Greg Heckman: And we do supply them in the commercial relationship from our entire system, not just those two assets. We were supplying them even before the JV. And so, it’s a very holistic relationship.
Ben Kallo : Okay. And maybe just a follow-up on — just on the IRA and any kind of benefit to you or the JV or how we should think about that impacting you guys?
Greg Heckman: Well, I think in total that you’ve got a new industry that’s developing, right? And net-net, it’s more demand. It’s positive, the renewable green diesel. We don’t think it’s going to be a straight line. And I think some of the things around the IRA, everyone’s trying to understand where there’s leverage there for a number of things and not just around renewable green diesel, but around lower carbon opportunities because ultimately, with all of our customers in feed, food and fuel are looking for lower carbon intensity products, and we’ve got to find that value and drive that back to the farm gate to the producer to the farmer, the one who’s ultimately going to have to make that happen with those farmer-grown crops.
John Neppl : Yes, I would say — I would just add on, I think two things we’re looking at as well, we expect to develop in the relationship with Chevron and others is low CI feedstocks is going to be something that we think there’s some opportunity down the road. And then, of course, long-term SAF is going to be an important component of that relationship.
Ben Kallo: Thank you, guys.
John Neppl: You bet. Thank you.
Operator: The next question comes from Ben Bienvenu with Stephens. Please go ahead.
Ben Bienvenu : Thanks. Good morning everybody. I want to revisit kind of the architecture of the guidance for this year. You make a comment on your Agribusiness segment that there could be potential upside if the current S&D holds throughout the year. Is it that right now you have visibility into the first half of this year because of kind of what’s going on in South America and Argentina? And perhaps as we get to like a trend line yield in the back half of this year, you might see loosening in S&D? Or is it just, hey, this is how we’ve typically done things in the last few years, we guide as far out as we can see on the curves. And then we’ll just reassess as we get to midyear. I kind of want to understand what’s explicitly in the guide versus maybe less explicitly?
Greg Heckman: Yes. Look, let me start by — yes, we’re forecasting the same way we have been, right? It’s what we can see, it’s what the curve show. And as we talk about calling at $1.5 higher than we did a year ago, because we do have more visibility with what’s booked on the RSO side for feed and fuel as well as with the tight Argentine crop, the curves are reflecting that. And so that’s given us the confidence for — and to feel really good about the at least $11. And I think the question really is going to be around what’s the size of the plus? And there are a number of moving pieces. But you look, meal and oil demand, those drivers continue to be intact, right? You’ve got good global poultry and pork numbers, and there’s good food and fuel demand for oil.
So that’s in place. The sources of upside, of course, are the merchandising, right, which is always the toughest one to call. It’s when we have the least visibility to. And I think that one is most driven by dislocations, tight S&Ds globally and volatility. And so that’s one where we talked there is opportunity and upside for that, and that’s kind of always the case in the merch, even if you remember how we talk about it in the model and how we’ve talked about it in the outlooks in the past. And then you’ve got China, right? The improved demand coming from China. We’re starting to see just a little bit of that on the oil demand side, but that will be key to watch. And I think there’s a lot of belief that, could come back maybe faster and stronger than some thought.
And then the dislocation is not only matter to the merch business, but they matter to the crush margins, right, as we have to turn crush on to meet the customer demands in different parts of the world, and it looks right now like our crush is going to run really hard outside of everywhere, except Argentina. And then as John said, we’re seeing the capital be deployed in the RD space. So, it looks like that demand will be coming online in the second half of the year in North America. And then we’ve got a really large Brazil crop setting up on the bean crop as well as a good corn crop. And then you’ve got what we believe will be a gradual build back to B15 in Brazil. So that demand coming probably starting in April and building as they kind of try to match versus inflation.
So, we think the dollars are going to be there. Exactly which value chain they’re going to fall in or exactly which quarter they’re going to fall in, that’s always different in this business. What I do have the confidence is with our geographic platform our team is that we’ll capture that and that’s what we’ve tried to continue to prove that we can do. And as I said earlier, this is a good setup for Bunge globally. We like how it’s set up, and we’ve got to watch the crops in North America to develop and watch things continue to play out.
Ben Bienvenu : Okay. Very helpful. Thank you, Greg. My second question is going back to capital allocation, following up on Adam’s question around the buyback. And I hate to beat you up on this, Greg and John. But it seems as though you could do both. You could pursue your capital allocation program that you have — your capital expenditure program that you have and with the leverage profile of the business, buyback the stock because I think you would agree that the stock is a pretty good value here. Is the conservatism that you referenced, John, is that just, “Hey, that’s in your DNA?” Or is it — we’ve got so many other opportunities that haven’t come to fruition that we need to stay conservative to remain opportunistic, kind of more broadly than just the buyback? I just want to understand a little bit more specifically what that comment meant?
