Bunge, the world's biggest oilseed processor, has started this year where it left off 2008 - in the red - after a fall of one-quarter in sales at its core Agribusiness unit.

The US-based group also sliced its forecast for growth in soybean meal demand this year, and cut its 2009 earnings forecast by roughly 30% from $6.90-7.60 a share to $4.90-5.40 a share.

Bunge shares closed down $7.04, or 12.9%, at $47.46 in New York.

Bunge's first quarter had been "more challenging than expected" thanks to a 6% drop in global soybean consumption, Alberto Weisser, the group's chairman and chief executive, said.

'Relative improvement'

"While this figure represents a relative improvement over the 9.5% year-over-year reduction in the fourth quarter of 2008, consumption was slightly lower than expected," Mr Weisser said.

Sales at Bunge's Agribusiness grains and oilseeds division fell 25% to $6.63bn.

Mr Weisser cut to 1% his estimate of market expansion this year from a forecast of 1.5% growth made in January. Demand grew nearly 4% last year, according to the group's annual report.

'Aggressive price reductions'

Bunge also revealed a 41% slump to $699m in sales at its fertilizer division, the largest manufacturer in South America, where farmers have been hurt by falling crop production and prices, as well as tight credit.

"Retail fertilizer margins in Brazil suffered from aggressive price reductions by competitors, which drove sales prices below international levels," Mr Weisser said.

The group fell to a pre-tax loss of $203m, compared with a profit of $442m a year before, although a tax writeback reduced the after-tax loss to $195m.