News 151 views last update:6 Aug 2012

Expansion key to Bunge profit targets

Agro giant Bunge Ltd. has a simple strategy: Expand far and fast and be dominant.

"We want to be involved in as many product lines as we possibly can across as many geographies as we possibly can," Tim Gallagher, head of the company's North America operations told investors at Citigroup "Ethanol on the Cob" biofuels conference.
Global demand for Bunge's core products -  soybean meal and vegetable oil - has grown steadily since the early 1990s, averaging about 5% each year.

In opinion of the stock exchange experts, the Bunge share is an enrichment for a broadly diversified depot. Already one year ago the experts would have recommended the title. Bunge is world's largest producer and dealer of soy products.
The need for soy grows continuously, since the demand for the raw material in animal feed is continuously increasing and the demand for meat is also increasing.

Besides that, soy for feed has to compete with soy for the production of bio-diese.

Recently Bunge took over Agro-Industrial Santa Juliana, in order to strengthen its position in bioethanol production. In a few years time, the company wants to be a top ten player within the ethanol business as well.

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