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Ugg Canada

In: Business and Management

Submitted By fahad21911
Words 1851
Pages 8
2. Background• United Grain Growers (UGG) is one of the Canada oldest grain distributors in Canada.• The agriculture business was risky. Anything that affected the quantity of grain shipped had a material impact on the firm’s revenues, profits and cash flow.• UGG was still faced with the problem of how to deal with the biggest risk: the weather• UGG has to identify the principal risks of the corporation’s business and ensuring the implementation of appropriate systems to manage these risks. 3. Agriculture and in particular industry was one of civilization’s oldest industries The industry is quite volatile, characterizes by boom and bust cycles, and its roots in the forces of supply and demand in the global market Grain supplies were variable due to natural forces such as pests, disease and weather. 4. To reduce volatility, many countries create policies in Canada for wheat (barley and oats/board gain) regulated by Three largest Canadian Wheat Board (CWB) distributor in that mandated monopsony 1998 were Saskatchewan Wheat Pool, Grain distributor like UGG Agricore, and were important UGG intermediaries between the farmer and the end market. 5. The Canadian agriculture industry was under pressure from several directions, and many farmers disagreed with CWB policies and its In 1995, government monopsony power. Repealed legislation that kept gain transportation cost fixed (and low) for many years, and reviewing other grain transportation and distribution systems. 6. Since 1993, derive about United Grain Growers 70% of its income from grain operation Strategy: UGG spent about $65 To modernize its grain handling million on acquiring and business Issued building its non-grain limited To provide handling business voting farmers with 1993 common services beyond restructured shares on grain handling itself as a Toronto Build new HTP elevators, public Stock...

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