Case ID: 511015
Solution ID: 4183

Asian Agri and the Future of Palm Oil Case Solution

Abstract

For Asian Agri together with other Indonesian palm oil producers, the future guaranteed rising demand from fast-growing Asian populations, but furthermore intensifying critique from atmosphere groups. While using finest yield and least expensive production cost associated with a edible oil, palm oil constituted an ample, affordable meal source for Asian and, with a lesser extent, worldwide areas. Its production had leaped from 1970 to 2010, leading to concern from environmentalists inside the conversion of high-value conservation land in Malaysia and Indonesia (where nearly 90% of palm oil was produced) into palm oil farms. Experts had intensified each campaign lately, promoting-sometimes effectively-packed food makers and traders to boycott palm oil companies billed with atmosphere mismanagement. While watching that some accusations were unjustified, palm oil producers contended the was making strides towards greater sustainability and reported the first advantages of palm oil: it absolutely was free of unhealthy trans fats, for example, and needed less land to produce more oil than any known substitute. Asian Agri, an existing Indonesian palm oil grower and exporter, had to date avoided public scrutiny. The business will be a key way to obtain employment in several rural cities, had extensive experience settling the complex Indonesian controlling atmosphere, and was moving to approve its methods according to industry-set sustainability recommendations. This Season, Asian Agri came out well situated to make use of the growing palm oil market, nevertheless the broad-strokes vilification in the palm oil industry will be a way to obtain serious concern. When faced with great uncertainty, the management team needed to plot a technique for your future.To evaluate a company's proper options poor a thriving, but questionable, industry atmosphere.


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