Tuesday, February 26, 2019
Ã¯Â»Â¿Asian Agri and the future of Palm oil Essay
Is Ta nono correct that thread crude oil has a ardent future?Tanoto is correct that palm oil aka the golden corp of south-east Asia has a bright future. It is very economic to be produced, due to its high yield and low cost of deed compared with production of other parve oils. With higher economic growth, the demand for food and fuel is rapidly ontogeny in the Asian countries of India and China. So, it is likely that we see a similar overconfident effect on the demand for Palm oil. Additionally, in todays world, there are health concerns regarding the rise in the use of trans-fat. This has guide consumers and packaged bests to companies limit its use. The increasing health consciousness has would contribute to increase use of this commodity as palm oil is trans-fat free. Furthermore, with increasing urgency for biodiesel, palm oil could well become an important part of the renewable fuel and play a vital role in the zippo line.If yes, how should Asian Agri strengthen its position? If no, what should Yeos strategy be? If unclear, what could Yeo do to improve the global use of palm oil?I specify due to the increasing role that palm oil has to play in the global economy, Asian Agri should strengthen its position in the industry and go on the global use of palm oil. They could do this through Sustainable exertionAsian Agri should aggressively stimulate the use of sustainable palm oil. They bunghole do this by keeping to the set of economic, environmental, legal, and companionable standards set, in the production process of palm oil. Since sustainability will be an important occurrenceor for the community to differentiate itself from competitors and to stay strong in the industry, the company should continue to issue forth all its properties certified as sustainable. They can also give lessons middle managers, supervisors and workers on sustainable palm oil production.ExpansionWith palm oil demand rising, Asian Agri should continue to expan d their plantation size. Although there are visible difficulties to acquire land in Indonesia, the company should not desert their expansion plans. I feel that it will be a good choice to diversify geographically, predominantly to countries in Africa and South the States where land is abundant. This garters the company to diversify risk both politically and financially. It makes good financial sense to not grade all their eggs in one basket Indonesia, and good political sense as political instability or riots are a very real happening in Indonesia. Additionally, by growing its trading and sourcing operations, Asian Agri can add up more value from its market expertise and refining activities. This will abet the company to establish direct linkages with its customers at the destination market. This could also help reduce supply chain related expenses for of the company.Marketing and PromotionI think Asian Agri can undertake more marketing and promotional activities, which could help them increase market share. They can play off the fact on health advantages that palm oil has over other viands oils. The point that palm oil is trans-fat free can be put to good use in the marketing campaign, which will help dole out increasing concerns of trans fat consumption. They can do this through advertisements, usage of social media, and distribution of brochures that will help educate customers. With projections indicating that global palm oil production would nearly double by 2020, it makes sense that Asian Agri to be proactive in its expansion, marketing and promotional plans. Although we recognize the rising fretting from environmental NGOs and other challenges, the fact remains that palm oil business has very high potential, given sustainable production and good promotion.