Document Sample

                               BRAZIL HOSTS FERTILIZER INDUSTRY
                               REPRESENTATIVES FROM AROUND THE WORLD

                                                                                                                                                                     2005 TFI
                               For the first time ever, Brazil   India. And we have the                          part in the event and had
                               hosted the IFA (International     prospect of becoming an                         meetings with customers.                            CONFERENCE
                               Fertilizer Industry)              even more important player                      The Chinese company                                 IN CANADA
                               International Trade and           in global agribusiness, since                   Guizhou Wengfu Chemi-
                               Production Meeting, an            we are the only country with                    Phos was also present.
                               event consisting of talks and     the potential land and water                    Fertimport had the
                               discussions focused on the        for future expansion,” says                     opportunity to talk with the                        The international fertilizer industry
                               prospects for the sector with     Eduardo.                                        company’s General                                   met up in Toronto, Canada, for
                               representatives from a                                                            Manager, Liu Zhongjin,                              the traditional TFI (The Fertilizer
                               number of countries. This         The two days of the event                       about the Brazilian fertilizer                      Institute) conference, from
                               26th edition of the meeting       were marked by an extensive                     market, as well as about                            September 25 to 27. This was the
                               took place in the São Paulo       program of talks with                           logistics with more specific                        first time in thirty editions that the
                               Hilton Hotel from                 representatives of the                          emphasis on international                           event has been held outside the
                               September 11 to 14.               international fertilizer                        maritime transportation.                            United States.
                                                                 industry, the topics covered
                               According to Eduardo              including nitrogen and                          Activities were finalized with                      The TFI conference is an
                               Daher, the Executive Director     phosphate development in                        a technical tour organized                          opportunity for participants to
                               of Anda – the Brazilian           India, the competitiveness of                   by Fosfertil. During the boat                       catch up on events in the
                               National Fertilizer               the Chinese fertilizer                          tour around the Port of                             international fertilizer industry,
                               Association, which provided       industry and the evolution                      Santos, Fertimport                                  pursue business opportunities
                               support for the event, there      of the industry in Brazil.                      representatives provided the                        and tighten their links with
                               were approximately 150                                                            visitors with information                           customers, suppliers and partners.
                               participants, including           Prism Sulphur Corporation,                      about the terminals, drafts                         The event was attended by
                               producers, traders,               a long-standing supplier of                     and types of cargo handled.                         hundreds of fertilizer producers
                               representatives and               Canadian sulfur, represented                    The boat ended at the                               and exporters from around the
                               consumers, who debated            in Brazil by Fertimport, took                   Fosfertil marine terminal,                          world, as well as maritime
                               the global fertilizer scene.                                                      after which the visitors were                       transportation companies. The
                               “The event was held in Brazil                                                     shown around the                                    Brazilian companies present
                               due to the importance of                                                          Ultrafertil, Mosaic and                             included Fosfertil, Fertibras,
                               this market for the global                                                        Copebras industrial units.                          Bunge Fertilizantes, Fertipar,
                               fertilizer industry. We are the                                                                                                       Petrobras, as well as Fertimport
                               fourth biggest fertilizer                                                                                                             and other Brazilian representatives
                               consumer in the world, after                                                                                                          of fertilizer suppliers.
                               China, the United States and

                                                                                                                 Eduardo Daher:
                                                                                                                 excelent growth prospects.

                                                                             Rumos is published by Fertimport S.A. (Av. Maria Coelho Aguiar, 215 . Bloco D . 5º andar . Jardim São Luís . 05804 900 . São Paulo . SP . Brazil )
                                                                             Editorial Board: António Carlos Branco, Edson Gentile, Ricardo Toledo, Fernando Gorni, Marcia Azzone and Juliana Martins
                                                                             Project and edition: Luc Comunicação Integrada (55 11) 5044-6099 Texts Editor Armando Levy Translation Raymond Maddock Art Edition Daniel Teixeira
                                                                             Copies printed 1.250 Litho PostScript Printed in Brazil by Landgraf.
                                                                 Fertimport’s phones: Santos (5513) 3201-9000 São Paulo (5511) 3741-7562 Recife (5581) 3224-8433 Vitória (5527) 3334-6800 Rio de Janeiro (5521) 3232-5900
                               04                                Sepetiba (5521) 3232-5900 Paranaguá (5541) 3423-4142 São Francisco do Sul (5547) 444-3868 Porto Alegre (5551) 3212-1100 Rio Grande (5553) 3231-2488
                                                                 São Luís (5598) 3235-4341 Buenos Aires (54 11) 5218-9990 San Lorenzo (54 3476) 43-2690 Bahía Blanca (54 291) 458-0041 San Nicolás (54 3461) 45-2277
                                                                Bunge 100 years in Brazil

                                                                  A HISTORICAL VOCATION
                                                                 FOR THE EXERCISE OF CITIZENSHIP
                                                                                                                                                      The exercise of social and environmental responsibility is
                                                                                                                                                  fundamental to the mission of the Bunge companies in Brazil.

                                                                                                                                                   Fundação Bunge                   may only develop when
                                                                                                                                                                                    both government and the
                                                                                                                                                   Created in 1955, as part of      private sector foment
                                                                                                                                                   the celebrations of 50 years     policies designed to
                                                                                                                                                   of Bunge activities in Brazil,   promote education and

                                                                                                                                                   the Fundação Bunge is            knowledge.
                                                                                                                                                   directed by a council
                                                                                                                                                   consisting of intellectuals      The Fundação Bunge runs a
                                                                                                                                                   and representatives of           number of programs
                                                                                                                                                   group companies in the           focused on education, with
                                                                                                                                                   country. During the course       particular emphasis on
                                                                                                                                                   of these fifty years, the        basic education, valuing
                                                                                                                                                   foundation has constantly        knowledge, the
                                                                                                                                                   reaffirmed its belief in the     preservation of Bunge grays
                                                                                                                                                   transformational power of        and incentives for corporate
                                                                                                                                                   the Brazilian people,            volunteer work.
                                                                                                                                                   advocating that a nation

                                                                                                             Social and Environmental Responsibility

                                                                                                                                                   promotes activities              Fertimport activities
                                                                                                                                                   designed to develop              Since January, Fertimport
                                                                                                                                                   ecological consciousness.        has been a partner of the
                                                                                                                                                   To date, more than 60,000        Secult (city of Santos
                                                                                                                                                   visitors have benefited from     Cultural Department) Ballet
                                                                                                                                                   the center’s activities.         Corps Parents and Citizens’
                                                                                                                                                                                    Support Association. In
                                                                                                                                                   Environmental                    addition to promoting
                                                                                                                                                   Dissemination Center             dance presentations, the
                                                                                                                                                   Bunge Alimentos is driving       association undertakes
                                                                                                                                                   a program to regenerate          important work in the
                                                                                                                                                   the waterside vegetation of      public school network,
                                                                                                                                                   the River Itajaí-Açu and its     enabling pupils to have
                                                                                                                                                   tributaries (Vale do Itajaí,     access to the children’s

                                                                                                                                                   Santa Catarina, South of         ballet corps and to
                                                                                                                                                   Brazil), in an area adjoining    participate in rehearsals,
                                                                                   The Bunge –                     million hectare conservation    the company’s Environmental      where they learn values of
                                                                                   Conservation                    area.                           Dissemination Center in          fundamental importance in
                                                                                   International                                                   Gaspar in the same state.        life, such as concentration,
                                                                                   Partnership                     Environmental                   The latter project is under      discipline and determination.
                                                                                   One of Bunge’s missions is      Education Center                construction in a 43
                                                                                   the diffusion of sustainable    Established 15 years ago,       thousand square meter
                                                                                   development. To further         the Bunge Fertilizantes         area, which will be
                                                                                   this, Bunge has formed a        Environmental Education         equipped with a research
                                                                                   partnership with                Center, based in Araxá in       center, as well as seminar,
                                                                                   Conservation International,     the state of Minas Gerais       training and exhibition
                                                                                   a non-governmental              (Southeast of Brazil),          facilities. The first stage
                                                                                   organization active in more     occupies an area of 22,000      involves the construction of
                                                                                   than 30 countries. The          square meters, housing          a nursery, which will
                                                                                   objective: to reconcile         woods, an orchard, a snake      produce 100,000 native
                                                                                   economic development            house, greenhouses,             tree seedlings per year. An
                                                                                   and preservation of the         medicinal plant beds and        integral part of the project
                                                                                   environment, with a project     experimental stations. Open     mission is the diffusion of
                                                                                   focused on the area             to employees, teachers and      environmental knowledge
                                                                                   surrounding the Emas-           students from the public        to the general population.
                                                                                   Taquari National Park, a six    school network, the center

02                                                                                 O c t o b e r   2 0 0 5
                                                                                                                                                                          Future direction

                                BULK CARGOES TRANSFORM
                                THE GEOGRAPHY OF BRAZIL

                                Soybean was Brazil’s number two bulk                                                 In 2004, Brazilian bulk sugar cane exports                               In the first quarter of 2005, the total
                                cargo exported last year (approximately 19                                          exceeded 9 million tons. A significant                                    volume of cargo shipped through the Ponta
                                million tons).                                                                      proportion of this volume was shipped                                     da Madeira Maritime Terminal, operated by
                                                                                                                    through the Guarujá Terminal in the Port of                               Vale do Rio Doce in São Luís in the northern
                                                                                                                    Santos                                                                    Brazilian state of Maranhão (North), was
                                According to the Ministry of Agriculture,
                                                                                                                                                                                              17.3 million tons, 19% more than the same
                                Livestock and Food Supply, in Brazil the
                                                                                                                                                                                              period last year.
                                performance of agribusiness, which
                                accounts for 33% of the country’s GDP, 42%
                                of its exports and 37% of its jobs, is highly                                      Currently, cost dynamics dictate investments
                                dependent on the production of bulk                                                in other modes of transport, such as rail, river
                                goods. Data from the Overseas Trade                                                and cabotage. However, the production,                                     bulk cargo movement occurs without any
                                Department shows that between January                                              warehousing and movement of bulk goods                                     kind of packing and in large quantities –
                                and December 2004, bulk cargo far                                                  will gradually change not only the quality of                              with loads nearly always in excess of 5,000
                                exceeded other types of cargo: no less than                                        Brazilian transports, but also the actual                                  tons and sometimes reaching up to
                                76% of the total export tonnage was                                                geography of the country, shortening                                       300,000 tons per ship – ports need
                                shipped abroad in bulk vessels.                                                    distances and increasing the efficiency of                                 adequate loading and unloading facilities,
                                                                                                                   logistics operations.                                                      as well as warehouses and silos for
                                                                                                                                                                                              handling and storing these products. The
                                The marked presence of bulk goods in the                                           Current situation – Whilst the future                                      same goes for imports. According to the
                                trade balance is transforming Brazil in a                                          may be promising, the current situation in                                 Overseas Trade Department, solid bulk
                                number of ways. Bulk goods are high                                                the country is a cause of acute concern for                                cargos account for 38% of the total
                                volume commodities with relatively low                                             many. A report from the UNO’s Food and                                     tonnage of products entering the country.
                                added value. As such, they demand reduced                                          Agriculture Organization containing                                        Fertilizer inputs represent a significant share
                                operating costs, especially when it comes to                                       projections for agribusiness through 2010                                  of import volumes.
                                logistics. Among the products destined for                                         shows that Brazil has great potential to
                                overseas markets, bulk products – such as                                          become one of the main world producers                                     In order to be able to feed the world, the
                                iron ore, soybean and corn – are gaining                                           and exporters of agricultural products. But                                fertilizer sector in Brazil should grow at the
                                importance. In agribusiness, the focus on                                          growth in agribusiness and more                                            rate of 4% per year, with production reaching
                                export commodities like soybean has                                                specifically in the production,                                            29 million tons by 2009. These projections
                                pushed agricultural frontiers back into the                                        transportation and shipping of bulk goods                                  imply an increase in the importation of
                                hinterland of the country to regions which                                         requires a series of changes and raises                                    fertilizer inputs, which will directly affect the
                                are frequently very far from the ports,                                            serious concerns that are becoming                                         use of port infrastructure for this type of bulk
                                leading to a strong concentration on road                                          increasingly evident in discussions about                                  operation.
                                transportation.                                                                    the country’s port infrastructure. Since all

                                                               Main products imported by Brazil                                                                                              Main products exported by Brazil
                                                        PRODUCT                                                            TONS                                                      PRODUCT                                                       TONS
                                                                                                              2003                         2004                                                                                       2003                        2004
                                   1         Crude petroleum                               26.535,10                               31.448,80                      1     Iron ore and concentrates                               174.846,00                  218.546,40
                                   2         Coal                                          17.472,40                               18.465,20                      2     Soybean (grain and crushed)                              19.890,50                   19.247,70
                                   3         Fertilizers                                   12.910,70                               16.012,90                      3     Soybean meal and grounds                                 13.602,20                   14.485,60
                                   4         Cereals and preparations                       9.880,10                                7.233,20                      4     Crude petroleum oils                                     12.607,00                   12.036,30
                                   5         Natural gas                                    5.552,70                                7.035,30                      5     Crude sugar cane                                          8.353,70                    9.565,70
                                   6         Fertilizers and crude minerals                 3.565,50                                4.525,60                      6     Fuel oils                                                 6.170,30                    7.615,00
                                   7         Inorganic chemical products                    3.301,70                                3.582,30                      7     Aluminum ores and concentrates                            4.705,80                    7.290,50
                                   8         Organic chemical products                      1.780,90                                1.947,70                      8     Semi-manufactured metal products                          7.231,00                    6.307,90
                                   9         Minerals and scrap metals                         927,7                                1.099,80                      9     Refined sugar                                             4.560,70                    6.198,20
                                   10        Primary plastics                                  964,6                                1.098,80                      10    Crude caste iron and pig iron                             4.458,30                    6.188,70
                                             Total for top 10                             82.891,40                               92.449,60                             Total for top 10                                       256.425,50                  307.482,00
                                             Other products (including manufactured goods) 10.231,90                               10.360,70                            Other products (including manufactured goods)            64.677,50                   75.638,10
                                             Overall total                                93.123,30                              102.810,30                             Overall total                                          321.103,00                  383.120,10
                                Source: Ministry of Development, Industry and Overseas Trade. Secex – Overseas Trade Department. 2004 Monthly Trade Balance.   Source: Ministry of Development, Industry and Overseas Trade. Secex – Overseas Trade Department. 2004 Trade Balance.

                             October 2005                             year 2 . number 10                             yet another service with Fertimport quality

                Bunge 100 years in Brazil

                                                         A CENTURY OF PIONEERING
                                                         ACTIVITY DEDICATED TO THE
                                                         FUTURE OF BRAZIL
  On September 30
  Bunge celebrated
         100 years of
  activities in Brazil,
           firm in the
conviction that the
 during this time in
                          CLOVIS FERREIRA/DIGNA IMAGEM

  its diverse sectors
    of activity today
    constitute a vital
contribution to the
  nation’s future. In
 Brazil, the group is
       comprised of                                      Bunge boosts the development of Brazilian agribusiness with pioneering products, services and technologies.
 Fertimport, Bunge
 (fertilizers), Bunge
                                                         With operations integrated        Strong presence in the           in Brazil gained momentum         White Plains (New York,

 Alimentos (foods),
                                                         throughout the whole              Brazilian market                 in 1947 with the creation of      USA), Bunge manages
as well as the social
                                                         production chain, the               Bunge Fertilizantes is the     Serrana Sociedade de              offices in Europe, Asia,
  arm of the Bunge
                                                         Bunge companies in Brazil         largest fertilizer producer in   Agenciamento e Navegação          North and South America.
   companies in the
                                                         produce fertilizers and           South America, supplying         Ltda., today known as             The organization employs
         country, the
  Fundação Bunge.
                                                         animal feed ingredients;
                                                         process and trade soybean,
                                                         wheat, cottonseed; invest in
                                                                                           60,000 farmers/customers.
                                                                                             Bunge Alimentos is the
                                                                                           largest agribusiness
                                                                                                                            Fertimport, which in 1996
                                                                                                                            became the first maritime
                                                                                                                            shipping agency to be
                                                                                                                                                              around 25 thousand
                                                                                                                                                              people in more than 30
                                                                                                                                                              countries in a complex
                                                         research and technological        exporter and the fourth          awarded ISO:9001                  operating model involving
                                                         innovation; supply raw
                                                         materials for the bakery,
                                                         foods and food service
                                                                                           largest in Brazil. The
                                                                                           company leads the
                                                                                           domestic vegetable oil,
                                                                                                                              Fertimport has 11 units in
                                                                                                                            Brazil and 4 in Argentina,
                                                                                                                                                              grains, oilseeds, fertilizer

                                                                                                                                                              and food products.
                                                                                                                                                                Bunge processes and
                                                         industries, in addition to        margarines, vegetable fats,      strategically located in cities   commercializes more than
                                                         marketing brands which are        industrial flour and baking      and ports along the eastern       110 million tons of grains,
                                                         a byword in quality for the
                                                         Brazilian consumer. The
                                                         organization brings global
                                                                                           premix markets.
                                                                                             Bunge is the largest
                                                                                           soybean processor in Latin
                                                                                                                            seaboard of Latin America.
                                                                                                                              Bunge companies in Brazil
                                                                                                                            employ some 11 thousand
                                                                                                                                                              oilseeds, fertilizers and food
                                                                                                                                                              products, generating a vast
                                                                                                                                                              logistics operation involving
                                                         markets closer to the wealth      America and the largest          people, one of the largest        road, rail and maritime,
                                                         produced in the country
                                                         through its logistics
                                                         expertise, centered on the
                                                                                           wheat processor in Brazil.
                                                                                             With more than 180 silos
                                                                                           and warehouses
                                                                                                                            labor forces in the country.

                                                                                                                            The range of global
                                                                                                                                                              coastal and waterway

                                                         experience and know-how
                                                         of Fertimport, in addition to
                                                         reinforcing citizenship
                                                                                           strategically located around
                                                                                           Brazil, the company has
                                                                                           built up an infrastructure
                                                                                                                              In 1818, in Amsterdam,
                                                                                                                            Holland, the German-born
                                                         through the activities of the     with the capacity to service     merchant, Johannpeter
                                                         Fundação Bunge.                   customers in more than 30        Bunge founds Bunge & Co

                                                                                             Bunge’s global operations
                                                                                                                            to commercialize grains and
                                                                                                                            products imported from the

                                                                                                                            Dutch overseas territories.
                                                                                                                              From its headquarters in

                                                                                               On page 2   Rumos International provides a brief summary of Bunge company
  01                                                                                                       activities in the area of citizenship and social responsibility.