While rivals like Cargill Inc and Louis Dreyfus Corp have been mainstays of the global sweetener trade for decades, grains-focused Bunge only entered in 2006, and began buying up sugar mills in Brazil a year later.
When Bunge Ltd bought five sugar mills in Brazil’s Sao Paulo state four years ago for $1.5 billion, they were considered the crown jewels of a burgeoning biofuel industry.
Now, they may be little more than millstones, hard-to-sell assets at a time of crushed margins and weak prices.
In the industry’s first major capitulation to depressed market conditions, Bunge’s new chief executive announced on Thursday he will explore options, including a sale, for the loss-making business.