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1 • CAN BLOCKED CATTLE FARMS BECOME SUPPLIERS AGAIN? IF SO, WHAT CRITERIA SHOULD BE APPLIED?

A. Yes, there are rules to remove the block under the TAC criteria. The supplier and the farm may become compliant again if the damage that resulted in the block is remedied.

2 • EXPLAIN FURTHER THE RULE ON BLOCK REMOVAL LIFTING FOR SUPPLIERS WHO HAVE BEEN ACCUSED OF ILLEGAL DEFORESTATION. WHAT IS REQUIRED FOR THE PRODUCER TO RETURN TO SUPPLYING ANIMALS TO THE MEATPACKERS?

A. In order for a supply farm to be considered "qualified to sell to signatories," the producer must sign a commitment with the Public Prosecutor’s Office or with the responsible environmental agency declaring it will not use the area for productive purposes, will remedy the damage caused by the fencing of the area and recover native vegetation, will cover costs inherent in the compliance processes and will carry out the geospatial monitoring for the recovery of the damage.

3 • ARE THERE OTHER WAYS FOR A FARM TO BE BLOCKED?

A. For cases of blocks due to deforestation and Preserved Area encroachment, multi-temporal geospatial analysis and the recovery of environmental damage are crucial in the process. Annual proof of damage recovery is also required and usually involves the restoration of deforested native vegetation. For documentation cases (environmental license, CAR and GTA), the presentation of legal documents is enough to remove the block. In the case of inclusion in public lists of slave labor and environmental embargoes, the block removal must be preceded by compliance with and completion of the process and removal of the producer from the official government lists.

4 • WHY ADOPT THREE HEAD/HECTARE/YEAR AS A RULE FOR THE PRODUCTIVITY INDEX?

A. The productivity index was based on a value that does not compromise productive operations that are able to reach production and slaughter rates above the regional average (Amazon region), as agreed between the Public Prosecutor’s Office and the meatpackers. Studies will be carried out and as soon as they are available and will be used to underpin a new definition for the revision of this index.

5 • WHO HAS THE DECISION-MAKING POWER TO CLEAR THE FARMS?

A. The decision-making is carried out by the meatpacker itself and must comply with the defined rules so the block can be removed. The decision to remove the blockbmust be based on accurate evidence and must also be appraised by annual independent audit processes.

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