Arkansas Corn Growers AssociationJonesboro, Arkansas – Cooper Alumni Center

Arkansas Corn Growers Association

Introduction and AgendaBrian Semple• Bunge Little Rock • Domestic Merchandiser

“U.S. farmers supply 41.56% of the world’s corn”“The average U.S. farmer feeds 155 people across the world”• Bunge wants to be a partner with

you in this process“Farmers are a direct lifeline to more than 24 million U.S. jobs in all kinds of industries” Source: www.americasfarmers.com• Thank you for all you do!

Agenda• Bunge Global Presence • Bunge Arkansas Presence• Bunge’s History• Domestic Program

– Bid / Basis Structure• US Corn Supply & Demand• Current Market Structure

– Q & A

Arkansas Corn Growers Association

A Leading Global Agribusiness & Food Company

Agribusiness

• A global leader in oilseed processing

• A global leader in grain and oilseed marketing

• Leading producer of oils, margarines & industrial fats in the Americas and Europe

• Growing oils position in Asia

• Leading corn and wheat miller in the Americas

• 21 mmt sugarcane milling capacity producing sugar, ethanol and electricity

• #2 in global trade and distribution

• Fertilizer operations in Brazil, Argentina and the U.S.

• Joint venture with OCP in Morocco

Sugar & Bioenergy Food & Ingredients Fertilizer

Revenue: $46 BillionEmployees: ~32,000Facilities: ~400Countries of Operations: 30+

Key Facts

Arkansas Corn Growers Association

Bunge’s Presence in Arkansas

• Mississippi River Facilities– Huffman, Osceola, West

Memphis, Helena, Desoto Landing

• Arkansas River– Pine Bluff, Linwood

• White River– Newport, Augusta, Des Arc,

Clarendon, St. Charles

Arkansas Corn Growers Association

…a nearly 200 year history

2010

2009

2008

2007

2005

2002

2001

1999

1998

1997

70s & 80s

1967

1945

1938

1918

1905

1884

1859

1818

Starts business in North America

Relocates to Antwerp to trade commodities

J.P.G. Bunge founds Bunge & Co. in Amsterdam

Establishes operations in Argentina to trade grain Makes first export of

soybeans from Brazil

Enters Brazilian fertilizer market with purchase of Serrana

Expands into Brazil and enters the wheat milling business Diversifies along the

food production chain

In Brazil, purchases soy processor Ceval and begins acquisition of new fertilizer brands

Builds largest U.S. soybean crushing and refining plant

Moves headquarters to U.S. and creates international marketing unit

Goes public on NYSE and becomes Argentina’s leading agribusiness company

Purchases Cereol to become the world’s largest soy processor

Opens first soybean processing plant in China

Purchases Santa Juliana sugarcane mill in Brazil

Builds first soy processing plant in U.S.

Begins building an export terminal in the U.S. Pacific Northwest and a crushing plant in Vietnam

In Brazil, sells fertilizer nutrients business and adds five new sugarcane mills with Moema purchase

Purchases edible oils company Walter Rau in Germany

Arkansas Corn Growers Association

Bunge domestic feed grains program

0

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

70,000,000

80,000,000

90,000,000

100,000,000

2007 2008 2009 2010 2011

Arkansas Bushels harvested

Bushels

Poultry Feed MillsLivestock FeedlotsPet food mills

Bin Direct Program• Delivered Mill Bid

– Capitalize on freight spread by hauling yourself

• FOB bins bid– Bunge arranges freight from on-

farm storage • Traditional contract types • Capitalize on Bunge’s customer

service – We want your business.

@CU2012 Daily Chart(DTN ProphetX)

Source: USDA

Arkansas Corn Growers Association

Basis / Bid Structure

Domestic Market – Bin Direct• CIF NOLA values

– Function of supply and demand of river / global market

• Barge Freight• Truck Freight • Competition (Rail, other feed

sources)• Time Frame• Volume

River / Export Market• CIF NOLA values

– Function of supply and demand of river / global market

• Barge Freight– Values relative to current market

bid and ask side• Competition• Time Frame• Volume

Arkansas Corn Growers Association

CORN - US BALANCEmln bushels SEP/AUG

07/08 08/09 09/10 10/11 11/12Planted Acres (Mln Acres) 93.5 86.0 86.4 88.2 91.9Harvested Acres 86.5 78.6 79.5 81.4 84.0Percent Harvested 93% 91% 92% 92% 91%Yield Bu/Acre 150.7 153.9 164.7 152.9 147.1

Beg. Stocks 1,304 1,624 1,673 1,708 1,127 Production 13,038 12,092 13,092 12,447 12,358 Imports 20 14 8 28 15 Total Supply 14,362 13,729 14,774 14,183 13,500

FSI 4,387 5,025 5,961 6,428 6,405 FSI for Fuel 3,049 3,709 4,591 5,021 5,000

FSI non for fuel 1,338 1,316 1,370 1,407 1,405 Feed and Residual 5,913 5,182 5,125 4,793 4,600 Exports 2,437 1,849 1,980 1,835 1,650 Total Use 12,737 12,056 13,066 13,056 12,655

Ending Stocks 1,624 1,673 1,708 1,127 845 Stocks to use% 12.8% 13.9% 13.1% 8.6% 6.7%

Stocks in Days of use 47 51 48 32 24

Source: USDA

Arkansas Corn Growers Association

The Current Market Domestic Market

• Can ethanol compete on its own merit without the subsidies?

• Margins in meat industry / Rationing demand / Cheaper energy sources

• Planting/Acreage – Switching other commodity acreage over to corn

– Last 2 years for corn growing in U.S. has been historically bad. Will it come back with greater acreage and yield?

• USDA reports – March 31st

• Volatility in Cash and Futures market persistent

Global / Export Market• U.S.

– Export market competing with new major players in traditional markets

– Corn acreage for U.S. 2012/13 crop• South American weather

– Argentina major competitor with U.S. market flow

– Has the market already priced in the weather/losses for South American corn crop

• Ukraine– Bread basket of Europe, becoming

major exporter to traditional U.S. markets

• China– Exports increasing year on year– Will they come into buy for the 2012/13

crop as in past years