SETTING UP A BUSINESS

1. SETTING UP A BUSINESS WISHH MW WORKSHOP

2. 4. A Cultural Thing Target Group • Ethnic Groups and other segments rarely buy at Supermarkets, they do at neighborhood Mom´s and Pop´s Stores or Town Markets. • Ethnic Groups and other segments tend to mistrust most packed products unless they are priority goods. • Ethnic Groups and other segments like products that they can cook with. • Ethnic Groups and other segments will buy their foodstuffs in a daily basis. MAYAN WOMEN COOKING FOR SCHOOL LUNCH PROGRAM IN GUATEMALA

3. II. The Paradigm of Flavor and Price

4. II.1. FLAVOR US Health End Choice flavor and traditional flavor in beverages and soymilk are not accepted. Flavors and colors have to be strong as well as sugar in beverages and soymilk, specially in the Tropics. US Health End Choice thick consistency of beverages and soymilk are not accepted Natural tofu is not accepted well. Yogurt, Meat substitutes and other soyfoods such as oriental foods are easily accepted as long as they are tasty. II.2. PRICE Premium prices for Organic products will not be payed by the consumer. There are quality food products made in the C.A. region at a fair price, and also a strongCommon Market. Packaging and Ingredients will depend on what market segment wants to be reached. Distribution and Logistics are difficult and expensive Almost every Raw Material used Latin American is imported. Expensive Freight and Taxes. Expensive and Irregular Utilities.

5. III. PROCESSING SOYFOODS IN LATIN AMERICA

6. FOREWORD • Soyfoods Target Groups • in Latin America

7. 1. Necessity Target Group • Central America and Caribbean • Population: 80,000,000. • 44 % population of Latin America* under Poverty Line. • 12 % population of Latin America * on Poverty Line (one US$ a day). • Governments, PVO´s, and NGO,s trough School Lunch and Social Programs. * This population does not have acess to protein. MAP OF GUATEMALA

8. 2. Nutrition Target Group • 9% of Children under the age of 5 are malnourished in Latin America. • 11% of Latin Americans are undernourished. • 19% of Central Americans are undernourished. • 28% of the Caribbean population is undernourished. • Goverments, PVO´s and NGO´s trough School Lunch and Social Programs. MALNOURISHED CHILD IN GUATEMALA

9. 3. The Lactose Intolerant Target Group • 75% of Latin Americans are Lactose Intolerant. • Supermarket Chains want alternatives to dairy products, and other foods which are expensive such as delactosed dairy products, and also health end choice products. • Only a 27% of Central Americans drink dairy milk due to its cost. • Institutional Groups, such as Goverments, PVO´s and NGO´s. • Food Processors who want to expand their product line with soy based raw materials. SOYMILK

10. III.1. WHICH ONES? Soyfoods • Soymilk • Soy Beverages • Yogurt • Analog Cheeses • Milk Powder Replacers • Meat Analogs • Baked Foods • Okara Products : The New Soyfoods Rising Star in Latin America

11. III.2.3. HOW? Processing Equipment and Comparison

12. III.4. PACKAGING

13. Pouch • Refrigerated – • Fragile – • Distribution – • Shelf Life – • Popular + • Price + • 3. Asceptic • Expensive – • Freight/Tax – • Imp./Exp. – • Limited Dist. – • Long Life + • Atractive + • 2. Plastic • Distribution – • Refrigerated – • Sizes – • Popular + • Price + • See Product + • 4. Gable Top • Refrigerated – • Distribution – • Freight/Tax – • Popular + • Atractive +

14. III.5 INGREDIENTS

15. 3.a. Soybeans • Organic • Non Organic • GMO • Non GMO • 3.b. Isolates • 3.c. Soy Meal • 3.d. New Soy Raw Materials • 3.e. Okara • 3.f. Soymax®

16. III.5.a. Microsoy Flakes

17. III.6. EXISTING REGULATIONS FOR SOYMILK AND SOYBEVERAGES IN LATIN AMERICA

18. BRAZIL’S NTA – 36 • ASA SEAL OF QUALITY PROGRAM STANDARDS

19. III.6. How to deal with Registersfor Soymilk in the C.A. and Caribbean Region

20. III.6.a.Paperwork Setting up a Company Permits Trade Mark & Design Register Phitosanitary Permit Certificate of Free Sale Sanitary Licences and Registers (Lab. Analysis) Fumigation Freight Custom Duties and Seals Buyer Regulations & Fees Distribution Agreements III.6.b. Labeling No Curative Properties, Preventive Qualities. No Standard for Soyfoods (FDA, others). Ingredient Label in the native language, Sanitary Register, Number and Distributor Name. Regulations as well as name of ingredients vary for each country. Expiration Date Label.

21. III.6.c. Importing Raw Materials and Finished Products? • Obtain Certificate as authorized Importer and Exporter • Fumigation of Agricultural Products • Lab Analysis • Phitosanitary Certificate • Free Sale Certficate • Freights and Taxes • Custom Dutiies and seals • Inspection and Release • Buyer Regulations and fees

22. IV. A SOYMILK OPERATION STUDY CASE IN GUATEMALA

23. IV.1. THE REVOLUTION OF SOYFOODS PROCESSING TROUGH NEW TECHNOLOGIESAND INTERNATIONAL COOPERATION.

24. IV. 3.a. Processing Capacity Capacity to process up to 1800 lts/h with actual plant configuración and can go up to 3600 lts/h adding up modules.

25. 10.a. ¡SOY Soyaleche Soymilk • Growth : 235% Oct. 02/Jun.04 • Guatemala • Grupo La Fragua • (50% Holding with Royal Ahold) • Sales: US$750,000,000.00/Y • Stores in Central and South America • Unisuper • El Salvador • All Supermarket Chains • (Nov. 2004 ,200 ml Tetra launch and Franchising in Mexico) • Exports for US Latin Markets, Caribbean , C.A. and S.A. Sampling at La Fragua Supermarket

26. OUR PRODUCTS

31. ¡SOY! TEAM

32. IV.2. Education for GovernmentAgencies, Importers, Processors,and Consumers

33. IV.2. Community Education Program LEARNING ABOUT SOYFOODS WITH BEANIE

34. V. Our Social Arm Association in Peace with the Environment (EPA) MISSION “MAKING A BETTER HABITAT FOR HUMANS WITH SOY”

35. V.1. Our Programs Our objective is to improve the physical and physiological condition of children with malnutrition in Guatemala through soy protein and provide them with liquid soy foods ready to drink in an individual aseptic package and promote the development and the generation of richness by supporting Sustainable Social Feeding Programs with US soy beans; and through “Soy for Soy for Soy” concept to provide isolated communities the potential for human growth so this communities and their public schools can become self sufficient by themselves using our patented Mini Soy Cow Machine, thus creating a consumer base for soyfoods in the short term.

36. V.2. Our Partners in Social Work • ASA • Ministry of Education of Guatemala • Ministry of Agriculture of Guatemala (LOI) • WISHH(Cooperation Agreement) • CARE(Cooperation Agreement) • Christian Relief Services (LOI) • Tetrapak (LOI) • NSRL/INTSOY • Leyenda S.A.(Cooperation Agreement)

37. MINI SOY COW MACHINE AB-40I

38. MINI SOY COW MACHINE AB-40I

39. Microsoy Corporation, USA Microsoy Flakes Manufacturer Japanese Technology US Soybeans Perfecta Curitiba, Brazil Machinery for Baked Goods Mechanical Cow Manufacturer 600 Machines insatalled up to date American Soy Bean Association Farmers Association Marketing and Promotion ASA Seal of Quality Program Leyenda S.A., Guatemala C.A. Soyfoods Processor ¡SOY! Soyaleche Soymilk Social Programs with sister NGO Dipamaq, Brazil Distributor and Developer of Soymilk Flavors with Degussa Flavor & Fruit Systems do Brazil