INTERNATIONAL

BUSINESS PLAN

“CAMPOSOL”

MEMBERS:

 DIAZ FLORES, SANDRA

 GONZALES MORALES, CLAUDIA
 SERRALDE VELÁZQUEZ,
STEPHANIE
 GRIMALDO LOZANO, CHRISTIAN

TEACHER:
CARLO ZEVALLOS
 AN INTERNATIONAL BUSINESS PLAN

I. Executive summary
A. Key elements of the plan
B. Description of business and target markets
C. Brief description of management team

II. Business history

A. History of company
Camposol was founded in 1997, the result of a dream to transform a desert into a
“great green sea.” Benefitting from modern and sustainable agricultural practices,
Peru’s La Libertad region became a place that employed thousands of workers
and vastly improved the quality of life for their families.
Thanks to the construction of the Chavimochic Irrigation Project, the foresight of
our globally respected investors and the work of our people, Camposol farms
have been growing, learning, diversifying, innovating and constantly adapting to
the needs of international markets from South and North America to Europe and
China. Camposol innovations continues to be a source of growth and
development in the agricultural industry and is a recognized world leader.

During our first 10 years, Camposol was an agricultural company, producing

asparagus mainly for the European market. With the purchase of the company by
the D & C Group in 2007, Camposol grew to become a world-class company by
changing the products it offered, the geographical locations of its fields and
facilities, and increased its presence in the main markets of the world.

Camposol is a globally recognized company with three important divisions:

Camposol Fruits and Vegetables, dedicated to agro-industry; Marinasol which
offers sustainably harvested shirmps; and, Camposol Internacional, a division
that operates abroad as the commercial arm of the company and allows us to
directly access our customers throughout the world.

Camposol's uninterrupted growth has been accompanied by a more sensible and

efficient use of technology. We employ cutting-edge processes and systems,
strive for operational efficiency, look for continuous improvement. The highest-
quality standards and constant innovation are already vital elements of
Camposol's culture. We also create new opportunities for the company’s
 employees, who can expand their
personal and professional horizons, contributing to overall corporate progress.

Together with our partners, Camposol produces healthy and fresh products for
families all over the world, rooted in care. We continue to lead through our
operational excellence, commitment to innovation, and the cultivation of our
people and our planet, enhancing the wellbeing of the communities in which we
operate and creating sustainable value for our partners. Camposol cares, from
farm to family.

VISION:
Being the preferred and superior supplier of healthy and fresh food for families
worldwide.

MISSION:
Providing consumers around the world with healthy food through operational
excellence, innovation, sustainable practices; generating a positive, lasting
impact on the well being of the communities where we operate; creating
consistent long-term value for our shareholders

CODE OF ETHICS:
Our code of conduct is issued to everyone who works with us. We emphasize
positive relationships, cordiality, integrity, respect, teamwork, and thoughtful use
of resources. Respect for diversity, equal opportunity and equal rights are also
vital to our mission; so are are strict rules concerning safety in the workplace. We
encourage best practices throughout the company, going well beyond what the
law requires. We emphasize that individual acts often carry great import and
reflect on Camposol as a whole, and therefore encourage everyone who works
with us to let their moral and ethical instincts guide them to do what is right in any
situation, consulting others if they’re not sure.
 B. Products-services offered and their unique advantages

 AVOCADOS :

Contain mainly monounsaturated oil, the type that reduces bad cholesterol (LDL)
and maintains good cholesterol (HDL). Avocados provide important nutrients,
including vitamins C and E and potassium, as well as fiber. Regular consumption
can help prevent diabetes, cardiovascular disease, obesity and prostate cancer.

 BLUEBERRIES:

Blueberries are low in calories, fat, and sodium. They have no cholesterol and
are rich in fiber and minerals, especially vitamin C. Their antioxidant properties
are well documented.
  TABLE GRAPES:Table grapes are loaded with vitamins C and B6. They’re
also a good source of potassium, copper, iron and phosphorus. Their
glucose and fructose provide a great natural source of healthy sugar.
Eating grapes is an excellent way to keep hydrated.

 MANGOS:

Mangos contain a wide range of nutrients,

vitamins, minerals and anti-oxidants; they also
contain an enzyme with stomach- soothing
properties. An average- sized mango contains
about 40 percent of the recommended daily
allowance of fiber. If you’re physically active,
mangos are an efficient way to replenish
potassium
  MANDARINS:

Mandarins are rich in vitamins A, B1, B2, B3, B6 and C. They also contain
minerals such as potassium, calcium, magnesium, and phosphorus. Mandarins
are also a good source of folic acid, beta-carotene and antioxidants. They are
ideal for weight loss: their high citric acid content helps burn fat

 FROZEN PRODUCTS
 CONSERVED PRODUCTS
 FRESH PRODUCTS

Services:

CAMPSOL CARRIES OUT THE Environmental and Biodiversity Conservation

Plan Camposol, within its environmental conservation plan, proposes a scheme
for adherence to sustainable agriculture certification, for which it has identified
certain lands located within the scope of its operations.
It also provides services to the community and other companies that require it.
YOUR DISTRIBUTION CHAIN includes food processors, food services and
retailers

Unique Advantages:

• Camposol has managed to position itself as the leading company in the

agro-export sector, thanks to its commitment to have systems for
communications, monitoring and incentives that improve and maximize its
corporate profits and performance through the efficient use of its
resources.
• The opening to new markets is thanks to the TLC that Peru has signed.
Thus, it has also managed to face the challenges of these companies.
These bring benefits such as the reduction of tariff rates and tariffs for
products.
• It is projected to establish its own brand, giving it greater added value.
• t has populated lands (control of its production) and provides constant
training to the production area
• sustainable agriculture certification
• Strategic alliances with educational institutions
• Development of new markets
• World tendency to consume fresh and healthy products
• Climatic advantages that allow to take advantage of temporary windows
• Use of new technologies to increase the useful life of products
• Acquisition of land
• Use of biotechnology as a new tool
• Development of management with suppliers

C. Domestic-market experience

They participate in food fairs:

 • International food fairs are an effective way to present Camposol and
promote its image worldwide, attract new customers and strengthen
existing business relationships, close trade agreements and promote their
products, as well as obtaining a global vision of the market in which the
company operates.
• Camposol went from being an agricultural company to an agribusiness
conglomerate of international level, with commercial offices in the United
States, Europe and soon in China.

D. Foreign-market experience

• RAY OF SUNSHINE” PROGRAM

Team members’ children receive comprehensive care from trained and
loving professionals. Thanks to the strategic alliance with the Ministry of
Development and Social Inclusion, the “Cuna Mas” (More Crib[s]) Program
advises and guides us in the care and nourishment of children. Each year
the program serves an average of 200 kids who are less than four years
old, improving the development of their psychomotor, social and language
skills while protecting them from malnutrition.

• USEFUL VACATION PROGRAM:

During the summer vacation months of January and February, we strengthen our
children’s educational grounding and develop their artistic and athletic skills, as
well as building their self-esteem. We provide verbal reasoning and math
classes, workshops for art and creativity, computing, modern dance, traditional
dance and sports. Local universities and schools provide advice and support.
• MEDICAL CAMPAIGNS:
Health and happiness go hand in hand. We provide free medical services and
campaigns in various specialties that focus on prevention and maintaining a
healthy lifestyle – a philosophy that fits hand in glove with our overall goals as a
producer of healthy food. Through alliances with private and public organizations,
we provide optimal care to team members and their families.
• EMPLOYEE TRAINING
Our internal and external training programs benefit the professional development
of every participating team member. We offer financial support for employees to
study at prestigious educational institutions. Superior continuing education is a
benefit to the entire company, increasing Camposol’s retention rate and fine-
tuning team members’ areas of expertise.
 • OBSTETRIC PSYCHOPROPYLAXIS AND PRENATAL STIMULATION
PROGRAM
We offer a program for expectant mothers to provide the best working conditions
and the necessary preparations for healthy pregnancies, childbirth and
postpartum, ensuring the health of mother and child. Programs include obstetric
gym exercises, relaxation and music therapy run by the specialized
professionals.

III. Market Research

A. Target countries

The products are exported to more than 40 countries. The most important
markets are those of Europe and Usa.

1. Primary

EE.UU.

Camposol's cranberry exports reached 24,871 tonnes in 2018, a growth of 82%

over the previous year. In the same period, production increased by 88%, from
13,990 to 26,256 tonnes, so it is concluded that North America remains the main
market, with almost 60% of exports.

According to Jorge Ramírez, he mentions: "This success confirms that the

content offered by Camposol in social networks caters to the concerns and
interests of the consumer looking for high quality healthy fresh fruit that is
cultivated according to the Stricter standards of social responsibility and methods
close to nature. We are constantly in contact with our consumers and we
appreciate their ideas and suggestions because they are our inspiration to
innovate "

2. Secondary

RUSSIA

Nancy Arreluce, analyst of the Association of Exporters (ADEX), commented that

20% of Peruvian shipments to Russia are grapes. "This fruit is the most exported,
but it could be sent more.
The Russian market is the seventh largest in the world and for this reason that
country represents an opportunity for growth.
It is important to mention that the products that are currently most widely
accepted in the Russian market are fresh fruits and vegetables. In this case, the
grapes, mandarins, blueberries, pomegranates, avocados, coffee, cocoa are
outstanding.

B. Market conditions in target countries

1. Existing demand

The Peruvian market in agro-industry is increasing its share in exports, so as the

following graph shows, this consumption increased in the first months of 2019
Russia
Russia has a population of 144,096,870 people, more than 74% of it urban. With
46.4% of the total comprised by men and 53.5% by women, the average age
being 37 years.

According to a study conducted by Nielsen, Russian consumers tend to buy

products impulsively. Likewise, people with modest incomes give great
importance to the brands and the quality of the product, as well as to the useful
life of the product. For this reason, asking for credits for consumption is frequent.
Although the price is usually secondary, Russians are attracted by the offers.

Now, in terms of testing new products, the study found that more than three-
quarters of Russians describe being interested in trying new products. 38%
reported noticing new products when they were placed on the shelves, which is
higher than the global average of 29%. However, it is also important to note that
Russian consumers are very loyal to their brands. For example, Nielsen reported
that Russians often know what they are going to buy before entering a mall.

Also, Nielsen reports that Russians only buy for short-term needs; 25% of
consumer purchases were to satisfy an immediate need, while 47% of purchased
items were consumed that day.

On the other hand, the analysis adds that when it comes to purchasing power,
Russians save little because of the little confidence they have in the banking
system. They often spend more than 80% of their income. It is also important to
note that only 16% of the Russian population considers buying pleasant,
compared to 26% globally. Buying is something that is usually done for family
members. The family is still important in the lives of the Russians; It also affects
your buying habits. More than half (53%) of Russian consumers tend to make
purchases for the whole family (compared to 45% globally). As a comparison, a
third (32%) of the Russians buy for themselves.

Around 73% of the population lives within the cities, being the group with the
highest purchasing power (85%). The emerging middle class reaches 25 million
inhabitants and generates 80% of the country's demand. The Russian consumer
values the western lifestyle, is usually educated and appreciates sophisticated
tastes. Television and social media advertising are especially effective methods

United States of America

A report from the Economic Commission for Latin America and the Caribbean
(ECLAC), the US organic food market has been showing an unprecedented
growth rate. In 20 years, sales increased from US $ 1,000 million in 1990 to US $
31,500 million in 2011. ECLAC reveals that the rapid increase in the demand for
organic products has exceeded domestic supply capacity. As a result, merchants
of organic products are increasingly turning to imports. The data collected
presents a favorable scenario for agricultural producers in Latin America and the
Caribbean. ECLAC points out that a quarter of the agricultural land dedicated to
organic crops in the world is located in this region. In 2010, some 8.4 million
hectares were organically grown by more than 270,000 producers.

Japan

In 2013, the fresh asparagus market in Japan represented, USD, 73.2 million. Its
main supplier countries are Mexico (28.5 million), Peru (15.6 million) and
Australia (14.2 million).
In fresh, green asparagus is preferred by the Japanese consumer, who pays
higher prices for those longer (10 cm) and thicker (1 cm) than the average
Peruvian asparagus.
It is worth mentioning that Peruvian fresh white asparagus with sizes above 20
cm has recently entered with great force, which has had very good acceptance
from the final consumer.
The trend for the consumption of asparagus in Japan is positive, due to its
beneficial properties for health, and to the fact that food is increasingly
westernized.
In the case of frozen asparagus, it is usually distributed in restaurants, hotels,
catering companies and lunch boxes factories. Its price is USD 4,000 per MT,
Yokohama CFR.
Japan usually imports frozen mango into pieces and halves.
Regarding fresh mango, Kent mango has been very well received and is found in
all the fruit sales shops, from the cheapest ones, known as mama-poppies
(which would be equivalent to a neighborhood winery just for fruits and fresh
vegetables) to the big department stores, their price oscillating to the final
consumer in ¥ 300 to ¥ 1,000.
In 2013, Japan imported 8 742 tons of fresh mango.
The highest demand is generated in the Japanese summer (between June and
October). By this time, table grapes (Delaware and Kyoho) are mainly supplied
domestically. However, there is a possibility of entering the market between
December and January, a period in which it competes with Chile and the US.
UU., Although it is the low season of grape consumption.
In 2013, Japan imported USD 62 million, of which 31 million came from the USA.
UU., And 28 million from Chile.
In Japan there is no significant production of avocado, however, it enjoys a very
good reputation as a healthy food. Among the most preferred by consumers, is
the Hass fresh avocado of small sizes. This country is the fourth importer of this
fruit worldwide, with USD 162 million (for the year 2013 and at an annual average
growth rate in the last four years of 22%). The vast majority comes from Mexico
(86%), a country that supplies the market all year round.
The second country that suffers the Japanese market is EE. UU (11%); which
has doubled its presence in said market in the last three years.

Netherlands
According to the Association of Exporters, the shipments of the agro-industrial
products registered a growth of 21.4% between January and May when adding $
2 thousand 190 million, specifying that the grape occupied the first place by a
greater demand of the United States (EE.UU. .), as well as the Netherlands
(Holland) and China.
 Other products of major export were avocado, mango, preparation used for
animal feed and fresh asparagus.
The most important destinations for the Peruvian agroindustry were USA. ($ 589
million 470 thousand) and the Netherlands ($ 451 million 210 thousand). They
were followed by Spain, Ecuador, the United Kingdom, Chile, South Korea,
China, Hong Kong, Colombia and Germany.

2. Competition

The national competition that has the company Camposol is the following one:

Agrícola Beta
Company Agrícola Cerro Aib Complejo
and Products Camposol la venta Coexa Prieto Agroindustrias Agroindustrial
ASPARAGUS x X x x X x
HASS
AVOCADO x X x X x
Mango x
Peppers x
Grapes x x x x
Tangerine x x X

International competition

Company and Chiquita fresh cut

Products Camposol fruit Dole Sumitomo
ASPARAGUS X x x
HASS AVOCADO X x x x
Mango X x
Pimientos X
Grapes X x x
Mandarinas X x x

The main companies in that market are Dole, which has a 33% share, followed
by Sumitomo (28%), Delmonte (15%) and Chiquita (10%).
Camposol not only has agricultural products, we can also highlight that it is
dedicated to the agroindustry, that consists of entering the productive area that is
extracted from the land, to convert it into that they call packaged products for
sale.

3. Strengths and weaknesses of the economy-barriers to entry, etc.

Camposol obtained revenues of US $ 346.2 million at the end of 2018, and

31.6% with respect to 2017 (US $ 263.1 million). This is due to a higher volume
in metric tons sold of avocado (+ 12.8%), cranberry (+ 92.6%) and others, which
mainly includes mango and grape (+ 23.3%). There was an increase in the
amount of hectares planted and the good weather in the winter that has a
positive impact on the appropriate volumes. In addition, the investments made
allowed to implement a process of calibration and artificial vision in the cranberry
packing plant.
The new sales destination, South America, generated US $ 6.4 million in 2018,
marking an upward trend in revenues. Also, the positioning of the United States
that obtained US $ 178.4 million and reported 74.4% compared to 2017 (US $
102.3 million). These, together with the growth of sales in Asia (+ 79.6%) and
Canada (+ 64.3%) contributed to the trend.
Larger sales motivated EBITDA growth to US $ 148.1 million, 29.8% more than
the previous year (US $ 114.1 million). However, sales expenses also amounted
to US $ 2.7 million, representing an annual increase of 8.3%, mainly due to the
new expenses associated with the development of the brand and the new
corporate image, according to the management report of Camposol.