SUGAR & BIOENERGY

Snapshot

Sugar & Bioenergy is Bunge's newest business segment. Our goal is to be a world leader, with facilities in key regions producing sugar, renewable fuels and electricity, and a merchandising and trading business serving customers around the world. Growth in this segment has been rapid since we began merchandising and trading sugar in 2006. Since then, we have expanded organically and through acquisitions, including the 2008 purchase of Tate & Lyle's international sugar trading and marketing arm and the 2010 acquisition of Moema, a group of five sugarcane mills clustered on the border between São Paulo and Minas Gerais states in Brazil. Today we have eight mills in Brazil with 21 million metric tons of crushing capacity and the ability to produce a mix of sugar, ethanol and electricity through cogeneration. The choice to build our production footprint in Brazil is an important one, as it is the world's low-cost producer and dominant exporter. Brazil also boasts a large domestic market for ethanol. Our mills are close to the main domestic markets with access to export logistics systems. Several mills have cogeneration capacity and can sell electricity into the Brazilian power grid. Over time, electricity could generate 15 to 20 percent of cogen-equipped mills' profits, providing both a source of growth and risk mitigation.