"By participating in the construction of Brazil's infrastructure, we aim to contribute to the accessibility of the farmer to the markets. Consequently, we are also participating in the country's social development, by improving the lives of people. If a town develops, Bunge is making its contribution. Infrastructure is what promotes all this improvement in the distribution of income in the countryside."

Murilo Braz Sant'Anna (vice-president of Bunge Brasil's of Agribusiness & Logistics business)

Agribusiness & Logistics 2.1

Bunge’s Agribusiness business is the market leader in this sector in Brazil. It operates in the origination of soybeans, wheat, corn, cottonseed, sorghum and sunflower, in the processing and exportation of these grains, and in the production of products for animal feed. In 2011, the Agribusiness segment traded a total of 18.6 million tons of agricultural commodities.    

Logistics is strategic for the Company, which is active in the exportation of grains and sale of fertilizers to farmers across Brazil. Bunge is one of the largest transporters of cargo in Brazil. Annually, there are around 900,000 trips of trucks, which circulate around the country’s roads transporting the Company’s inputs and products, and  170,000 trips of wagons, 350 trips of barges and 700 scales of ships, transporting grains, vegetable oils, fertilizers and sugar, among others. The Company is also present at the country’s major ports, equipped to receive imported wheat and fertilizers, and to export soybean, sugar, corn and derivatives as well as a variety of other products. To accomplish all this, Bunge maintains a network of silos, warehouses (one of the most extensive structures of grain warehousing facilities in the country), cargo and transshipment terminals, as well as a large fleet of trucks and extensive use of outsourced services.  

The Year

In 2011, this business took advantage of synergy with other business units and boosted the pride of its employees in their work by improving its management model and implementing new technical standards. As a result, there was an increase of gross sales of the business unit, with better results than the previous year. Places such as Querência (MT), Canarana (MT), São Domingos do Azeitão (MA), Porto Alegre do Norte (MT) and many other border regions of the country have inspired a sense of pride to work in the countryside among the business’ employees and technicians. This return to their roots has been the result of improvements in the management model, and the implementation of new and perfected technical standards focused on the market dynamic. The area maintained its contribution to social and economic development, extending its networks of storage, creating new logistical opportunities and bringing farmers closer to their markets.  

Relations with producers were strengthened in 2011. The business became an even stronger partner to farmers and the culture of the countryside and, through the integration with other Bunge divisions, could now offer new solutions especially formatted to the needs of customers and to sustainability. Operating in eight major regions, home to a further 30 mesoregions, this business area always respects the characteristics of each one of them.  Segmentation had finally arrived in the countryside, and is now the business’ big hope for the coming years. It also contributed to the professionalization and technical training of this market. In partnership with producers, it established new standards of productivity, operation, citizenship and of sustainability. Efficiency, profitability and growth were the key elements that the business disseminated among its customers and that were expanded in 2011.

The rural sector represents somewhere between 25 and 28% of Brazil’s GDP. When one thinks of feeding the world or supplying global demand, Brazil plays a key role, and  Bunge takes part in discussions about public policies that can promote sustainable growth in the country’s agribusiness sector. 

Within the next three years, Brazil will become the world’s largest producer of soybeans. In order to participate in this feat, the area has set itself two basic goals: business management on the back of an integrated and competitive company, and a relationship with its major partner, the farmer in the countryside.

Reactivating the Ponta Grossa Unit

One of the most traditional industrial plants of Ponta Grossa (PR), Paraná state's agricultural center, was reactivated in February of 2011 by Bunge. The town's soybean industrialization unit, deactivated in 2009, began operating again in order to meet the positive outlook for the agribusiness market, especially in this state, the country's second largest soybean producer.

This unit, an important part of the town’s history, has been around since 1973, and for many years was the Company’s largest operating unit anywhere in the world. Of the 80 professionals hired to work there, 75% were former employees, which is evidence of the satisfaction that is clearly felt in working for Bunge. The Company also has a fertilizer and a wheat unit in the town, which makes it the only place in Brazil that is home to three of Bunge Brasil’s business ventures.

With the reactivation of this unit, the Agribusiness & Logistics area was once more operating in the state, one abundant in soybeans and with a high level of international demand, a fact that would gain considerable weight in its exports. This reactivation was part of Bunge’s strategy to have a presence in all of the Country’s soybean-producing states.

In 2012, the challenge is to reestablish itself in the market in order to ensure the full reactivation of this unit. The strategy is for a gradual resumption of operations, in a sustainable way.

Investments in Rio Grande

Bunge's Agribusiness & Logistics unit in Rio Grande (RS) state, set up in the 1970s, invested in new technologies in order to increase its competitiveness by means of the modernization of its installations. The project was completed with planning, within the budget, on schedule, with the best possible technology, and without incident.

The result should be gains in productivity, with a reduction in corrective stoppages and in the consumption of thermal and electric energy, as well as gains in performance in the extraction process, among other benefits.

Effects of drought in businesses

The harvest season in 2011 had the effects of the drought during 2010 in areas where Bunge operates field activities. Thus, the climate conditions had negative impact over the sugarcane production.

In grain origination (acquisition) operations, the harvest of the country south region suffered estimated losses of more than 8 million tons of grain, which led to greater dependence on Bunge's operations in the Midwest, trying to balance the recurrent risks.

Synergy with other business units and consolidation of new management model narrows the relationship with the farmer. Bunge Brasil has become even more partner of the rural producer.

2012 Outlook

To gain a leading and sustainable position of leadership in the origination (acquisition) of grains by means of:

  • An efficient risk management;
  • Efficient logistical flow management;
  • Operational excellence;
  • Intense local and global integration;
  • Backing from people with high levels of performance and motivation. 1.2
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Commitment to Brazil. Field to table.
Bunge Brasil's Sustainability Icons
Represent the Social, Environmental and Economic dimensions of the actions and projects of the company in the Country. Learn more about Bunge Brasil Sustainability Platform in
www.bunge.com.br/sustentabilidade.
The Sustainability
Platform is a global
effort to ensure that
business performance
is enhanced on four
main fronts
Sustainable Agriculture Bunge is committed to raise awareness and train farmers to produce in order to reduce environmental impacts and maximize the use of finite natural resources.
The Sustainability
Platform is a global
effort to ensure that
business performance
is enhanced on four
main fronts
Climate Change Climate Change can bring significant impacts to food production worldwide. Therefore, Bunge believes it is a key factor in sustainability analyzes.
The Sustainability
Platform is a global
effort to ensure that
business performance
is enhanced on four
main fronts
Healthy Diets Offering safe and beneficial products to health. Bunge works to identify customer needs and provide the best food ever in the market.
The Sustainability
Platform is a global
effort to ensure that
business performance
is enhanced on four
main fronts
Waste Reduction Development of mechanisms and processes for the reduction of waste in industrial processes and expansion of the rational use of water and other non-renewable resources in the management of operational efficiency.