Bunge (NYSE: BG) and Nutrien Ag Solutions, the retail division of Nutrien Ltd. (TSX and NYSE: NTR), have today announced a strategic alliance and commercial agreement aimed at aiding U.S. farmers in adopting sustainable farming practices. The initiative is expected to bolster the development of lower-carbon products and expand sustainable agriculture across shared supply chains in North America.
The move will offer more whole-acre solutions to food, feed, and fuel customers, ultimately benefiting end consumers. In addition, the collaboration is poised to bring new revenue opportunities by impacting soil health and nutrient use efficiency.
Fernando Candia, Bunge’s Vice President of Carbon Solutions, highlighted the need for collaboration among stakeholders, including farmers, crop input companies, and processors. He expressed enthusiasm about the new alliance with Nutrien Ag Solutions, which he said would “further strengthen Bunge’s connection with farmers in the U.S. and create value for participants across all our value chains.”
Candia emphasized the company’s commitment to low-carbon initiatives and the implementation of regenerative agriculture best practices, which will improve soil health, increase biodiversity, capture carbon, and minimize emissions.
The initial program will concentrate on soybeans grown near Bunge’s crushing facilities in Council Bluffs, Iowa, and Decatur, Indiana. However, there is potential for expansion to other locations and crops, including corn and wheat. The program, targeting the 2023/2024 crop season, will incorporate practices such as cover crops, reduced tillage, nutrient management, and responsible pesticide use.
Matt Marshall, Nutrien Ag Solutions Vice President, Sustainable Ag and Retail Strategy, stated, “Implementing sustainable farming practices that bring additional value to growers for lower carbon products requires a strong and established ally that shares our values.” He believes that the new alliance will enhance the implementation of sustainable practices, thus creating new revenue opportunities.
Nutrien Ag Solutions plans to offer crop consulting services, custom applications of fertility and chemistry, analytical testing of soil, water & tissue, traceability, and data collection via its proprietary platform Agrible, which uses predictive agronomic forecasts and sustainability metrics.
Rob Clayton, Senior Vice President of Nutrien Ag Solutions in North America, praised sustainable agriculture as a vital part of modern farming and essential for environmental stewardship. He expressed excitement about working with Bunge to connect growers through the shared purpose of being caretakers of the land. He further emphasized Nutrien Ag Solutions’ commitment to providing personalized, whole-acre solutions for every field through their agronomists and crop consultants.
Bunge will contract with these farmers and manage harvest and post-harvest commercialization as part of the alliance.
Julio Garros, Bunge’s Co-President, Agribusiness, said, “We are excited to be a key partner to downstream customers in bringing solutions to help them meet commitments to reduce emissions in their value chains, as well as incorporate regen ag practices across their ingredients and end-consumer products. As the global leader in oilseed processing, we are positioned to leverage alliances with innovative industry players to unlock value along the value chain – from farmers to consumers – and help make our food systems more sustainable.”
Photo by Josh Berendes on Unsplash
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