PROMOTING PRIVATE AGRICULTURAL INVESTMENT AND TRADE FROM THE BLACK SEA TO THE MEDITERRANEAN

Transcription

1 PROMOTING PRIVATE AGRICULTURAL INVESTMENT AND TRADE FROM THE BLACK SEA TO THE MEDITERRANEAN Improving regional trade routes - Morocco, Russia Istanbul, September 13, 2012 Jordi Costa, Bunge EMEA Vice President Agribusiness, Sugar and Bioenergy

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3 A Leading Global Agribusiness & Food Company Key Facts Revenue: $46 Billion Employees: ~32,000 Facilities: ~400 Countries of Operations: 30+ Agribusiness Sugar & Bioenergy Food & Ingredients Fertilizer A global leader in oilseed processing A global leader in grain and oilseed marketing A global leader in oilseed processing 21 mmt sugarcane milling capacity producing sugar, ethanol and electricity Leading producer of oils, margarines & industrial fats in the Americas and Europe Growing oils position in Asia Fertilizer operations in Brazil, Argentina and the U.S. Joint venture with OCP in Morocco #2 in global trade and distribution Leading corn and wheat miller in the Americas 3 Private Sector for Food Security, Istanbul 13 September

4 A Global, Integrated, Coordinated Chain is Essential Agribusiness Chain Food & Ingredients Grain Origination Storing Blending Drying Financing Logistics Rail Truck Barge Port terminal Ocean vessel Basic Processin g Soybean Rapeseed Canola Sunseed Specialty seeds Sales & Distribution Raw material Protein meal Vegetable oil Financial services S C W S B Refining, Value Added & Packaging Edible oils Margarine Mayonnaise Corn, wheat & rice products C Risk Management R S F Value creation shifts along the chain R 5 Private Sector for Food Security, Istanbul 13 September 5

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6 Black Sea will transition to become the critical wheat origin to satisfy demand growth Huge Potential Huge Challenges Wheat Exports Net Exports (MMT) Wheat Demand Net Import Needs (MMT) BSEA wheat exports to reach 40% of global exports by 2025 Region s total grain export surplus is rapidly growing toward sustained >50mmt Slide 22

7 Some challenges & risks Legislative Framework Differences in product quality and product safety Lack of financing tools need for cooperation Sophisticated import and export regimes Governmental Intervention Infrastructure Loading and storage bottlenecks both in origin and destination Port logistics restrictions in draft and gear requirements Others Natural constraints (climate, water) Geopolitical and regional conflicts ( Arab Spring ) 9 Private Sector for Food Security, Istanbul 13 September

8 Some needs and opportunities Politics Stable and predictable political framework as precondition Governmental support measures and international donors (PPPs on infrastructure projects) enable FDI Regional integration to promote free trade (i.e. Union du Maghreb Arabe UMA) Business Strong customer focus and strong relationships with buyers Logistics investment Complex market need for permanent analysis and review Expansion of by-product flows (DDGs & CGFPs) 10 Private Sector for Food Security, Istanbul 13 September

9 Example - Bunge infrastructure projects 11 Private Sector for Food Security, Istanbul 13 September

10 12 Corporate Affairs & Innovation MDP September 2011 Thank you

11 BACK UP SLIDES

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14 Geographical position grain origination 41 % of Global Demand over Source: Bunge Global Research Average Private Sector for Food Security, Istanbul 13 September