Profile: Bunge Ltd (BGEPF.PK)
5 Aug 2016
Bunge Limited, incorporated on May 18, 1995, is an agribusiness and food company with integrated operations that stretch from the farm field to consumer foods. The Company is an oilseed processor and producer of vegetable oils and protein meals; grain processor; seller of packaged vegetable oils across the world; producer and seller of wheat flours and bakery mixes, dry milled corn products and milled rice products, and producer of sugar and ethanol in Brazil, and global trader and merchandiser of sugar. The Company operates through five segments: Agribusiness, Edible Oil Products, Milling Products, Sugar and Bioenergy, and Fertilizer.
The Company's Agribusiness segment is an integrated, global business involved in the purchase, storage, transport, processing and sale of agricultural commodities and commodity products. The principal agricultural commodities that the Company handles in agribusiness segment are oilseeds, primarily soybeans, rapeseed, canola and sunflower seed, and grains, primarily wheat and corn. It processes oilseeds into vegetable oils and protein meals, principally for the food, animal feed and biodiesel industries, through a global network of facilities. The purchasers of its oilseeds, grains and oilseed meal are animal feed manufacturers, livestock producers, wheat and corn millers and other oilseed processors. The principal purchasers of the unrefined vegetable oils produced in this segment are its own Food and Ingredients businesses and third-party edible oil processing companies. In addition, the Company sells oil products for various non-food uses, including industrial applications and the production of biodiesel.
The Company offers various financial services, principally trade structured finance and financial risk management services for customers and other third parties. Its financial risk management services include structuring and marketing over-the-counter (OTC) risk management products to enable agricultural producers and end users of commodities to manage their commodity price risk exposures. Through its Financial Services Group, it also engages in trading of foreign exchange and other financial instruments. In addition, in Brazil, it provides financing services to farmers from whom it purchases soybeans and other agricultural commodities. It also has interests in biodiesel producers in Europe and South America. Additionally, it operates three animal feed mills in China.
The Company competes with The Archer Daniels Midland Co., Cargill Incorporated, Louis Dreyfus Group, Glencore International PLC, Wilmar International Limited, and China National Cereals and Oils and Foodstuffs Corporation Limited.
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, rapeseed and canola oil that it produces in its Agribusiness segment oilseed processing operations as raw materials in this business. It has edible oil refining and packaging facilities in North America, South America, Europe and Asia-Pacific.
In Brazil, its retail edible oil brands include Soya, the packaged vegetable oil brand, as well as Primor and Salada. It is also engaged in the Brazilian margarine market with its brands Delicia and Primor, as well as in mayonnaise with its Soya, Primor and Salada brands. The Company is a supplier to the food processor market. It also produces processed tomato and other staple food products, including sauces, condiments and seasonings in Brazil under various brand names. In the United States and Canada, its products include Nutra-Clear NT Ultra, a high oleic canola oil that is trans-fat free and low in saturated fats and Pro-Formance NT, a high oleic soybean oil. It also offers expeller pressed and physically refined oils to food service customers under the brand Whole Harvest, and also produces margarines and buttery spreads, including its brand Country Premium, for food service, food processor and retail private label customers.
In Europe, the Company is engaged in consumer packaged vegetable oils, which are sold in various geographies under brand names, including Venusz, Floriol, Kujawski, Olek, Unisol, Ideal, Oleina, Maslenitsa, Oliwier, Salat and Rozumnitsa, and in margarines, including its brand names Smakowita, Maslo Rosline, Masmix, Optima, Deli Reform, Keiju, Evesol, Linco, Gottgott, Suvela and Finuu. In addition, it offers cold pressed oils, and spice and herb enhanced products under its Deli Reform brand. In India, its brands include Dalda, Ginni and Chambal in edible oils; Dalda and Gagan in vanaspati, and Masterline in bakery fats. In China, its edible oil brand is Dou Wei Jia. Its customers include baked goods companies, snack food producers, restaurant chains, food service distributors and other food manufacturers.
The Company competes with The Archer Daniels Midland Co., Cargill Incorporated, Stratas Foods LLC, Unilever NV/PLC, Ventura Foods LLC, Imcopa, BRF S.A. and JBS S.A.
The Company's milling products segment activities the production and sale of a range of wheat flours and bakery mixes in Brazil and Mexico, corn-based products in the United States and Mexico derived from the corn dry milling process and milled rice products in the United States and Brazil. Its brands in Brazil include Suprema, Soberana, Primor and Predileta wheat flours and Gradina, and Pre-Mescla bakery premixes. Its wheat flour and bakery mix brands in Mexico include Espiga, Esponja, Francesera, Chulita, Galletera and Pastelera. Its corn milling products consist primarily of dry-milled corn meals, flours and flaking and brewer's grits, as well as soy-fortified corn meal, corn-soy blend and other similar products. As part of its corn portfolio, it also sells whole grain and fiber ingredients. In the United States, it also offers ancient grains, such as quinoa and millet. It also has a range of extruded products that include die cut pellets for the snack food industry. It mills and sells bulk and packaged rice in the United States and also sells branded rice in Brazil under the Primor brand. The customers for its wheat milling products are food processing, bakery and food service companies.
The Company competes with Glencore International PLC, M. Dias Branco, J.Macedo, Moinho Anaconda, Cargill Incorporated, Didion Milling Company, SEMO Milling, LLC, Life Line Foods, LLC, The Archer Daniels Midland Co., Farmers' Rice Cooperative, Grupo Elizondo, Molinera de Mexico and Grupo Trimex.
Sugar and Bioenergy
The Company is a producer and exporter of sugar. The Company owns and operates eight sugarcane mills in Brazil. Its mills have a total crushing capacity of approximately 21 million metric tons of sugarcane per year. In addition, through cogeneration facilities at its sugarcane mills, it produces electricity from the burning of sugarcane bagasse (the fibrous portion of the sugarcane that remains after the extraction of sugarcane juice) in boilers, which enables its mills to meet their energy requirements. It sells surplus electricity to the local grid or other third-party users of electricity. Its trading and merchandising operations engage in marketing and selling sugar through regional marketing offices in various locations and managing the sugar price risk for its business.
The Company produces two types of sugar: very high polarity (VHP) raw sugar and white crystal sugar. Its ethanol production capacity is approximately 6,200 cubic meters per day. The Company produces and markets two types of ethanol: hydrous and anhydrous. Its total installed cogeneration capacity is approximately 322 megawatts, with over 130 megawatts available for resale to third parties after supplying its mills' energy requirements.
The Company competes with Cosan Limited, Sao Martinho S.A., LDC-SEV Bioenergia, ED&F Man, British Sugar PLC, Sudzucker AG, Cargill Incorporated, Tereos Group, Sucden Group and China National Cereals and Oils and Foodstuffs Corporation Limited.
Through the Company's operations in Argentina, it produces, blends and distributes a range of nitrogen, phosphate and potassium (NPK) fertilizers, including phosphate-based liquid and solid nitrogen fertilizers. The Company also has a controlling interest in a single super phosphate production (SSP) plant and a strategically located river port facility in Argentina. In Brazil, it supplies fertilizer to farmers as part of its grain origination activities, and operates a fertilizer terminal in the Port of Santos. The Company offers a fertilizer portfolio, including SSP, ammonia, urea and ammonium thiosulfate that it produces, as well as monoammonium phosphate (MAP), diammonium phosphate, triple supersphosphate, urea, urea ammonium nitrate (UAN), ammonium sulfate and potassium chloride that it purchases from third parties and resell. It markets its products under the Bunge brand, as well as the Solmix brand for liquid fertilizers.
The Company competes with include ASP, YPF, Profertil, Nidera, Yara International and Louis Dreyfus Commodities.
50 Main St Fl 6
WHITE PLAINS NY 10606-1901
Company Web Links
- BRIEF-Bunge to acquire controlling interest in Grupo Minsa's corn milling business
- BRIEF-Andreas Fibig to join Bunge Limited board of directors
- Correction: Fitch Rates Bunge's $700MM Sr. Unsecured Notes 'BBB'
- BRIEF-Bunge Limited announces pricing of senior notes offering
- BRIEF-Bunge Board of directors declares regular quarterly dividend of $0.42/shr