Expansion key to Bunge profit targets

05-10-2007 | |

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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