Yahoo Finance Bunge (BG) Ties with Corteva & Chevron to Make Winter Canola
Bunge Limited BG teamed up with Corteva Inc. CTVA and Chevron Corporation’s CVX subsidiary, Chevron U.S.A. Inc., to introduce proprietary winter canola hybrids that yield plant-based oil with a reduced carbon profile.
The companies intend to boost supply of vegetable oil feedstocks, especially for the growing domestic market for renewable fuels. Including winter canola in a rotation provides a cover crop that can improve soil health by retaining more nutrients, water and carbon. This collaboration will be benefiting from Corteva’s exclusive winter canola hybrids that can be grown in a double crop system after cotton or soybeans.
By addressing the demand for renewable and less carbon-intensive fuel sources, this joint venture aims to give farmers a sustainable crop rotation as well as a new income stream.
Additionally, this innovative technology will aid farmers in improving sustainability and production on their land.
The joint venture between Bunge and Chevron, Bunge Chevron Ag Renewables, intends to enter into agreements with farmers to buy the harvested winter canola crop and use the oil to create renewable fuel.
The companies plan to conduct a pilot program in the 2022-23 growing season to improve optimal management techniques.
The companies intend to keep looking for ways to improve farming options while also producing lower-carbon renewable fuels. The collaboration complements Bunge’s commitment to laying out clear paths to help the industry decarbonize.
In the last reported quarter, BG reported adjusted earnings of $3.24 per share, beating the Zacks Consensus Estimate of $3.19. The company delivered revenues of $16 billion, missing the Zacks Consensus Estimate of $18 billion.
Price Performance
Shares of Bunge have lost 3.2% over the past year compared with the industry's 10.8% decline.
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Zacks Rank & Stock to Consider
Bunge currently carries a Zacks Rank of 3 (Hold).
A better-ranked stock in the basic materials space is CalMaine Foods, Inc. CALM that flaunts a Zacks Rank #1 (Strong Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for CalMaine Foods’ fiscal 2023 earnings per share is pegged at $16.75, suggesting 515.8% growth from the year-ago reported figure. Earnings estimates have moved 106.8% north in the past 60 days.
CALM has a trailing four-quarter earnings surprise of 15.3%, on average. Shares of the company have gained 17.7% in the past year.
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Chevron Corporation (CVX) : Free Stock Analysis Report
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Corteva, Inc. (CTVA) : Free Stock Analysis Report
