Bunge positioned well for investment opportunities

BOSTON — Bunge Ltd. plans to “let the numbers drive us” on the subject of future funding alternatives, mentioned Gregory A. Heckman, chief government officer.

Presenting on the Barclays Shopper Staples Convention in Boston on Sept. 7, Mr. Heckman mentioned Bunge’s broad portfolio opens the door for the St. Louis-based firm to take a calculated strategy to potential joint ventures, acquisitions or different funding alternatives.

“That’s the great thing about having all of those areas to determine,” he defined. “We don’t have to succeed in for a challenge. We don’t should take dangers that don’t make sense versus the return. So little doubt on origination, it continues to be crucial to have the ability to serve our origination buyer and serve our main international crushing asset base.

“So how can we improve on our relevance to the shopper? How can we proceed to guard and construct on our strongest franchises? And the way can we fill in a few of our weaknesses? We’ll proceed to give attention to that because it turns into accessible. In fact, that will likely be on the oilseed crushing facet as properly and our distribution capabilities globally. So if you consider our origination distribution, not solely serves our property, however it serves a few of our third-party prospects.”

On the value-added facet, Mr. Heckman mentioned he expects Bunge to proceed to develop its specialty fat and oils and lipids enterprise, areas he believes have the potential to not solely develop organically however by way of bolt-on acquisitions.

“We love that enterprise,” Mr. Heckman mentioned. “It advantages from a few of the traits, not solely from the snacking traits, however the traits round plant proteins, which we predict is in place and can proceed to develop.”

He added that the corporate’s prospects want to see Bunge develop its plant protein enterprise. As a commodity provider, Bunge will develop its plant proteins enterprise organically over time, however Mr. Heckman mentioned he’d nonetheless prefer to see the corporate proceed to “worth up” in that class transferring ahead.

Power is one other side of Bunge’s enterprise that is still ripe for funding, Mr. Heckman mentioned. Final yr Bunge partnered with Chevron Corp. on a 50/50 three way partnership to assist meet demand for renewable fuels and to develop decrease carbon depth feedstocks.

“I really like Chevron as a companion,” he mentioned. “They’re incredible. We are actually — we’re true 50/50 companions. This isn’t a provide relationship. So we’re wanting end-to-end, from the farmer to once we flip it into the veg oil, from after they take the veg oil, and what which means all the best way out to the retail buyer. And in order we discuss completely different feedstocks and completely different blends and the way that works of their amenities versus what we will do in our amenities, we’re fixing collectively and actually enthusiastic about a few of the worth that we’re going to have the ability to create.”

Mr. Heckman mentioned Bunge will proceed to speak to different vitality firms world wide about potential alternatives.

“I don’t assume that is the very last thing you’ll hear us do,” he mentioned.

Mr. Heckman did level to a few areas the place he doesn’t count on Bunge to make a transfer. First, don’t search for Bunge to enter the retail shelf or promote on to the patron.

“We don’t wish to compete with our prospects,” he mentioned. “We wish to be a provider to these meals producers that promote to the retail. That’s the place we predict our candy spot is.”

Second, he doesn’t envision Bunge turning into a renewable diesel producer.

“We wish to be a feedstock to that trade and cease it there, and that’s actually type of what we’ve got with Chevron and we’ll with others as properly,” he mentioned.


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