Cargill Profile

Thursday, August 10, 2006

Brazilian Soy Industry Announces Initiative Designed To Curb Soy-Related Deforestation in the Amazon
http://cargill.mondosearch.com......., accessed 10/8/06

SAO PAULO, BRAZIL, July 24, 2006-- Cargill and other leading Brazilian soy processors and exporters have announced an agreement designed to curb deforestation in the Amazon due to soy planting. The centerpiece of the agreement is a pledge that “we will not purchase soy from lands in the Amazon biome that are deforested after July 24, 2006, beginning with the crop that will be planted in October 2006.” The moratorium is intended to alleviate soy-related development pressure on the Amazon.

A N N O U N C E M E N T

The ASSOCIAÇÃO BRASILEIRA DAS INDÚSTRIAS DE ÓLEOS VEGETAIS – ABIOVE (Brazilian Association of Vegetable Oil Industries), the ASSOCIAÇÃO NACIONAL DOS EXPORTADORES DE CEREAIS – ANEC (National Association of Grain Exporters) and their respective members are committed to the implementation of a governance program whose objective is to not trade soya from the crop that will be planted as of October 2006 that comes from areas within the Amazon biome that are deforested after the date of this announcement.

This initiative, which will last for two years, seeks to reconcile environmental conservation with economic development, through the responsible and sustainable use of Brazil’s natural resources. During this period, the sector is committed to working with Brazilian government entities, and entities which represent rural producers and society to:

a) Prepare and implement a plan that includes an effective mapping and monitoring system for the Amazon biome or based on the official map of the corresponding area received from the Federal Government;

b) Develop strategies to encourage and move soya producers to comply with the Brazilian Forest Code;

c) Work together with interested sectors to develop new rules on how to operate in the Amazon biome, collaborating with the Brazilian government and getting them to define, apply and comply with public policies (economic-ecologic zoning) regarding land use in this region.

The sector reiterates its repudiation of slave labor and companies have incorporated into their soybean purchase contracts a clause allowing a breach of contract if it transpires that the seller used labor analogous to slavery. –

It must be noted that Cargill’s do-good soy operations in Amazonia have been aided and abetted by The Nature Conservancy. In Janauary, 2005, Cargill made a $1 million gift to The Nature Conservancy to support conservation and sustainable agriculture initiatives in three sites: China’s northwest Yunnan province, Brazil’s Amazon region, and along the Mississippi River in the US. “The two-year grant will help the Conservancy develop further capabilities and expertise in its work to protect some of the most biologically diverse ecosytems in the world, promote environmental awareness, and foster best practices around sustainable agriculture and economic development.”

Cargill’s announcement said, “Cargill’s grant, along with matching funding from the British government, will support Conservancy efforts in Brazil’s Amazon region to increase awareness and use of agricultural best practices among soya producers and help promote sustainable economic development in a region that is experiencing rapid agricultural development.”
http://www.cargill.com/news/news_releases/2005/





Cargill in Canada

July 20, 2006– Cargill, through its subsidiary Horizon Milling LLC (jointly owned by Cargilll and CHS Inc. But controlled be Cargill) has agreed to purchase the Canadian grain-based foodservice and industrial businesses of Smucker Foods of Canada Co., a wholly owned subsidiary of The J. M. Smucker Company of the US. The Smucker Company acquired the Canadian grain-based foodservice and industrial businesses as part of its International Multifoods acquisition in 2004. The Smucker Company will continue to market and distribute Robin Hood® branded products through Canadian retail channels, including Robin Hood flour. The businesses being bought by Horizon/Cargill include three flour milling operations in Montreal, Quebec, Port Colborne, Ontario, and Saskatoon, Saskatchewan, and two dry baking mixing facilities in Montreal and Burlington, Ontario. - Www.cargill.com 10/8/06