CONFIDENTIAL. This document contains trade secret information. Disclosure, use or reproduction outside Cargill and inside Cargill, to or by those employees who do not have a need to know is prohibited except as authorized by Cargill In writing. (Copyright Cargill, Incorporated 2011. All rights reserved.)

Agribusiness and Land Acquisition in Brazil

JP Morgan – Brazil Chamber of CommerceSergio Rial - Cargill, Inc.January 19, 2011 – New York

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Cargill at a GlanceCargill is an international producer and marketer of food, agricultural, financial and industrial products and services.Founded in 1865, our privately held company employs 131,000 people in 66 countries. We help customers succeed through collaboration and innovation, and are committed to sharing our global knowledge and experience to help meet economic, environmental and social challenges.

Customers We ServeAgricultureWe buy, process and distribute grain, oilseeds and other commodities to makers of food and animal nutrition products. We also provide crop and livestock producers with products and services.

FoodWe provide food and beverage manufacturers, foodservices companies and retailers with high-quality ingredients, meat and poultry products, and health-promoting ingredients and ingredient systems.

FinancialWe provide our agricultural, food, financial and energy customers around the world with risk management and financial solutions.

IndustrialCargill serves industrial users of energy, salt, starch and steel products. We also develop and market sustainable products made from agricultural feedstocks.

Financial highlights

Sales and other revenues

Net earnings

Cash flow from operations

$107,882$ 2,603$ 4,630

$115,059

$ 3,334

$ 6,679

2010 2009Dollars in millions

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“By the year 2010 Cargill will be the recognized global leader in providing agrifood chain customers with solutions that enable them to succeed in their businesses.”

SI 2010

“By 2015, Cargill will be the partner of choice, recognized as having great people with imagination committed to delivering the best ideas to the worlds we serve: ag, food and risk management.”

SI 2015

Since 1999, Cargill has been following a bold and sweeping strategic change agenda

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Cargill has been in Brazil for 45 years…

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Cargill has a significant presence in Brazil• $8.5 billion in net sales in FY10• Second largest company in the

agribusiness sector• One of Brazil’s top exporters• Cargill has 6,100 employees in Brazil• Cargill ranks with the best employers in

Brazil since 2000 (Exame and Você S/A)

Starches and Sweeteners

Sugar

Cocoa and Chocolate

Foods

Industrial Oils & Lubricants

GOSC Crushing Plants

GOSC Terminals

Warehoused/Transshipment

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Cargill has grown its business in Brazil over the past 30 years in good times and bad

5

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

Cumulative Cash Flow – 1980 to 2010(U.S. $ millions)

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Brazil’s Global RankProduction Exports

Sugar 1st 1st

Ethanol 2nd 1st

Beef 2nd 1st

Poultry 3rd 1st

Soybeans 2nd 2nd

Corn 3rd 3rd

Swine 4th 4th

Brazil’s global commodity footprint

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Source: IMF, The Economist, CIA Factbook, USDA, 2010

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• Brazil is rich in natural resources:– 220 million acres in available arable land (without deforesting)– Large fresh water reserves– Attractive climate for agriculture (temperatures, rain pattern, insolation)– Iron ore, oil, bauxite reserves

• Strengthening stability:– Social: Reduction in poverty and social inequality– Political: Stable Democracy reestablished in 1985– Economic: Inflation under control, improving debt ratings (investment

grade by S&P, Fitch, Moody’s), and growing reserves (US$ 260 billion)• Agribusiness in Brazil is growing swiftly (currently represents 25% of the GDP

and 37% of the Brazilian exports)• Peaceful relationship with neighboring countries: provides stability and does

not drain resources from the society• Absence of significant social or religious conflicts

Favorable conditions for the future

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Increasing importance of the domestic market

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• Largest population in South America (and 5th in world) – 199 million people– 84.5% urban– 15.5% rural

• 7th largest consumer products market in the world• Growing middle-class has been consistently boosting consumer spending

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Brazilian agriculture brings enormous promise, but with it challenges

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Source: The Economist

Brazil has more spare farmland than any country in the world…

…but challenges like poor infrastructure could temper this potential

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• Stronger Brazilian Real exchange rate reduces the current competitiveness of exports

• Growing environmental sustainability concerns• A complex tax system increases cost of doing business in

Brazil:– Over 60 taxes and constant change on legislation (1.5

changes each hour)– Complex legislation with diverse effects on Cargill

business– Scenario political/economical/legal favorable for

litigation claims

Additional future challenges