Bunge y Born
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Bunge & Born was a
multinational corporation A multinational company (MNC), also referred to as a multinational enterprise (MNE), a transnational enterprise (TNE), a transnational corporation (TNC), an international corporation or a stateless corporation with subtle but contrasting senses, i ...
based in
Buenos Aires Buenos Aires ( or ; ), officially the Autonomous City of Buenos Aires ( es, link=no, Ciudad Autónoma de Buenos Aires), is the capital and primate city of Argentina. The city is located on the western shore of the Río de la Plata, on South ...
,
Argentina Argentina (), officially the Argentine Republic ( es, link=no, República Argentina), is a country in the southern half of South America. Argentina covers an area of , making it the second-largest country in South America after Brazil, th ...
, whose diverse interests included
food processing Food processing is the transformation of agricultural products into food, or of one form of food into other forms. Food processing includes many forms of processing foods, from grinding grain to make raw flour to home cooking to complex industr ...
and international trade in
grain A grain is a small, hard, dry fruit (caryopsis) – with or without an attached hull layer – harvested for human or animal consumption. A grain crop is a grain-producing plant. The two main types of commercial grain crops are cereals and legum ...
s and
oilseed Vegetable oils, or vegetable fats, are oils extracted from seeds or from other parts of fruits. Like animal fats, vegetable fats are ''mixtures'' of triglycerides. Soybean oil, grape seed oil, and cocoa butter are examples of seed oils, or fat ...
s. It is now known as
Bunge Limited Bunge Limited is an American agribusiness and food company, incorporated in Bermuda, and headquartered in St. Louis, Missouri, United States. As well as being an international soybean exporter, it is also involved in food processing, grain trad ...
.


History

Bunge & Born was founded in 1884 by Ernesto Bunge, a
German Argentine German Argentines (german: Deutschargentinier, es, germano-argentinos) are Argentines of German ancestry as well as German citizens living in Argentina. They are descendants of Germans who immigrated to Argentina from Germany and elsewhere in E ...
whose uncle, Carl Bunge, had been Consul General in Argentina for both the
Netherlands ) , anthem = ( en, "William of Nassau") , image_map = , map_caption = , subdivision_type = Sovereign state , subdivision_name = Kingdom of the Netherlands , established_title = Before independence , established_date = Spanish Netherl ...
and
Prussia Prussia, , Old Prussian: ''Prūsa'' or ''Prūsija'' was a German state on the southeast coast of the Baltic Sea. It formed the German Empire under Prussian rule when it united the German states in 1871. It was ''de facto'' dissolved by an em ...
, and his brother-in-law, Jorge Born, who had recently arrived from
Antwerp Antwerp (; nl, Antwerpen ; french: Anvers ; es, Amberes) is the largest city in Belgium by area at and the capital of Antwerp Province in the Flemish Region. With a population of 520,504,
. The company superseded the Bunge Company founded in
Amsterdam Amsterdam ( , , , lit. ''The Dam on the River Amstel'') is the Capital of the Netherlands, capital and Municipalities of the Netherlands, most populous city of the Netherlands, with The Hague being the seat of government. It has a population ...
by Johann Bunge, in 1818. Following the purchase of of prime
pampas The Pampas (from the qu, pampa, meaning "plain") are fertile South American low grasslands that cover more than and include the Argentine provinces of Buenos Aires, La Pampa, Santa Fe, Entre Ríos, and Córdoba; all of Uruguay; and Brazil ...
wheat fields, Bunge & Born established ''Centenera'', their first food processing plant, in 1899. They had one of the largest wheat mills in the country built on a
Puerto Madero Puerto Madero, also known within the urban planning Urban planning, also known as town planning, city planning, regional planning, or rural planning, is a technical and political process that is focused on the development and design of land ...
lot in 1902, and with it, established ''
Molinos Río de la Plata Molinos Río de la Plata ( BCBA: MOLI) is Argentina's largest branded food products company. The company is a large exporter of sunflower processed oil and is one of Argentina's main exporters of bottled oil. Molinos also produces a wide range of ...
'' (later a leader in the local retail foods market).educ.ar - Procesos económicos en la Argentina: el caso de Bunge y Born
The company started Argentina's first
burlap Hessian (, ), burlap in the United States and Canada, or crocus in Jamaica and the wider Caribbean, is a woven fabric usually made from skin of the jute plant or sisal fibres, which may be combined with other vegetable fibres to make rope, nets, ...
bag manufacturer, following which they successfully lobbied government policy makers for
protective tariffs Protective tariffs are tariffs that are enacted with the aim of protecting a domestic industry. They aim to make imported goods cost more than equivalent goods produced domestically, thereby causing sales of domestically produced goods to rise, ...
on the then-critical commercial staple. They established a mortgage bank, the ''Banco Hipotecario Franco Argentino'', and a subsidiary in
Brazil Brazil ( pt, Brasil; ), officially the Federative Republic of Brazil (Portuguese: ), is the largest country in both South America and Latin America. At and with over 217 million people, Brazil is the world's fifth-largest country by area ...
in 1905, and by 1910, they reportedly controlled 80% of Argentine cereal exports (Argentina was, by then, the world's third-largest grain exporter). They later established paint manufacturer ''Alba'' (1925), chemical and fertilizer maker ''Compañía Química'', and textile maker ''Grafa'' (1932), among others; by the late 1920s, the company's annual export receipts alone reached US$300 million. The company inaugurated its
neo-gothic Gothic Revival (also referred to as Victorian Gothic, neo-Gothic, or Gothick) is an architectural movement that began in the late 1740s in England. The movement gained momentum and expanded in the first half of the 19th century, as increasingly ...
Buenos Aires headquarters on
Leandro Alem Avenue Avenida Leandro N. Alem is one of the principal thoroughfares in Buenos Aires, Argentina, and a commercial nerve center of the city's San Nicolás and Retiro districts. It joins Avenida del Libertador and Avenida Paseo Colón, its northern and ...
, designed by local architect Pablo Naeff, in 1926. Bunge & Born's near-monopoly on cereal and flour exports ended with populist President
Juan Perón Juan Domingo Perón (, , ; 8 October 1895 – 1 July 1974) was an Argentine Army general and politician. After serving in several government positions, including Minister of Labour and Vice President of a military dictatorship, he was elected P ...
's 1946 establishment of the
IAPI The Five Year Plan was an Argentine state-planning strategy, during the first government of President Juan Domingo Perón. First Five Year Plan (1947–1951) Preparations Early in the second half of 1946, the Technical Secretariat of the Pre ...
, a state agricultural purchasing and export agent. The company responded by extending its reach into the country fast-growing retail processed foods market, and though its prominence as the nation's chief exporter was partly restored by Perón's 1955 ousting and the IAPI's liquidation, its focus remained domestic over the next three decades. A privately held company, Bunge & Born did not release periodical financial statements, though it did report US$2bn in gross receipts in 1962; by then it had become a leader in
commodity futures In finance, a futures contract (sometimes called a futures) is a standardized legal contract to buy or sell something at a predetermined price for delivery at a specified time in the future, between parties not yet known to each other. The asset ...
trading, operating 110 offices worldwide. The Bunge, Born, Hirsch, Engels and De La Tour families remained the company's chief stock-holders, and by extension, leaders in the domestic textile, paint, chemical, fertilizer, and food processing industries. On September 19, 1974, however, the consortium was shaken by the kidnapping of siblings Jorge and Juan Born by the far-left terrorist group,
Montoneros Montoneros ( es, link=no, Movimiento Peronista Montonero-MPM) was an Argentine left-wing Peronist guerrilla organization, active throughout the 1970s and early 1980s. The name is an allusion to the 19th-century cavalry militias called Montoner ...
. The Born brothers were kept in a known Argentine State Intelligence safehouse for nine months until their June 1975 release, something made possible without public suspicion of outside involvement by the agency's numerous contacts inside the Montoneros (including the leader, Mario Firmenich). Freed for a US$60 million ransom (the largest on record at that time), the ordeal triggered the company headquarters' relocation to
São Paulo São Paulo (, ; Portuguese for 'Saint Paul') is the most populous city in Brazil, and is the capital of the state of São Paulo, the most populous and wealthiest Brazilian state, located in the country's Southeast Region. Listed by the GaWC a ...
, Brazil, and contributed to the
March 1976 coup March is the third month of the year in both the Julian and Gregorian calendars. It is the second of seven months to have a length of 31 days. In the Northern Hemisphere, the meteorological beginning of spring occurs on the first day of Marc ...
. Retaining their Argentine interests (44 companies, by the 1980s), the families continued to suffer from ongoing disputes, and in 1987, CEO Mario Hirsch died suddenly. The election of
Carlos Menem Carlos Saúl Menem (2 July 1930 – 14 February 2021) was an Argentine lawyer and politician who served as the President of Argentina from 1989 to 1999. Ideologically, he identified as a Peronist and supported economically liberal policies. H ...
to the Argentine Presidency in May 1989, however, resulted in an agreement between the President-elect and Jorge Born that gave the company partial control over national economic policy. Bunge & Born provided the Menem government with its first two economy ministers, and the combination of large rate increases on public services (around 500%), a simplified exchange rate and a massive, mandatory wage hike led to a sharp economic turnaround between July and November 1989. This foray into government policy making, however, ended in a new currency crisis that December and the failure (compounded by the company's lackluster business performance) resulted in Born's 1991 ouster from the board; he was replaced by Chief Operations Officer
Octavio Caraballo Octavio is a Spanish language masculine given name. In the Portuguese language the given name Octavio or Octávio is also found, but in Portuguese the normal spelling is Otávio. It is also used as a surname in the Philippines. Individuals * Oct ...
. Beset by the rift between Jorge Born and his brother, Juan, the prior unity between the shareholders disintegrated as Caraballo struggled to modernize the company. Family frictions intensified when Jorge Born formed a business partnership with one of his former kidnappers, erstwhile Montonero strategist
Rodolfo Galimberti Rodolfo is a given name. Notable people with the name include: * Rodolfo (footballer, born 1992), Brazilian footballer Rodolfo José da Silva Bardella *Rodolfo Albano III, Filipino politician * Rodolfo Vera Quizon Sr. (1928-2012), Filipino actor ...
.


Bunge International

The company was converted into the
Bermuda ) , anthem = "God Save the King" , song_type = National song , song = " Hail to Bermuda" , image_map = , map_caption = , image_map2 = , mapsize2 = , map_caption2 = , subdivision_type = Sovereign state , subdivision_name = , e ...
-registered
Bunge International Bunge Limited is an American agribusiness and food company, incorporated in Bermuda, and headquartered in St. Louis, Missouri, United States. As well as being an international soybean exporter, it is also involved in food processing, grain tr ...
in 1994, retaining the Bunge y Born name only in Argentina. Bunge remained a privately held company of 180 shareholders (including the longtime controlling family interests) and divested itself in 1998 of almost all its retail foods interests in favor of a greater role in international
agribusiness Agribusiness is the industry, enterprises, and the field of study of value chains in agriculture and in the bio-economy, in which case it is also called bio-business or bio-enterprise. The primary goal of agribusiness is to maximize profit w ...
and commodity markets; by then the company's gross annual turnover had reached US$13 billion. Bunge ultimately went
public In public relations and communication science, publics are groups of individual people, and the public (a.k.a. the general public) is the totality of such groupings. This is a different concept to the sociological concept of the ''Öffentlichkei ...
on the
NYSE The New York Stock Exchange (NYSE, nicknamed "The Big Board") is an American stock exchange in the Financial District, Manhattan, Financial District of Lower Manhattan in New York City. It is by far the List of stock exchanges, world's largest s ...
in 2001, becoming ''Bunge Limited''.


References

{{DEFAULTSORT:Bunge Y Born Conglomerate companies established in 1884 1884 establishments in Argentina Conglomerate companies of Argentina