World Grain - September 2013 - 37

FEATURE: divergent pathS For Bunge BuSineSS SectorS

outside the oilseeds sector Bunge’s export port terminal in
Nikolayev in the Ukraine (opened in 2010), of which he said,
“It came absolutely at the right time.”
It complements a second Bunge facility 400 miles to the
east in Rostov, Russia.
“This is what we needed to sustain our own flows of exports into Europe and the Middle East and Northern Africa,”
he said. “That is part of our strategy in Eastern Europe, to be
strong in grains for export, strong in oilseeds domestically and
for export, and also to import meal for the meat industry.”
Of Bunge’s EGT export elevator in Longview, Washington,
U.S., the single largest capital investment in Bunge’s history, Weisser said the facility is well-positioned following
start-up difficulties. The project initially was hampered by
a labor dispute with the International Longshoremen’s and
Warehousemen’s Union and then by a short crop in 2012.
“It’s running very well, and we are excited about operating
with the new harvest that is starting now,” he said. “The facility handles a balanced mix of wheat, soybeans and corn, all
for export to Asia.”
Weisser said Bunge also was satisfied with what has happened in its fertilizer business.
“In fertilizer, we changed tactics,” he said. “Although we
were in the business for more than 75 years, we realized that
the industry had changed as large mining companies started
to enter. State-owned companies started going into it. For instance, Saudi Arabia built a massive, modern facility. So we
determined we could not compete with the mining companies.
We are a food and agribusiness company.”
He said he felt fortunate to have found a buyer in Vale
Fertilizantes S.A. looking to expand in the business. The $3.8
billion transaction, which closed in 2010, allowed Bunge to
recapitalize, giving the company “room to do other investments” while also improving its credit rating.
“There was significant value creation because we started
basically with nothing, paid very little for what we bought and
sold it for nearly $4 billion dollars,” he said. “And in these 10
years there was $2 billion dollars in cash flow.”
Asked about the greatest disappointment of his tenure,
Weisser cited Bunge’s attempt to acquire Corn Products
International for $4.4 billion, an effort that ultimately proved
unsuccessful. The stock transaction was undone in the fall of
2008, in part, by a collapse in equity prices. Bunge shares fell
by 64% from May to November — from $119.37 to $42.46.
Bunge has moved on, and has stepped up its presence in the
sugar and bioenergy business with major investments.
“That’s a business that still has to prove itself,” Weisser
said. “I’m confident it will.”
Josh Sosland is editor of Milling & Baking News, sister publication of
World Grain. He can be reached at jsosland@sosland.com.
We want to hear from you — Send comments and inquiries to worldgrain@
sosland.com. For reprints of WG articles, e-mail reprints@sosland.com.

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