Cargill – matching global supply and demand of agricultural commodities

An article in Fortune (Nov 7, 2011) describes Cargill’s role inmatching global supplies of soyabean, cotton, palm oil, beef and salt from Indonesia, Australia, Argentina and North America to customers. Charter ships are routed to minimize empty miles – as an example, a ship might travel full of soyabeans from Brazil to Shanghai, then move coal from Australia to Japan, get rinsed and return to pick up soyabeans from Brazil. But when supplies of cocoa are unreliable, the company started growing cocoa in Vietnam, to supply markets in India. How should governments determine if Cargill is the creates commodity volatility or merely captilizes from it ? Given its ability to influence global supply, how should regulators ensure farm level negotiating power ? Cargill currently owns no farmland – would you see moving uostream as a way for them to decrease supply volatility ?

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About aviyer2010

Professor
This entry was posted in Global Contexts, Operations Management, Supply Chain Issues and tagged , , , , , , , , , . Bookmark the permalink.

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