UPDATED NEWS ON SITUATION IN COLOMBIA

The extended third peak of the COVID-19 pandemic registered more than 30,000 daily  cases during the past week. Accumulated deaths have reached 100,000 people as of  today. ICU in most main cities are still at 100% occupancy. Colombia is now the 10th
country in the world with the most COVID deaths.  

The country has returned to normalcy within a noticeable tense environment. Valle del  Cauca and Cali remain with disruptions to the transport system and land transportation.  We continue to see acts of violence within the city perimeter and roads heading to the  south. Buenaventura continued to escalate its operations, now reaching an estimated  60-70% of the normal cargo volume. In recent days, we have received confirmation of  an average 70 trucks unloading coffee per day at the port yard. In Cartagena de  number is around 40 trucks and Santa Marta between 15 and 20 trucks per day. Santa  Marta faced a major delay problem as a result of a sudden 70 truck spot demand, with  not enough warehouse capacity to handle this amount of coffee. The problem has been  solved for the most part, causing several coffee exporters to miss shipping line reservations  in the past week. We had 3 containers affected by this situation. Of the estimated  800,000 – 1 million bags of coffee delayed for export as a result of the strikes and  barricades, we believe that 40% has entered the 3 main port terminals. Thus, another 4- 6 weeks will be necessary to clear up the accumulated lots and catch up to the current  contracts.  

We’ve seen rain volumes intensify in the south, particularly in the Planadas area. This  deteriorates the precarious trails in that part of the country and further complicates the  logistics to move the parchment to Ibague. Nonetheless volumes remain high and no  specific quality problems have been identified related to the increased rainfall. Domestic  coffee prices remained at record highs with Carga parchment prices over $1,400,000  COP throughout the week. This translates to U$ 0.30/lb farmgate price with the COP  returning to $3,750 per 1USD level. We continue to monitor this COP/USD level closely.  

We are now in the final stage of the installation of our microlot selection and packing line  at our Santa Marta Agroeco Mill. We also expect to energize our new solar energy  generation plant at the Mill. The combination of these two will enable us to scale up our  microlot offering, as well as special defect count preparations and packaging. We will  be sharing more information on both of these in the coming days.  

Sincerely, 

Juan Pablo Campos 

Founding Partner 

lohas beans

Head Office: LOHAS BEANS S.A.S. Administrative Office:  Carrera 20 No. 54 – 47, Bodega A19 Carrera 7A # 69-99 Santa Marta, Colombia Bogotá, Colombia  Tel 575 438 0117 Tel 57 310 478 9055  www.lohasbeans.com www.lohasbeans.com