bunge 2004 annual report we are committed to continuous improvement in effi  ciency bunge designed its integrated operations to create global initiatives spotlight on south america 12 Developing efficient logistics is critical in South America.  In the next fi ve years, the USDA predicts that South American  agricultural exports will increase by more than 30 million tons.  natural effi ciencies. Fertilizer and agribusiness share a focus  on the farmer; agribusiness supplies low-cost inputs for food  products; and global logistics and risk management overlay  our entire business.  We realize, however, that we can do more. As a result,  we are committed to continuously improving effi ciency by  strengthening our processes, teamwork and assets. Bunge’s five global initiatives—Productivity, Quality, Safety  and Environment (PQSE); Logistics; Information Technology  (IT); People Development; and Innovation—provide a framework  for increasing effi ciency. The initiatives improve core processes  by identifying best practices from within the company and  around the world, and promoting them throughout Bunge. True  to our decentralized structure, employees drive the initiatives  at the local level, where market visibility and agility are greatest  and savings most achievable. In 2004, the PQSE working groups–procurement, grain  handling, oilseed crushing, refining, safety and health, food  and feed safety, environment, and sustainable development– identifi ed new approaches in their areas and began the rollout  of pilot projects throughout the company. The Logistics initiative  ran successful, and profi table, fi eld trials of enhanced loading  techniques at ports. The IT initiative enhanced our global online  logistics and freight management system. With this growth comes a challenge: how to ensure that  transport systems, already strained in some areas, keep  pace with increasing production. As the largest agricultural exporter in South America, Bunge  must meet this challenge. We are investing to do so. Inland  transport is an important part of the equation. On average,  crops travel more than 1,000 km from farm to export terminal in  Brazil. Today, more than 65 percent of the country’s agricultural  products are carried by truck. Truck freight is less reliable,  harder on the environment and about 15 percent more  expensive than rail. To help develop future rail capacity, Bunge entered into a  long-term relationship with América Latina Logística (ALL) in  2004. ALL owns and operates railway networks in the southern  Brazilian states of Paraná, Santa Catarina and Rio Grande do Sul.  Through the partnership, ALL guarantees Bunge signifi cant future  capacity, at competitive rates, on vital rail lines that carry crops  from inland growing areas in the south, and from Mato Grosso  and Goías, to ports on the coast. In return, Bunge commits to  ship increasing volumes of fertilizer and agricultural products 