Agribusiness Policy and the Business Environment:

Running Head : Agribusiness Policy and the Business Environment

Agribusiness Policy and the Business Environment

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Executive Summary

Dairy farming is one of the key areas of Agribusiness sector . One subgroup of this dairy farming is the raw milk business , which is the focus area of business in this report . The raw milk business is a very unique business area because of its frequent clashes with the government , and the very strict regulation under which it operates . The business is analyzed by using a fictitious company names Organo-Milk

br The company can be thought of as a typical medium scale business enterprise , which is one of the common scenarios in this business are The problems outlined for this company are typical of other similar sized companies in the raw mil business , and have led to many of the companies being closed down . The surviving companies are either very large cooperatives like Horizon Organic , or innovative companies like Organic Pastures , the latter being the chief focus of this study Through the fictitious company , the raw milk business will be analyzed and some strategic options would be outlined , which can be utilized for other similar companies in the business . The report first gives the introduction of Organo-Milk , then gives a detailed explanation of the US government policy regarding raw milk , then explores the business environment of the company , and finally takes all these inputs to give strategic solution for the company under focus

Introduction

The company under analysis here is a fictitious company with the name Organo-Milk . The company is modeled after the company Organic Pastures and makes raw dairy milk and related products . The raw dairy products are the dairy foods that are unprocessed artificially for instance by using processes such as pasteurizing , heating , or chemically treating etc . Even the cows used in the farms are nor given antibiotics , hormones or GMOs i .e , Genetically Modified Organisms for producing more or better grade of milk . Instead they are given naturopathic treatments and are fed using organic green pastures only (Organic Pastures : Products n .d , para 1

Like Organic pastures . Organo-Milk is also considered as a family owned company with the main organizational positions shared between different family members . Organo-Milk is based in the California state in the United States . This makes the company along with Organic Pastures , one of the few remaining family-owned and operated dairies in California (Organic Pastures : Organic pastures dairy Company , n .d , para 1 . The company is assumed to have been set up formally in the early 1990s , and the founding members still hold crucial positions in the company , and are responsible for most of the day to day decisions and company operations . The staff working with the company has also been with them from the very start , with few instances of permanent employees leaving the farm . Most of the people employed on the farm live in the neighboring areas with very few instances of immigrant labor , though there are a fair number of labors who...