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Amazon Sustainable Agriculture: Certified Açaí Production TBLI Latin America May 28 – 29th, 2015

TBLI LATIN AMERICA 2015 - Lap Chan - Investing in Sustsainable Agriculture and Forestry

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Amazon Sustainable Agriculture: Certified Açaí Production

TBLI Latin America May 28 – 29th, 2015

Located on the Parauaú and Mapuá Rivers in Marajó Island (PA), the Ecomapuá Amazon REDD Project preserves 86,270 hectares of Amazon Rainforest. That’s an area 55% of Greater London.

This forest carbon endeavour delivers both carbon and wider benefits: it preserves 86,270 hectares of native Amazon rainforest and was the first to apply the VCS + SocialCarbon dual Standards to monitor and improve social and environmental project “co-benefits”. It is a pioneering activity of its kind in Brazil.

The Nothern Pará region is also the world’s best for growing the açaí palm, Euterpe oleracea. Our properties are estimated to produce between 20,000 to 40,000 tons of fruit from native sources alone.

Furthermore, some 7% of the total forest area is degraded and suitable for planting/ restoration. 2 tree nurseries have been built, and many more are planned, to reforest with a mix of açaí and native species, increasing fruit yields while restoring native vegetation.

This purple berry is harvested in a zero-deforestation fashion and is a staple in the Pará diet. In the rest of Brazil , it is commonly eaten in sorbet form, with juices and smoothies as alternative products. Marketed as a superfood, the açai trend is growing overseas: it is highly nutritious and possibly richer in antioxidants than any other food.

The total açaí sorbet market is estimated at USD220M. BioAssets is seeking investors to create a new certified Fairtrade and Organic açaí brand, fully backed by its own forests and community cooperative partners, with turnover levels expected to compete with the 2 big market players.

Current Açaí Market Size

!  Açaí sorbet total market estimated at USD 220 million

!  Pará State represents 80 – 90% of Brazilian and global açaí fruit production

!  Our sales strategy will focus on export: USA, Asia and Europe

!  Europe has a particularly developed demand for Fairtrade and Organic certified products such as ours

!  USA dominates açaí market in terms of value !  2 main market players: Frooty, USD 23M

turnover and 5,000 t p.a. sorbet in 2014; and !  Sambazon USD 200M turnover, 20,000 t

sorbet, 2014.

SOURCES: Terra media 2013; Bioassets market research 2014

220

66

154 122

22 11 0

50

100

150

200

Total mkt National Export USA Japan Europe

Açaí market 2014 (USD m)

Despite the wealth of sustainable natural resources, the 187 families of ribeirinhos – traditional river people – residing in the project area lead a simple way of life that hasn’t changed for centuries. We intend to improve their livelihoods by providing an alternative income source from a non-timber forest product.

Family agriculture based on manioc and corn, and extraction of forest products – predominantly açaí – are the region’s main sources of subsistence and a humble income. In terms of Human Development Index, the municipalities of the project area - Breves, Curralinho and São Sebastião da Boa Vista - are among the lowest ranked in Brazil (UN, IBGE).

Here Sr. Manduca , a resident of the Vila Amélia property, climbs an açaí palm to collect the fruit using a peconha, a kind of artisanal climbing strap made of palm leaves.

Now, with Bio Assets’ collaboration with community cooperative Amorema, small-scale farmers can make better profits and benefit from development projects too, all duly monitored and improved as part of the Fairtrade and Organic certification.

At full implementation phase, the project will create 300 jobs – in planting, collection and processing – families living both within and outside the company’s lands. Capacity-building and training will be provided to meet the highest environmental and production standards.

In this way, BioAssets’ açaí brand aims to achieve a triple-bottom line: environmental and human benefits at the core of our business, while providing strong financial returns.

Project Overview

Sustainable Forest Management and Reforestation (in development)

2

REDD (in effect)

35

6

17

4

Amazon Land / Port Infrastructure (land under ownership, projects in development)

Açaí/ Biofuel Production (implementation phase)

Own Açaí and Biomass Plant Construction (in development)

Seeds, Oils, Fruit and Other NTFPs (in development)

Expansion of REDD to Adjacent Areas (optional)

PHASE I

PHASE II

Phase III

Our chain of project activities maximizes the entire forest value chain:

Community Forest Management Timber vs. Açaí

0

1

2

2015 2016 2017 2018 2019 2020

Proj

ecte

d sa

les (U

SDm

) TIMBER STUMPAGE REVENUE

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21

2015 2016 2017 2018 2019 2020

Proj

ecte

d sa

les (U

SDm

)

AÇAÍ SORBET REVENUE (USDm)

SOURCES: Brazilian Forestry Service: link; BioAssets market and field research (2014)

Timber Açaí Fruit

Producer sale revenue (USD/ha/yr) 480.00 2,670.00

Productivity 8 (m3/ha/yr) 4.2 - 8.4 (t/ha/yr)

Productive area (ha/ yr) 2,933 4,399

Total harvestable (units/yr) 703,864 (m3) 18,476 –

36,943 (t)

Average sale price 60.0 (USD/

m3) Stumpage

0.4 (USD/kg)

COMPARISON: FINAL PRODUCT SALES COMPARISON : COMMUNITY PRODUCER PERSPECTIVE

Contacts

Operations

David Swallow [email protected] Office: +55 11 3032 7059

Executive

Lap Tak Chan [email protected] Mobile: +55 11 98123 0302