Fuman Agric Agricultural Products Fruit Juice Manufacturer Essay Example

has the authority to reject subpar products and pays farmers average annual prices for their crops. In cases where open market prices are higher than company prices, farmers choose to sell their produce in the open market. Additionally, the company procures supplies directly from producers and agents in eastern and central Nigeria, paying prevailing market prices. The main challenge that the company encounters is the limited availability of raw materials. The farming sector is not adequately prepared to provide a consistent and reliable supply to the factory.

Competition from alternative markets, particularly from northern Nigeria where these fruits are not typically cultivated, diminishes the company's raw material supply. At present, the company is endeavoring to acquire concentrated Juice supplies from Ghana and South America. Furthermore, there are other constraints mentioned including high interest rates imposed by commercial banks (32-35 percent pa) and persistent issues with electricity supplies. There are various factors that need improvement, including appropriate staffing and a degree of decentralization in management structure which are crucial.

Effective communication is critical for ensuring a consistent supply of raw materials, specifically oranges, through cooperative farming. It is crucial to maintain a strong relationship between the company and farmer groups, particularly those inherited from the previous Lana Canning Company. To achieve this, it is important for farmers to collaborate with the company and have a comprehensive understanding of their production system. To facilitate this communication effectively, it is essential to appoint a well-trained liaison and extension officer who has local area knowledge.
References: Glover D. 1987. Increasing the benefits to smallholders from contract farming, problems for farmers' organizations and policy makers.