The continuation of huge global grain stockpiles, four consecutive years of bumper harvests, and low commodity prices has put pressure on the grain trading industry.
Bunge, which Glencore was targeting for a possible takeover this past May, is the latest global trader to announce its plans to restructure and cut costs - measures that are designed to counter current market conditions while also holding off rivals looking toward Bunge for consolidation.
The plan, which is scheduled to be fully executed by the end of 2019, will implement a zero-based budgeting process that will target specific budget categories; streamline its processes; simplify its organizational structure; and consolidate its global back office functions to raise efficiency and improve scalability. The company will also reduce its capex spending for 2018 from $750 million to $650 million.
Lynda Kiernan is Editor with HighQuest Group Media and of the Oilseed & Grain News. If you would like to submit a contribution for consideration, please contact Ms. Kiernan at email@example.com.