Letter to Shareholders	page 2/5

A PROVEN STRATEGY
Bunge has long implemented a strategy to maximize the growth potential of our business, enhance efficiency, serve our customers better and leverage our unique operating model. We continue to pursue these ends.

As the company has grown and developed, we have refined our approach. We have launched global initiatives and expanded our vision to include new value chains. Today, we articulate our strategy by dividing it into four components: 1. Strengthen core businesses, 2. Leverage existing positions to enter complementary value chains, 3. Enhance efficiency and customer focus to compete at the highest level, 4. Utilize our decentralized and, at the same, integrated operating model for competitive advantage.

STRENGTHEN CORE BUSINESSES
Bunge has strong positions in each of its core businesses: agribusiness, fertilizer and food products. We are a leader in oilseed processing globally, fertilizer manufacturing in South America and edible oil sales in key markets around the world. We continue to invest in these businesses and to capitalize on the growth potential inherent in each.

Agribusiness
In agribusiness we are expanding our network of oilseed processing and storage assets, which include soybean, rapeseed, canola and sunseed facilities in the Americas, Europe and Asia. In 2007, we purchased a majority interest in a soybean processing plant in the Chinese city of Tianjin, and we continued to enhance facilities in North America. Recently, we announced the planned construction of a new plant in Brazil.

Bunge's grain origination business performed exceptionally well in 2007, and we are committed to becoming a world leader in that value chain. Key steps to achieving this goal will be the growth of origination and logistics operations in North America and Eastern Europe, and the expansion of our global logistics and destination marketing capabilities. 2007 saw Bunge secure the rights to coordinate all agricultural shipments through the Port of Brunswick, Georgia, in the United States. When compared to constructing a large new terminal in Santos, Brazil, which we did over the past several years, the Brunswick arrangement is relatively small, but its size belies its importance. By increasing our capabilities on the East Coast, the agreement will provide another point through which we can supply U.S. exports to the Mediterranean and Latin America.

Fertilizer
Because it is one of the few areas in the world that can accommodate significant agricultural production growth, Brazil is one of the world's most promising fertilizer markets. To serve this growing demand, access to raw material supply is paramount. As a large domestic phosphate producer and vertically integrated company, Bunge is strategically positioned in several ways. First, we have a dedicated and efficient local phosphate supply. Second, because fertilizer prices in Brazil are linked to the prices of international imports, which include the cost of ocean freight, local production allows for stronger margins that improve when international prices increase. Third, our integration allows for efficiency.

We are making progress on a long-term program to expand our local phosphate mining capacity, and we are increasing our raw material supply in other ways. In 2007, we announced a joint venture with Office Cherifien des Phosphates (OCP) in Morocco, which holds one of the world's largest phosphate reserves. The venture will provide a new source of raw materials and intermediate fertilizer products for use in Bunge's businesses and for sale in Latin America. Facilities are under construction now, and we expect the first volumes of phosphoric acid to be produced later this year. As volumes increase, we will begin integrating shipments into our ocean freight logistics network, which should contribute to overall efficiency since we import fertilizer raw materials to Brazil on the same ships that we use to export agricultural products.

Food Products
Bunge's food products strategy calls for extending our presence in packaged oil, margarine and mayonnaise in select markets. Last year we launched a regional packaged oil brand in China. We also acquired consumer vegetable oil brands in Romania and a food service brand in Brazil consisting of margarines, pre-mixes and food additives. In early 2008, we announced an agreement to purchase the assets and brands of Walter Rau, a leading German margarine producer. We also intend to strengthen our positions in Brazilian wheat and U.S. corn dry milling.

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