The Company provides guarantees to loans obtained by certain outgrowers located in the central region of the Brazil as part of a special development program for that region. Such loans are used to improve the outgrowers farms installations and are expected to be repaid in ten years. The loans guaranteed by the Company are in the amount of R$525.5 million as of December 31, 2008 (R$229.7 million on December 31, 2007). The Company has recorded provisions in the amount of R$100.9 million as of December 31, 2008, equal to its assessment of the fair value of the non-contingent portion of these obligations. See note 16 to the Company's audited consolidated financial statements.