World Grain - May 2014 - 20

newsreview
Cargill earnings drop on weather, corn rejections
MINNEAPOLIS, MINNESOTA, U.S. - Cargill reported on April
8 net earnings of $319 million in the fiscal 2014 third quarter ended
Feb. 28, down 28% from $445 million in the year-ago period.
Nine-month earnings were $1.45 billion, down 21% from $1.83
billion a year ago. Third-quarter revenues were $32 billion, essentially even with the year-ago period; nine-month revenues totaled
$98.7 billion.
"External events affected our quarterly results, even as we saw operational improvements in key businesses," said David MacLennan,
Cargill's president and chief executive officer. "Our animal protein
results are much improved from last year, and, with 2012's acquisition of Provimi, our global animal nutrition operations are on a
record pace for the year."
MacLennan said the company's earnings were trimmed by a trading loss related to an unprecedented price spike in U.S. power markets in late January, part of which has been recovered; the rejection

of certain U.S. corn shipments to China; and weather-related disruptions to railway service in North America.
Among Cargill's four business segments, third-quarter earnings
rose considerably in Animal Nutrition & Protein compared with the
same period a year ago. Within the segment, global animal nutrition results were boosted by improved volumes and an effective
sales mix. Animal protein results were lifted by increased operating efficiencies and by exports in U.S. and Australian beef. Earnings
strengthened in Industrial & Financial Services. Mixed but overall
weaker results in energy and metals were offset by good performance
in asset management and ocean transportation.
Cargill's capital investment program for fiscal 2014 is on track, the
company said. The company celebrated the grand opening of its new
corn wet mill in Castro, in Brazil's southern state of Paraná, in February. It broke ground on two new facilities in India: a corn wet mill in
the state of Karnataka, and a dairy feed mill in the state of Punjab.

CWB to build additional grain elevator
WINNIPEG, MANITOBA, CANADA - CWB announced on April
10 the construction of its second state-of-the-art grain elevator near
Colonsay, Saskatchewan, Canada. Situated on the Yellowhead Highway approximately 65 kilometers east of Saskatoon, the elevator at
Colonsay will feature 42,000 tonnes of storage and is scheduled to
open in time for the 2015 harvest.
"I'm excited to be able to announce the construction of our second
elevator in Colonsay so fast on the heels of our Bloom elevator announcement," said CWB President and Chief Executive Officer Ian
White. "We see significant opportunity in the Colonsay area for a fast
and efficient grain-handling facility that will provide the customer
service that farmers have come to expect from CWB. CWB's growing network of modern grain-handling facilities across the Prairies
will provide farmers with more choice out in the country during a
critical time in the ongoing transformation of the grain industry."
Elevator construction has already begun one mile southeast of the

town of Colonsay, adjacent to the CP line. The elevator will feature
a car-loading rate of up to 1,600 tph with a 134-car loop track. The
facility will also include a 17,300-tonne workhouse with cleaning
facilities and 24,700 tonnes of steel storage capacity.
With the announcement of the Colonsay elevator, CWB's overall
asset network now includes elevators in Manitoba and Saskatchewan,
Mission Terminal in Ontario and Les Élévateurs des Trois-Rivières
in Quebec. In addition, CWB's two Equinox class laker vessels are
scheduled to be operating in the St. Lawrence in 2015.
"It won't be long before farmers driving down the highway will be
able to physically see the equity that is being built in CWB. CWB's
farmer ownership plan is designed to give farmers a stake in their
value chain after privatization simply by delivering against our contracts" said White. "We have been tracking deliveries for all our
farmer-customers since the 2013 harvest. As we continue to grow,
the benefits to farmers will grow with us."

Bunge to build flour mill in Brazil
SAO PAULO, BRAZIL - Bunge Brazil announced on April 3 the
investment of R$500 million ($223.4 million) for construction of a
new flour mill located in Duque de Caxias, Rio de Janeiro, Brazil.
The new venture will integrate the current mill and Fluminense Rio
Distribution Centre, which will be transferred to a single location.
"Wheat is in the DNA of Bunge and is one of the strategic priorities of the company in Brazil and worldwide. Therefore, we are continuing to strengthen this business plan in the Brazilian market. We
started this plan in 2013 with the acquisition of the mill Vera Cruz,
in Minas Gerais. Besides consolidating our position as leaders, we
will be well prepared to meet the growing demand for flour in the
southeast and reduce dependence on imports of flour to the region,"
said Philip Affonso Ferreira, vice-president of Food & Ingredients
Bunge Brazil.
The construction of the new mill Fluminense is strategic, Bunge
said. The states of Minas Gerais, Rio de Janeiro and Espirito Santo,
form one of the regions where the company is focusing its investments to modernize its operations, expand its production capacity
and meet the needs of the growing market. With the construction of
this new facility, which is expected to be inaugurated in 2016, Bunge
20

will have three of the largest mills in Latin America, strategically
located in Fluminense, Suape and Ponta Grossa.
"In reaching its full capacity, the new mill will grind over 600,000
tonnes of wheat per year, which represents an increase of over 50%
on what is being processed in the current mill," said Ferreira.
Much of this expansion is due to the use of the latest technology,
still unpublished in the country. The new mill is being designed to be
the most modern wheat milling plant in Latin America.
The design incorporates concepts of industrial automation in the
processing of wheat, from receipt of raw materials, using modern
technologies for sorting and processing of grains, up to monitoring
and controlling the grinding and packaging equipment. Thus, the
technique allows the system to improve levels of productivity, energy efficiency and food security, increasing the quality and competitiveness of the final product.
The company plans to transfer employees from current units (mill
and distribution center) to the new venture, as well as enable them
to operate processes in new technological standards. Bunge Brazil is
negotiating with state and local authorities to work to improve the
infrastructure of the region where the new mill will be located.
May 2014 / World Grain / www.World-Grain.com

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World Grain - May 2014

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