1. Sustainability Assessment of Producer Groups in Brazil Eduardo Sampaio- Agronomist Private consultant and representative of Utz Kapeh – Brazil www.eduardossampaio@uol.com.br

2. Start with the development of overall management skills. This would automatically produce results on the management of quality. Quality is one of the 12 indicators analysed and is not solely considered on the development of management systems. First Step:

3. Management systems which I am implementing as a private consultant or I have used and/or observed as representative of Utz Kapeh foundation in Brazil Certification processings have played a major contribution to the management systems at farm level ! How much % of farmers are in compliance with the national social&environmental laws?

4. How to develop quality producing systems to group of producers First aproach to individual or group of producers is a wide overview on the following indicators: 1.Evaluation of the plantation 2.Controls of costs 3.Environmental Suitability 4.Inputs/Outputs versus yield 5.Cost of production X net income 6.Average quality produced 7.Average of prices obtained 8.Social aspects 9.Sales strategy 10.Environmental aspects 11.Investments 12.Processing equipments Indicators have their own scale of reference based on standards observed in model coffee farms

5. Brazilian Rational Control of costs 10 7 (0.6 cts lb/+) 8 6 460% 100% 80% 40% Inputs Outputs 1 2 3 4 5 4 3 2 Cost of productionX net incomes 10-20% >20% <10% 0 Plantation evaluation 100% 90% 80% 70% Investments 15% 10% 5% 0% Processing equipments 10 8 6 4 Environmental aspects 10 6 6 4 Sales startegy 4 6 8 100 Social standards 50% 60% 75% 100% Average prices obtained 100% 90% 80% 70% Average produced quality 10 8 5 4 yields Environmental suitability

6. Group analysis: Same as for the individuals, however a graphical representation of the group is drawn in order to establish a working plan. The limiting factors are identified and the group can jointly reach the green zone = become economically viable. Annual analysis to evaluate progress Most specifically regarding quality to group of producers: analysis of the processing equipments, pilot tests, points of control, cup evaluation, training... are better controlled when farmers are grouped and associated to a cooperative or to a trading channel or long term coffee relationships.

7. 1. 1. 1.Evaluation of the coffee plantation: a. To continue under production or renovation b. Prunning, fertility parameters c. Renovation plan: budgeting 2. Control of costs: a. Methodology per plot b. Major itemized cost centers c. ICS d. Capacity to detect problems and make a change

8. Ideal soil fertility per nutrient and depth of the soil profile

9. 3. Environmental Suitability: a. Coffee climate requirements X local climate b. Quality issues (Is it possible for some specs?) c. Energy issues d. Availability of specialized labor 4.Inputs/ Outputs X yields: a. Analysis of the balance related to the final yield obtained. Can the producer or group make for a better balance under the MEY concept 5. Cost of production X Net income: a. MEY concept b. Integrated coffee production system

10. 6. Average produced quality: a. Concept of the quality pyramid for Brazil b. Working plan: choice of cultivars, fertilization, prunning, traceability, concept of lot, processing, evaluations and quality control (cup quality evaluation) 7.Average of prices obtained: a. Against the possibilities for that particular season 8.Social aspects: a. Code of conduct b. Compliance with the ILO, national laws, bonus by performances, education, training...

11. Specialties 15 to 20% Fine commercials 50% Good cups 15% Triage 10 to 15% Pyramid of qualities - Brazil arabica SCAA terminology

12. 9.Sales strategy: a. Risk management b. Coffee long term relationships c. Trading support 10. Environmental aspects: a. Code of conduct b. Compliance with national laws c. Reforestation programs d. Internal consciousness

13. 11. Investments: a. Plantation b. Processing and quality c. Trainings d. Social & environmental 12. Processing equipments analysis: a. Critical points and control b. Limiting factors c. Traceability d. Concept of lot

14. Real cases: a.Caccer Cerrado: Geo reference, Origin, `Apellation`, traceability, code bar on the bag, chain of custody and group developments- Utz Kapeh b.Serra Negra- SP State, DE project, small holders, chain of custody, yield and quality issues – Utz Kapeh c.Colombia: Caldas, Escola Nueva, next generation of small holders d.BSCA: certification of origin, quality, benchmark Utz Kapeh (level 1)

15. Eduardo Sampaio Coffee Consultant Utz Kapeh Brazil Eduardossampaio@uol.com.br Eduardo.sampaio@utzkapeh.org +55 19 3661 5309 +55 19 9775 4712