The Company's operations that are exposed to market risks, mainly with
respect to foreign currency variations, credit risks and variations in the
prices of agricultural commodities - corn, soy bean and derivatives. These
risks are managed by the Risk Management area, through identification of
exposures and correlations between the different risk factors, using the
specific calculation method, VAR - Value at Risk and simulations of scenarios,
and are permanently monitored by the Financial Committee and by the
Commodities and Risk Management Committee, consisting of members of
the Board of Directors, who are responsible for defining
management's strategy for administering these risks, determining the
limits for positions, exposure and authority for decision making.