Humane Practices
FINANCIAL SEGMENT
Trade and Structured Finance (TSF)Cargill uses TSF to carry out structured operations of credit and trade finance both within and outside of its production chain, funding the agricultural sector, farmers and companies. Some operations are effected through Banco Cargill S.A., a Brazilian financial institution with commercial, credit & finance and exchange licenses.
Cargill Bank was audited by the Central Bank in May 2009 and the evaluation was very positive. The company will only be re-audited in 2011, which is the maximum term permissible. This indicates a high level of compliance with requirements.
In the year, Banco Cargill initiated issue of Agribusiness Credit Letters (LCA) of R$ 228 million and increased operations of Advances on Exchange Contracts (ACC) to R$ 111 million in the portfolio. At the end of the period, it reported a net income of R$ 10.9 million compared to losses of R$ 16.0 million in 2008. This improvement was largely due to the decision to change foreign investment in stockholders’ equity into reais, which eliminated the exchange rate effect on the company’s capital and on the client portfolio performance. The institution also succeeded in managing the sectors of the production chain most affected by the global crisis, with constant focus on a long-term relationship.
Risk Management
Cargill offers solutions to protect commodities customers and producers against price risks, such as Cargill Garantia Plus, Cargill Farelo Plus and Cargill Quadrado, which protect customers against financial risks resulting from the advance trading of products such as soybeans, cocoa, cotton, sugar and soybean meal and oil.
In 2009, the Unit’s greatest achievement was to build a closer relationship with its customers so that they could concentrate on their own business. Furthermore, it increased its involvement in commercial contracts closed by Cargill. The expectation for 2010 is to consolidate the Cargill Risk Management (CRM) brand as a provider of customized solutions.
CarVal Investors
CarVal Investors is an asset management company focused on alternative investments, with operations in more than 40 countries. Founded in 1987, it currently manages approximately US$ 9 billion in investments in four business lines: Corporate Credit, Loan Portfolios, Real Estate Holdings, and Special Opportunities. It has been present in Brazil since 2000 and has disbursed around R$ 950 million in real-estate investments and acquisition of loan portfolios.
