CASE STUDY 21/01

MCA AGRO In the natural environment 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

/ 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

/ 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

/ 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 development of the estimated production are the following:

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 of production for the production of 20 Tons/year and the rehabilitation of 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 quality seeds on the production of 30 Tons/year in 2022 and growing to 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

/ 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

/ 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

/ 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

Notes

(1) Kwanza Sul is one of 18 provinces of Angola, located in the central region (5) (Sumbe. According to path in the middle of the undergrowth; in: population projections for 2018, produced by the National Statistics Institute, https://www.dicionarioinformal.com.br/diferenca-entre/picada/caminho/> 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 [email protected] 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

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