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A group of Sacramento Valley rice farms are owner-members of Farmer Rice Cooperative (FRC). They are considering where to market their rice. The local option is through a one million hundredweight contract with Nugget Markets that offers $25 per 100 pounds sold in the Northern California area. The second option is through a one million hundredweight contract with Olam for $25 per 100 pounds sold in Ghana. FRC asks you about sustainability considerations in evaluating these two options.

a. Name and evaluate, in the context of this rice contract, the applicability of three common sustainability benefits claimed for selling locally (or how they are not applicable). Discuss at least one for each of environmental, social and economic claims.

b. Name and evaluate the applicability (or not) in the context of this rice contract, three common sustainability benefits claimed for selling globally and especially in a poor West African country such as Ghana. Discuss at least one for each of environmental, social and economic claims.

c. Discuss sustainability advantages to selling in both markets for FRC, looking towards future seasons for which contract prices and specifications are not yet set.

Operation Management, Management Studies

  • Category:- Operation Management
  • Reference No.:- M93109892

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