TRUCK DRIVERS STRIKE IN BRAZIL.

Dear Customers and Partners,

Since May 21st the national union of the autonomous truck drivers of Brazil represented by 700 K drivers started a strike for indeterminate period affecting transit and operation in the main roads, ports and borders of country.

The reason of strike is to protest against the price of diesel oil and the exemption of the toll cost for suspended axis on the federal and state highways.

Today truck drivers in Brazil have entered their ninth day of strike, blocking major highways in at least 24 states, including the Federal District. The move comes despite Petrobras, the state-owned oil company, temporarily cutting diesel prices by 10 percent on Wednesday in an attempt to curb the protests.

The stoppage, the result of increased fuel costs, (over 56 percent since July) has caused widespread deficiencies in the distribution of petrol, food and other items and services.

Besides the above mentioned, we would like to inform that due to the truckers strike the main Brazilian ports, full and empty container operations is affected, causing trouble in our loading and discharging schedules. Strikers have blocked the truck driving on highways and local roads to depots, warehouses and port terminals.

The suspension of the slaughtering and industrialization operation became inevitable due to the effects of the striking movement that makes it impossible to pass trucks with the necessary inputs to supply the industries.

At least 120 of the 180 slaughterhouse throughout the country are paralyzed including our business partners, Alegra Foods, Aurora, Lar, Pif Paf and others.

Everything related to our day-to-day tasks are on halt, logistics services and storage including container hauling and devanning, cargo loading and unloading, couriers, production and so on.

Because of that, we will have some delays in our shipments.

We make a special appeal to the competent authorities and governments, so that together with representatives of the transport sector, they dialogue and reach a solution to finally the strike, which at a time of extreme difficulty that the sector is going through this year will have consequences that are difficult to repair in the short term.

Therefore, should you need any further details, or in case of any doubts please contact our customer service team to get information about the respective orders and operations.

Warm Regards,

LP Export DMCC