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1818: Founded in Amsterdam by Johann Peter Bunge 1884 : Bunge y Born established in Argentina by grandson, Ernest Bunge 1905 : Bunge y Born expanded into Brazil 1923 : Bunge North American Grain Corporation founded in New York City to trade raw agricultural commodities

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a brief history
1818: Founded in Amsterdam by Johann Peter Bunge

1884: Bunge y Born established in Argentina by grandson, Ernest Bunge

1905: Bunge y Born expanded into Brazil

1923: Bunge North American Grain Corporation founded in New York City to trade raw agricultural commodities

2001: Changed our name to Bunge North America prior to the initial public offering of our parent company, Bunge Limited

2002: Bunge Limited acquired Cereol, which included Central Soya in the United States and CanAmera Foods in Canada

A Brief History
corporate organization
Corporate Organization
  • Bunge Limited
    • Traded on NYSE: BG (IPO: 8/2/2001)
    • Global Headquarters: White Plains, NY
    • 22,000 employees
    • Offices in 32 countries
    • 2005 Net Sales: $24 Billion
vertically integrated
Vertically Integrated
  • World’s leading oilseed processor and seller of bottled oils
  • Leading miller of wheat in South America and corn in North America
  • South America’s leading fertilizer producer
bunge north america
Bunge North America

Bunge North America, Inc., is the North American operating arm of Bunge Limited (NYSE: BG),with facilities in the U.S., Canada and Mexico.

waterways the u s economy
Waterways & the U.S. Economy
  • One in every four acres of U.S. ag production is exported – worth over $60 billion a year.
  • In 2005, the U.S. exported over 111 million metric tons of grain and oilseed products valued at over $20 billion.
  • Close to 60 percent of that moves through New Orleans to the Gulf.
  • Our best natural comparative advantage in ag trade –

the Mississippi River and its tributaries!

waterways the u s economy1
Waterways & the U.S. Economy
  • The New Orleans Customs District handled $32.4 billion of U.S. exports and $97.3 billion in imports in 2005.
  • The largest agricultural exports by value passing through these ports were:
    • $3.3 billion of soybeans (52 percent of total soybean exports)
    • $2.8 billion of corn (58 percent of total corn exports)
    • $784 million of wheat (18 percent of total wheat exports)
factors impacting barge freight
Factors Impacting Barge Freight
  • Strong demand for both traditional southbound and increased northbound barge traffic
    • 2003 to 2004: inbound tonnage through New Orleans increased by more than 42 percent.
    • 2004 to 2005: increased by more than 23 percent.
    • New demand for northbound movements to interior locations lengthens turn-around times and barge availability for southbound movements of agricultural commodities.
    • Significant increases in major commodity imports such as crude petroleum and petroleum products; chemicals; sand, gravel and stone; primary manufacturing goods and manufacturing equipment.
factors impacting barge freight1
Factors Impacting Barge Freight
  • Reduction in the number of barges in the river fleet
    • 2005 covered hopper barge fleet at 11,300 barges.
    • 2 percent less than the number of barges available in 2004; 8.9 percent less than 1998.
  • Low water levels
    • Naturally occurring
    • Lack of routine, federal maintenance
factors impacting barge freight2
Factors Impacting Barge Freight
  • Rail & truck transportation often not viable.
    • Rail shipping is already at full capacity.
    • Labor shortage of certified truck drivers.

Shipping by barge remains the lowest cost and most overall efficient method of transporting agricultural commodities to export!

global competitiveness
Global Competitiveness
  • Value of public infrastructure investments
    • Foresight of previous generations paying dividends today
  • Federal government’s role
    • Multi-state implications
    • Legal liability for private investors
    • Absolute neutrality benefits all sectors
global competitiveness1
Global Competitiveness
  • Freight cost advantage of our waterways system
    • Many international competitors maintain an overall lower cost of production in commodities such as corn and soybeans. The U.S. makes up the difference through efficient handling and shipping.
    • Deterioration of our river system and investments in foreign transportation infrastructure has diminished the U.S. freight advantage over global competitors such as Brazil.
    • Investments in public infrastructure are key to maintaining U.S. competitiveness.
    • We must renew our commitment to maintaining the entire waterways system.
origination destination low use waterways
Origination & Destination - “Low-Use” Waterways
  • Tributary waterways are a vital transportation system linking agricultural production to the Mississippi River system and export markets beyond.
  • 65 percent of commerce moving on the Mississippi River stems from tributary waterways.
  • Fewer miles = fewer ton-miles
  • Tributaries are part of a waterways system.
    • Nearly 99% of tributary ton-miles derived from traffic moving to or from an origin or destination on another waterway.
    • Without access to terminals on that tributary waterway, the entire movement and total ton-miles would not occur.
the funding crisis
The Funding Crisis
  • Tributaries and other “low-use” waterways have been targeted for budget savings over the years.
    • The President’s FY ‘04, ‘05, ‘06 & ’07 Budgets completely eliminate funds for Mississippi River tributaries & ports – setting a 1 million ton/1 billion ton-mile threshold.
  • Consequently, the bases of these channels are rising and their navigability is at risk.
impact on agriculture
Impact on Agriculture
  • Aging infrastructure and deferred maintenance created by insufficient investment levels will result in
    • degraded system performance
    • safety concerns
    • increased delays
    • higher transportation costs
    • negative impacts on GDP and employment
impact on agriculture1
Impact on Agriculture
  • Inability to load barges to full capacity because shallow depths limit navigation.
  • Direct correspondence to commodity “basis” deterioration
    • Loss of barge freight = 10¢ to 25¢per bushel lost revenue

500 acres of corn planted = avg trendline yield of 150 bushels/acre

150 bushels/acre = 75,000 bushels of corn

Loss of barge transportation = $7,500 to $18,750 lost revenue

the road ahead
The Road Ahead
  • Integrate tributaries & shallow ports into larger campaign to maintain the system.
  • National Association of Manufacturers (NAM) Coalition
  • Waterways inclusion in intermodal transportation system
  • Bridge gap between authorization commitments and appropriations
    • WRDA final action
    • Operations & Maintenance appropriations