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GLOBAL STRATEGY Bunge's global strategy consists of four parts.

In 2006 we opened a new soybean crushing plant in the port of Bilbao, Spain, which replaced a less efficient inland facility. The plant's compact design allows for lower production costs. A joint venture biodiesel plant will be built on the same site. We also opened a new oil packaging facility in Fort Worth, Texas, and began construction of an oil refinery in Hamilton, Ontario. In 2007 we will build a wheat mill in northeastern Brazil to improve efficiency there. Over the past several years we have done significant work in building our network of port logistics. We have opened ports or secured exclusive volume agreements in Argentina, Brazil, Spain, Latvia, Russia, Ukraine and Vietnam that help us serve important markets for our products.

Of course, efficiency is about more than having good assets. It requires steady improvement in processes. During 2006 we made progress on our LeanSigma program. We ran over 160 kaizen events during the year, which produced millions of dollars in cost savings and potential margin enhancements, as well as hundreds of safety improvements. We also launched specific efforts to improve our energy use, global procurement and utilization of capacity and human resources.

Improving the food and agribusiness production chain also means creating relevant products and services. Customer focus has been part of Bunge's strategy for many years, and in 2006 we offered solutions for both commercial customers and consumers. Two examples speak to this.

It is hard to live or travel in North America without hearing about trans fatty acids (TFAs). Limited bans in some cities and a growing trend by restaurants and food processors to reduce the quantity of TFAs in their products have created demand for replacement oils. Bunge has been there with a portfolio of innovative solutions. Today we offer low-linolenic soybean oil developed in partnership with DuPont, high-oleic canola oil and a line of patented reduced-TFA products that are helping restaurant chains and food processors meet consumers' desire for alternatives. More solutions are in the pipeline.

In Romania, where iodine deficiency is a public health problem, we found a market solution to a social need. Lack of iodine endangers expectant mothers and their unborn children, impairs childhood development and is the single greatest cause of preventable mental retardation. Our business innovation team in Romania wondered if vegetable oil, a product with 98 percent household penetration in the country, could be a potential solution for increasing iodine consumption. They posed this question to our research and development scientists in Budapest, Hungary, who responded with a new vegetable oil, Floriol Iod Protect^TM, which is fortified with iodine. The product, launched in late 2006, is a great example of how Bunge is working to meet the needs of its customers-in this case, the people of Romania.

The fourth part of our strategy is a focus on our unique operating model. Our model is based on integrated but decentralized operations and a strong culture built on shared values.

Maintaining integrated but decentralized operations means striking a balance between the efficiency of a global entity and the speed of a local business, between the value of a world perspective and the insights and customer relationships born of local knowledge.

Integration is key. It improves the basic efficiency of our operations and enables Bunge to capture value wherever it appears on the food and agribusiness production chain. In any year, some regions or product lines have greater opportunity for profit than others. This movement is normal. Being at every stage of the chain and around the world ensures Bunge is present where and when opportunity arises. At the same time, the ability to move products through our own production chain-from elevator to plant to refinery to packaging facility-with dedicated logistics and shared information, means we can reduce the cost per ton of the products we make.

Integration of information and decision making is also important, especially in agribusiness, which is a truly global market. That is why we manage our agribusiness operations via a centralized team of risk, capacity and logistics managers, partnered with local teams in our major markets. We believe that this structure enables us to interpret a global market with global vision, navigate through volatility and provide customers with a single point of supply.

In a dynamic market, those who recognize change can best position themselves to benefit from it. Decentralization enables us to stay responsive and agile. However, decentralization can also strain coordination. That is why, at Bunge, we place such great emphasis on our purpose-to enhance lives by improving the food and agribusiness production chain-and our core values of openness, trust and teamwork. Our purpose ensures we are aligned in a common direction; our values ensure the communication and trust necessary for a network of businesses to operate with latitude while contributing to the same end.

An important way we promote our values and ensure strategic alignment is through our People Development initiative. In 2006 we launched the Executive Development Program (EDP), which promotes greater integration and teamwork by bringing together small teams of senior executives from different functions, geographies and businesses for intensive programs at Washington University in St. Louis. The EDP complements the Management Development Program, designed for new managers, and the Leadership Development Program, created for high-potential employees.

One of Bunge's core values is to further the well-being of our stakeholders and the communities in which we operate. Following our purpose of improving the food and agribusiness production chain ensures that we live up to this value. Connecting the chain to a greater number of regions and communities means that more people have access to the global markets that drive economic growth. Making the chain more efficient means that affordable food is available to more people.

Improving the chain also means ensuring that its potential impact on the environment is mitigated. Bunge continues to work with Conservation International and Brazilian farmers to promote biodiversity in the Cerrado region of that country. To date, farms representing over 250,000 hectares of land are participating in the partnership.

Recently, considerable attention has been given to the effects of agricultural expansion in Brazil on valuable ecosystems, including the Amazon biome. Today we are part of a working group, which includes environmental organizations and industry participants. By collaborating to promote best practices, this group will help ensure a better way forward for agriculture and environmental preservation in the country. There is work to do, but I am hopeful that it will produce meaningful results.

Looking ahead, we see great opportunity. Our markets are growing. Our industry is vibrant. Bunge's position is strong.

We appreciate the trust you, as shareholders, have placed in the management and employees of Bunge. You have our commitment that we will work hard to build our business and create additional value.

Regards,

Alberto Weisser
Chairman and Chief Executive Officer
Bunge Limited

March 15, 2007

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