Modern Agricultural Farm

Background Analysis For MAF.

From the case, the head office of Modern Agricultural Farm (MAF) was located in the south of Pakistan. The farm area was about 448 acres in total and used canal water for irrigation. The farm workers were not with any skills, whom are provided by a contractor during the harvest of wheat and cotton. The agricultural year in Pakistan was split into two seasons: winter crop and spring crop. The majors were wheat, cotton, gram, lentil, onion, potato, sunflower, canola and barley.

The choices of what crops to plant depended on many factors like the current cash flow situation, the length of time the crop needed to mature in the field, the suitability of the weather and soil, the contribution margin that was likely to be achieved and the likelihood of a needing a storage.

Before we establish an overall operating controls framework, let’s look back and forward to the background of industry in which MAF operates. Agriculture is the base of any other development because it is about food. That is the basic needs for everyone. As this industry is so important for people and for a country, it also relates to politic regulations. Agriculture of course cannot be separated from the topic of environment and technology. Analysis of those elements are mentioned in follow.

1. An over view of economy and policy. Scientific discoveries in the fields of chemistry and genetic engineering have led to major and continuing improvements in agricultural productivity. As the productivity of pesticides seeds has increased, the concentration of these input industries also has increased. In the 1960s, over 70 basic manufactures of pesticides were operating in the United States, but manufactures. Concentration has increased similarly in the seed industry. With the development of hybrid corn and with greater intellectual property right protection, the number of private firms engaged in plant breeding grew rapidly at first. Increased industry concentration has at...