1144519--3/15/2006--Bunge

related topics

{product, market, service}

{interest, director, officer}

{cost, regulation, environmental}

{provision, law, control}

{condition, economic, financial}

{acquisition, growth, future}

{regulation, government, change}

{tax, income, asset}

{capital, credit, financial}

{debt, indebtedness, cash}

{operation, international, foreign}

{personnel, key, retain}

Risks Relating to Our Business and Industries The availability and demand for the agricultural commodities and agricultural commodity products that we use and sell in our business can be affected by weather, disease and other factors beyond our control. We are vulnerable to cyclicality in the oilseed processing industry and increases in raw material prices. We are subject to economic and political instability and other risks of doing business globally and in emerging markets. Government policies and regulations affecting the agricultural sector and related industries could adversely affect our operations and profitability. We are dependent on access to external sources of financing to acquire and maintain the inventory, facilities and equipment necessary to run our business. Our risk management strategy may not be effective. The expansion of our business through acquisitions and strategic alliances poses risks that may reduce the benefits we anticipate from these transactions. We could lose customers and incur liability if we fail to properly label or separate products that contain genetically modified organisms from those that do not. We face intense competition in each of our divisions, particularly in our agribusiness and food products divisions. We are subject to regulation in numerous jurisdictions and may be exposed to liability as a result of our handling of hazardous materials and commodities storage operations. We advance significant capital and provide other financing arrangements to farmers in Brazil and, as a result, our business and financial results may be adversely affected if these farmers are unable to repay the capital we have advanced to them. Risks Relating to Our Common Shares We are a Bermuda company, and it may be difficult for you to enforce judgments against us and our directors and executive officers. Our bye-laws restrict shareholders from bringing legal action against our officers and directors. We have anti-takeover provisions in our bye-laws and have adopted a shareholder rights plan that may discourage a change of control. We may become a passive foreign investment company, which could result in adverse U.S. tax consequences to U.S. investors.

Full 10-K form ▸

1144519--3/15/2006--Bunge_LTD