Profile: Bunge Ltd (BGEPF.PK)
10 Mar 2014
Bunge Limited, incorporated on May 18, 1995, is a holding company, and its operations are conducted through its subsidiaries. The Company is a global agribusiness and food company with integrated operations that stretch from the farm fields to consumer foods. The Company conducts its operations in four divisions: agribusiness, sugar and bioenergy, food and ingredients and fertilizer. These divisions include five segments: agribusiness, sugar and bioenergy, edible oil products, milling products and fertilizer. In November 2012, it acquired a margarine plant in Poland in its edible oils products segment. In July 2012, the Company acquired a 55% interest in a newly formed oilseed processing and biodiesel joint venture in Eastern Europe. In May 2012, the Company acquired an additional 63.5% interest in a wheat mill and bakery dry mix operation in North America in its milling products segment. In March 2012, the Company completed the acquisition of Climate Change Capital Group Limited (CCC). In August 2013, Yara International ASA closed its acquisition of Bunge Ltd's fertilizer business in Brazil.
The Company's agribusiness segment is an integrated, global business principally involved in the purchase, storage, transport, processing and sale of agricultural commodities and commodity products. The principal agricultural commodities that the Company handles in this segment are oilseeds and grains, primarily soybeans, rapeseed or canola, sunflower seed, wheat and corn. The Company processes oilseeds into vegetable oils and protein meals, principally for the food, animal feed and biodiesel industries through a global network of facilities. The Company also participates in the biodiesel industry, generally as a minority investor in biodiesel producers, primarily in Europe and Argentina. In connection with these biodiesel investments, the Company seeks to negotiate arrangements to supply the vegetable oils used as raw materials in the biodiesel production process. In addition, the Company sells oil products for various non-food uses, including industrial applications and the production of biodiesel. The Company provides financing services to farmers from whom the Company purchases soybeans and other agricultural commodities through prepaid commodity purchases contracts and advances. These financing arrangements are generally intended to be short-term in nature and are typically secured by the farmer's crop. The Company also participates in financial activities, such as trade structured finance, which leverages its international trade flows, providing risk management services to customers by helping them manage exposure to agricultural commodity prices and other risks and developing private investment vehicles to invest in businesses or assets generally complementary to its commodities operations. The Company's agribusiness operations and assets are primarily located in North and South America, Europe and Asia, and the Company has merchandising and distribution offices throughout the world.
Sugar and Bioenergy
The Company's sugar and bioenergy segment produces and sells sugar and ethanol derived from sugarcane, as well as energy derived from their production process, through the Company's operations in Brazil. The Company is an integrated producer of sugar and ethanol in Brazil, and a global trader and merchandiser of sugar. The Company wholly own or have controlling interests in eight sugarcane mills in Brazil. As of December 31, 2012, the Company's mills had a total crushing capacity of approximately 21 million metric tons of sugarcane per year. Additionally, through cogeneration facilities at the Company's sugarcane mills, the Company produces electricity from the burning of sugarcane bagasse in boilers, which enables its mills to meet their energy requirements and, for mills, sell surplus electricity to the local grid or other third-party users of electricity. The Company's trading and merchandising activities are managed through the Company's London office, which also oversees its regional marketing offices in other locations and manages sugar price risk for its business. The Company also has a small presence in the United States corn-based ethanol industry, where the Company has minority investments in two ethanol production facilities. The Company produces ethanol, sugar and electricity. The Company produces two types of sugar: very high polarity (VHP) raw sugar and white crystal sugars. The Company produces and sells two types of ethanol: hydrous and anhydrous. As of December 31, 2012, its sugar production capacity was 5,750 metric tons per day, ethanol production capacity was 6,300 cubic meters per day and the Company's total installed cogeneration capacity was approximately 214 megawatts, with 59 megawatts available for resale to third parties after supplying its mills' energy requirements, representing approximately 290,000 megawatt hours of electricity available for resale.
Food and Ingredients
The Company’s edible oil products and milling products segment include businesses that produce and sell edible oils, shortenings, margarines, mayonnaise and milled products, such as wheat flours, corn-based products and rice. The operations and assets of the Company's milling products segment are located in Brazil, the United States and Mexico and the operations and assets of its edible oil products segment are primarily located in North America, Europe, Brazil, China and India. The Company primarily sells its products to three customer types or markets channels: food processors, foodservice companies and retail outlets. The Company's food and ingredients operations consist of two reportable business segments: edible oil products and milling products.
Edible Oil Products
The Company’s edible oil products include packaged and bulk oils, shortenings, margarines, mayonnaise and other products derived from the vegetable oil refining process. The Company primarily uses soybean, sunflower and rapeseed or canola oil that the Company produces in its oilseed processing operations as raw materials in this business. The Company has edible oil refining and packaging facilities in North America, South America, Europe and Asia. The Company markets its edible oil products under various brand names, depending on the region, and in several regions the Company also sells packaged edible oil products to grocery store chains for sale under its private labels. In Brazil, the Company's retail brands include Soya, a packaged vegetable oil brand, as well as Primor and Salada. The Company is also a player in the Brazilian margarine market with its brands Delicia, Soya and Primor, as well as in mayonnaise with its Primor, Soya and Salada brands. The Company's brand, Bunge Pro, is a foodservice shortening brand in Brazil. The Company also produces processed tomato and other staple food products, including sauces, pastes, condiments and seasonings in Brazil under established brand names, including Etti.
In the United States and Canada, Nutra-Clear NT Ultra, a high oleic canola oil, has become the Company's brand by delivering trans fat free and low saturate frying solutions for many foodservice and food processor customers. The Company’s Pour'n Fry NT Ultra, is an oleic soybean oil, expanding its offerings of stable, trans fat free edible oil solutions. The Company also produces margarines and buttery spreads, including its brand Country Premium, for foodservice, food processor and retail private label customers. In Europe, the Company produces consumer packaged vegetable oils, which are sold in various geographies under brand names, including Venusz, Floriol, Kujawski, Olek, Unisol, Ideal, Oleina, Maslenitsa, Oliwier and Rozumnitsa and in margarines, including Smakowita, Maslo Rosline, Manuel, Masmix, Deli Reform, Keiju, Evesol, Linco, Gottgott, Suvela and Holland Premium. In Asia, the Company's primary edible oil product brands include Dalda, Chambal, MasterlineGinni, Merrigold, Merrilite, Gagan and Amrit in India and Douweijia brand soybean oil in China.
The Company’s milling segment activities include the production and sale of a variety of wheat flours and bakery mixes in Brazil and Mexico and corn-based products derived from the corn dry milling process, as well as rice milling in North America. The Company's brands in Brazil include Suprema, Soberana, Primor and Predileta wheat flours and Gradina, Bentamix and Pre-Mescla bakery premixes. The Company's corn milling products consist primarily of dry-milled corn meals, flours and grits (including flaking and brewer's grits), as well as soy-fortified corn meal, corn-soy blend and other similar products. The Company mills and sells bulk and packaged rices in the United States and also sell branded rice in Brazil under the Primor brand. The Company's brands in Mexico include Espiga, Esponja, Francesera, Chulita, Galletera and Pastelera.
The Company is a blender and distributor of crop fertilizers to farmers in South America, producing and marketing a range of solid and liquid NPK fertilizer formulations. NPK refers to nitrogen (N), phosphate (P) and potash (K), the main components of chemical fertilizers. In Brazil, the Company blends and distributes NPK fertilizers. In Argentina, the Company produces , blends and distributes NPK fertilizers, including phosphate-based liquid and solid nitrogen fertilizers. The Company manages certain Brazilian port facilities and provides services relating to the loading and unloading of various products, primarily fertilizers. The Company also has a 50% interest in a joint venture with Office Cherifien des Phosphates (OCP), to produce fertilizer products in Morocco. The Company produces , blend and distributes a variety of NPK formulations. These NPK fertilizers are used for the cultivation of a variety of crops, including soybeans, corn, sugarcane, cotton, wheat and coffee. In Brazil, the Company markets its retail fertilizers under the IAP, Manah, Ouro Verde and Serrana brands. In Argentina, the Company markets fertilizers under the Bunge brand, as well as the Solmix brand. Also in Argentina, the Company produces single superphosphate (SSP), as well as ammonia, urea and liquid fertilizers. During the year ended December 31, 2012, the Company sold its interest in a joint venture with GROWMARK, Inc.
The Company competes with The Archer Daniels Midland Co. (ADM), Cargill Incorporated (Cargill), Louis Dreyfus Group, Glencore International PLC, Wilmar International Limited, Noble Group Limited, Olam International, Cosan Limited, Sao Martinho S.A., LDC-SEV Bioenergia, ED&F Man, British Sugar PLC, Sudzucker AG, Cargill, Tereos Group, Sucden Group, Noble Group Limited, Associated British Foods Plc, Stratas Foods, Unilever, Ventura Foods LLC, Brasil Foods S.A, Didion Milling Company, SEMO Milling, LLC, Life Line Foods, LLC, Farmers Rice Cooperative, Grupo Elizondo, Molinera de Mexico, Heringer, Fertipar, The Mosaic Company, Yara International, Profertil S.A., Grupo Altex and Grupo Trimex.
50 Main Street
WHITE PLAINS NY 10606