ATZMONA ORGANIC CARROTS

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1 ATZMONA ORGANIC CARROTS GENERAL Atzmona Organic Carrots grows on 200 hectares a year. The organic carrot fields are part of an organic farm which in total is 1100 hectare at this stage, with options to expand. The company deals with the entire process of production from the planting stage including the sorting, packing, logistics and marketing. This is all under one management framework.

2 a) Description of the product Atzmona grows a type called Nantes which is acceptable in Europe. This variety is known for being smooth; uniform in size, its shape is slightly inclined cylinder. The carrots have a bright orange color, sweet tasting and have a crispy texture. It has the ability of being in cold storage for up to 4 months with the correct conditions, with the organic carrots the shelf life is approximately 5 weeks. This European carrot has a distinct advantage over the American type (Imperator) but the European carrot is smaller and more fragile. Dimensions: length - 15 to 24 cm. Diameter: 20 to 45 mm. Weight: 50 grams to 250 grams.

3 b) Types of packaging The carrots are packed loosely in big jumbo bags with a capacity of approximately 1200 kilograms. These bags are customized for storing carrots while maintaining the quality and freshness. This method is specially suited to the customer for re-packaging. The second type of packaging is polyethylene bags with a weight of approximately - 18 to 20 kg. Each wooden pallet has 70 polyethylene bags.

4 c) Description of Production Process The carrots are grown at an Organic farm called Haluza Sands while conforming to the strict instructions of the organic procedure. The carrots are harvested and sorted within a few hours at our modern, new pack house which is used for the sorting of organic carrots only. While sorting, the carrots are washed and cooled very quickly to low temperatures and from there are placed in cold stores until shipping. These pallets are then placed into 40' reefer containers at a temperature of 1 degree. Within the container we place 20 pallets of big jumbo bags or 21 pallets of the 18kg polyethylene bags. The weight of the container will be approximately 25 tons. These containers are shipped by sea and reach the client who then sorts according to their clients' various specifications. (Different packaging, weights and also different logos) Because there is no use of pesticides and chlorine in particular, it is important to maintain a continuous cooling chain from the moment of entrance to the pack house until it reaches the homemaker, this point is critical to maintaining the quality of the carrots.

5 d) Organic Authorization and Documentation. Atzmona Organic Carrots is regulated by the company Agrior which oversees all the organic produce that are grown in Israel. Agrior is recognized internationally. The carrots are packed at our pack house which is intended for Organic produce only and also has the BRC standard. We also have the Global Gap assurance of organics as well as authorization from various supermarkets in the United Kingdom. As one of the biggest organic farms in the world the carrots are not exposed and are safe from any influence of conventional crops close by. Within the organization we adhere to a very strict code regarding the organic growing process despite all the organic limitations. e) Company Clients Today we market most of the carrots to Germany and England. In Germany, Atzmona Organic Carrots is a brand name and during the spring months it is the biggest supplier. The carrots are sold to the biggest chain supermarkets including Aldi (where only organic carrots are sold and no conventional) Lidel, Edka, Reewe etc. In the United Kingdom our carrots are sold in Marks & Spencer, Tesco, Morrison's, Sainsbury's and others. f) Prices Our carrots are sold in Europe in Jumbo bags at prices of between per ton. This converts to $880-$1200 per ton. Due to the fact that the sea freight to the United States is more expensive, this cost should be taken into consideration.

6 g) The Method We have gained vast experience in marketing and have an understanding of the complexity and importance of the American market as well as the importance of direct contact between the supplier and the supermarkets, and the need to take care of the produce after the sea journey once more. We therefore, see the need to work with a big sorting station to handle the organic carrots in the United States. This station will receive the jumbo bags, sort the carrots, and repack as per demands of the market and stay in regular contact with the clients. Atzmona must be a recognized supplier that is audited by the markets from time to time including periodical testing in Israel. This is a concise description of the process and if necessary we will be happy to elaborate. Photos depicting the process are attached. Yours sincerely, OREN BARNEA

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