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Essay

INA's bean crisis

Essay specific features

 

Issue:

Business

 

Written by:

Janice O

 

Date added:

July 13, 2011

 

Level:

University

 

Grade:

A

 

No of pages / words:

6 / 1606

 

Was viewed:

9151 times

 

Rating of current essay:

 
Essay content:

Gomez is facing was originated by past decisions. The drought of 1974 caused changes with the purchases, prices and commercialization of the bean stock. The Board set a guaranteed price below the market, which gave to farmers a huge incentive to sell their production to INA because it paid a higher price than the market (See Exhibit 1 for detailed prices and differences between INA and the market)...
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This, combined with Government's incentives to farmers increased Tanama's bean production, and then, produced excess of supply at INA. The guaranteed price was above the selling price to the consumers, causing a negative margin for INA; but the market was producing positive margins to wholesalers and retailers...
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