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Facility Plan-Monsanto

In: Business and Management

Submitted By darock
Words 1553
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Monsanto occupies many locations all around the world. As of now Monsanto is in 68 different countries with its’ world headquarters in St. Louis, Missouri. The locations all around the world include various manufacturing plants, seed production facilities, research centers, learning centers, and administrative sales offices. “By having locations close to our customers, we are better able to experience the needs of those customers, to understand the pressures confronting them and to develop innovations tailored to their needs ("Monsanto Facilities Round the World")
Monsanto has been on the trend of expansion for the past few months. In August, Monsanto opened a 90,000 square-foot building in Woodland, California. This building was a $30 million investment and will consolidate the company’s seed health group, trait genetics group, molecular marker group, and visitor reception area. By consolidating these groups together they are cementing there position in the community and creating a better workplace for employees.
Expansion has been one of our primary focuses within the past few years. We are very exciting to start our Chesterfield Village expansion project which will create 675 new jobs in St. Louis across all levels over the next three years. According to Hugh Grant, chairman and CEO of Monsanto, “Our Chesterfield expansion is focused on strengthening our world-class capabilities in the discovery and development of innovations for farmers around the world”. Grant believes that to keep up with the increase in demand it will require a futuristic outlook on the way we think and come up with technology that today we would only imagine. “As we look to the future, and work begins to expand this research facility, I’m reminded how important our mission to work together to help farmers produce more nutritious food in a sustainable way will continue to be.” ("Monsanto Chesterfield Village Expansion Groundbreaking of Research and Development Center Marks Next Generation for Agriculture and St. Louis")
The Chesterfield Village expansion project will create a number of new facilities which “includes a conference center, research building, 36 additional greenhouses, 13 Controlled Environment Agriculture (CEA) rooms and 250 additional labs”. The cost of this huge expansion is estimated to be around $400 million.
One of our brands that are the largest developer of vegetable seeds is known as Seminis. The Seminis seed facility is based in Idaho in a town called Filer. Seminis is the world’s largest developer, grower and marketer of vegetable seeds, but also a company that offers vegetable seed products for growers, dealers, and distributors. Not only is it known in over 150 countries, but they have facilities in almost every major vegetable- growing area. Products are usually grown outdoors in a hothouse instead of an unheated greenhouse environment.
One place I would start to build a research facility in would be Punjab, India. Although we have many facilities in India, Punjab is known for its farmland and about 70 percent of the population are farmers that grow crops and products for a living. Although Punjab has its fair 0share of farmers in poverty, I believe if we were to build a facility there not only would it increase jobs but also farmer’s crops would actually be able to grow their crops, without worry, in any kind of climate. Farmers these days have very few crops that grow there due to the unpredictable weather. So if the farmers of Punjab were to buy our seeds and grow the crops the proper way than, fewer crops would be destroyed due to climate and their yield would increase.
Since our recent acquisition on Climate Corp, farmers from Punjab would be able to insure their land and get a better understanding of when to grow and the upcoming weather forecasts.
One benefit we would have from having a facility in Punjab would be the fact that the land is tax free. Punjab is a state in the northwest of the Republic of India, forming part of the larger Punjab region. The price for land in Punjab is rapidly increasing, it would be ideal to buy land for the company now instead of waiting. It is vital to create more facilities in major farming states in India because India’s main occupation is farming and agriculture. By creating a facility in Punjab and increasing the amount of yield for farmers, we would decrease economic hardship for farmers and in return farmers would continue to buy larger amounts of our products to help their crops.
One of our main focuses for our facilities for the next three years would be creating more facilities in Australia. This is one of our main focuses because Australia is having major issues with agriculture in some of the western territories. Some of the issues would include drought, water security, low soil fertility, weeds, and global warming caused by weather climate. Australia has a large number of deserts and irregular rainfall so farming has become very difficult over time. Farming in Australia is 1 percent of the Australian dollar which makes a huge impact if the crops are damaged or not edible. “Australia is a major agricultural producer and exporter. Agriculture and its closely related sectors earn $155 billion-a-year for a 12% share of GDP. Australian farmers and grazers own 135,997 farms, covering 61% of Australia’s landmass.” ("Agriculture in Australia ") If we were to sell our seeds to the farmers they would have a higher chance of producing quality goods then the low quality products there producing now. “The economy of Australia is primarily based on agriculture. Over four hundred thousand of Australian populations are involved with agriculture or agriculture related jobs. ("Agriculture in Australia Map")
As of today we have two research facilities and one headquarter located in 3 of the 6 Australian territories. Starting in 2014 to 2016 we plan to expand in Australia by creating two more research facilities along with a seed production facility and a main office in the Northern territory, the southern part of the South territory, and a portion of the Western territory.
Since it is the company’s decision to acquire EVOGENE within the next two years, it is important to look at where we can expand in order to reach our maximum profits while keeping our expenses down. Australia would be the perfect place to expand because of the diverse cultivation of agriculture and the inhabitation of land available to cultivate. The land in the Western territory of Australia is perfect for the growth of rice. Since rice is an obtainable venture in our near future it is optimal to have a research facility in this part of Australia. (See Figure 1)
Another country that we would be a great fit for us to expand in is one which we don’t have any presence in already. The country which I speak of is El Salvador. According to Britannica.com “The most important agricultural products in El Salvador are coffee, cotton, corn (maize), and sugarcane.” I believe that we should start thinking about El Salvador since it is one of the few countries that we don’t have a facility in that grow a large amount of agriculture products. Figure 1: Crops Grown in Various Regions of Australia
Agriculture Facts
Punjab, India * No Land Tax * Already have a few facilities in other parts of India, so it would be easier to step in and create a facility in Punjab * Farmers are experiencing a lot of pesticides and cancer is assumed to be increasing due to poor farming * Agriculture scientists have failed to resurrect agriculture
Australia
* Australian farmers export about 60% of what they grow and produce * In one year between 2009-2010 the estimated gross value was 48.7 billion which should almost be double about now and is estimated to increase each year * There are about 307,000 people employed last year just in the farming business so it would increase jobs for many of the residents * Australian farms generate about 155 billion dollars a year in production which would increase our revenue tremendously * An average farmer grows enough crops to feed 600 people which would decrease poverty if we helped the farmers that don’t grow as well or as many crops as others * Farmers occupy and manage 61 percent of Australia’s land mass * An estimated 1.5 billion is spent just on research of agriculture in a year which would benefit us because if we stepped in and created a facility there we would increase revenue in research as well as our product. ("Farm Facts")

Work Cited “Monsanto Facilities Round the World.” N.p.. Web. 12 Nov 2013. <http://www.monsanto.com/whoweare/Pages/our-locations.asp&xgt;.http://www.monsanto.com/whoweare/Pages/our-locations.aspx)

"Monsanto Chesterfield Village Expansion Groundbreaking of Research and Development Center Marks Next Generation for Agriculture and St. Louis." . N.p., 22 Oct 2013. Web. 14 Nov 2013. <http://news.monsanto.com/press-release/research-and-development/monsanto-chesterfield-village-expansion-groundbreaking-resear>.

"Agriculture in Australia Map." . N.p.. Web. 15 Nov 2013. <http://www.mapsofworld.com/australia/thematic-maps/agriculture/>.

"Agriculture in Australia ." . N.p., 16 november 2013. Web. 17 Nov 2013. <http://en.wikipedia.org/wiki/Agriculture_in_Australia>.

"Farm Facts." . National Farmers Federation. Web. 16 Nov 2013. <http://www.nff.org.au/farm-facts.html>.

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