BUNGE BIOFUELS is leveraging 200 years of risk management experience to provide a competitive edge to biofuels producers.
Biofuels’ Position Today
Corn, DDGS (Dried Distillers Grains with Solubles), ethanol and biodiesel are bought and sold by Bunge all around the world every day. As a result, Bunge is uniquely positioned to view all the critical components of ethanol and biodiesel margins.
Bunge Biofuels gives other producers the ability to leverage our insight to their own advantage, seamlessly, efficiently and at a substantial cost advantage.
Today we are:
- Sourcing and supplying corn globally
- Selling DDGS in both domestic and export markets
- Selling biodiesel
- Marketing and trading ethanol
Above all we are managing the risk of these volatile commodities to decrease market risk and increase profitability, both for ourselves and our marketing partners.
In Today’s Dynamic Biofuels Market, Bunge Works to Give Ethanol and Biodiesel Producers Every Competitive Advantage
Bunge North America is playing an important role in the growing North American biofuels industry.
With its extensive Midwestern elevator assets, Bunge Grain is originating corn for origin ethanol production and destination ethanol facilities across North America.
Working with strategic partners whose capabilities complement ours, Bunge Biofuels is ready to meet the demand for alternative fuels.
From its major position in the soy/canola crushing industry, Bunge Oilseed Processing is a key supplier of vegetable oil supplies to the biodiesel industry.
With a global view of energy markets and an unparalleled logistics system, Bunge Biofuels is leveraging 200 years of risk management experience to market biofuels in a transparent and cost efficient manner.
For Bunge, Marketing is a Partnership
We understand the concerns of ethanol and biodiesel producers. We see our role as a partner, which is why we do not believe in pooling or arbitrating our customer’s product for our benefit. Instead, we believe in transparency in pricing. This way, the logistical advantages that led the producer to build his plant remain with the producer when we sell his product.
The DDGS market is a rapidly expanding and changing arena in which Bunge can provide critical contacts in order to maximize the value of this co-product to the ethanol producers. We not only supply critical contacts in the North American animal nutrition markets, but with our global reach we are able to provide access to developing export markets as well.
At Bunge, we understand the new biofuels technologies and the products they produce. Our long history in the soy meal markets has made us capable of marketing high protein DDGS from either front end or back end fractionation for maximum value in the market. Additionally, our presence as a leading supplier of vegetable oil in North America allows us to maximize the return of any corn oil produced either through our own system or in the overall oil market.
We understand the position of a producer because we are a producer, too. As an investor in a number of biofuels facilities, these relationships give us insights into the needs of our partner producers.
What does Bunge offer producers?
- Favorable shipping points
- Knowledgeable industry contacts
- Reliable supply
- Continuous, timely access to markets and materials
Risk Management
At Bunge Biofuels, expertise in effective risk management is a fundamental strength of our business. Substantial management experience in the use of sophisticated trading strategies, financial instruments and forecasting methods enables us to anticipate market developments and optimize the timing and execution of purchases, sales and hedging — all of which maximize stakeholder returns.
Our relationship with Bunge North America’s sister company, Bunge Global Markets, provides our customers with a reliable link to world markets. Our expertise in global trade means we can offer biofuels producers every advantage when it comes to finding markets for their products.