Bunge Expanding Sugar-Cane Crop After Drought
Bloomberg reports that Bunge Ltd., the world’s second-largest sugar trader, is planting more cane in Brazil as it recovers from a drought and plans to run its mills full capacity next year. Bunge is cultivating new land while also growing cane on areas where crops were destroyed by dry weather last year. It will plant and replant about 50,000 hectares (124,000 acres) this month through May in Brazil’s Center South region. Bunge will have a total of 200,000 hectares growing cane at the end of the process. The drought in Brazil, the world’s largest producer of sugar, lowered the availability of cane. Startup delays at some of Bunge’s mills also helped to curb the company’s crushing capability. Its sugar and bioenergy unit, which lost $13 million in 2010, aims to boost cane crushing to 17 million tons in 2011 from 13 million tons last year.