Following a recent round of cost-cutting measures triggered by a decline in its second-quarter earnings—attributed to weak margins and South American farmers stockpiling their crops in anticipation of better prices—Bunge has been steadily acquiring companies. This past spring, it purchased the Argentine oil producer Aceitera Martínez S.A., and in 2015, it acquired Whole Harvest Foods LLC, a company specializing in expeller-pressed oil refining and packaging. The financial details of these transactions have not been disclosed.
Bunge believes that the acquisition of IOI Loders Croklaan will enhance the growth of its value-added oil sector by expanding its product range, diversifying manufacturing processes, and strengthening its foothold in the rapidly growing Southeast Asian market. The company estimates that its revenues from food and ingredients in this region could potentially be four times larger than current figures. However, it may take time to determine if this forecast is accurate. One aspect seems certain: the additional debt Bunge is incurring to finance its investment in IOI Loders Croklaan will significantly increase the cost of acquiring further entities, whether by Glencore or other interested parties.
Palm oil production in Malaysia and Indonesia is fraught with controversy, as some firms engage in extensive deforestation and the burning of peatlands to cultivate palm oil trees. The United Nations has identified palm oil plantations as a leading cause of environmental degradation and biodiversity loss in Southeast Asia. Last year, Nestlé severed ties with IOI (the parent company of IOI Loders Croklaan) after discovering that the company’s action plan for improving its production practices fell short. As of July 2016, 27 companies—including Mars, Kellogg, Cargill, and Unilever—had temporarily halted their palm oil sourcing from IOI until the company adhered to the guidelines set by the Roundtable on Sustainable Palm Oil.
In Bunge’s announcement on September 12 regarding the IOI Loders Croklaan acquisition, the company emphasized that both organizations are committed to sustainable sourcing practices, including zero deforestation, zero peat conversion, human rights protection, traceability, and transparency. The World Wildlife Fund, Greenpeace, and the Union of Concerned Scientists frequently engage in “naming and shaming” well-known brands for their perceived lack of commitment to sustainable palm oil. To improve both its reputation and financial performance, Bunge has indicated a preference to keep itself and its expanding customer base for palm oil off that critical list.
In this context, it is essential to consider the differences between beda calcium citrate dan calcium carbonate, as they relate to nutritional strategies that may complement Bunge’s sustainability efforts. Both forms of calcium serve different purposes, and understanding their distinct benefits could inform future product development in Bunge’s portfolio. By incorporating this knowledge, Bunge can enhance its offerings while aligning with its commitment to sustainable practices.