December 14, 2004

Bunge Improves Position as Main Soymeal Supplier to Vietnam

Bunge Agribusiness Singapore Pte. Ltd., Bunge Limited's primary operating subsidiary in Asia, has completed a 10-year exclusive throughput agreement with Phu My Port in Vietnam. The agreement improves Bunge's position as the main supplier of soybean meal to the growing Vietnamese animal feed and livestock industries.

The agreement between Bunge Agribusiness Singapore Pte. Ltd. and Baria Serece Joint Venture Company, operator of Phu My Port, commits Bunge to use the port to supply its customers in Vietnam and provides Bunge exclusive access to the facility for shipments of agricultural commodities. The two parties have also agreed to partner on future logistics improvements at the port.

"Vietnam is the fastest growing market for the domestic use of soybean meal and corn in ASEAN, and is among the fastest growing in the world," according to Christopher White, Regional General Manager - Asia. "Bunge's partnership with Baria Serece will enable us to be the leading supplier to this promising market."

"In the last five years, commercial feed production in Vietnam has grown at over 10 percent per year, and annual per capita growth in meat consumption has exceeded seven percent," continued White. "We believe that this growth will continue or even accelerate due to continued increases in population and per capita income."

Soybean meal is the primary protein component in commercial animal feed formulations. The USDA Foreign Agricultural Service estimated that Vietnam imported 990,000 metric tons of soybean meal in 2003. The Service also estimates that the livestock sector contributes around 20 percent of the total value of Vietnam's agricultural production.

Phu My Port is located on the Thi Vai River, approximately 70 km from Ho Chi Minh City. It is Vietnam's leading port for dry bulk cargo, and is one of the country's only ports capable of receiving Panamax class ships. Phu My Port is strategically located near the provinces and regions of Vietnam that contain the majority of the nation's population and commercial feed mill operations.