19 May 2010 16:25 [Source: ICIS news]
HOUSTON (ICIS news)--Bunge plans to capitalise on the growing ethanol market in Brazil, building on its deal to acquire sugar producer Moema, an executive for the US agribusiness major said on Wednesday.
“We will support biodiesel producers with oil and sometimes take minority positions in those companies, but ethanol demand in Brazil is growing by 8% annually, and we want to capitalise on that growth,” said Bunge chief financial officer Jacqualyn Fouse at the BMO Capital Markets 2010 Agriculture, Protein & Fertilizer Conference.
Bunge earlier this year struck a deal to acquire Brazilian sugar and ethanol producer Moema.
Bunge now has eight sugar mills in Brazil with the ability to crush 20m tonnes/year.
“We have the ability to expand the crush to 40m tonnes/year,” Fouse said.
The growth in Brazilian ethanol consumption is due to the increasing number of flexible-fuel vehicles on the roads there.
Fouse said 92% of all new vehicles sold in Brazil are flex-fuel, meaning they can be powered by either ethanol or gasoline.
She said the demand for ethanol in Brazil would double by 2015.
Looking ahead to the remaining months of 2010, Fouse said that big crops this year in South America should provide ample supplies for agribusiness.
The US Department of Agriculture has forecast that global demand for soybean meal will grow by 4% this year while demand for vegetable oil will grow by 5%.
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