Bunge doubles profit in Q3

- Last updated on GMT

Related tags: Oilseed processor bunge, Cooking oil, Bunge

Improved margins and risk management tools help the world's biggest
oilseed processor Bunge more than double its profit for the third
quarter, despite a knock back from soybean trade in China.

The White Plains, New York-based business that bakery ingredients and functional cooking fats to food processors posted a 104 per cent increase in net income to $182 million (€142.8 million) for the third quarter to 30 September 2004, rising from $89 million for the same period in 2003.

"Bunge's year-to-date results were above expectations, despite unprecedented volatility in agribusiness markets and a disruption in soybean trade with China,"​ commented Bunge's CEO Alberto Weisser on Thursday.

An increase in soybean supplies on the back of a "large North American soybean harvest" contributed to the third quarter gains for the oilseed firm that has seen soy prices peak at 15 year highs in the past twelve months.

But while ingredients suppliers using soy as a raw material have seen margins, and profits, squeezed by the high soybean prices, previous results from Bunge, notably in the first quarter, suggested that risk management helped the spread between the price for buying the soybeans and the price at which the derived products of soybean meal and oil were sold on.

"Bunge's soy crush profitability is not determined by whether soybean prices are high or low,"​ said the CEO in April this year.

The US firm, principally involved in agribusiness, fertiliser and food products, reported that edible oil sales benefited from higher sales volumes and margins in Hungary and Poland. "This was offset in part by margin pressure in other regions as a result of higher raw material prices,"​ said the firm this week.

The edible oils segment saw sales rising by a hefty 30 per cent from $799 million to $978 million, suggesting broader margins are now possible as the commodity prices return to 'average historical levels'.

Looking ahead to the rest of the year Weisser predicts "positive indicators for 2005" including expected relief in commodity prices should stimulate demand, an increase in vegetable oil demand from biodiesel needs, and 'ample supply' for soybeans slated to arrive from South America.

Related news

Show more

Related products

show more

Quinoa syrup, a refreshing option to rice syrup

Quinoa syrup, a refreshing option to rice syrup

Faravelli Inc, food ingredients distributor - North America | 24-Mar-2021 | Product Catalog

Quinoa syrup by Naturis is a 100% natural alternative to rice syrup, ideal for balanced vegan diets.

low in fructose
with lysine...

Snacking: Evolving from mobile to purposeful

Snacking: Evolving from mobile to purposeful

Cargill | 16-Mar-2021 | Technical / White Paper

With the rise of the snacking lifestyle, manufacturers rose to the task of offering options for on-the-go eating. Then came 2020, and consumer mobility...

Plant-based innovation with oats

Plant-based innovation with oats

Lantmännen Functional Foods | 09-Dec-2020 | Technical / White Paper

Plant-based foods, meat analogues, dairy alternatives and protein-enriched foods and beverages have never been more popular. In this white paper, we look...

Related suppliers

Follow us

Products

View more

Webinars