Bunge Limited
Encyclopedia
Bunge Limited is a Bermuda
n food conglomerate
with its headquarters in White Plains, New York
. As well as being a leading global soybean
exporter it is also involved in food processing, grain
trading, and fertilizer
. It competes with Cargill
and Archer Daniels Midland
.
Founded in 1818 by Johann Peter Gotlieb Bunge in Amsterdam
, it was relocated to Antwerp by Edouard Bounge in 1859. Edouard's brother; Ernest Bunge, took the Bunge name to Argentina
in 1884, and in 1905 the business extended to Brazil
and later on to the USA.
in 1818. European immigrants arriving in Argentina in the late 19th century took advantage of the newly created wheatlands. Two families joined forces to play a large role in the grain and oilseed business, initially in Argentina
and then worldwide. The owning families expanded their business into industry in Argentina and Brazil, including textiles, paint, chemicals, fertilizer, banking, and insurance. Throughout the early and mid-20th century they continued to be successful. In 1974, two third-generation family members, Jorge and Juan Born, were kidnapped by the Montoneros
guerrilla group and recovered only after the payment of a $60m ransom.
The families became even more low profile. In 1989, Jorge Born, president of the company from 1987 (replacing Mario Hirsch), began working closely with the government of Carlos Menem
. Bunge provided the government with its first two economy ministers. This intervention in politics upset the other shareholders and together with the company's lacklustre business performance, Born was ousted in 1991 and replaced by Octavio Caraballo.
The prior unity between the shareholders disintegrated as Caraballo struggled to modernize the company. Bizarrely the ousted Jorge Born has started working with one of his former kidnappers, Rodolfo Galimberti.
In 1994, the Bermuda-registered Bunge International was created as the main company in which the families had shares. There were around 180 shareholders—the main families were Hirsch, Bunge, Born, Engels, and De La Tour. This replaced the older structure in which individual shareholders had stakes in all the different Bunge companies. Now only in Argentina does the Bunge y Born name still exist.
In 2001, Bunge went public. Through their three businesses—agribusiness
, fertilizer
, and food products—they have established a leading global presence in the farm-to-consumer food chain. Bunge is the world's largest oilseed processor, the world's number one seller of bottled vegetable oil to consumers and the largest producer and supplier of fertilizers to farmers in South America
.
In 2008, Bunge acquired Walter Rau margarine company from Germany.
In 2009, Bunge Expands its Central European Consumer Margarine Business by acquiring the margarine business from Raisio Group
. Raisio is known of its functional food ingredients. Raisio also develops ecological and healthy solutions that preserves natural resources.
and food company with integrated operations that circle the globe, stretching from the farm field to the retail
shelf. Bunge's 22,000 employees at over 450 facilities in 32 countries participate in the global agribusiness and food production industries by:
Bermuda
Bermuda is a British overseas territory in the North Atlantic Ocean. Located off the east coast of the United States, its nearest landmass is Cape Hatteras, North Carolina, about to the west-northwest. It is about south of Halifax, Nova Scotia, Canada, and northeast of Miami, Florida...
n food conglomerate
Conglomerate (company)
A conglomerate is a combination of two or more corporations engaged in entirely different businesses that fall under one corporate structure , usually involving a parent company and several subsidiaries. Often, a conglomerate is a multi-industry company...
with its headquarters in White Plains, New York
White Plains, New York
White Plains is a city and the county seat of Westchester County, New York, United States. It is located in south-central Westchester, about east of the Hudson River and northwest of Long Island Sound...
. As well as being a leading global soybean
Soybean
The soybean or soya bean is a species of legume native to East Asia, widely grown for its edible bean which has numerous uses...
exporter it is also involved in food processing, grain
Cereal
Cereals are grasses cultivated for the edible components of their grain , composed of the endosperm, germ, and bran...
trading, and fertilizer
Fertilizer
Fertilizer is any organic or inorganic material of natural or synthetic origin that is added to a soil to supply one or more plant nutrients essential to the growth of plants. A recent assessment found that about 40 to 60% of crop yields are attributable to commercial fertilizer use...
. It competes with Cargill
Cargill
Cargill, Incorporated is a privately held, multinational corporation based in Minnetonka, Minnesota. Founded in 1865, it is now the largest privately held corporation in the United States in terms of revenue. If it were a public company, it would rank, as of 2011, number 13 on the Fortune 500,...
and Archer Daniels Midland
Archer Daniels Midland
The Archer Daniels Midland Company is a conglomerate headquartered in Decatur, Illinois. ADM operates more than 270 plants worldwide, where cereal grains and oilseeds are processed into products used in food, beverage, nutraceutical, industrial and animal feed markets worldwide.ADM was named the...
.
Founded in 1818 by Johann Peter Gotlieb Bunge in Amsterdam
Amsterdam
Amsterdam is the largest city and the capital of the Netherlands. The current position of Amsterdam as capital city of the Kingdom of the Netherlands is governed by the constitution of August 24, 1815 and its successors. Amsterdam has a population of 783,364 within city limits, an urban population...
, it was relocated to Antwerp by Edouard Bounge in 1859. Edouard's brother; Ernest Bunge, took the Bunge name to Argentina
Argentina
Argentina , officially the Argentine Republic , is the second largest country in South America by land area, after Brazil. It is constituted as a federation of 23 provinces and an autonomous city, Buenos Aires...
in 1884, and in 1905 the business extended to Brazil
Brazil
Brazil , officially the Federative Republic of Brazil , is the largest country in South America. It is the world's fifth largest country, both by geographical area and by population with over 192 million people...
and later on to the USA.
History
A global company with European roots that date back to its founding in AmsterdamAmsterdam
Amsterdam is the largest city and the capital of the Netherlands. The current position of Amsterdam as capital city of the Kingdom of the Netherlands is governed by the constitution of August 24, 1815 and its successors. Amsterdam has a population of 783,364 within city limits, an urban population...
in 1818. European immigrants arriving in Argentina in the late 19th century took advantage of the newly created wheatlands. Two families joined forces to play a large role in the grain and oilseed business, initially in Argentina
Argentina
Argentina , officially the Argentine Republic , is the second largest country in South America by land area, after Brazil. It is constituted as a federation of 23 provinces and an autonomous city, Buenos Aires...
and then worldwide. The owning families expanded their business into industry in Argentina and Brazil, including textiles, paint, chemicals, fertilizer, banking, and insurance. Throughout the early and mid-20th century they continued to be successful. In 1974, two third-generation family members, Jorge and Juan Born, were kidnapped by the Montoneros
Montoneros
Montoneros was an Argentine Peronist urban guerrilla group, active during the 1960s and 1970s. The name is an allusion to 19th century Argentinian history. After Juan Perón's return from 18 years of exile and the 1973 Ezeiza massacre, which marked the definitive split between left and right-wing...
guerrilla group and recovered only after the payment of a $60m ransom.
The families became even more low profile. In 1989, Jorge Born, president of the company from 1987 (replacing Mario Hirsch), began working closely with the government of Carlos Menem
Carlos Menem
Carlos Saúl Menem is an Argentine politician who was President of Argentina from 1989 to 1999. He is currently an Argentine National Senator for La Rioja Province.-Early life:...
. Bunge provided the government with its first two economy ministers. This intervention in politics upset the other shareholders and together with the company's lacklustre business performance, Born was ousted in 1991 and replaced by Octavio Caraballo.
The prior unity between the shareholders disintegrated as Caraballo struggled to modernize the company. Bizarrely the ousted Jorge Born has started working with one of his former kidnappers, Rodolfo Galimberti.
In 1994, the Bermuda-registered Bunge International was created as the main company in which the families had shares. There were around 180 shareholders—the main families were Hirsch, Bunge, Born, Engels, and De La Tour. This replaced the older structure in which individual shareholders had stakes in all the different Bunge companies. Now only in Argentina does the Bunge y Born name still exist.
In 2001, Bunge went public. Through their three businesses—agribusiness
Agribusiness
In agriculture, agribusiness is a generic term for the various businesses involved in food production, including farming and contract farming, seed supply, agrichemicals, farm machinery, wholesale and distribution, processing, marketing, and retail sales....
, fertilizer
Fertilizer
Fertilizer is any organic or inorganic material of natural or synthetic origin that is added to a soil to supply one or more plant nutrients essential to the growth of plants. A recent assessment found that about 40 to 60% of crop yields are attributable to commercial fertilizer use...
, and food products—they have established a leading global presence in the farm-to-consumer food chain. Bunge is the world's largest oilseed processor, the world's number one seller of bottled vegetable oil to consumers and the largest producer and supplier of fertilizers to farmers in South America
South America
South America is a continent situated in the Western Hemisphere, mostly in the Southern Hemisphere, with a relatively small portion in the Northern Hemisphere. The continent is also considered a subcontinent of the Americas. It is bordered on the west by the Pacific Ocean and on the north and east...
.
In 2008, Bunge acquired Walter Rau margarine company from Germany.
In 2009, Bunge Expands its Central European Consumer Margarine Business by acquiring the margarine business from Raisio Group
Raisio Group
Raisio Oyj, known internationally as Raisio Group , is a Finnish company that makes cereal products, animal feeds and engage in life-sciences. Raisio produces Benecol, a ingredient used in a range of Cholesterol-reducing spreads, dairy products and condiments marketed under its Benecol brand name...
. Raisio is known of its functional food ingredients. Raisio also develops ecological and healthy solutions that preserves natural resources.
Products
Bunge is a leading agribusinessAgribusiness
In agriculture, agribusiness is a generic term for the various businesses involved in food production, including farming and contract farming, seed supply, agrichemicals, farm machinery, wholesale and distribution, processing, marketing, and retail sales....
and food company with integrated operations that circle the globe, stretching from the farm field to the retail
Retail
Retail consists of the sale of physical goods or merchandise from a fixed location, such as a department store, boutique or kiosk, or by mail, in small or individual lots for direct consumption by the purchaser. Retailing may include subordinated services, such as delivery. Purchasers may be...
shelf. Bunge's 22,000 employees at over 450 facilities in 32 countries participate in the global agribusiness and food production industries by:
- manufacturing fertilizerFertilizerFertilizer is any organic or inorganic material of natural or synthetic origin that is added to a soil to supply one or more plant nutrients essential to the growth of plants. A recent assessment found that about 40 to 60% of crop yields are attributable to commercial fertilizer use...
and animal feedCompound feedCompound feeds are feedstuffs that are blended from various raw materials and additives. These blends are formulated according to the specific requirements of the target animal...
for farmers. - originating oilseeds and grainsCerealCereals are grasses cultivated for the edible components of their grain , composed of the endosperm, germ, and bran...
from the world's primary growing regions and transporting them to customers worldwide. - crushing oilseeds to make mealMealA meal is an instance of eating, specifically one that takes place at a specific time and includes specific, prepared food.Meals occur primarily at homes, restaurants, and cafeterias, but may occur anywhere. Regular meals occur on a daily basis, typically several times a day...
for the livestockLivestockLivestock refers to one or more domesticated animals raised in an agricultural setting to produce commodities such as food, fiber and labor. The term "livestock" as used in this article does not include poultry or farmed fish; however the inclusion of these, especially poultry, within the meaning...
industry and oilOilAn oil is any substance that is liquid at ambient temperatures and does not mix with water but may mix with other oils and organic solvents. This general definition includes vegetable oils, volatile essential oils, petrochemical oils, and synthetic oils....
for the food processing, food service and biofuelBiofuelBiofuel is a type of fuel whose energy is derived from biological carbon fixation. Biofuels include fuels derived from biomass conversion, as well as solid biomass, liquid fuels and various biogases...
industries. - producing edible oil, mayonnaiseMayonnaiseMayonnaise, , often abbreviated as mayo, is a sauce. It is a stable emulsion of oil, egg yolk and either vinegar or lemon juice, with many options for embellishment with other herbs and spices. Lecithin in the egg yolk is the emulsifier. Mayonnaise varies in color but is often white, cream, or pale...
, margarineMargarineMargarine , as a generic term, can indicate any of a wide range of butter substitutes, typically composed of vegetable oils. In many parts of the world, the market share of margarine and spreads has overtaken that of butter...
, shorteningShorteningShortening is any fat that is solid at room temperature and used to make crumbly pastry. The reason it is called shortening is because it prevents cross-linkage between gluten molecules. Cross linking is what causes doughs to be sticky. Seeing as cake is not meant to be sticky, shortening is used...
and other food products for consumers and foodservice industries. - milling wheat and cornMaizeMaize known in many English-speaking countries as corn or mielie/mealie, is a grain domesticated by indigenous peoples in Mesoamerica in prehistoric times. The leafy stalk produces ears which contain seeds called kernels. Though technically a grain, maize kernels are used in cooking as a vegetable...
for food processors, bakeries, brewers and other commercial customers.
Environmental record
In Saint Louis, Missouri the federal Environmental Protection Agency filed charges against Bunge company regarding pollution emissions. This involved twelve soybean processing plants and corn mills in eight states throughout the US. The lawsuit claimed Bunge violated the Clean Air Act by constructing major modifications that increased emissions. Bunge must implement engineering approaches and pollution control projects, estimated to cost $12 million, to reduce emissions at the facilities by 2,200 tons a year. The settlement also calls for Bunge to pay a cash penalty of $625,000 and to spend $1.25 million to fund community-based environmental projects selected by and to be supervised by the impacted states. Granta Y. Nakayama said, "Agricultural processing facilities can be a major sources of air pollution and this settlement secures permanent emission reductions for citizens in the affected states." Many states will profit from this blunder though. The state of Kansas will receive $22,000 of the $625,000 civil penalty, this being issued by the Kansas Department of Health and Environment.Corporate governance
- Alberto Weisser, CEO and Chairman of the Board, Bunge Limited
- Drew Burke, Chief Financial Officer and Global Operational Excellence Officer, Bunge Limited
- Jean-Louis Gourbin, CEO, Bunge Europe, Middle East and Africa
- Gordon Hardie, Managing Director, Food & Ingredients, Bunge Limited
- Carl Hausmann, Managing Director, Global Government and Corporate Affairs, Bunge Limited
- Enrique Humanes, CEO, Bunge Argentina
- Raul Padilla, Managing Director, Bunge Global Agribusiness and CEO, Bunge Product Lines
- Pedro Parente, President and CEO, Bunge Brazil
- Ben Pearcy, Managing Director, Sugar & Bioenergy, Chief Development Officer, Bunge Limited
- Soren Schroder, CEO, Bunge North America
- Vicente C. Teixeira, Chief Personnel Officer, Bunge Limited
- Christopher White, CEO, Bunge Asia