...programs: corporate agribusiness. Why are farmers dependent on subsidies? New Deal Forced Agribusiness to Pay Farmers Fairly. As King Corn outlined, the government during the New Deal attempted to bring supply into line with demand, an approach known as “supply management.” This was accomplished thru the use of conservation set-asides, a price floor guaranteeing a fair price for corn (similar to a minimum wage), and a grain reserve to deal with overproduction. Farmers did not need to rely on the government for a fair income. They received it from the marketplace. Prior to the New Deal, the “free market” approach to agriculture caused economic booms and busts as farmers suffered continued depressed prices for their crops. This led to the rise of the Populist Party and other agrarian movements whose ideas were finally implemented with the New Deal. Agribusiness Had Lobbied for Decades to Allow the “Free Market” to Determine Prices. Beginning in 1973, policy changes promoted by Nixon Secretary of Agriculture Earl Butz deregulated the corn market. He dismantled supply management policies, selling off government storage bins used as food security reserves and implemented “fencerow to fencerow” planting. Butz believed any overproduction should then be dealt with thru exports and “free trade.” The Russian Wheat Deal and the World Food Crisis of the early 1970s gave Butz the chance to promote the false notion that free markets would be good for farmers. Butz and agribusiness giant, Cargill...
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...As the food market grew, the range of choices increased for the consumers. A consumer has a choice of purchasing a bag of organic, fair trade or organic and fair- trade coffee. Products with these labels emphasis the certifications like a medal presented by the social norm. Majority of consumer population assumes more certifications proves better quality of the product. This common assumption of the quality is true to certain degree, but it is more important to understand the labels than to look for them. "Fair trade" and the "organic" are often preferred in the market for the concern of the justice, and health; but how fair is fair trade? How healthy is organic? The concern of fair trade is limited to coffee farms, but often referred to coffee movement. Fair trade coffee system is built around members of small farms working with certifiers and companies to make sure that farmers are paid consistent price for their coffee regardless of the fluctuation of the market, Jaffee stated that the "difference [that] is most dramatic during crisis" (Jaffee 94). The biggest benefits for the fair-trade farmer is economic stability since fair trade system guarantees consistent minimum. As member of fair trade organization, farmers will receive their profit throughout the year instead of once on entire agriculture season, which forces individual farmers to manage their income and spread it out through the year. Stable income results...
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...Term Paper BHUPESH MANOHARAN (0086/49) ACNOWLEDGEMENT I would like to express my special thanks of gratitude to Professor Nimruji Prasad J. for providing me with this opportunity and helped me in doing this term paper. It was her able guidance and constant appraisal of the paper that led me to have holistic view of the subject and improvise the paper. Table of Contents ABSTRACT ...................................................................................................... 3 INTRODUCTION: ............................................................................................ 4 ORGANIC AGRI-BUSINESS: HOW IS IT DIFFERENT?............................ 4 METHODOLOGY ............................................................................................ 5 LIMITATIONS OF THE METHODOLOGY .................................................... 5 SUSTAINABILITY ISSUES IN ORGANIC AGRIBUSINESS ........................ 5 ENVIRONMENTAL/ECOLOGICAL SUSTAINABILITY ........................... 5 ECONOMIC SUSTAINABILITY: ................................................................. 6 SOCIAL SUSTAINABILITY: ....................................................................... 7 OPPORTUNITIES & CONSTRAINTS IN ORGANIC AGRIBUSINESS ........ 7 OPPORTUNITIES ......................................................................................... 7 CONSTRAINTS ............................................................................................. 8 SUSTAINABLE PRINCIPLES...
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...these well-known companies such as Walmart and Target did not exist. Instead people would buy food at farmers markets, produce stands, or butcher shops. They would go to the corner store to buy hygiene products and the pharmacy for their medicine. Americans eventually realized that traveling to multiple locations for the bare necessities was a bit of a hassle and so they created grocery stores. Now, costumers do not have to travel to multiple places for their dinner, shampoo, and detergent; instead they can travel to one place. Grocery stores quickly grew into large franchises that have scattered across every state in the US. Though grocery stores make shopping convenient, efficient, and less of a hassle; they also create multiple dilemmas for communities, the environment, and consumers. Consumers can help limit such issues by shopping as if we were still in the days when supermarkets were not around, to the days when people bought locally. The food that Americans eat does not come from the local farmer anymore. Instead it ships to the United States from across the country or even across the world. Since America is importing food instead of buying it from a farmer, the farming population is decreasing. According to the internet article, “Why Buy Locally Grown?” less than 1% of Americans rely on farming as their primary occupation which means there are fewer than 1,000,000 farmers in the United States. A main reason for the decrease in the farming population is that for every retail...
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...Term Paper Bhupesh Manoharan ACNOWLEDGEMENT I would like to express my special thanks of gratitude to Professor for providing me with this opportunity and helped me in doing this term paper. It was her able guidance and constant appraisal of the paper that led me to have holistic view of the subject and improvise the paper. Table of Contents ABSTRACT ...................................................................................................... 3 INTRODUCTION: ............................................................................................ 4 ORGANIC AGRI-BUSINESS: HOW IS IT DIFFERENT?............................ 4 METHODOLOGY ............................................................................................ 5 LIMITATIONS OF THE METHODOLOGY .................................................... 5 SUSTAINABILITY ISSUES IN ORGANIC AGRIBUSINESS ........................ 5 ENVIRONMENTAL/ECOLOGICAL SUSTAINABILITY ........................... 5 ECONOMIC SUSTAINABILITY: ................................................................. 6 SOCIAL SUSTAINABILITY: ....................................................................... 7 OPPORTUNITIES & CONSTRAINTS IN ORGANIC AGRIBUSINESS ........ 7 OPPORTUNITIES ......................................................................................... 7 CONSTRAINTS ............................................................................................. 8 SUSTAINABLE PRINCIPLES OF ORGANIC INTEGRATED AGRIBUSINESS...
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...Marketing Research Project 2015-2016 Study on mobile phones contribution in better agricultural decision making by Indian Farmers. Report Submitted By- ACKNOWLEDGEMENT We wish to express our sincere gratitude to Dr. Jogendra Kumar Nayak, Assistant Professor, for providing us opportunity to pursue work on the project “Study on mobile phones contribution in better agricultural decision making by Indian Farmers” and also for providing us with necessary facilities, freedom of thoughts and actions, and guidance for efficiently conducting our work. We sincerely thank our respondents and our colleagues from the course structure of Marketing Research and all other who were directly or indirectly involved in the project, for entrusting us with the project meanwhile mentoring and guiding us and helping us conduct our work with utmost proficiency. This project gave us an insight in the applications of mobile phones in providing best agro based information to our farmers. Through our study we came to the understanding that exploiting the technological advancements in the agriculture sector can help our producers to a great extent. Group 2|Page Contents ACKNOWLEDGEMENT ................................................................................................................................... 2 INTRODUCTION ............................................................................................................................................. 5 ...
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...concept of the present Choupal system wherein farmers gather at a meeting place at the end of each day to discuss daily happenings. Seeing that soybeans and its derivatives account for two-thirds of ITC’s agricultural export business, his focus was placed on that area. ITC’s supply chain for soybean was from local farmers to mandis to ITC’s factory and this process was significantly hampering the IBD’s performance. The supply chain was suffering from the lack of resources and a reliable channel for information flow, which resulted in a very unproductive cycle. In order to meet the company’s target, it had to identify ways in which a new method could be introduced so that the issues would be corrected. Technology was at the forefront but going that route also had its challenges. It would have been introduced in an environment that was underdeveloped and the general population was not exposed to computer technology. In India where ITC’s corporate offices are located, there is a rich culture and also the industry is governed by politics hence determining a method to effect changes, these factors have to be considered. Historically, the farmers would know happenings in the market place via the Choupals and ITC saw this culture as a good model for introducing the technology they had in mind. ITC introduced its new initiative termed eChoupal. Its main purpose was to gather and share information for the benefit of the farmers...
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...Recommendation & Implementation 7-9 Monitor and Control Part Six Monitor and Control 9-10 Part One – Executive Summary ITC is one of India’s largest private sector companies and is well diversified. It has business units operating in multiple industries including soybean, tobacco, paperboard, retail, hospitality and foods among others (The ITC eChoupal Initiative). Although ITC is extremely profitable and one of the most respected companies in the world, they do face margin issues within their International Business Division (IBD). The IBD is ITC’s exporting agricultural commodities division, which is operated out of India. India’s agricultural sector is home to 72% of the population and 60% of their workforce creating a market with extreme profit potential. However, the 100 million the IBD made in 1998 is a nominal contribution when compared to the 2 billion in revenue ITC collected from all divisions. In March of 1999 Chief Executive S. Sivakumar was approached by ITC Chairman, Y.C. Deveshwar, to generate a new business plan for IBD that would make the division more profitable. There were many factors hindering India’s supply chain for agricultural goods, which would have to be dealt with if the new business model was to succeed. After a brainstorming session with ITC management in May of 1999 Sivakumar decided to implement digital technologies within the supply chain (The ITC eChoupal Initiative). This way the entire supply chain would...
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...lower tier people has decreased, widening gap between the richest and poorest [3]. According to PRSP, 2005, agriculture must grow yearly by at least 4-4.5%. It is apparently possible through increasing agricultural productivity based on modern agricultural technology and a supply chain linking farmers with consumers in the domestic and global markets [1]. In a market economy framework, access to information is crucial in terms of having access to market and getting price advantage in the production process. Unfortunately, there is no separate market for the poor producers of goods and services. Accordingly, access to information may drastically change the situation in favor of the poor producers within and outside the country. Country like Bangladesh where most of its population live in villages and depend on agriculture as their main occupation, accurate and timely information about market prices of agricultural produce has extreme significance. Agricultural Marketing in Bangladesh is undergoing a steady but significant change because of economic liberalisation and globalisation. Advancement in Information and Communication Technologies (ICTs) has made the world a smaller but larger market. The availability of prompt and...
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...The problems and benefits of fair trade The many benefits of fair trade are clear once one learns that its main goal is to alleviate poverty in developing countries and inculcate the value of sustainable development. Fair trade aims to create more opportunities for producers facing economic disadvantage over multinational companies. Because it also aims for sustainable development, both workers and producers are being offered much better trading conditions than before. There are five main benefits of fair trade that can easily be seen. The first is that it increases the income of the producers of the farmers. This is achieved through two steps. The price of the good is paid upon at an agreed and guaranteed fair price. The distribution channels involved in marketing the good is also reduced thus the producers get a larger share form the price of the good. Second benefit is that because they now have a larger share of the pie, both farmers and workers have extra income with which to improve their lives. The price of a specific good is typically computed to cover the cost of both sustainable production and livelihood. A premium is also added to the price to be used as investment for development projects. These projects include building schools, funding scholarships and even used to fund low-interest loans for farmers and workers. Third of the five benefits of fair trade is that is involves greater environmental protection. The certification being used to market fair trade products...
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...ITC’S FORAY INTO THE RURAL MARKET. | Ms Smita Singh, Research Scholar, Department of Business Administration, University of Lucknow, Lucknow(M) 098395-01035e-mail: smita_saggi@rediffmail.com | Ms. Smita Singh Ms. Singh is a visiting faculty at Institute of Management Sciences, University of Lucknow and Distance Learning Centre for Punjab Technical University. She has been associated with academics for the past 2½ years and is enrolled for PhD research at the Department of Business Administration, University of Lucknow. She has worked with Wigan and Leigh College, Lucknow as Programme Manager and Academic Head, Management. A NTSE (NCERT) and HRD Ministry scholarship holder, she has qualified SLET in Anthropology. With over 8 years of industry experience, her current affiliation as Human Resource Consultant is with the Lucknow based project centre of Johns Hopkins University of Public Health and Hygiene, which she earlier served for 4 years as Manager HR and Research Associate. DECLARATION I hereby declare that the paper/case is original and is authored by me. The paper/case has not been published elsewhere ABSTRACT E-VOLUTION: TECHNOLOGY AS A DRIVER OF RURAL RETAIL IN INDIA – A CASE OF ITC’S FORAY INTO THE RURAL MARKET. 70 % of India's population lives in rural areas in its 627000 villages. Technopak’s estimated size of the Indian rural market at USD 300 billion shows...
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...Fair Trade- Benefits and criticisms Important to note that the fair trade economy is diverse ranging from agricultural products to handicrafts from all over the world. Benefits and costs vary by product, historical context of market, geography, etc. It is also important to note that fair trade occupies only a small sliver of the global trade. Some Benefits of Fair Trade: At its core, fairtrade guarantees a decent price for producers by requiring traders to pay a premium, which is passed on to the consumer. This premium insulates the poorest of farmers from fluctuations in the market, disasters, and other extreme events Small-scale Farmers and Workers: The Fairtrade system benefits approximately 1 million workers and farmers in 60 developing countries in Africa, Asia and Latin America. Including their dependents, five million people are affected. Fairtrade certification allows them to achieve economic independence and empowerment while improving their standards of living. Beyond being paid a fair price for their produce, Fairtrade Premiums enable producers to better their communities by providing: • Improved access to low or no-interest loans • Technical assistance for building infrastructure to improve production • Communications systems, and collectively-owned transport and processing equipment • Better health care and education • Technical training and skill diversification for cooperative members and their families A recent...
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...Increases Inflation 10 4.2 Low MSP – Farmer’s Income Affected 10 5 Critical Analysis of MSP Policy 12 5.1 Consumer Surplus 12 5.2 Producer Surplus 12 5.3 Deadweight Loss 13 5.4 Other Effects 14 5.4 Measures to minimize MSP expenditure 16 Bibliography 18 1. Introduction 1.1 What is Minimum Support Price (MSP)? Minimum Support Price is the price at which government purchases crops from the farmers, whatever may be the competitive equilibrium price for the crops. A price floor, which is also referred to as a minimum price, sets the lowest level possible for a price. Price floors/minimum prices only have an effect if they are set above the actual market clearing price. There are many instances of governments in the real world setting price floors, such as setting a national minimum wage for labour to ensure that individuals are able to earn a ‘living wage’. In addition, given the instability of agricultural prices and the need to ensure food security, farm prices may be set which guarantee a minimum price to farmers. 1.2 What is the need for MSP? The main reason why the government fixes minimum support prices or MSPs is...
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...one of Nestles major markets. Therefore, it is imperative for Nestlé to be aware of the social, environmental and financial circumstances surrounding its business. Social: From the social perspective, the main circumstances that concerned Nestlé were local infrastructure, Fairtrade payment and the avoidance of child labor. In connection to that, products marked with Fairtrade label were described as “ethical” and “sustainable” conveying a broad message that farmers of these products have been given fixed price or have met ethical standards. Environmental: From the environmental perspective, there is a growing market trend in the U.K. for environmentally-friendly materials and therefore recycled materials in the packaging would have a big impact in consumers purchase decision. In addition, ecological washing systems have been built by Nestlé initiatives in order to expand water distribution within communities. In 2004, there were 1000 Fairtrade products from 150 companies available in most of the super market stores in different product categories. Finally, improvements in nutrition, environmental standards and agricultural supply chain have been discussed as circumstances. Financial: On the financial side, given the volatility of coffee prices as a result in changes on the supply, farmers have been negatively impacted. Also, the cost of certification from Fairtrade organization needs to be considered, along with what it might do to the farmers, as they are getting a...
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...first conduct market research. Market research has a variety of purposes and a variety of data collection methods that can be utilized for each purpose. What Urs needs to understand is that no small business can succeed without understanding who the potential customers might be, how those products and services affect the customers, and the market in general. Competition is often fierce, and operating without conducting research may give competitors an advantage. There are two ways to do market research, primary and secondary research. ("Market Research," 2010) As a general rule, a thorough research of the secondary data should be undertaken prior to conducting primary research. Using information gleaned from secondary sources, the owner can uncover all kinds of demographic information, including detailed income data and spending patterns. The secondary information will provide a useful background and will identify key questions and issues that will need to be addressed by the primary research. Performing secondary market research means obtaining information from sources such as trade journals and magazines where published papers, directories and even market statistics can be found. Useful qualitative data can be found in trade association figures, government and industry forecasts, white papers as well as in research reports. All these will help the business owner ask the fundamental questions; what are the current dynamics of the market, what are the...
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