matter per ha

• Recycling of nutrients and reducing nutrient leaching

• Providing additional revenue from the shade trees (timber, firewood and fruits)

• Potentially reducing incidence of diseases and pests

• Improving cup quality

Source: Beer, 1987; Beer et al., 1998; Guyot et al., 1996; Muschler, 2001


Integrating Bio-Diversity in Tierra

Cafetera Coffee Farms

• Shade trees: e.g.

plantains and guamo

• Cover crops: especially

nitogren-fixing legumes

such as beans

• Livestock and other

animals


Sustainable Organic Farming

• We use organic

farming techniques

wherever possible: • Composting

• Green manure

• Natural pest control

• Crop rotation

• Organic Certification

Sponsorship Program


A Typical Farm in Our Network:

La Virgen


Tierra Cafetera Web Site

www.TierraCafetera.com/




Using Low-Cost Unmanned Aircraft for

Connecting Property Owners to their Farms

www.youtube.com/user/TierraCafetera







2013 Coffee Farm

Acquisition Schedule

Qtr/Year of

Acquisition Farm Name City Name Total Acres

Acres

Available for

Investment

Q4 2012 La Virgen Concordia 101 75

Q1 2013 Aborleda Jardin 40 35

Q1 2013 El Gólgota Apia 25 22

Q2 2013 Las Brisas Apia 23 18

Q2 2013 El Silencio Apia 113 100

Q3 2013 Alejandria Jardin 64 60

Q4 2013 La Gabriela Amagá 102 51


Tierra Cafetera

20 Year Financial Forecast

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20

Average Yield of Exportable Green Coffee (lbs per ha) 4000 4400 4840 5324 5856 6149 6457 6780 7118 7403 7699 8007 8007 8007 8007 8007 8007 8007 8007 8007 8007

Average Price with Specialty Premium ($USD per lb) 1,80$ 2,25$ 2,59$ 2,98$ 3,57$ 4,11$ 4,52$ 4,97$ 5,34$ 5,74$ 6,03$ 6,33$ 6,49$ 6,65$ 6,82$ 6,99$ 6,99$ 6,99$ 6,99$ 6,99$ 6,99$

Average Operating Income ($USD per ha) 7.200$ 9.900$ 12.524$ 15.842$ 20.912$ 25.251$ 29.165$ 33.685$ 38.022$ 42.509$ 46.420$ 50.690$ 51.958$ 53.257$ 54.588$ 55.953$ 55.953$ 55.953$ 55.953$ 55.953$ 55.953$

Average Operating Expense ($USD per ha) 8.335$ 10.419$ 10.628$ 10.840$ 11.057$ 11.278$ 11.504$ 11.734$ 11.969$ 12.208$ 12.452$ 12.701$ 12.955$ 13.214$ 13.479$ 13.748$ 14.023$ 14.304$ 14.590$ 14.881$ 15.179$

Gross Income before Taxes -1.135 $ -519 $ 1.896$ 5.002$ 9.855$ 13.973$ 17.661$ 21.952$ 26.054$ 30.301$ 33.968$ 37.989$ 39.003$ 40.042$ 41.110$ 42.205$ 41.930$ 41.649$ 41.363$ 41.071$ 40.774$

Average Income Tax Expense -$ -$ 379$ 1.000$ 1.971$ 2.795$ 3.532$ 4.390$ 5.211$ 6.060$ 6.794$ 7.598$ 7.801$ 8.008$ 8.222$ 8.441$ 8.386$ 8.330$ 8.273$ 8.214$ 8.155$

Investor Return ($USD) -50.000 $ -$ 1.213$ 3.201$ 6.307$ 8.943$ 11.303$ 14.049$ 16.674$ 19.393$ 21.739$ 24.313$ 24.962$ 25.627$ 26.310$ 27.011$ 26.835$ 26.656$ 26.472$ 26.286$ 26.095$

Annual ROI (% per ha) 0% 0% 2% 6% 13% 18% 23% 28% 33% 39% 43% 49% 50% 51% 53% 54% 54% 53% 53% 53% 52%

Increased Value of Property

Total 20 Year IRR % 19%

Average Income Tax Expense 20%

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 … Year 16 Year 17 Year 18 Year 19 Year 20

Average Yield of Exportable Green Coffee (lbs per ha) 4000 4400 4840 5324 5856 6149 8007 8007 8007 8007 8007

Average Price with Specialty Premium ($USD per lb) 1,80$ 2,25$ 2,59$ 2,98$ 3,57$ 4,11$ 6,99$ 6,99$ 6,99$ 6,99$ 6,99$

Average Operating Income ($USD per ha) 7.200$ 9.900$ 12.524$ 15.842$ 20.912$ 25.251$ 55.953$ 55.953$ 55.953$ 55.953$ 55.953$

Average Operating Expense ($USD per ha) 8.335$ 10.419$ 10.628$ 10.840$ 11.057$ 11.278$ … 14.023$ 14.304$ 14.590$ 14.881$ 15.179$

Gross Income before Taxes -1.135 $ -519 $ 1.896$ 5.002$ 9.855$ 13.973$ 41.930$ 41.649$ 41.363$ 41.071$ 40.774$

Average Income Tax Expense -$ -$ 379$ 1.000$ 1.971$ 2.795$ 8.386$ 8.330$ 8.273$ 8.214$ 8.155$

Investor Return ($USD) -50.000 $ -$ 1.213$ 3.201$ 6.307$ 8.943$ 26.835$ 26.656$ 26.472$ 26.286$ 26.095$

Annual ROI (% per ha) 0% 0% 2% 6% 13% 18% … 54% 53% 53% 53% 52%

Increased Value of Property

Total 20 Year IRR % 19%


Tierra Cafetera Opportunity

Summary • Titled ownership of an operating coffee farm

• Turnkey operations—professionally managed for you

• Average annual return of 19%

• Cash flow begins in 6 months--paid quarterly

• Profits: 80% for owners--20% for farmers

• Parcel size: 0.5 acres min--starting at $10K USD

• Multiple contiguous parcels available

• Vacation on your own land

• Drink coffee from your farm at home

• Improve the lives of coffee workers together


Coffee LatinAmerica The Channel to Market for TC Farms


Tierra

Cafetera

(Producers)

Coffee

LatinAmerica

(Logistics)


Coffee Quality


Coffee Quality


Coffee Quality


Cima

Coffee

(Consumers)


What is the Key Challenge for the

Professional Roaster?

Latin America produces

~9,000,000 lots of

coffee each year

Of these, about

10% or ~900,000 are

Specialty Lots

Of these, only ~900 are

available for purchase each year on the spot market


Home Roasters

CLA Coffee Sourcing

Purchase

Parchment Ship

Mill and

Package Ship Package & Distribute Bag Customer

Latin America International Destinations

…

…

80+ Farm Z

Professional

Roasters /

Specialty

Supermarkets

1 lbs

1-20 lb

Pkgs

80+ Farm A

…

… 1-325

Sacks


Coffee LatinAmerica Web Site

www.CoffeeLatinAmerica.com/




Professional Roaster Customer

Offering List


USA Fulfillment Center / Cupping

Laboratory, Anaheim, CA


Ebay Auctions

Internet Web Store

Home Roaster Strategy

USA Warehouse /Fulfillment

Center

http://tinyurl.com/ebaycla

http://coffeelatinamerica.com/

90+, Geishas, Auction Winners, etc.

Drum & Air Roasters, Books, Brewers, Grinders, etc.

High-End Coffees

High-Value

Coffees

Home Roasting

Equip

80+ Low-Cost Coffees, etc.









CLA Customer Feedback • Thanks again for a great service from start to finish, and i will definitely buy from you

again and recommend to others. – David D.

• Excellent price, fast delivery, fantastic coffee. My new go-to source! Thanks. - Paula D.

• Cup of Excellence!!! Great coffee, fast shipping. Highly recommended. - Jun C.

• Thank you very much exactly as you said it would be A++++++++++++++++++++++++ -

Edward M.

• Smooth Doesn't Begin To Describe It...Really Fast Shipping...Thank You So Much -

Tamera P.

• GEISHA, GEISHA, GEISHA, WOW, Great coffee fast shipping, exceptional cup. -

Tammy J.

• This is great coffee—thanks so much. Fast service. A+++ - Arnold R.

• Can't get enough of the Santa Teresa Geisha it is incredible, has to be one of the best

coffee's going around right now. – Nolan H.

• This is the first time I have tasted REAL floral notes in coffee. It changes my perspective

on how coffee should taste. – Chong C.

• I just wanna tell you how absolutely impressed I am with your coffee. You have a

customer for life.– John B.

Source: www.tinyurl.com/feedbackcla

http://tinyurl.com/feedbackcla




Tierra Cafetera Opportunity

Summary • Titled ownership of an operating coffee farm

• Turnkey operations—professionally managed for you

• Average annual return of 19%

• Cash flow begins in 6 months--paid quarterly

• Profits: 80% for owners--20% for farmers

• Parcel size: 0.5 acres min--starting at $10K USD

• Multiple contiguous parcels available

• Vacation on your own land

• Drink coffee from your farm at home


Coffee Farmer Ownership Packages

Package Name Number of Parcels

Number of Acres

Retail Value ($USD)

Discounted Package Price ($USD)

The ¨Gentleman/Woman¨ Farmer 36 18 $360,000 $288,000

The ¨Executive¨ Farmer 18 9 $180,000 $147,500

The ¨Natural Born¨ Farmer 6 3 $60,000 $50,000

Individual Parcels are Available at $10,000 Each Minimum is 1 Parcel

Multiple Parcels Available on a Contiguous Basis

Farmer Ownership Packages and Parcels Available on a First-Come, First-Served Basis!


SR-500 Roaster Giveaway!


Questions?

• James Cummiskey – Medellín, Colombia

– Office: (310) 855-3755 (U.S.A.)

– Mobile: +57-313-793-5672 (Colombia)

– [email protected]

– www.LogisticsLatinAmerica.com

mailto:[email protected]

http://www.logisticslatinamerica.com/

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