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Analysis For Modern Agricultural Farm

1400 words - 6 pages

Modern Agricultural Farm (MAF) is a farm which is located in Pakistan. In order to make MAF stand out from the crowd, we need to analyze and figure out the opportunities as well as the challenges MAF is facing currently.

Macroeconomic:
Economic
Pakistan is located in the South Asia, bounded by India on the east and by Arabian Sea on the south. 70% of the livelihoods of the population in Pakistan are either directly or indirectly linked to agriculture (N. Ahmed 1). In another words, agricultural industry is the backbone industry in Pakistan. The government of Pakistan has therefore “identified that agriculture is one of the priority areas to be focused in order to support the economy ...view middle of the document...

Fertile soil provide essential nutrient to the crops and helps to increase the productivity. However, there are also many other environmental issues that the Modern Agricultural Farm might face, and drought is just one of them. Due to the dry climate and large population in Pakistan, water resource is limited. When comparing the rainfall in Sindh with other provinces, we can clearly find out that the problem is even more serious here. As image 1 in appendix illustrates, Sindh’s rainfall is somewhere between 0mm to 20mm in Rabi during 1987 to 2004 , and it is apparently that the precipitation level in Sindh is the lowest comparing with 3 other provinces that are also mentioned in this image (N. Ahmed 5). The low precipitation level reveals a challenge to the Modern Agricultural Farm, which is how to use the limited water wisely when irrigating the crops and that challenge brings the needs to improve MAF’s irrigation system.
Technology
As the case states, MAF was using canal water for irrigation before. However, since it was found that the amount of canal water that is available is decreasing each year, the managers have decided to invest in a sprinkler system in order to save water (M. Ahmed 5). That is an example that technology can help the farm to do better.
In addition, there are other technologies that can also benefit MAF. For instance, using tractors can help farms to reduce the number of labors they hire and thus control their expenses and increase profitability. Referring to image 2 in the appendix which is captured from the journal “Land Distribution, Technological Changes and Productivity in Pakistan’S Agriculture: Some Explanations and Policy Options”, the use of tractors has been increasing dramatically since 1960s in Pakistan, but about 83% of the tractors that are being used currently are in another province called Punjab. Thus, MAF should consider purchasing some tractors to reduce the number of labors as well as increase work efficiency, and that will definitely help MAF to do better than those farms that are not using any machines and technologies during sowing, irrigating and cropping.

Porter’s 5 Forces
Customers:
The main crops grown in MAF include cotton, wheat, onion and some fodder crops. Due to the variety of the crops, MAF’s customer types are also diversified.
For example, most wheat is consumed by individuals in Pakistan since wheat is the main staple food here. According to experts’ calculations, the population in Pakistan is expected to be doubled before the year 2050, therefore it is reasonable to believe that the price of wheat is going to rise in the coming decades since the demands of wheat is continuously increasing (“Population of Pakistan would be doubled by 2050”), and that gives the managers in MAF a hint of what to plant in the coming future.
Cotton is mostly sold to ginneries based on the international price, which indicates that the price of cotton could be affected by many factors like the...

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