Alberto Weisser, Bunge's Chairman and Chief Executive Officer stated, "We posted good second quarter results. Agribusiness and food & ingredients did well in the quarter, and we anticipate a solid performance in these segments in the second half of the year. We also anticipate increased contributions from sugar & bioenergy and fertilizer, as these two businesses enter their high-volume seasons.

"The agribusiness and food markets are characterized by steady overall growth, as well as natural volatility due to weather and other factors. 2011 has not been an exception. Global trade in grains and oilseeds is robust, and with the Black Sea region recently reopened for exports, we expect to see additional shifts in trade flows as the world adjusts to a new supply and demand relationship among regions.

"With our global asset network and excellent risk management capabilities, we are well positioned to capture this growth and respond to these changes. The recent addition of our first deep water port terminal on the Black Sea, which scaled up operations in Ukraine during the second quarter, makes our network even stronger."

Second Quarter Results

Agribusiness

Results in the second quarter improved in most parts of the agribusiness chain when compared to last year. Large harvests in South America benefited our grain business and oilseed processing operations in Brazil and Argentina. Performance in Europe and the U.S. improved compared to a challenging prior year period. Risk management strategies worked well. Volume, while slightly higher in the quarter, continued to be impacted by lower merchandising and processing volumes in Europe due to the smaller crop production in the Black Sea region last year. Results in the quarter included a $37 million gain related to the sale of our interest in a European oilseed processing facility joint venture.

Sugar & Bioenergy

Improved results in the quarter compared to last year came from sugarcane milling, which benefitted from higher sugar and ethanol prices and increased sales volume, as all mills were operating during the quarter. Merchandising experienced lower volumes and margins. The second quarter is typically the weakest period for this segment, as it marks the beginning of the sugarcane harvest in the Center-South of Brazil when the sugar content of the sugarcane is at its lowest level. Consequently, mills produce less sugar and ethanol per unit of sugarcane milled than they will in the second half of the year when the yield increases.

Edible Oil Products

Strong results in North America and Brazil primarily due to improved margins were partially offset by lower results in Europe, which experienced aggressive competition in certain markets. Second quarter 2010 results included $23 million of charges in our Brazilian business.

Milling Products

Higher results in the quarter were due to stronger margins in wheat and corn milling. Second quarter 2010 results included $8 million of charges in wheat milling.

Fertilizer

Volume trend in 2011 is improving, and we are making progress toward our market share targets. Margins were strong, benefitting from good farm economics and improved risk management. Results in the quarter were adversely impacted by approximately $17 million of net charges primarily related to inventory adjustments and bad debt in our Brazilian business. Last year included the gain on the sale, and approximately two months of results, from our Brazilian fertilizer nutrients assets that were sold in May 2010.

Financial Costs

Interest expense decreased in the quarter due to lower average interest rates on debt.

Income Taxes

The effective tax rate for the six months ended June 30, 2011 was 11% compared to 23% for the same period last year, which reflected the impact of the gain on the sale of our fertilizer nutrients assets in the period.

Outlook

Drew Burke, Chief Financial Officer, stated, "We expect a good second half with results weighted to the fourth quarter. The agribusiness markets will be characterized by the Northern Hemisphere harvests and continued strong global trade in response to the relatively tight supply situation. We expect our agribusiness results to continue to be driven by our grain business. Oilseed processing margins in the U.S. should improve from current low levels when harvest commences and plants run at higher utilization. However, margins are likely to remain under some pressure due to excess processing capacity and the long tail of the South American harvest that will continue to attract export demand. In Europe, the smaller rapeseed crop due to poor weather may pressure margins; however, the sunseed harvest is expected to be large, providing an offset, as should imports from the Americas. Oilseed processing in China, which has been weak, is showing improvement and should continue to progress throughout the year as the market works through the excess supply.

"In sugar & bioenergy, we expect to mill approximately 15.5 million metric tons of sugarcane, which is about a million metric tons below our previous estimate. This reduction reflects the impact of adverse weather on the development of the sugarcane. However, tight global sugar supplies, strong demand for ethanol in Brazil and ongoing concern about Brazil's sugarcane crop should be supportive of prices. As a result, our expectations for the year have not changed.

"Food & ingredients should continue to perform well, and the tough competitive environment we have seen in some edible oil markets this year is showing signs of improvement.

"In fertilizer, farm economics are strong, South America is entering its high volume period and our expectations for the business are on track. The Brazilian industry is expecting annual volume growth of approximately 7%, which implies that there is about 60% of the total volume remaining to be sold between July and December.

"Lastly, we are reducing our full year effective tax rate expectation to approximately 10%."

About Bunge Limited

Bunge Limited (http://www.bunge.com/, NYSE: BG) is a leading global agribusiness and food company with approximately 32,000 employees in more than 30 countries. Bunge buys, sells, stores and transports oilseeds and grains to serve customers worldwide; processes oilseeds to make protein meal for animal feed and edible oil products for commercial customers and consumers; produces sugar and ethanol from sugarcane; mills wheat and corn to make ingredients used by food companies; and sells fertilizer in North and South America. Founded in 1818, the company is headquartered in White Plains, New York.

Cautionary Statement Concerning Forward-Looking Statements

This press release contains both historical and forward-looking statements. All statements, other than statements of historical fact are, or may be deemed to be, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.

These forward-looking statements are not based on historical facts, but rather reflect our current expectations and projections about our future results, performance, prospects and opportunities. We have tried to identify these forward-looking statements by using words including "may," "will," "should," "could," "expect," "anticipate," "believe," "plan," "intend," "estimate," "continue" and similar expressions.

These forward-looking statements are subject to a number of risks, uncertainties and other factors that could cause our actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements.

The following important factors, among others, could affect our business and financial performance: industry conditions, including fluctuations in supply, demand and prices for agricultural commodities and other raw materials and products used in our business; fluctuations in energy and freight costs and competitive developments in our industries; the effects of weather conditions and the outbreak of crop and animal disease on our business; global and regional agricultural, economic, financial and commodities market, political, social and health conditions; the outcome of pending regulatory and legal proceedings; our ability to complete, integrate and benefit from acquisitions, dispositions, joint ventures and strategic alliances; our ability to achieve the efficiencies, savings and other benefits anticipated from our cost reduction, margin improvement and other business optimization initiatives; changes in government policies, laws and regulations affecting our business, including agricultural and trade policies, tax regulations and biofuels legislation; and other factors affecting our business generally.

The forward-looking statements included in this release are made only as of the date of this release, and except as otherwise required by federal securities law, we do not have any obligation to publicly update or revise any forward-looking statements to reflect subsequent events or circumstances.

soyatech.com