CASE STUDY 21/01 - MCA AGRO - MCA GROUP

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CASE STUDY 21/01 - MCA AGRO - MCA GROUP
CASE
STUDY
21/01

         MCA AGRO
 In the natural environment
CASE STUDY 21/01 - MCA AGRO - MCA GROUP
CASE STUDY

                                 / THE FARM /
           Fazenda Mussinga was the name given to the area of 1,000 hectares under
           concession to MCA Vias in 2010.

           Located in the interior of the           harmoniously, communicating in the
           Kwanza-Sul province(1) the Fazenda       national languages of Quimbundo and
           Mussinga finds in its closest            Umbundo.
           community the Shaossi (2), a vast
           population which migrated there          To reach the municipal headquarters:
           during the long and painful periods of   in the town of Waku Kungo, one has to
           war in Angola. Migrants from the         travel 80 km in picada (5) paths, which
           Mbundu(3) and Ovimbundu(4)               fall apart during every rainy season
           provinces to the east of Luanda have     from October to April.
           come together and live together

MCA AGRO
In the natural environment                                                   www.mca-group.com
CASE STUDY 21/01 - MCA AGRO - MCA GROUP
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                                          / THE FARM /

           Due to being located between the Nhia River and         an active sense of social responsibility by
           the Mussinga Mountain, the farm sought in the           associating with local farming communities to
           nature and grandeur of that mountain a name for         guarantee the flow of their products by adopting
           the products to be marketed by the farm.                the concept of fair trade(6), i.e., paying a fair value
                                                                   to farmers who join MCA Agro.
           MCA Agro is formally established in February 2017,
           thus starting a process that aims to combine - in an    The existence of natural water courses from rivers
           environmentally sustainable way - the business          and springs enables Fazenda Mussinga to benefit
           interest and the development of local                   from the water necessary for the water needs of its
           communities.                                            crops, having made a reduced investment and
                                                                   without mechanical resources. How can this be
           The founding objective for the creation of this new     done? By installing a central watering body which
           business area of the MCA Group materialised with        by gravity and using trenches and plumbing makes
           the design of a programme of crops to be installed      it possible to bring the water to an extension of 300
           on the Fazenda Mussinga that combines existing          HA of crops using the existing water resources and
           resources (people, water resources, soils, altitude,    returning the water to its natural course.
           climate and the history of existing crops) with a
           market idea for the distribution and enhancement
           of products. In addition to the combination of
           business sustainability factors, the project presents

MCA AGRO
In the natural environment                                                                             www.mca-group.com
CASE STUDY 21/01 - MCA AGRO - MCA GROUP
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                                             / COFFEE /

           The set of factors observed, the tests performed and a commercial idea thought
           for the medium and long term focused on exports inspired the installation of the
           following crops at the Fazenda Mussinga:

           To plant 250 Hectares of Arabica coffee(7) which       complete the estimated
           by altitude - between 1,200 to 1,500 meters above      total of 250 hectares
           sea level - and historical coffee culture in that
                                                                  Each hectare has an
           region offer guarantees and potential for the export
                                                                  average of 4,500
           of quality coffee.
                                                                  Mundo Novo quality
           Currently with 40 hectares, the completion of the      plants. Yellow Catuai and Red
           installation of 250 hectares is estimated by the end   Catuai are native quality and resistant species, as
           of the first semester of 2022, and by 2025 to obtain   evidenced by the still productive trees that have
           a harvest of 4,500 Tons/year which will result in      survived since the 1960s, mainly in the region of the
           about 1,000 Tons/year of commercial coffee (60 KG      municipality of Gabela.
           bags) for export.

           Currently about 500,000 coffee plants are in the
           nursery and it is estimated that by the end of March
           2021 the preparation program of more than one
           million plants will be completed, which are being
           planted continuously to

MCA AGRO
In the natural environment                                                                          www.mca-group.com
CASE STUDY 21/01 - MCA AGRO - MCA GROUP
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                              / TROPICAL FRUIT /

           Although this is a process in constant development
           and subject to circumstantial change, the initial
                                                                  The qualitative and
           objectives have been achieved.                         quantitative
           The crops planted, the areas occupied and the
           estimated production are the following:
                                                                  development of the
           a) Pineapple: 6 Hectares and a production of 60
                                                                  fruit-growing area is
           Tons/year                                              aimed at marketing 50%
           b) Passion fruit: 2 Hectares with an annual
           production of 20 Tons/year and the rehabilitation of
                                                                  of production for the
           a further 2 Hectares to reach an annual production     internal market and the
           of 40 Tons/year once operating at full capacity
           (year 2022).                                           other half for export.
           c) Guava: 7 Hectares with an estimated production      This is done by selecting
           of 30 Tons/year for 2021 and growing to reach an
           annual production of 70 Tons/year once operating
                                                                  the best native fruit for
           at full capacity (2023).                               seeds and looking for
           d) Avocado: 3 Hectares with an estimated
           production of 30 Tons/year in 2022 and growing to
                                                                  quality seeds on the
           a production of 60 Tons/year once operating at full    domestic and foreign
           capacity (2025). It is expected to increase
           exponentially the area of avocados with the            markets.
           planting of 50,000 plants along the main avenues
           of coffee.

MCA AGRO
In the natural environment                                                         www.mca-group.com
CASE STUDY 21/01 - MCA AGRO - MCA GROUP
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            / HORTICULTURAL PRODUCTS /

           The social relationship established between MCA       c) Gindungo (pepper): 1 Hectare with a 20 Ton/year
           Agro and the local communities was centred on the     production (forecast for 2021)
           commitment that one would buy the product at a
                                                                 d) Pumpkin: 1 Hectare with a 16 Ton/year
           fair price and the other would deliver it on good
                                                                 production (forecast for 2021)
           conditions. The associative difficulty and some
           sense of opportunity of local farmers limited         e) Ginguba (peanuts): 1 Hectare with 3 Ton/year
           compliance with the agreement due to irregularity     production (experimental phase)
           in delivery and little attention given to quality
                                                                 f) Lima beans: 1 Hectare with a 3 Ton/year
           standards. It was therefore necessary to develop a
                                                                 production (experimental phase)
           horticultural area on the Fazenda Mussinga to
           ensure regular delivery with quality and to extend    g) Popcorn corn: 1 Hectare with a 3 Ton/year
           the range of products to be consistently offered to   production (experimental phase)
           its customers.
                                                                 The complexity of transport from Fazenda
           Once again MCA Agro has combined the natural          Mussinga to the large consumer market was
           factors observed at Fazenda Mussinga with the         decisive for the choice of crops with lower
           agricultural and commercial experience acquired in    perishability. It was also taken into account that
           the meantime to design the new crops to be            these crops are widely produced in the areas
           introduced, resulting in the following:               surrounding Fazenda Mussinga so in the medium
                                                                 term it is intended to motivate the establishment of
           a) Rena (rossana) potato: 4 Hectares (continuous)
                                                                 a cooperative of local farmers so that the region
           with a production of 150 Ton/year (forecast for
                                                                 gains scale in production, optimization in logistics /
           2021)
                                                                 transport and market value.
           b) Sweet potato: 2 Hectares (continuous) with a
           production of 50 Tons/year (forecast for 2021)

MCA AGRO
In the natural environment                                                                          www.mca-group.com
CASE STUDY 21/01 - MCA AGRO - MCA GROUP
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                             / TRADING MCA AGRO /

           The creation of Trading was aimed at setting up an      MCA Agro has developed a sustained relationship
           autonomous unit within the MCA Agro company             with customers and in the space of two years has
           dedicated to the purchase and sale of products. It is   managed to attract and retain a vast portfolio of
           an identity that looks to profit but acts with social   customers, ranging from the large distributors
           responsibility values and an ethical sense. This        operating in Angola, through medium-sized and
           positioning translates into awareness of                small neighbourhood supermarkets to the most
           environmental, commercial and financial                 varied restaurants and canteens.
           responsibility explained to its suppliers (small
           farmers and peasant families) and with
           verticality towards its
           customers by
           delivering the
           product on time, in
           the quality and under
           the conditions
           negotiated.

MCA AGRO
In the natural environment                                                                         www.mca-group.com
CASE STUDY 21/01 - MCA AGRO - MCA GROUP
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                                           / SUMMARY /

           Social responsibility is the identity component of     regional markets to sell their products.
           the MCA Agro project. This sensitivity to social
                                                                  The growth in sales and the expansion of new
           issues is visible not only in the implementation of
                                                                  plantations has contributed to the fact that MCA
           the project but also in the way it has conducted its
                                                                  Agro's turnover has systematically doubled over
           activity.
                                                                  almost 3 years of commercial activity, with an
           The awareness that the Mussinga region is located      estimated turnover of 80 M AOA for this year. Much
           far away and with difficult access to large markets,                                   of this growth
           rather than retracting, inspires the project to
                                                                                                  is based on the
           make judicious decisions regarding the crops
                                                                                                  experience gained
           to be developed and in the search for
                                                                                                  over four years of
           development solutions based on local
                                                                                                  agricultural
           resources and in a very close
                                                                                                  production, three
           relationship with the nature
                                                                                                  years of cooperation
           that surrounds it.
                                                                                                  with local small
           The MCA Agro project                                                                   farmers and two
           delivers on its                                                                        years of marketing
           community                                                                              their products on
           support plan                                                                           the large consumer
           when it                                                                                market in Angola:
           encourages                                                                             Luanda. That
           production                                                                             outcome shows that
           and secures                                                                            the MCA Agro
           product flow                                                                           company can always
           networks.                                                                              think of "going even
                                                                                                  further”.
           The
           transactions
           carried out
                                                                                                  In short, the MCA
           give meaning
                                                                                                  Agro project is
           to the concept of fair trade because it rewards fair
                                                                  based on the activity of Fazenda Mussinga and the
           value.
                                                                  application of the concept of fair trade has
           MCA Agro's sense of social responsibility is also      demonstrated that it is capable of implementing a
           materialised because it gives work to more than        structure and a plan for sustainable development
           sixty local young people, because it gives them        and at the same level fulfil the mission of practicing
           technical and civic training, because by               an effective social responsibility that is appropriate
           re-qualifying access routes it allows the movement     to the needs of a population now less hidden from
           between the six villages, which cross the              the vast and deep Angolan interior territory.
           approximately 80 KM that connect these
           populations to the city of Wako Kungo, to make it
           possible to go to hospital, attend high school,
           access public services, the bank but also the

MCA AGRO
In the natural environment                                                                           www.mca-group.com
CASE STUDY 21/01 - MCA AGRO - MCA GROUP
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           Notes

           (1) Kwanza Sul is one of 18 provinces of Angola, located in the central region    (5) (
           it has a population of 2,109,999 and a land area of 55,660 km² (4). 7 % of the    Access on 1 December 2020).
           country's total area[2]), being the fifth most populated province in
           Angola.[1][3]The province is administratively divided into 12 municipalities      (6) Fair trade is a global social movement which pioneering experiments
           and 32 communes, being made up of the communes of Amboim, Cassongue,              began in late 1940 as alternative responses to the failure of the conventional
           Cela, Conda, Ebo, Libolo, Mussende, Porto Amboim, Quilenda, Quibala, Seles        trade model. Fair trade seeks to promote responsible and sustainable
           and Sumbe. (https://pt.wikipedia.org/wiki/Cuanza_Sul Access on 1 December         production and trade patterns as well as development opportunities for small
           2020>)                                                                            farmers, peasants and artisans at an economic and social disadvantage in
                                                                                             relation to prevailing market factors. Fair trade is a trade model that puts
           (2) According to the majority of the population we have spoken to in the          human beings and the social, economic and environmental sustainability of
           village of Chaossi (which can also be written Shaossi) the term chaossi means     societies at the centre; it dignifies work, respecting the environment and
           in the national language umbundu; land of lions. There are, however, some         promoting responsible and sustainable management of natural resources. Fair
           people who say that Shaossi refers to a female warrior name.                      trade facilitates direct market access for small organized producers on fair
                                                                                             and equitable terms, creating a sustainable, supportive and quality marketing
           (3) The Mbundu speak Kimbundu or Mbundu and are a dominant population             channel that is as direct as possible between producers and consumers. The
           in the Angolan capital and interior region, more precisely in the provinces of    work of producers and their organizations should be recognized with dignity,
           Bengo, Kwanza Norte, Malange and northeastern Kwanza Sul.                         so that consumers are committed to the development of their communities. In
           (http://civilizacoesafricanas.blogspot.com/2010/05/mbundus.html Access on         addition, it seeks to guarantee decent working conditions for agricultural and
           1 December 2020))                                                                 artisan workers, promoting their associativity and empowerment
                                                                                             () Access on 1 December 2020)
           language Umbundu) (in Portuguese often referred to as Ovimbundu, a hybrid
           form that expresses the plural by the prefix "ovi" and the Portuguese suffix.
           They are a Bantu ethnic group from Angola. They constitute 37% of the
           country's population. Their most important subgroups are the Mbalundu             (7) Arabica coffee comes from the original Ethiopian coffee trees. Coffee
           ("Bailundos"), the Wambo (Huambo), the Bieno, the Sele, the Ndulu, the            made from this variety has a mild and aromatic taste. It is the king of coffee
           Sambo and the Kakonda (Caconda                                                    and accounts for about 70% of world production. This species grows best at
           (https://www.monografias.com/pt/docs/A-Cultura-Angolana-na-Etnia-dos-Ov           high altitudes, between 610 and 1,829m above sea level. Mild temperatures
           imbundo-F3RF39FXHX Access on 1 December 2020)                                     (16º to 24ºC) and about 152 cubic cm of rain per year ensure the growth of
                                                                                             Arabica coffee. (At: < http://aicc.pt/origem/>. Access on 1 December 2020))

           Technical Data Sheet

           OWNERSHIP                                                                    CONTACTS / TEAM
           MCA Agro, Lda.
                                                                                        Luís Sampaio (General Manager)
           Fazenda Mussinga, Comuna da Sanga,                                           +244 923 492 711
           Município da Cela, Cuanza Sul – Angola                                       luis.sampaio@mca-grupo.com

           DIRECTORATE                                                                  Isabel Armindo
           Luís Sampaio (General Manager)                                               (Management and Administration)

           EDITORIAL TEAM
                                                                                        Fábio Pinheiro
           Luís Sampaio, António Domingos
                                                                                        (Engineer in charge of Production)
           DESIGN / LAYOUT
           investors and Marketing Corporate Centre -                                   Eunice Manuel
           MCA GROUP                                                                    (Sales Manager)

           DATE 1ST EDITION
           January 2021

MCA AGRO
In the natural environment                                                                                                                      www.mca-group.com
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