page 1/5

ALBERTO WEISSER Chairman and Chief Executive Officer Bunge Limited

2006 was a challenging year that ended on a positive note. In the first half, Bunge met with some difficulty, but mid-year improvements in key markets and the benefits of operational changes made in late 2005 and early 2006 helped produce strong results in the third and fourth quarters. New and promising trends emerged in our industry during the year, and the underlying forces that drive our markets proceeded ahead. Throughout everything, we continued to enhance our unique operating model and execute our strategy of growth, efficiency and customer focus. Bunge is a stronger company than when I wrote to you one year ago, and I am confident that it has a bright future.

We expected 2006 to be a year of recovery, with a return to more normal conditions in markets that had struggled during 2005. Recovery did come, but later than we had hoped.

Throughout 2006, our North American and the majority of our European operations, as well as our edible oil and milling segments, performed well. In other areas, however, we experienced some setbacks. Weak farm economics in Brazil, caused in part by a stubbornly strong Brazilian real, were challenges in 2005 and persisted for the first part of 2006. Farmers' crop sales and fertilizer purchases were lower than usual and their protests against government aid policies caused additional disruption.

Other challenges included headwinds in ocean freight, low Argentine crushing margins and weakness in Southern Europe. In total, these issues led to a disappointing first half.

By mid-year, things began to turn around. Much of the change in Brazil can be attributed to the efficiency of the global commodity markets. Stronger current and expected demand for agricultural commodities, driven in part by biofuels production, led to higher prices for corn and soybeans. These prices, and additional government assistance, improved farm economics in Brazil. By the end of the year, fertilizer purchases and domestic crushing margins improved. At the same time, Argentine crushing margins rebounded as the industry reduced production volume.

Throughout 2006, we saw the positive effects of decisions to lower costs and improve the structure of our Brazilian operations. The enhancements made in our foreign currency hedging programs produced benefits for our fertilizer business. Closing five oilseed processing plants, idling seven fertilizer facilities and reducing our workforce by roughly 2,000 employees created local cost savings in excess of the $60-80 million forecasted in February 2006. These savings offset the effects of the appreciating real. Decisions that involve layoffs are not taken lightly, but in this case they were necessary.

Demand for our core products remains strong, and higher prices for agricultural commodities should benefit farmers and prompt greater purchases of fertilizer and other crop inputs. Previous restructuring efforts in Brazil will help ensure that our fertilizer and agribusiness operations capitalize on improving conditions in that country. The addition of oilseed processing and milling assets in Europe and the Americas, and a full year of operations at our new grain and fertilizer port terminals in Santos, Brazil, should benefit operating results. So too should additional efficiencies realized through our LeanSigma program, which is entering its third year.

Of course, growth is our central objective, and we believe the future holds great opportunity. In 2007 we will invest nearly $300 million in growth-oriented capital projects.

Since its public listing in 2001, Bunge has experienced great success. We have also overcome some challenges. Today, Bunge is in a strong position. Our balance sheet is solid, and our strategy and approach are working.

We are positioned for growth in a compelling industry, built on the fundamental concepts that a growing world will require more food and will rely on a chain of assets, services and people to provide it.

In the following pages, I hope to provide a sense of why we believe Bunge's industry is compelling and why our strategy will continue to be effective.

TOP OF PAGE

page 1/5