Bunge off to a good start this year

Strong performance in agribusiness and food and ingredients contributed to sharply higher earnings at Bunge Ltd. in the first quarter ended March 31.

Net income in the first quarter totaled $232 million, equal to $1.49 per share on the common stock, up from $63 million, or 31c per share, in the first quarter of fiscal 2010.

Net sales during the quarter also improved, rising 18 per cent to $12,194 million from $10,345 million.

“Bunge is off to a strong start in 2011,” said Alberto Weisser, chairman and chief executive officer. “Agribusiness and food and ingredients performed very well in the first quarter and sugar and bioenergy and fertilizer produced segment results generally in line with our expectations. The Brazilian sugarcane harvest is getting under way now, and all eight of our mills should be operating next week.”

Weisser said weather and trade policy continue to lead to tight supply and volatility in the agribusiness and food markets.

“While current conditions are likely to persist throughout the year, farmers around the world are responding to higher commodity prices with large plantings and ample use of crop inputs,” he said. “South American harvests are near record levels, and, weather permitting, U.S. farmers are expected to plant the largest acreage of major crops in nearly 25 years. Another season of large harvests will be an important step in rebuilding stocks and moderating prices.”