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.