Issuu

IN 1956,

farmers turned a shared

NEED SEVENTY YEARS later, that unity lives on IN EVERYTHING WE ARE. into collective protection.

The publication of this Institutional Report marks the 70th anniversary of the Afubra Mutual Aid System, established on November 5, 1956, following a decision by farmers who saw cooperation as a way to address the losses caused by hail in their tobacco fields. What began as a collective response to a specific need became the foundation of a history built on trust, shared responsibility, and a commitment to farming families. Over the decades, Afubra has expanded its work. Crop protection has been joined by grower representation, encouragement of diversification, the provision of goods, services, and technical assistance, social and environmental education, research, innovation, culture, the creation of opportunities, and a lasting presence in local communities. Today, Afubra brings together members, customers, leaders, employees, partners, students, educators, growers, and families who participate in its various areas of work. This report presents the full scope of that work. Beyond bringing together institutional information, it seeks to show how every area, program, partnership, and person is part of the same journey. Celebrating 70 years of the Mutual Aid System means recognizing the initiative of those farmers and reaffirming a principle that remains as relevant as ever: when people unite around a common purpose, the results reach across generations. The Mutual Aid System grew out of unity. And that same unity gave rise to much of who we are today.

CONTENTS PUBLICATION CREDITS

MESSAGE FROM THE PRESIDENT

CORPORATE GOVERNANCE

BRAZILIAN TOBACCO GROWERS' ASSOCIATION (AFUBRA)

AGRO-COMERCIAL AFUBRA LTDA.

THIS IS WHO WE ARE Mutual Aid System Agro-Comercial Afubra Ltda. Agroforestry Department Verde é Vida Expoagro Afubra

THIS IS ALSO WHO WE ARE Mixed Choir and Men's Choir Representation and Partnerships Historical Collection Our People

WHERE WE ARE

INSTITUTIONAL PUBLICATIONS

Afubra Institutional Report 2026 Edition | Released on November 5, 2026

General coordination: Marcilio Laurindo Drescher Editorial coordination and writing: Luciana Jost Radtke (MTb/RS 13.507) Graphic coordination: Márcio Leal Silveira e Ricardo Senger Michel Graphic production and layout: Cristiano Henrique Schindler Photographs and images: Acervo Afubra e imagens ilustrativas geradas por inteligência artiﬁcial (IA). Printing: LupaGraf Print run: 200 exemplares - Free distribution

Published by the Brazilian Tobacco Growers' Association - Afubra Rua Júlio de Castilhos, 1031 – Centro – 96810-156 Santa Cruz do Sul/RS Phone: (51) 3713-7700 Website: www.afubra.com.br E-mail: afubra@afubra.com.br

17 19 23 25 29 35 37 39 41

© 2026 Brazilian Tobacco Growers' Association - Afubra. All rights reserved. The information, data, and projects presented in this publication reflect the period through October 2026, unless otherwise indicated.

T h e g r ea te s t re ach i evements a . bui lt to g ether

Every initiative, every partnership, and every pers on is part of this story.

A journey shaped by many hands. For us, presenting this Institutional Report is an opportunity to reflect on Afubra's journey, recognize everything that has been built over these decades, and, at the same time, reafﬁrm the commitments that guide us into the future. This publication comes at a very special moment: the celebration of the Afubra Mutual Aid System's 70th anniversary. Established on November 5, 1956, it grew out of farmers coming together, recognizing that facing the risks of farming collectively was the way to provide greater security for farming families. Since then, the principles of cooperation, solidarity, and shared responsibility have remained at the heart of our organization. Over time, Afubra has grown and expanded its work, keeping pace with changes in rural life, the needs of its members and communities, and society's new challenges. While remaining true to its origins, it has become active in several areas, always with the purpose of contributing to the development of farming families, strengthening collective organization, and offering solutions that make a difference in people's lives. None of this would have been possible without the participation of many generations. Members, leaders, board members, employees, partners, customers, and communities have helped build an institution that reaches its 71st anniversary with a history deﬁned by trust, credibility, and close relationships. 7

This is precisely the breadth that this Institutional Report seeks to convey. Beyond bringing together organizational structures, programs, services, and ﬁgures, it shows how different areas connect around a shared purpose. Every initiative, every partnership, and every person is part of this story. Celebrating 70 years of the Mutual Aid System also invites us to look ahead. Challenges change, agriculture evolves, new technologies emerge, and relationships with society are transformed. Afubra must remain prepared for these changes, preserving its principles and continually seeking new ways to support its members, contribute to family farming and agribusiness, and participate in the sustainable development of the regions where it operates. As you read these pages, I invite you to take a closer look at who we are, what we do, and, above all, the people and values that sustain our journey. Because if there is one thing our history has taught us, it is that the greatest achievements are built together.

Marcilio Laurindo Drescher, President

Principles t stand the t hat of time and est guide our choice s.

Mission of the Association Agro-Comercial

Association Vision

Agro-Comercial Vision

To promote the well-being of members, customers, and communities through mutual aid, social and environmental programs, innovative solutions in the sale of goods and services, and sustainable alternatives for family farming and agribusiness.

To be prepared for the future challenges of mutual aid, family farming, and agribusiness.

To be recognized for customer service, a diverse range of goods and services, and competitiveness as the foundation for growth.

Principles

Collective organization Integrity Partnership Quality Respect Simplicity Sustainability

Our story goes far beyond these pages. Discover more about Afubra.

Origins and expansion Afubra was founded on March 21, 1955, in Santa Cruz do Sul/RS, initially under the name Association of Leaf Tobacco Growers in Rio Grande do Sul. Its creation was driven by the need to support growers facing losses in their tobacco fields, particularly from hail, to seek better marketing conditions, and to encourage farm diversification as a way to expand income opportunities and strengthen the sustainability of farming families. Over time, the benefits offered by the organization attracted the interest of growers in Santa Catarina and Paraná. Thus, on July 24, 1963, a general meeting approved expanding operations to the three states of southern Brazil, at which point the organization adopted the name Brazilian Tobacco Growers' Association (Afubra).

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Diversifying also means creating new possibilities.

Agricultural diversiﬁcation Recognizing the risks of monoculture and the importance of expanding income opportunities on farms, Afubra began advising growers to use their land and labor to grow other crops throughout the year as well. With this aim, the Agricultural Development Department was established in 1958, focusing on the sale of seeds and agricultural inputs and, a few years later, on providing free technical guidance through agronomists, a forestry engineer, and agricultural technicians. In 1994, this work gave rise to Agro-Comercial Afubra Ltda.

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Mutual Aid System

ia Agro-Comerc . a td L Afubra

y Agroforestr t n Departme

Verde é Vida

We work on many fronts, connected by the same purpose.

Expoagro Afubra

From small roots grow great stories Afubra is the result of a journey shaped by people, values, and commitments that span generations. Like a small tobacco seedling that sprouts with care, takes root, and grows strong, the institution also had humble beginnings and, over time, grew, expanded its presence, and became a flourishing plant, ﬁrm in its purpose and deeply rooted in rural life. What began with farmers joining together in search of protection and security has

become an institution with a broad scope of work, active in rural development, commerce, education, sustainability, and culture. Every area, program, and initiative represents a part of this history, connected by the purpose of valuing people, strengthening communities, and contributing to a future with more opportunities. Discover the different areas of work that, together, make up Afubra.

unity , s r a e y For 70 otected has pr tories. s people's

Mutual Aid System Established on November 5, 1956, the Mutual Aid System is Afubra's own mutual cooperation program, managed by the association and approved by its members. Implemented that same year, it began providing ﬁnancial assistance to compensate for hail damage to tobacco crops. Afubra's members are farmers who grow tobacco in Rio Grande do Sul, Santa Catarina, and Paraná and enroll their crops in the Mutual Aid System. With more than 90,000 members and 258 employees, the association maintains a strong presence grounded in advocacy for the tobacco production chain, mutual aid, and ongoing support for farmers. In addition to protection against losses caused by hail or by hail and windstorm, the organization also provides assistance to rebuild tobacco-curing barns damaged by ﬁre, lightning, hail, and severe winds when these events occur during the harvest season. Under its regulations, it also provides funeral assistance for enrolled members, spouses, and children, as well as the Member Bonus Program (PBA), which rewards the continued membership of those whose crops have not been

June 29, 1965 - The newspaper Gazeta do Sul reports the presentation of a Cr$100,000 compensation payment to José Gassen's widow, accompanied by her daughter, under the group life insurance established by Afubra. The payment was made by then-president Harry A. Werner, in the presence of Hardy Zart and Luitpold Mueller, representatives of the organization.

affected by hail in certain crop years. Afubra also advocates for the interests of tobacco growers as a whole. In partnership with federations and with the participation of tobacco companies, it conducts research and calculates production costs, contributing to tobacco price negotiations and seeking better returns for growers. Its institutional work also includes initiatives addressing grower health and safety, combating child labor through the Awareness-Raising Series, and ensuring proper waste disposal through the Pesticide Container Collection Program, Click here carried out in partnership with to learn more. SindiTabaco. The organization also participates in Tobacco Growers' Day in all three southern states and, in Rio Grande do Sul, co-organizes the Ofﬁcial Opening of the Tobacco Harvest. 17

nce, e s e r p A local solutions, diversereg ional and ment. p o l e v e d 18

Agro-Comercial Afub ra's 30 physical stores, located throughout southern Br offer more than 40,0 azil, 00 items across 21 categorie s, ra from general merch nging andi housewares, furnitu se, appliances to paints re, and ,m tools, and agricultu achinery, ral supplies.

Agro-Comercial Afubra Ltda. Agro-Comercial Afubra currently has 30 stores in southern Brazil 17 in Rio Grande do Sul, 9 in Santa Catarina, and 4 in Paraná - as well as an online store, a Distribution Center in Santa Cruz do Sul/RS, and a Grain Receiving Facility, an Agricultural Extension Center, and a Research and Development Department, all located in Rio Pardo/RS. With more than 485,000 customers and 1,014 employees, the company maintains a strong, extensive regional presence, expanding access to agricultural inputs, technologies, and solutions for families in rural and urban areas. The network is built on trust and credibility, with stores designed to offer customers comfort, accessibility, and convenience. Its product range includes more than 40,000 items across 21 categories, combining quality, immediate availability, and after-sales support. This structure helps strengthen production chains, create jobs, and stimulate the local economy in the municipalities where Afubra operates. 19

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In renewable energy, Afubra Verde - Solar Energy stands out, with more than 6,709 projects installed in southern Brazil over eight years, preventing 8,922 metric tons of CO2 from entering the atmosphere each year. The initiative reinforces the institution's commitment to the energy transition and to adopting sustainable solutions for growers and consumers. Approximately 75% of the energy consumed by Afubra each year comes from renewable sources. It has 21 solar power systems of its own, covering 83% of Afubra's buildings and helping reduce greenhouse gas emissions.

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8,922 metric tons

of CO2 are kept out of the atmosphere each year through 6,709 solar energy projects installed in southern Brazil and 21 systems owned by Afubra.

In agribusiness, Afubra maintains a structure focused on technical support and operational efficiency. The Grain Receiving Facility in Rio Pardo/RS operates with a focus on speed, safety, and analytical technology, with a storage capacity of 828,000 bags of soybeans, corn, and wheat. Its agricultural division serves 295 municipalities in southern Brazil, supported by more than 180 field specialists who provide more than 36,000 growers with field sales services and technical assistance.

12 mil m² of built area

Innovation and customer relationships are also reflected in business meetings, technical meetings, field days and evening field events, in-store events, and participation in regional trade fairs. In the digital environment, the Afubra Mais app enhances the experience of members and customers by offering services such as loss notifications, quote requests, financial alerts, price quotations, access to e-commerce, and weather forecasts. Click here to download the app from your app store.

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828,000 bags State-of-the-art (corn, soybeans, technology and/or wheat)

pioneering automation in Rio Grande do Sul

e g d le w o n k l a ic n h Tec , e c u d o r p , y f i s r e to div and preserve. 22

Agroforestry Department Since its founding, Afubra has encouraged crop diversification and farm sustainability. Beginning in the 1980s, it started encouraging members to plant forests, initially to supply the firewood used in tobacco curing and, later, also as an alternative source of income for family farms. Today, the Agroforestry Department carries out this work by managing the Agricultural Extension Center (CDA), producing seedlings at the Agroforestry Nursery, holding talks, courses, training sessions, and field days, and establishing demonstration forests and crop plots. It also helps farms comply with environmental requirements, including the Rural Environmental Registry, and supervises curricular internships, primarily for students who are members' children. Working with the network's branches, the department expands access to technical guidance and production alternatives, strengthening rural diversification. Its activities include 23

participation in regional events, meetings, and forums on topics such as biomass for energy, the market for ﬁrewood for tobacco growing, and the restoration of disturbed areas in response to the effects of climate change. This work is complemented by the production and supply of seedlings to different regions, with a range that includes native and nonnative forest species, as well as medicinal, fruit-bearing, ornamental, and forage Click here plants. The department to learn more. also beneﬁts from technical partnerships, particularly with Embrapa, and provides hands-on training for students through curricular internships at the CDA.

Education that mobilizes schools and transforms communities.

Verde é Vida Afubra's social and environmental work began in 1981, with the signing of an agreement with the former Brazilian Institute for Forestry Development (IBDF), leading to environmental education activities, talks, and seedling donations. In 1991, these initiatives were consolidated into Verde é Vida, the organization's social, environmental, and rural education program. Developed in partnership with municipalities, schools, organizations, and companies, Verde é Vida seeks to strengthen education in rural areas and encourage sustainability, diversification, and appreciation for family farming, with schools and their communities serving as focal points for mobilization and social transformation. In education, the program encourages each school to develop projects suited to its own circumstances, providing teaching support and ongoing guidance. Initiatives include Environmental Groups, Scientific Research, Verde é Vida Robotics, School Microenterprises, the Educational Rural Fair, and the School Energy Efficiency Project, which bring together education, science, technology, entrepreneurship, and sustainability.

In its environmental work, Verde é Vida promotes practical action to protect biodiversity and natural resources. Highlights include the Seed Exchange, support for school forest nurseries, forest restoration initiatives, and used cooking oil collection, bringing schools and communities together in awareness-raising activities that deliver concrete results for environmental conservation.

In its social work, the program strengthens community engagement through charitable campaigns, family support initiatives, Joint Action, Cooperative Challenges, and Exchanges, promoting cooperation, student leadership, and the exchange of experiences across different regions. All this work is sustained by ongoing educational support, meetings, visits, training, and outreach activities, such as talks and playful activities with the mascot Afubrinha. As a guiding principle across all its activities, the program has also been aligning its work with the Sustainable Development Goals (SDGs), reinforcing its commitment to education that has a local impact and contributes to addressing broader shared challenges. 27

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munity m o c g n i The farm her to share et comes tog and cultivate e knowledg unities. opport 28

elcomed Expoagro Afubra has w tors over si more than 2 million vi on brings its history. Each editi exhibitors, 0 together more than 54 d information an who share knowledge business. while generating

Expoagro Afubra Established in 2001, Expoagro Afubra was created to encourage crop diversiﬁcation and showcase the potential of the tobacco-growing region. Over time, it has become a lasting platform for sharing alternatives for family farming and connecting growers with technologies and solutions focused on farm sustainability. Held annually, the trade fair features practical demonstrations, machinery and equipment displays, presentations of new cultivars, and technical content focused on agricultural and livestock production.

Its program seeks to meet farmers' needs and bring together trends, knowledge, and concrete opportunities to improve income, productivity, and management. In addition to its technical role, Expoagro Afubra also stands out for attracting visitors, the diversity of its exhibitors, and the business it generates, including support for family-owned agricultural processing businesses. The event strengthens cooperation networks among growers, organizations, partners, and sponsors, expanding access to information and innovation in rural areas. 29

ing Pavilion The Family Farm re than mo brings together from more than 220 businesses t each edition, a s e ti li a ip ic n u 120 m 80 m². in an area of 3,4 30

ledge The Agricultural Know promotes and Innovation Space tion, technology, diversiﬁca g people and leadership by youn eas. and women in rural ar

In sustainability and education for innovation, the trade fair hosts integrated awareness and engagement initiatives, such as the Agricultural Knowledge and Innovation Space, which addresses topics including technological innovation, diversiﬁcation, farm succession, and leadership by young people and women. Afubra also maintains initiatives for responsible waste management during the event. Each edition of Expoagro Afubra brings together more than 500 exhibitors and more than 180,000 visitors, of whom more than 80% are farmers. 31

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We are also thoeries, em connections, m that and people ney. r sustain our jou 32

Far beyond our activities Afubra's history is marked by initiatives and experiences that extend beyond its membership and commercial activities. Over seven decades, the organization has consolidated partnerships, expanded its presence in society, and strengthened cooperation with different sectors and communities, contributing to collective development.

This history also reflects the dedication of generations of employees, dialogue with institutions, and appreciation for a historical heritage built over time. Preserving this legacy means recognizing the events, achievements, and contributions that helped shape Afubra's identity. Through strengthening bonds and enduring stories, the organization connects past, present, and future, reafﬁrming its commitment to society and to the values that guide its work.

Voices that strengthen bonds and preserve culture.

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Mixed Choir and Men's Choir To promote culture through singing, Afubra maintains two vocal groups: the Afubra Choir, a mixed choir founded in 1995, In addition to their cultural role, the groups also contribute and the Men's Choir, founded in 2010. Made up of the to Afubra's social work, participating in community initiatives institution's employees and community members who and special performances at meaningful moments for the participate as volunteers, the groups strengthen bonds, identity, institution and society, bringing messages of unity, welcome, and cultural appreciation. and hope. Throughout their history, both groups have represented the The continuity of this work is sustained by dedication, organization at various events and venues, with a repertoire that regular rehearsals, and a commitment to keeping choral includes sacred songs, German, Italian, and Brazilian folk music, singing a living part of Afubra's relationship with the and selections from Brazilian and international popular music. community.

erships, tn r a p ic g te a Through str gthens dialogue, Afubra stren rural development. and cooperation,

Representation and Partnerships Afubra maintains an ongoing role in representation, coordination, and cooperation, connecting rural and urban communities and strengthening dialogue with different audiences. This presence is reflected in its participation in formal bodies, such as the Sectoral Chamber of the Tobacco Production Chain, linked to the Ministry of Agriculture; the Tobacco Sectoral Chamber, linked to the Rio Grande do Sul State Department of Agriculture; and the International Tobacco Growers' Association (ITGA). Its work also includes ongoing engagement with leaders and public agencies at the national and international levels. This work is strengthened by a broad network of partnerships with industry organizations, membership associations, research and educational institutions, public agencies, and companies. In institutional affairs and representation, Afubra cooperates with organizations such as Farsul, Faesc, Faep, Fetag, Fetaesc, Fetaep, SindiTabaco, AmproTabaco, ITGA, and Abifumo, contributing to dialogue and coordination on issues of strategic importance to the sector and rural communities. In research, assistance, and technology transfer, key partnerships include

Embrapa, including Embrapa Temperate Agriculture, as well as cooperation with Planflora. The organization also participates in human development and rural development initiatives in partnership with institutions such as Emater, Epagri, Cidasc, and the Federal University of Santa Maria, in addition to ongoing programs focused on diversiﬁcation and proper waste disposal. In urban areas, especially through its commercial arm, Afubra expands its participation in initiatives and organizations that drive the local economy, supporting commerce, taking part in community mobilization, and helping strengthen ties with the communities in which it operates. This involvement also includes initiatives related to sports, social interaction, and quality of life. 37

ry Preserving memo e. v li a y it t n e id s p e e k 38

Historical Collection The Historical Collection brings together and preserves materials that document Afubra's history over the decades, strengthening institutional identity, a sense of belonging, and transparency. To ensure the conservation and organization of this heritage, the organization maintains a structured process for identifying, restoring, and cataloging items, with specialized professional support and the involvement of different internal departments. The initiative aims to establish the

Afubra Memorial and, at the same time, make the collection available digitally for research, expanding access to the institution's history. As part of this process, the project is also moving forward collaboratively, encouraging employees to share documents, objects, and records kept in their workplaces. This effort helps enrich the institution's story and ensures that important information and milestones are preserved for future generations.

Our work begins o with the people wh en. make Afubra happ 40

Our People Afubra recognizes that its strength is also built from within, through people management guided by purpose, development, and appreciation for its employees. This commitment is reflected in encouraging professional growth, recognizing individual and collective contributions, and promoting a workplace grounded in respect, ethics, collaboration, and belonging. In the daily work of its units and departments, the organization strengthens a culture of continuous learning and leadership development, with training initiatives and practical experiences that familiarize employees with the work of different departments and the institution's principles. This process is understood as a shared responsibility between leaders and teams, contributing to an environment where people feel prepared, motivated, and appreciated. In health, safety, and well-being, Afubra carries out structured work through CIPA, with ongoing planning and integrated activities across different areas of the organization. Internal communication and digital tools also support team alignment and engagement. The organization maintains a corporate people management portal that brings together features and facilitates access to services and administrative processes, as well as information and development resources, such as Afubra Conecta, which offers news and courses. Complementing its care for people and collaboration among teams, AREA (Afubra Recreational and Sports Association) contributes to social interaction and quality of life by promoting internal initiatives and supporting well-being activities. Charitable campaigns and internal mobilization also reinforce empathy and social responsibility in everyday work. Appreciation for the team is also expressed through recognition of employees' careers and contributions, with service anniversary honors and initiatives that strengthen a sense of belonging. 41

ho w e s o h t o t e s o Cl need us, on thtey, farm, in the ci and online.

@lojas.afubra @lojasafubra @afubra @afubravideos (51) 3713-7750

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A physical and digital presence Afubra extends its reach through a multichannel presence that combines physical infrastructure and digital solutions to serve members, customers, and communities in rural and urban areas. On the commercial side, Agro-Comercial Afubra maintains a network of 30 stores throughout southern Brazil - 17 in Rio Grande do Sul, 9 in Santa Catarina, and 4 in Paraná - supported by a Distribution Center in Santa Cruz do Sul/RS, as well as complementary operations, including the Grain Receiving Facility, the Agricultural Extension Center (CDA), and the Research and Development Department, located in Rio Pardo/RS. Online, Afubra's presence extends to e-commerce, its solar energy platform, 43

and the Afubra Mais app, which brings together features such as shopping, browsing offers, tracking orders and deliveries, making Pix payments, requesting contact with teams and consultants, checking weather forecasts and price quotations, and accessing member services, such as reporting losses. The digital strategy is complemented by activity on social networks, such as Facebook, Instagram, LinkedIn, and YouTube, as well as the use of online marketplaces as an additional channel. In this way, Afubra consolidates an integrated network of contact points designed to make access easier, increase convenience, and strengthen relationships with different audiences.

Knowledge preserved, organized, and shared.

Library: Memory and Knowledge The Library, available on Afubra's website, brings together institutional publications and makes them available to the public, reinforcing transparency and expanding access to the knowledge the organization has produced and accumulated throughout its history. This resource organizes reference materials and helps preserve and share information of institutional, technical, and historical interest.

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Unity started this story. Our commitment to people keeps writing its next chapters.

Seventy-one years ago, farmers chose unity as their response to the challenges of rural life. That decision gave rise to the Mutual Aid System. Around it, Afubra grew, expanded its work, and became part of the lives of thousands of members, customers, employees, partners, and communities. Structures, technologies, and ways of serving people have changed. The commitment to standing by people has remained. Because Afubra is made up of many stories. And every one of them begins with unity.