Free Essay

The Inefficiency of Local Food

In: Business and Management

Submitted By pcnotarn
Words 367
Pages 2
My inclination on this particular article, which argues that local food production would prove costly and inefficient, is that the author is correct. If economics can be summed up as a study of how scarce resources are allocated, than the arguments made in the article against the establishment of local food production markets seem, at least given my limited economics knowledge, to hold water. As alluded to by the author of the article, the benefits associated with creating such local food production markets would not outweigh the costs. I agree with this basic premise given the arguments made in the article. While there would be benefits associated with creating a local market, the economics of it do not make good financial sense. Economies of Scale come to mind as there is clearly cost per unit of output advantages that our current industrial agriculture system makes possible. That savings is later passed on to society in the form of lower cost goods. Similarly, production efficiency is also realized by our current system as it allows for the higher output of specific crops originating from areas that are better climactically suited to allow for maximum growth/production. What we would be giving up as a society, or stated differently, the opportunity cost associated with moving to a “locavore-like” food production system would be too great to our economy and society. Furthermore, as the author pointed out, the health benefits associated with such a move would be minimal (if any). I cannot imagine any scenario where someone could argue this concept makes sense from an economic/cost perspective. If it is possible to make such as argument, I would be interested in seeing the math that follows it. As presented, I would have to agree with the author of this article. I cannot imagine the benefits of local food production outweighing that of our current industrial agricultural production system. In this case, the benefits (efficiency gains) of industrial agriculture outweigh equality gains to local cities. While there are benefits the local markets would enjoy with a move to a localized system, the bigger picture suggests that such a move would not benefit our society as a whole.

Similar Documents

Premium Essay

Business Report

...Business Report- Ron’s Pet World Business Report- Ron’s Pet World EXECUTIVE SUMMARY: The business of Ron’s Pet World (RPW) started out as a small-boutique store based in Sydney’s west, which has started to slowly develop competitive advantage over its local competitors to reach a stage where they are preparing to purchase the global ‘Pet Barn’ franchise. RPW endeavors to be the global market leader for pet stores by 2020 through the implementation of a series of best practice operation processes regarding inputs, transformation processes and outputs, applicable to every store. Although there is a risk of some of its competitors changing their operation processes in order to reduce the economic viability of RPW, it is critically important that operations processes will be implemented concerning: 1.Global sourcing of materials 2.Customer service 3.The 4Vs (volume, variety, variation in demand and visibility). This is to ensure that customers receive products and services to the upmost of standards. This will ensure that a strong brand name is maintained and developed. At present, prior to its acquisition of ‘Pet Barn’, RPW has several inefficiencies in its operations process that could hinder profit maximisation. This report will provide a series of recommendations to ensure these issues are addressed. 1.1 GLOBAL SOURCING OF MATERIALS: Inputs, defined as the resources that are put into a system to achieve a desired output, are imperative to RPW to create high......

Words: 1461 - Pages: 6

Free Essay

Outback Steakhouse

...Outback  Steakhouse             March  3,  2014.       Outback  Steakhouse  ............................................................................................................................  3   Appendix  A:  Situational  Analysis:  Why  has  Outback  been  so  successful?  ........................  7   Appendix  B:  Internal  Analysis:  What  are  Outback’s  Strengths,  Weaknesses,   Opportunities  and  Threats?  .............................................................................................................  8   Appendix  C:  Internal  Financial  Analysis  ......................................................................................  9   Appendix  D:  External  Analysis:  What  are  some  Key  Success  Factors  for  the  restaurant   industry?  ...............................................................................................................................................  11   Appendix  E:  External  Analysis  –  How  attractive  is  the  restaurant  industry?  ................  12   Appendix  F:  External  Analysis:  PESTEL  ......................................................................................  14   Appendix  G:  Analysis ......

Words: 3511 - Pages: 15

Premium Essay

Dilemma at Devil Den

...Shukla (2011026) Anchal Jain (2011033) Anshul Garg (2011040) Ashish Singh (2011047) INTRODUCTION Susan a business student at Mt Eagle College is working part time inside her campus snack bar ‘THE DEVIL’S DEN’ which is managed by contract with an external company COLLEGE FOOD SERVICE (CFS) Student employees involved are those who worked at night shifts and on the weekends. They are students at the college and are under supervision of another student, who held the position of manager. There was approx 30 student employees and 6 student mangers employed by CFS to supervise the DEN. During the day time CFS employed full time managers (non students). Student managers are previous employees chosen by other student managers and they received no formal training or written rules beyond what they had already learned working there. After working for a semester Susan became upset with some of happenings i.e. many employees were allowing their friends to take free food, employees themselves were also taking food in large quantities when leaving their shifts (against the policies). Employees and customers were taking advantage of situation whereby they could steal food almost whenever they wanted. Reasons behind these problems were employee’s wages were low, easy access to unlock storage room door and inventory was poorly controlled also weak supervision by student managers and no written rules or strict guidelines. On other hand......

Words: 1714 - Pages: 7

Free Essay

Market Analysis

...Market Analysis Market Analysis In today's market, there is a lot of competition for any firm or business. I will be present you with the market analysis of your company based on the data you have provided. My over viewed is based from your strategic planning, marketing goals, and surveys. The service provided me with strengths and weaknesses of your company. My job is to make recommendations on how your company is organized and we will change or improve your current marketing structure. Strategies provided will ensure the most effective and competitive strategies ensuring long-term profitability for your future. First, we will be discussing how well Kudler foods is doing in the marketplace. I am pleased to say Kudler foods is doing great in their current locations. There is currently no high-end competition in the area for this type of business. The store has been able to carry itself professionally with no investors and having the ability to expand new stores shows great potential. The strengths of the company from recent surveys conclude great customer service, store hours, store atmosphere, and knowledge of the products. Merchandise displays are an asset to the stores as well. Courtesy and prices seem to displease customers on a continuous basis. Over the course of the 2 years for the survey, the change was about one percent improvement for negative areas. I suggest we implement supervision to seek out outstanding courtesy from employees, rather than......

Words: 1064 - Pages: 5

Premium Essay

Supply Chain

...International Journal of Managing Value and Supply Chains (IJMVSC) Vol. 6, No. 2, June 2015 ISSUES AND CHALLENGES IN THE SUPPLY CHAIN OF FRUITS & VEGETABLES SECTOR IN INDIA: A REVIEW Saurav Negi1 and Neeraj Anand2 1 Doctoral Research Fellow, Centre for Continuing Education, University of Petroleum and Energy Studies, Dehradun, India 2 Professor and Head (LSCM & Operations), College of Management and Economic Studies, University of Petroleum and Energy Studies, Dehradun, India ABSTRACT Purpose- The entire supply chain of Fruits and Vegetables in India is laden with various issues and challenges. To list the possible challenges and suggest a way forward, there is a need to study the supply chain of Fruits and Vegetables sector in India. So the purpose of this paper is to discuss the supply chain of fruits and vegetables sector in India and explain the issues which are affecting it. Authors also suggested the corresponding mitigation strategies to overcome the identified issues and challenges. Design/methodology/approach-Descriptive research has been used for this study. The supply chain of Fruits and Vegetables sector has been explained and attempt has been made towards identifying the issues affecting the supply chain of the sector. The present study undertakes a thorough review of basic and contemporary literature available and tries to explain the factors affecting the supply chain of Fruits and Vegetables sector in India. The literature has been......

Words: 6133 - Pages: 25

Premium Essay

William Scott and Co. Ltd. Case

...employer * Canadian Food and Allied Workers Union is the griever * The union requested the Board to review an arbitration made under collective agreement between the company and member of union * The award is the dismissal of Margaret Martelli on September 4, 1975 * She called a newspaper and reported that employees were never asked to do overtime to keep up with the poultry meat that was backing up * She also mentioned that the company had many inefficiencies and mentioned the time women were wasting arguing everyday over irrelevant things as the use of a hose * The company deemed these reports were false and unfounded and Margaret knew that * Margaret was dismissed before this event, but was reinstated in April 1975 after an arbitration board substituted the dismissal with a year of suspension * The Arbitration Board found her comments to be unwarranted, and found she was justly dismissed and did not substitute the company’s decision as done before * The union appealed the decision to the BC Labour Relations Board * The Board denies application under section 108 * After the Board considered the facts involved in Margaret’s dismissal, it considered her suspension as a disciplinary action, where a second opportunity was given, but since the behavior did not change, dismissal was required * The decision of terminations was maintained Wm. Scott & Company Ltd. and Canadian Food and Allied Workers Union, Local P-162 [1977]......

Words: 266 - Pages: 2

Premium Essay

Strategies to Overcome Malnutrition

...STRATEGIES TO OVERCOME MALNUTRITION A. Strategies have significantly reduced hunger: 1) Use appropriate technology: More wells should be built instead of large dams and irrigation schemes. Small irrigation can waste less water, stone lines and check dams. For example, Burkina Faso uses stones lines and Northern China uses small dams built of loess, which are constructed across gullies. Those methods only use 5% of farmland but increase the crop yields over 50%. Fertilizer from local animals should be used instead of chemical fertilizer. Since fertilizer from animal is always available and free. Chemical fertilizer can cause disease. Simple, reliable, agricultural tools made should be used instead of tractors. Because tractors can be broken and farmers need money to repair them. Farmer can grow cash crops and subsistence crop together in smallholdings instead of cash crops (monoculture) on large estates. Farming mixes with crop rotation or intercropping will reduce soil erosion and exhaustion, protect crops (smaller plants protected by tree crops) and increase yields. For example, in Moc Chau district in Viet Nam, by using this method, crops yield is increased by 33% from 1994-2000. 2) Introduce a new “Green Revolution”: In Mexico, 2 decades after World War II, new varieties of wheat and maize were developed. They......

Words: 537 - Pages: 3

Premium Essay

The Analysis of Market Failure in the U.K and the U.S. Health Care System

...Findings 3 2.1 The health care system in the U.S. 3 2.1.1 Adverse selection 4 2.1.2 Moral hazard 4 2.1.3 Market power (the pharmaceutical firm) 5 2.1.4 The Medicare-Medicaid 7 2.1.5 Suggestions and solsolutions...................................................8 2.2 The health care system (NHS) in the UK 9 2.2.1 Asymmetric informtion 9 2.2.2 Incentive problems 9 2.2.3 Market power of the health authority 10 2.24 Suggestions and solutions....................................................... 11 3. Conclusion 12 Reference List 12 Executive summary The main purpose of this report is to assess two approaches to health care, and briefly discuss market failures and the induced inefficiencies in them with the comprehension of applied microeconomics. This report will try to link the facts in health care provision with the essence of each health care system. Several practical proposals will be constructed. 1. Introduction Health care, as one of the most complicated public services, is an essential issue both in economic and social areas. The provision of health care is a matter of a whole nation’s welfare quality. In the contemporary world, there are two dominate but distinguishable health care systems. One is publicly provided, an example of which is the UK. The other one is privately provided, such as in the US. Both health care systems have delivered great outcomes to residents in the last fifty years. However,......

Words: 3258 - Pages: 14

Premium Essay

Fefddhon : -) Dddghjj Profit 10% OM Cost 20% Marketing Cost 25% Why to study OM » Cost and profit breakdown at a typical manufacturing company » How to make more profit? Cost cutting. Which costs affect the revenue? » Management of operations is critical to create and maintain competitive advantages Manufacturing Cost 45% 3 Operations Management Operations management: The management of the efficient transformation of inputs into outputs to effectively satisfy customers. The active role of operations: – Inputs become Outputs after some Transformation (Process or Operation) – Food processing example: Inputs Energy, Raw vegetables Energy, Metal sheets Energy, Vegetables Energy, Water, Vegetables Energy, Cans, Boiled vegetables Transformation Cleaning Cutting/Rolling/Welding Cutting/Chopping Cooking Placing Outputs Clean vegetables Cans Cut vegetables Boiled vegetables Can food 4 Operations in services: Health care Inputs Doctors, nurses Hospital Medical Supplies Equipment Laboratories Processes Examination Surgery Monitoring Medication Therapy Outputs Healthy patients SOM offers medical management MBA and Master of Science See Question: What are Inputs, Processes and Outputs in education? Who is the customer? 5 Operations are everywhere ! Operations Goods producing Examples Farming, mining, construction Storage/transportation Warehousing, trucking, mail, taxis, buses,......

Words: 1913 - Pages: 8

Premium Essay

Business and Ethics

...businesses and was basically a kind of marketing. But now it seems customers want companies to embed social responsibility into their strategies.” (Holstein, 2008) However, in some companies without CSR policies in place, might select choices without consideration of the perception and consequential ramifications that could be made by the public. This can be especially harmful for small to mid-size businesses who are seeking growth in the near future, as businesses that seem insensitive or uncaring towards the society at large (or smaller communities they serve) can be the targets of boycotts either on a communal or individual scale. Social Responsibility Viewpoint The cases in question are recent decisions made by Company Q, a small local grocery store chain. In recent months there has been concern over choices in the process and operations of Company Q, which includes closing stores in high crime areas,...

Words: 1741 - Pages: 7

Free Essay


...Over the years, internationalization has been increasingly mentioned as the outward movement in an individual firm’s or larger corporation’s international operations. Enterprises no longer conduct their business activities just within their own country; they gradually reach the international market. However, in the process of penetrating foreign markets, they often face challenges and barriers that are not easily to overcome, such as language, regulation, currency, polity, or economic size. These barriers significantly impact on the activities of a business in a foreign country. Pankaj Ghemawat categorized all barriers into four distances: cultural, geographic, political, and economic distances, which form CAGE framework. He emphasizes that the types of distances influence different businesses in different ways. For example, culture distance determines consumers’ product preferences while geographic distance influences the costs of transportation. Obviously, the future and the success of internationalization in any company depend heavily on the company’s ability to master and reduce barriers, specifically, the four distances. Any company that underestimates their importance or simply ignores the distances may incur a big loss, yet failure. In the retail industry, the failure of Wal-Mart in South Korea is a typical example. After eight years of disappointing sales in South Korea, in 2005, the America’s largest retailer, Wal-Mart, announced to leave the country. A year......

Words: 2674 - Pages: 11

Premium Essay

Advantages And Disadvantages Of Entry

...created, and it is a source to make economic growth (Oxford Reference, 2013). For example, Suzuki Motor Corporation and Maruti Udyog Limited built a joint venture called Maruti-Suzuki in India. Although Maruti-Suzuki introduced Japanese technology to modernize the India automotive industry, the products was only affordable to a few rich and power people in India. The motor industry eventually was inefficient, low profitable and outmoded technology that they created a low-volume and high-cost motor car (Sangeeta, 2011). Therefore, product innovation of joint venture to meet the affordability and acceptability criteria of common people is also a challenge in emerging economies. In other words, how to design and create product innovation to meet local demand in mass markets is faced by joint venture in emerging...

Words: 2146 - Pages: 9

Premium Essay

Environmental Issues on Global Health

...Environmental Issues on Global Health Seven Environmental Issues Complete the following chart by identifying seven environmental issues that affect global health. In the second column, describe in complete sentences how the issue affects global health. Environmental issue How does the issue affect global health? Overpopulation The Earth’s natural resources are already being consumed at an unsustainable rate. Many of these resources are required to support world health and human life (Donnatelle, 2010). Human population is expected to increase dramatically over the next decade. This, alone, is the greatest threat to life on our planet. Air pollution Air pollution affects everything from agriculture and ecosystems to human health, on a global scale. The five major air pollutants are ground-level ozone, particulate matter, carbon monoxide, sulfur dioxide, and nitrogen dioxide (Donnatelle, 2010). A majority of these pollutants are the result of human action. One example being coal power plants. These plants release greenhouse gas emissions and particle air pollution. The burning of the coal creates pollutant byproducts. Other forms of industrial pollution, exhaust fumes, burning wood, and several forms of indoor air pollutants result in air contamination. The combination of various air contaminates can be extremely toxic. The pollutants irritate the lungs and may even cause respiratory diseases and cancer in humans (Donnatelle, 2010). Ozone Layer Depletion /......

Words: 1424 - Pages: 6

Free Essay

Assist the Expraties

...burden of the move in and settling in tasks tends to fall to the accompanying partner as the assignee is typically “in at the deep-end” with the assignment. A few additional days leave that can be taken to assist with some of the key move in tasks can be invaluable to the family, particularly when younger children are around. Directing legions of movers to get things in the right place while simultaneously ensuring that your children out of harms way is much easier if there are two of you. If additional leave is not an option, at least try to ensure that the assignee has a “honeymoon period” with little or no travel expected. • Access to a discrete individual who can help with local language In the early days of the assignment, the family will have to deal with communications in the local language and in many cases their language skills will be inadequate to deal with them. Assignees often ask their assistants to help them but this is not always possible nor is it always appropriate. • Organise a “mentor”, preferably another expat, who can show the family (in particular the accompanying partner) how to navigate the day-to-day challenges of life in a new country. We’re not talking about a destination services provider showing the accompanying partner around for a day, we’re talking about someone whom the family can call and ask questions (“where is the nearest hospital?” in the inevitable moment...

Words: 797 - Pages: 4

Premium Essay

Market Failure Through Congestion

...benefits to diverge · Imperfect information means merit goods are under produced while demerit goods over produced · Markets cannot make a profit from producing public goods and quasi-public goods · The concentration of power in markets results in market dominance and abuse of monopoly power · Factor immobility such as the geographical & occupational immobility of labour causes unemployment hence productive inefficiency · Equity (fairness) issues. Markets can generate an ‘unacceptable’ distribution of income and social exclusion where people on low income – the relatively poor - are denied access to essential goods and opportunities considered ‘normal’ by a society eg food, clothing, housing, and education Economists seek to place a monetary value on the spillover effect. How can time savings, loss of life or limb; environmental damage, lost countryside or loss a species be valued? Either or values of what it would take to avert Eg · Congestion time lost x value of time · Accidents statistical value of life or injury · Noise & local air pollution value changes in traffic flow and proximity to property. In an unregulated market individual road users only consider the private costs and benefits of using limited road space. When the demand for roads rises above a certain level, road users impose additional costs (externalities) on others leading to a divergence between the private and the social marginal costs of road usage. External......

Words: 353 - Pages: 2