MOOIGEZICHT ESTATES. New Varieties - New Packaging - New Opportunities. Newsletter 2 11/03/09

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1 MOOIGEZICHT ESTATES P.O. Box 2, De Doorns, 6875, South Africa Tel: +27 (0) Fax: +27 (0) Chairman: SC Rossouw MD: FJ Rossouw New Varieties - New Packaging - New Opportunities This is the second of Mooigezicht Estate s monthly newsletters for our receivers covering the various stages in the production of the grapes as well as related issues. Newsletter 2 11/03/09 Harvest progress and general annual comparisons To pack week 10 Packing Tempo: Moogezicht s current harvest started in Week 1/2009 (2 January 2009) as against week 51/2007 for the previous harvest and week 50/2006 the year before that. Although the harvest commenced two weeks later this year than last, by week 10 we have already packed cartons compared to last year indicating an increased packing tempo as well as better quality and preparation in the vineyards. Punnets: Another significant improvement against last year has been the increase in the packing of punnets. During the 2007 harvest a total of punnet cartons were packed and in 2008 the total amounted to By week 10 this year we had already packed punnet cartons and we aim to pack approximately for the entire 2009 harvest. Crop load and quality: In general this year s crop is lighter than last year. This is true for the entire South African grape estimate, which is likely to be down by around 3 million cartons for this season. The lighter crop has resulted in an exceptional berry size. The marked day/night temperature differences this season have also led to good colour development. In comparison to the general decay problems of last year, the keeping quality of this year s harvest appears to be better to last year. Our volumes will be down by around 10% against our original estimate and it looks likely that we should produce around cartons for the export market. Varietal Progress: The varieties that we have already harvested are Prime, Flame Seedless, Alpha Red, Evening Pearl, Sugraone, Midnight Beauty, Regal Seedless, Alphonse Lavallee, Thompson Seedless, Victoria, Autumn Royal, Waltham Cross and Moonballs. We are currently harvesting Red Globe, Crimson Seedless, Scarlotta Seedless, La Rochelle, Bonheur, Ebony Star as well as Barlinka and Dauphine. Crop Tempo and duration: By the end of week 10 we had harvested 65% of our crop. As mentioned earlier, the harvest tempo is faster this year. We aim to complete the harvest by the end of week 16 compared with 2008 when the harvest ended in week 20. Packaging In addition to packing standard and composite punnets (500g and 750g) we have also used various combinations of black, red and green varieties with comparative berry sizes to produce tricolour seedless punnets. In our target marketing process we diversify our packaging to suit various markets and we currently use around 18 different cartons.

2 Crop protection and food safety measures at Mooigezicht Grapes are a climateric fruit which means that they do not ripen further once harvested. Thus, unlike most top fruit or stone fruit which is harvested at a slightly immature and hard stage and the fruit ripens en route to the market, grapes have to be harvested at optimum ripeness and maturity. This means that the high sugar levels make the fruit soft and highly sensitive to damage. Grapes have a fine, pale protective bloom which covers the berries and thus grapes have to be handled with the utmost care to preserve as much of this bloom as possible. At Mooigezicht we employ the following protective methods throughout the harvesting and packing process to deal with this challenge in order to ensure the quality of our product for our customers. Picking with gloves, holding bunches by stems and careful placing of fruit in a single layer. During the harvest process in the vineyards Pickers wear gloves during the harvesting process. Pickers place grapes into plastic lugs which are lined with a soft padding to prevent damage to the grapes during transport to the pack house. To prevent bruising while harvesting the more sensitive white varieties, one person holds the lug close to the vine canopy and a second picks the bunch handling it by the stem only and places it gently in the lug. This is more gentle on the grapes than for the picker to bend and place the fruit in the lug on the ground. During harvesting only a single layer of fruit is placed in each lug to prevent bruising. The plastic lugs and padding used for harvesting are washed regularly in our lug washing machines. The machines clean the lugs with high pressure hoses and use only water to prevent any chemical residue. During transport from vineyard to pack house trailers are fitted with dust covers to protect grapes and trailer wheels are deflated slightly to ensure a more gentle ride. Trailers fitted with dust covers en route to pack house. Grapes on packing table in a single layer. Tables lined with bubble wrap for protection against bruising. In the Pack house In the pack house grapes are handled only by workers wearing gloves. The sorting tables are covered with bubble wrap to prevent damage to the grapes which are packed onto the tables in a single layer. Inspections by PPECB officers are done three times daily and fruit is immediately dispatched to the cooling intake facility. These precautions seem to be paying off as Mooigezicht s Regal Seedless in the market seems to have retained its good quality and in general is looking positive in light of the SA grape industry s considerable problems with browning on this variety. In order to ensure the quality of our large berried cultivars and the XL sizes, we are now making use of a new deeper carton as well as a deeper punnet and punnet carton to better accommodate these large berries. Each packhouse has its own internal auditing system which functions to maintain quality and hygiene on an ongoing basis. Grape sorters and packers wearing gloves during the packing process.

3 Transport of packed grapes to intake cooling facility Distance from our farms to the intake facility is under 10km so this is a short trip. Pallets are individually covered with insulating canvas covers to preserve the cold chain by minimizing heating en route. Temperature control throughout the process Bearing in mind that the average maximum temperatures throughout the harvest is between 30ºC and 35ºC and sometimes even hotter, cooling and temperature control of this highly perishable product presents a considerable challenge. The picking is only done in the cool part of the day and the pulp temperatures of the berries are continuously monitored. When these temperatures reach 28ºC, picking is immediately stopped. When the lugs are brought into the pack house from the vineyards, we pre-cool them to 16ºC to 18ºC prior to packing. The temperature in our pack houses is kept at a constant cool temperature which protects the grapes and provides a comfortable working environment for our packing staff. Once a pallet has been packed, we place it in a holding room which is kept at 10ºC until it has been inspected and is ready for dispatch. Once our fruit has been delivered to the intake cooling facility (Hexkoel), the fruit is cooled to -0.5ºC within 72 hours and is then ready for shipment. Monitoring the pulp temperature of berries on arrival in pack house pre-cooling facility. Individual pallets covered with fitted insulating canvas for journey to intake cooling facility. Minimum Residue Levels We practice a strict adherence to the internationally recognized guidelines for minimum residue levels of chemicals and keep meticulous records of chemical applications. Prior to the harvest of each variety we send a sample to Hershaw and Kinnes, an independent, internationally accredited laboratory for MRL testing. Only once we have received approval from them do our production managers sign off a particular vineyard block for harvesting. We also have a recall policy in place for our product should a food safety problem arise. Each chemical application has a recommended withholding period which is required between its application and the harvest. As a matter of course we routinely allow for more time than this recommended period between application and harvest. Accreditations We are proud holders of the following accreditations: Globalgap, Tesco s Nature s Choice Gold and ASDA Pack House Audit as well as Ethical Trading Initiative.

4 Crimson Seedless Waltham Cross Varietal development, 11 March 2009 Crimson Seedless Harvesting from week 7 to 14. Harvest 70% completed Berry size 18 to 22mm This variety represents one of Mooigezicht s largest plantings and in 2010 this will be our largest variety with production around cartons. Scarlotta Seedless This is our first harvesting season for this variety. This Sunworld variety from California is seen as a rival for Crimson Seedless. Harvesting from week 12 to 13. Natural berry size is 20 to 23mm (6 to 9 gram) The berry size and colour that it offers is much better than Crimson making it ideal for the Far East market. Scarlotta has a crisp flavour and a sugar measurement of brix. The variety also has excellent storage capacity. Waltham Cross Scarlotta Seedless La Rochelle Harvesting from week 8 to 10. Harvest now complete Mooigezicht is currently replacing Waltham Cross with mid season seedless varieties Red Globe La Rochelle All La Rochelle is packed for the Far East market due to the favourable exchange rate and good demand for this variety in these markets. Harvesting from week 6 to % XL Harvest complete Red Globe Harvesting from week 7 to 12. Mostly exported to the Far East Since packing week we are exporting to 3 destinations in Africa for the latter part of the season with only an 8 day shipping time. Bonheur All Bonheur is packed for the Far East market due to the favourable exchange rate and good demand. Harvesting from week 9 to % XL Bonheur

5 Ebony Star Ebony Star Harvesting from week 8 to % XL and XXL In order to ensure the quality of our Ebony Star, we have covered this variety with plastic to protect it from rain. This variety is marketed exclusively in the Far East. Berry size 28-30mm Barlinka Dauphine Harvesting from week 10 to 14. This year we have a very light Barlinka crop. The Barlinka has also developed a good dark colour and is very healthy without waste. Dauphine Barlinka Currently our largest variety and we are busy replacing this with green, red and black seedless varieties. Harvesting from week 10 to to 14 days earlier than during the 2008 harvest. The relative absence of windy weather has preserved the appearance of this variety exceptionally well this year. Due to current high temperatures this variety has developed good sugar levels this season. This concludes our second newsletter. We plan to circulate newsletters monthly for the rest of the harvest. Themes for our subsequent newsletters: Early April: What is new on the horizon at Mooigezicht. A preview of the exciting current and upcoming new cultivars that will be available to our receivers in the next season and beyond. Corporate Social Responsibility at Mooigezicht. Kind Regards, Francois Rossouw Mooigezicht Estates francois@mooigezicht.co.za Tel: Mobile: This newsletter was compiled with input from Mooigezicht directors and management and we would like to thank them for their contributions.

6 MOOIGEZICHT ESTATES 2009 GRAPE CALENDAR weeks Varieties Prime Seedless Flame Seedless Alpha Red Evening Pearl Midnight Beauty Sugra13 Sugraone Victoria Thompson Seeldess Regal Seedless Alphonse Lavalleé Autumn Royal Sunred Seedless Crimson Seedless Moonballs Waltham Cross La Rochelle Scarlotta Sugra19 Sundance Seedless Red Globe Ebony Star Bonheur Barlinka Dauphine South Africa Mooigezicht Estate