Recommendations for developing the appropriate option Presentation to the Dairy

Recommendations for developing the appropriate option

This preview shows page 22 - 26 out of 41 pages.

Recommendations for developing the appropriate option
Image of page 22
Presentation to the Dairy Industry Advisory Committee June 3 - 4, 2010 Complete focus on domestic market Use of additional tariff and non-tariff barriers to overcome foreign competition Supply mgt. as a means to balance production and demand, and limit volatility Attempt to limit effects of globalization “Fortress USA” Limited industry efforts to address globalization Current policies and regulation Opportunistic participation in global trade as prices allow Individual companies may choose to develop differentiated export capabilities Limited effort to manage volatility Status Quo Commitment to global opportunities for US milk supply Broad efforts to improve commercial focus and align product portfolio Collective effort to reform FMMO and price support Efforts to improve forward contracts, futures markets Strong domestic market as a basis for global trade Joint industry efforts to build insight/ capability Consistent Exporter Consistent exporter strategy, plus: Industry moves to an export focused model that includes milk supply and processing assets outside of US Commercial and innovation capability development May include off-shore investment and other significant efforts Capabilities will support domestic market, though investments may be diverted globally Global Dairy Player Recommendation by IC Board What options exist for the US dairy strategy?
Image of page 23
Presentation to the Dairy Industry Advisory Committee June 3 - 4, 2010 Short-term capture of profits is uncertain at best Road-blocks will limit implementation Supply management may not deliver lower volatility Isolation of the industry is critical to successful “F-USA” implementation - Increasing tariffs difficult due to WTO implications - Broad changes will face opposition by industry participants looking to take advantage of export opportunities - Very difficult to line up industry constituents. High risk of loss of control in the process Unsuccessful attempts have been made in the past Import / export variation has significant impact on ability to manage price Forecasting is imperfect in the dairy industry Negative implications of Fortress USA: Lack of growth Falling consumption Dairy substitution Limited product innovation Rising Costs Less focus on cost and productivity Increased over- sight/regulation Less investment Weak Industry Does not benefit broader industry Weak position if barriers reduced Leads to industry stagnation Short-term benefits of Fortress USA are unlikely, and long-term implications are disastrous While Fortress USA could theoretically be attractive to producers if price increases were feasible… … the negative implications of a closed market strategy make it a highly risky strategy, leading to stagnation an decline
Image of page 24
Presentation to the Dairy Industry Advisory Committee June 3 - 4, 2010
Image of page 25
Image of page 26

You've reached the end of your free preview.

Want to read all 41 pages?

  • Summer '18
  • Sagar Arora

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Stuck? We have tutors online 24/7 who can help you get unstuck.
A+ icon
Ask Expert Tutors You can ask You can ask You can ask (will expire )
Answers in as fast as 15 minutes