Food, India, and Growing Global Influence

Food: The Price is the Crisis

At the risk of sounding trite, the law of supply and demand still functions. To solve the price crisis in India, supply must be increased. This is a matter of "time place utility"; "form utility"; "economies to scale"; and direct foreign investment. I mention the last consideration because the advice to some can also be considered advice to another. In short, if you know where and how people are being advised to invest, you can position yourself to be the where and the how.

I've included "Having Problems with Foreign Direct Investment?" to give insight into what investors can look for. This can also give insight into those who want to benefit from the investors. I've included The Marketing of India. I've included a metaphor: Starving Nations and Food Equations: A metaphor. This is not to be interpreted as reference to people actually dying. It is to discuss the economics of agriculture.


Having Problems with Foreign Direct Investment?


What are some of the barriers?

Leverage.

ROI.


It is easy to see that start up costs in some countries are much lower than start up costs in another. If the other country does not have the physical plant for example, it will be cheaper to build that plant in the other country.

Currency considerations are another factor

Incentives from a country with little industry are greater than they are from a country where you will compete with the locals.

Market penetration. Would people in countries in the region be more inclined to buy from countries in the region or from western nations.

Partnering. It is easier to partner with business in some countries where western technology is not readily available by making that technology available.

Just a few thoughts.

Now, for a few more thought.


The Marketing of India


Find a need and fill it.

Who has a need for what you can produce?
Partner with that (nation's) companies.

In addition to the profits, offer a minority interest in the company. (This will give investors an incentive to succeed.)

Offer a profit share to the suppliers. (This will give the farmers(?) an incentive to join in the venture.

In addition to money, offer other incentives. [Prestige]. For example: Build schools in the areas where the people are most enthusiastic.

If one or two small companies cannot find the funding (through govt. funding--a bad idea) go to the marketplace.

Economies to scale.

Create a marketing group for the several smaller companies, so they can pool their resources.

In Vermont there is a joke:

Q: "Do you think the rain will hurt the rhubarb?"
A: "Not if they're in cans."

If produce spoils before it hits the market, set up a joint effort to can the produce at the source.

Roads are a government responsibility.

Just a few ideas. (Call me old-fashioned)

Anyone care to amplify, amend, or correct?

Sincerest regards,

Slim

PS. Read The Caste Busters article in the NY Times:
http://www.nytimes.com/2011/01/02/magazine/02Striver-t.html

Mail slimfairvew@yahoo.com

Copyright (c) 2011 Slim Fairview

Starving Nations and Food Equations: A Metaphor

[This metaphor does not refer to people actually dying. This refers to the discordance in the economy of agriculture specifically and in the economy as a whole.]

If one person in the group does not have enough food to eat, he may die.

For a while, that means more food for the rest of the group. However, that also means one less person to work the farm. That means less food to eat. Less food to eat means someone will die.

For a while, that means more food for the rest of the group. However, that also means one less person to work the farm. That means less food to eat. Less food to eat means someone will die.

Soon, there won't be enough people to work the farm. That means there won't be enough food to eat.

Get the idea?


Slim

Mail: slimfairview@yahoo.com


Copyright (c) 2011 Slim Fairview

India 2.0 The Future is Today

That India is a technological leader, not marching but rather moving smoothly and swiftly into the future, is seldom a matter for dispute. In fact, it is not really discussed but simply assumed as the conversation progresses.

Still, as with any country or economy, there are adjustments to be made in the economics of a country's economy.

The issue of food is uppermost on the minds of the people of India. In a previous monograph, I referred to increased supply. A literal understanding would be counter productive. The issue is not resolved by saying, "Grow more food." However, if we were to discuss the issue from that statement, we would have to ask, "Do the same number of farmers increase their output, or do we need an increase in the number of farmers?" A subtext would involve farmers joining to take advantage of economies to scale, and form large farms. (Remember, the absence of primogeniture caused the collapse of pre Soviet Russia. The absence of private ownership led to the collapse of post-Czarist Russia. Conclusion: many small farms don't satisfy the need; collective farming won't solve the problem.

The first issue to address is that India has a culture of co-operation. This will serve India well as time marches on. However, on the question of supply, we are not simply suggesting more food for today; but a stable supply of food for a foreseeable future.

Two problems indicated in recent reports from the media are that

1. India cannot get food to the market. It rots before it can be sold or eaten; and 2. That the fluctuation in food prices in a largely agricultural nation has a greater impact in that nation than they would in a heavily industrialised nation.

Some options to consider.

If there is difficulty getting food to the market,

the food can be preserved at the source. Canned and frozen foods, processed at the source, can be stored as a hedge against future food supply failures. In addition, they can be sold on the national and international market. (The marketing of Indian cuisine can become a larger industry. I had curry for the first time when I was about 9 years old. Only recently have Indian food products made their appearance in supermarkets. That is a gap of almost half a century.)

The food supply prices can be leveled slightly through the investment in commodity options. This would allow investment consortia to

a. Have food available at a more affordable price if food prices rise considerably
b. Provide a return on the investment if national supplies are sufficient to meet demand
c. Provide the necessary supply of food to process for market and hedge against a future crop failure
d. Attract investors to partner with the agriculture, manufacturing, and finance industries to bring in money for capital investment.

The government can assume the responsibility of developing roads; negotiating trade deals (read: taxes, tariffs, concessions, etc.), and provide for a stable food supply and food pricing system to stabilise the government.

The economic growth, political stability, national unity, can be promoted.

Now, many people are skilled in the various areas mentioned above. The only thing necessary is what is too often referred to as a shared vision. This monograph is a demonstration of one of the few times that the term, shared vision, may perhaps have been used appropriately.

Sincerest regards,

Slim

Mail slimfairview@yahoo.com


Copyright (c) 2011 Slim Fairview

The Food Crisis in India: The Price is the Crisis

Food: The Price is the Crisis

At the risk of sounding trite, the law of supply and demand still functions. To solve the price crisis in India, supply must be increased. This is a matter of "time place utility"; "form utility"; "economies to scale"; and direct foreign investment. I mention the last consideration because the advice to some can also be considered advice to another. In short, if you know where and how people are being advised to invest, you can position yourself to be the where and the how.

I've included "Having Problems with Foreign Direct Investment?" to give insight into what investors can look for. This can also give insight into those who want to benefit from the investors. I've included The Marketing of India. I've included a metaphor: Starving Nations and Food Equations: A metaphor. This is not to be interpreted as reference to people actually dying. It is to discuss the economics of agriculture.


Having Problems with Foreign Direct Investment?


What are some of the barriers?

Leverage.

ROI.


It is easy to see that start up costs in some countries are much lower than start up costs in another. If the other country does not have the physical plant for example, it will be cheaper to build that plant in the other country.

Currency considerations are another factor

Incentives from a country with little industry are greater than they are from a country where you will compete with the locals.

Market penetration. Would people in countries in the region be more inclined to buy from countries in the region or from western nations.

Partnering. It is easier to partner with business in some countries where western technology is not readily available by making that technology available.

Just a few thoughts.

Regards,

Slim

mail slimfairview@yahoo.com

Copyright (c) 2011 Slim Fairview



The Marketing of India


Find a need and fill it.

Who has a need for what you can produce?
Partner with that (nation's) companies.

In addition to the profits, offer a minority interest in the company. (This will give investors an incentive to succeed.)

Offer a profit share to the suppliers. (This will give the farmers(?) an incentive to join in the venture.

In addition to money, offer other incentives. [Prestige]. For example: Build schools in the areas where the people are most enthusiastic.

If one or two small companies cannot find the funding (through govt. funding--a bad idea) go to the marketplace.

Economies to scale.

Create a marketing group for the several smaller companies, so they can pool their resources.

In Vermont there is a joke:

Q: "Do you think the rain will hurt the rhubarb?"
A: "Not if they're in cans."

If produce spoils before it hits the market, set up a joint effort to can the produce at the source.

Roads are a government responsibility.

Just a few ideas. (Call me old-fashioned)

Anyone care to amplify, amend, or correct?

Sincerest regards,

Slim

PS. Read The Caste Busters article in the NY Times:
http://www.nytimes.com/2011/01/02/magazine/02Striver-t.html

Mail slimfairvew@yahoo.com

Copyright (c) 2011 Slim Fairview

Starving Nations and Food Equations: A Metaphor

[This metaphor does not refer to people actually dying. This refers to the discordance in the economy of agriculture specifically and in the economy as a whole.]

If one person in the group does not have enough food to eat, he may die.

For a while, that means more food for the rest of the group. However, that also means one less person to work the farm. That means less food to eat. Less food to eat means someone will die.

For a while, that means more food for the rest of the group. However, that also means one less person to work the farm. That means less food to eat. Less food to eat means someone will die.

Soon, there won't be enough people to work the farm. That means there won't be enough food to eat.

Get the idea?


Slim

Mail: slimfairview@yahoo.com


Copyright (c) 2011 Slim Fairview