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Backus presented its experience of coordinating a commodity chain (Translation)

15 July 2011

As part of its programme "Progressing Together"

- More than 270 farmers of hard yellow corn from Valle de Jequetepeque received technical training
- Backus' goal for 2013 is buying locally 30% of the corn required for its production

Lima, 13th of July, 2011 - As part of its sustainable development policy, Backus presented its experience of coordinating a commodity chain of hard yellow corn which it has been implementing since 2008 through the programme "Progressing Together" with more than 270 farmers from Valle de Jequetepeque, in Pacasmayo.

"Progressing Together" is a Backus initiative that seeks to strengthen the role of the "base of the pyramid," formed by the agents that are part of the company's value chain through social inclusion, technical assistance and training in productive efficiency and business management policies.

For this project, Backus worked hand-in-hand with Ecumenical Centre of Promotion and Social Action North (CEDEPAS Norte) which helped in the selection of the groups of producers, the designing of the methodology and the tools for their technical assistance and training. The strategic alliance with Cedepas Norte has been vital to the success of the project as well as in achieving the cooperation required of small farmers.

In this way since its beginning in 2008, the project has managed to:

- Give technical assistance to more than 270 farmers in the second and third year of the campaign. The first year started with 96 farmers.

- One hundred percent of the farmers participating in the project have been established with a buyer (Backus) that pays a fair price, determines exact crop weights and recognizes the threshing service (the process that separates the wheat from the chaff).

- The producers improved their productive abilities, increasing their unit performance from 7.5 tons per hectare (mt/ha), which was the average in the valley, to 9.6 mt/ha.

- One hundred percent of the chosen producers plan the sowing season in coordination with the Water Users Committee, respecting the producers' need to satisfy the company's quality controls.

- Through participating in the contest Coordinating MYPERU, US$205,000 has been obtained as funding from Multilateral Fund of Investments of the Interamerican Development Bank.

As stated by Malena Morales Valentín, Backus' Director of Sustainable Development and Corporative Matters: "We are very proud with the results of this project. This inclusive business strategy offers benefits to everybody involved in the commodity chain; in this case, we are especially excited about the achievements in the development of good business practises of the farmers involved in this initiative."

Besides, the goal of this project is to keep growing in the number of farmers who are involved. In the second year of the implementation of this project, Backus has bought more than 8,000 tons of yellow hard corn from farmers in the Jequetepeque valley and in two years, it hopes to buy locally 30% of the corn it uses for its production. 
 

About the programme Progressing Together:
 
It is the development programme for micro, small and medium companies linked to the agricultural, services, commercialization and tourism sectors of the geographical areas of influence of the companies of the Backus group. This programme's expectations are to enhance the efficiency, productivity, environmental and social conditions of the micro and small companies, thus contributing to the creation of opportunities for sustainable local development.

About Backus:

Union of Peruvian Breweries and Johnston, it is the industry leader in Peru, with 5 decentralised production plants in Lima, Arequipa, Cusco, Motupe and Pucallpa. It has a portfolio of national and international brands to satisfy consumers in more than 150,000 selling points throughout the country. During 2010, Backus registered net sales of S/. 2,676.7 million, contributed to the Treasury with S/. 2,004 million and gave direct jobs to more than 1,700 people.

Backus works with a focus in sustainable development, with the goal of generating shared value and social inclusion with those who are part of its value chain and the communities in which it operates, from three fields: economic, social and environmental. That is why all its initiatives and projects are designed to generate strategic alliances to favour the efforts of and achieve a greater impact for the groups of interest.

For more information:
Cecilia Quevedo
 Backus - 311 3000
Yohana Medina / Lorena Oviedo
LLORENTE & CUENCA
222 9491

This SABMiller subsidiary news release has been translated from its local market language to English language for publication on http://sabmiller.com. We have attempted to provide an accurate translation of the original material but due to the difficulties of translation slight differences may exist.

Note, the news release was first published in its local market on [13/07/2011].

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