Read the below initial position statement, and begin to formulate your group’s r
ID: 385848 • Letter: R
Question
Read the below initial position statement, and begin to formulate your group’s rebuttal on why you SHOULD FILL THE ORDER:
Introduction to Materials Management, 8th edition
Steve Chapman, Tony K. Arnold, Ann K. Gatewood, Lloyd Clive
Pearson
2017
ISBN-13: 978-0134156323
ISBN-10: 0134156323
The Topic: Insecticide Business in West Africa: The following link will lead you to a decision tree that you may find helpful in your decision making.You are a vice president of a multinational chemical corporation. Your company is the sole producer of an insecticide that will effectively combat a recent infestation of West African crops.The minister of agriculture in a small developing African country has put in a large order for your product. Your insecticide is highly toxic and is banned in the U.S. You inform the minister of the risks of using your product, but he insists on using it since his people might face famine due to the threat of insects. He claims it will be used “intelligently.” The president of your company believes you should fill the order, but the decision ultimately is yours.
THIS IS THE POSITION STATEMENT THAT NEEDS A REBUTTAL: Although we had a very large order for our pesticide, we ultimately decided not to fill the order. This pesticide is extremely toxic and while it may kill insects, it also has the potential to harm people, animals, and even the water supply. The minister states he will use the pesticide intelligently, however, it has not been confirmed there is an insect population. The minister simply states he insists on using the product since his people might face famine due to the threat of insects. While he might use the pesticide “intelligently”, he may end up using the product even though he doesn’t need to, and this could lead to a potentially hazardous situation to the people of West Africa. Safety equipment is rarely used, storage methods are unsafe, and the instructions for use are not always understood. Many of the chemicals used are considered highly toxic by the World Health Organization, and contaminated crops, beer, vegetables, fish and bushmeat that can cause serious food poisoning in both people and livestock. People can be exposed to pesticides by breathing a pesticide, getting it into the mouth (by eating or drinking, for example), or by contact with the skin or eyes. Some people are more at risk than others, depending on their age, gender, individual sensitivity, or other factors. Children may be more sensitive to some pesticides than adults. Compared to adults, they breathe in more air and eat more food relative to their body size, increasing their exposure. When they play on the ground or put objects in their mouths, they increase their chance of exposure to pesticides used in yards or lawns. Also, their developing bodies may not break down some chemicals as effectively as adults. In addition, by not filling this order, we are not putting West Africa in danger of a famine. Pesticides are not the only option they have to fight the battle of insects. The Food and Agriculture Organization (FAO), an agency of the United Nations, works on international efforts to defeat hunger and improve local economies by helping member countries modernize and improve agriculture, forestry and fisheries practices. For more than a decade FAO has been helping farmers in West Africa reduce the use of chemical pesticides, while increasing production and improving harvests through better cropping practices. This initiative was introduced by FAO in 2001 as the "Sub-Regional Participatory Training Project on Integrated Production and Protection Management through farmer field schools” in Burkina Faso, Mali and Senegal and ran until 2006. Farmers learned to experiment, observe and discuss a full range of farming techniques alongside a facilitator, whose role was to introduce new ideas through guided exercises and stimulate discussion and promote adaptation and adoption of improved practices. Thus, this helped farmers in West Africa become aware of the negative consequences that arise from poor methods, such as highly toxic pesticide use and lack of balanced fertilization and, at the same time, introduced them to the many positive, feasible alternative management methods that are both sustainable and profitable. Furthermore, pesticide use in Africa is doing more harm than good. In fact, in recent years, the use of pesticides in Africa has increased so much they are becoming more and more ineffective. Pesticide use could even be making problems worse by killing the predators of insects (through poisoning) and increasing resistance to the chemicals in pest species. Thus, farmers are relying on more and more on the use of more pesticides to assist with killing off insects. This threatens food safety, causes health risks, deepens the inequality between rich and poor farmers and creates environmental problems. Farmers are forced to spend more money on the cost of getting pesticides, so they can compete with other farmers for bigger and better crops. Pesticides are an essential element of increasing food production in Africa. However, experience has shown that they are causing more problems than they solve. It is necessary to pursue alternative methods of pest control to prevent the situation getting worse for farmers and communities in this region.In conclusion, our decision to not fill the order is one we are not taking lightly. We do not want to contribute to health issues and sickness that may arise, contaminated water supplies and other food sources, and we certainly do not want to contribute to the endangering the environment.
AGAIN, IN THIS CASE WRITE A REBUTTAL IN 600 WORDS ON WHY YOU SHOULD FILL THE ORDER.
Explanation / Answer
Facts reveals a pesticide market price of $1.7 billion in Africa at gift time accounting for most effective three% of the global market worth, which is predicted to grow at 5% every yr within the years forward with a market talents to arrive $10 billion. The most important pesticide market in Africa includes Nigeria, South Africa, Morocco, Ghana, Algeria, Egypt, Kenya and Ivory Coast. The pesticide market worth of these 8 nations accounts for approximately 60% of the complete of Africa. The crops which are pesticide utilized comprise cotton, cereal, vegetable & fruit, corn and rice in line with the sequence of pesticide income quantity.
With the stabilized demand within the conventional market, a few main multinationals became eyes to Africa to deal with Africa as their new supply of progress. For conventional pesticide export international locations like China and India, they exported already their merchandise to Africa lengthy years in the past. The African market with a quality advantage has started to ascend the world of historical past.
Driving drive for growth
Africa has a enormous land, diverse local weather and tremendous kinds of crops. There are 56 nations and areas in Africa, accounting for 20% of the worlds total field. Africa has a population of 1 billion accounting for 15% of the sectors total population. African economic climate depends on agriculture to a gigantic extent, the place 70% of populations live on agriculture. Except for eleven nations together with South Africa and Libya, different African international locations are backed up by means of agriculture which is the principal industry of the nation, the place as a rule 2/3 of population is rural populace. In half of of those countries eighty% or above is rural population. In many international locations, meals give is not even self-sustained and so they wish to have global cooperation to make stronger their agricultural production degree and to raise meals construction capacity.
Moreover Africa has enormous knowledge arable land. In line with estimation through FAO, there is seven hundred million hectares of usable land in south Sahara for planting purpose. Guinea has 600 million hectares of grassland, but up to now simplest 10% is put in use for agricultural production.
African meals vegetation generally include corn (35 million hectares), sorghum (26.50 million hectares), cassava (14.20 million hectares), rice (10.93 million hectares) and wheat (10.08 million hectares); industrial vegetation probably include coffee, cocoa, sugarcane, tobacco and cotton. Africa meals crop output has a shortfall and must import food, however its business plants are a lot developed and are bought mostly to developed nations. Various crop sorts point out that there is demand for different pesticide, but African industrial foundation is very vulnerable and is not capable to produce technical product and method product on its own. So there is a dependence on pesticide import.
The progress expertise of Africa agrochemical market is tremendous and limitless sincerely considering Africa's greatest comparative abilities lies in agriculture and this traversed the whole length and breadth of the continent. More than ever before African states governments have realized that the necessary aid for the progress of the agricultural sector is central. stated Mr. Mahmood Tauhid from CropLife (Nigeria).
In view of the above, the demographic dividend, competencies arable land and the weak industrial basis furnish excellent potentials for development of agriculture and agrochemical enterprise in Africa. The board chairman of Dow, Andrew Liveris said in 2011 on the occasion of the establishment of Algeria and Ghana representation administrative center that Africa has 1 billion populations and has maintained high pace of development over the last 10 years. Executive administration and coverage transparency are being extended, now it's an gold standard time to develop African market.
Challenges to market exploration
a pointy contrast to its pleasant market capabilities is the issues present with the market, such as unstable political concern, problematic population structure, unstable vigour deliver and negative infrastructure. So far as agricultural enterprise of Africa is involved, its agricultural construction stage is at a decrease facet, illegal pesticide buying and selling runs furiously, farmers are much decentralized and aren't very knowledgeable about pesticide application. Africa is patronized with the aid of thousands of small scale farmers scattered everywhere the continent. The agrochemical market is cost-sensitive leading to unhealthy and severe competition amongst players, in here, common products are more preponderant than branded products.said Mahmood.
Africa has massive land. Agricultural creation is intently linked to local weather exchange. Extreme weather has took place over recent years, such as the uncertainty brought to crops by the EI Nino phenomenon. Meanwhile governments enter into agriculture and fluctuation of international farm product rate and demand are affecting the crop planting field. Hence to firms exploring African market, not handiest awareness must be paid to market risk but additionally coaching of farmers risk-free and proper use of pesticide will have to be emphasised.
Strategic deployment of multinationals
Syngenta
In 2012, Syngenta's CEO Mike Mack introduced at Camp David G8 Summit a dedication to invest over $500 million and rent seven-hundred folks with the intention of riding a step change in agricultural productivity in Africa. This dedication reflects our enterprises notion that Africa has the resources no longer simplest to feed its growing population, but also to come to be a main world food/feed exporter.
Syngenta has structured itself for sustainable progress. Last 12 months, we improved our dedicated revenue and technical teams to Zambia, Nigeria and Tanzania. The development in Africa is notably based on construction for neighborhood markets of each staple food crops (eg. Corn) and cash plants (recent vegetable). The central is to sustainably increase production to give the growing demand. We believe that by working intently with farmers and companions, we're able to present them options to the challenges they face by way of our built-in seed, seedcare and crop security merchandise and through coaching them on methods to use these merchandise readily and safely, so they can aid them enhance their yields in a sustainable method. Nowhere is this extra principal than in Africa, where over 80% of the farmers are smallholders working on lower than two hectares of land. said Jan Suter, head of Africa core East of Syngenta.
Being gift in Africa on the grounds that many years, we additionally admire that the African agricultural environment is tricky. Farmers are dispersing, they face challenges in accessing markets for their exclusive plants and monetary support. Additionally, there is little harmonization between the trade corridors but also at agricultural coverage stage throughout the continent. Partnerships are key for development in African agriculture due to the fact a comprehensive approach is required. Syngenta believes very much in working in partnership with neighborhood governments, research organizations, monetary associations, progress NGOs and donors and of course farmers themselves to fulfill the many wants within the farming ecosystem. Excellent collaboration will also be effective in serving farmers and empowering them to reach their skills.concluded Jan.
It is significant to note that Africa will develop from 530 million to 1.5 bn in 2030(OECD), and forty eight percent of that populace relies on agriculture for his or her livelihood. Technological know-how may also be an main technique to make stronger meals self sufficiency in foremost plants corresponding to rice, maize, and cereals, with crop yields nonetheless being shrink than in Asia. The use of crop defense merchandise continues to be low, except for a number of export plants, which makes for just right talents to help buyers.said Jean Francois ROLLAND, MEAF advertising and marketing Director of Dow AgroSciences.
With there being roughly seventy five nations within the Turkey middle East & Africa area, it's identified that 15 nations signify over 70% of the crop safeguard market abilities. ( Turkey, Egypt, Iraq, South Africa, Kenya, Ethiopia, Zambia, Morocco, Algeria, Tunisia, Ivory Coast, Ghana, Nigeria, Mali, Cameroon). Dow AgroSciences is focusing on these countries and is striking in location resources to be toward market desires and aid country wide or nearby distributors.
For now, we are doing well and have a powerful presence in cereals, greens, fruits, export plant life and are growing our presence in rice.mentioned Jean.
BASF
In assessment to different areas, Africa has with over 60% of the arena's unexploited crop lands the biggest potential for agriculture worldwide. For the longer term, we foresee a average progress because of increasing intensity, governmental insurance policies and smallholders rising.mentioned Dirk Hartmann, Director business management Crop defense Africa & core East of BASF.
BASF is dedicated long-time period to developing crop safeguard trade with all our purchasers in Africa sustainably, taking all its market specifics under consideration - a sound and consequent method with clear priorities and the support of regional partner is the prerequisite for our future success.
Market exploring strategy of universal corporations
Wynca
To pace up West African market exploration, Wynca bought 70% stakes of Ghana Sunshine Agric products and trading to begin trade presence in African market. Over 5 12 months development, revenue of Wynca Ghana reached $ 50 million from the lower than $ 5 million, which is now a ten instances progress in 5 years time. Headquartered upon Ghana, Wynca set up successively 3 African illustration workplaces Ivory Coast, Nigeria and Mali, as good as setting up a first latest pesticide creation plant in Ghana. The leading product glyphosate has captured 30% regional glyphosate market share. Someday, the organization will continue its presence in East Africa and South Africa where colossal demand is foreseen.
Speakme of market exploration, Mr. Yan believes that African market exploration will have to first match corporations own characteristics contemplating the industry ability and international marketing capacity. An manufacturer can established its own revenue channel and illustration office to function the trade in the neighborhood. It can be also in the manner as Wynca did to acquire or participate in an agrochemical enterprise present in nearby market, accordingly to enable a speedy landing within the distinctive market. Of course it's a smart technique to cooperate with local import chamber or a chinese partner who are already reward out there to utilize the situated channel.
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