AgroFair Sustainability and Economics

Sustainability and Economics

Building trust and maintaining it in governments and businesses stand a major achievement of economic viability in the world. Current trends and changes in business activities have culminated into a dissolution of many ventures while others take full control of the markets in which they operate. Every business’ trust is measured by the level of compliance with the set rules and regulations and how it functions to meet consumers’ needs in time. Every day, businesses, as well as governments, make decisions that have been found to have direct impacts on the ventures’ stakeholders, such as labor organizations, citizens, civil society, and the financial institutions. Such decisions can be said to be founded merely on financial reports alone. They are constructed based on an evaluation of opportunity and risk using the variety of information that may be available that pertains the Company. AgroFair Company in the Netherlands is an excellent example of those firms that have maintained high levels of sustainable and reporting of the years. Evaluating the available information, this paper will be focusing on identifying what the Company is, the market structure forming its operations, and the actions that the Company takes to maintain its sustainability in decision making and reporting.

What the Company is

AgroFair is a company that is established under the Company Law Act of Netherlands and registered under the sector of farming and agriculture. The Company was incorporated to do fruits and nothing else, making the world smile at the variety of fruits presented to them. Over the years, AgroFair has experienced a tremendous revolution in its activities from a group of pioneers venture into a market leader in fruits and related products. The Company focuses much on fruit production for sale rather than for domestic use purposes. With time, they have been able to create a pool of small scale farmers who function to maintain healthy proceeds the Company in the market. What sets the Company apart in fruit dealings is its dedication in doing their operations in a particular way. Through fruit cultivation, the Company functions to ensure planet protection from harmful agricultural activities. The range of fruits that AgroFair Company specializes in include bananas, oranges, coconuts, pineapples, orange juice, puree, sweet potatoes, and pineapple juice.

The market structure of AgroFair Company

The Company’s running call “we are AgroFair, and we are banana about our planet, about our tropical fruits” form the strong awakening enthusiasm that the Company leaves the consumers within the market.  Following close research on the market setting, the Company has identified that two major brands, Oke, and Organic Oke, tend to do good in the market.  The Company targets all members of society as its potential consumers of their products. The commodities dealt with at AgroFair do not present any age restriction; therefore, they can be sold to everyone who shows interest. The consumers range from the children who are barely one year old to the aged in society. The Company adopted this structure of production of commodities due to its geographical location. Situated in the tropical regions, it became imperative that many households require fruits now and then. To add to their healthy living, the Company saw the need and seized the opportunity, setting its market as free of age restrictions. Despite the firm taking considerable control of the market, other small firms are dealing with similar products that offer very stiff competition for AgroFair Company. This means that the firm operates in a perfect competition market, only that it has more differentiated products than similar firms.

The Company’s Actions

AgroFair, being a limited liability company according to the Dutch Law, observes the accords of partnership. The Company’s producers are still participants within the firm. The Company believes in joint ownership that culminates to its objectives of empowering their producers and establishing cooperation across the fruit chain. Due to this joint ownership, the Company tends to always be in the lookout for new grounds to develop its operations. The Company’s constant calling to the local suppliers and producers to increase their supply has been perceived as a possible threat to the environment in the long run. With everyone working tirelessly to increase their output, the clearing of the tropical forests adjacent to the Company’s location has been a going concern. If this trend is not regulated, it may result in the desertification of the regions in the long run. Drier lands are known for their harsh conditions and unbearable for farming activities. Unregulated production of bananas that form the significant portion of the fruits that this Company deals in is thus posing a more significant threat to the environment than the Company’s operations themselves. Another danger associated with this massive farming and production of bananas is environmental pollution through by-products dumping.  Throughout its process, the Company has always attempted to maintain the impacts of such services. In its reporting and sustainability, AgroFair Company addresses its goals in ensuring a safe and productive environment for the consumers and the partners in the entire country. The Company also outlines its attempts in fighting diseases that may attack bananas leading to disposal of many as waste products that pollute the environment in the long run. The issue of healthy soil triggered through mycorrhiza application to do away with TR 4 diseases has also been well captured in their sustainable reporting. These diseases have been identified as the major contributors to the increased waste products from the produced bananas. These issues form the significant sustainability that AgroFair Company has to address now and then.

From the case analysis, AgroFair Company is one of the world’s leading fruit dealers functioning to sustain itself in the market. With two popular banana brands in Peru, Oke and Organic Oke, AgroFair Company has used these products to advance its operations since its incorporation. The Company has other products that add up to flavor the final banana produce presented to the consumers. Such products include pineapples, sweet potatoes, pineapple juice, among others. The market structure of the Company is basically made up of no specific age. Everyone who is allowed by his/her norms to consume fruits is a potential customer to AgroFair Company. In its reporting and profit sustainability, the Company struggles to always put at minimal major environmental impacts associated with its operations. Such impacts are continuous banana plantation creation leading to desertification and increasing by-products dumping. These factors have been linked with the prevalence of common diseases such as TR 4 that affect banana production. The Company has, however, embarked on using the mycorrhiza method to fight such diseases to lower the impacts. These are some of the sustainability issues that the Company frequently addresses in its annual reporting.

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