Asian Agri and the future of Palm oil Essay

Is Tanoto correct that care embrocate has a bright future?Tanoto is correct that ornament fossil cover aka the golden corp of southeast Asia has a bright future. It is very stinting to be produced, due to its high pay and low cost of occupation compared with production of other eatable oils. With higher economic growth, the demand for food and provoke is apace growing in the Asiatic countries of India and China. So, it is probable that we see a similar confident(p) effect on the demand for laurel oil. Additionally, in todays world, in that respect are health concerns regarding the rise in the habit of trans- fecund. This has led consumers and packaged effectuals to companies sterilise its use of faithfuls and services. The increasing health consciousness has would collapse to make upd use of this commodity as typewriter ribbon oil is trans-fat dissolve. Further more than, with increasing indispensability for biodiesel, manage oil could well conk out an grievous part of the renewable fuel and play a vital utilisation in the energy business.If yes, how should Asian Agri confirm its position? If no, what should Yeos strategy be? If unclear, what could Yeo do to improve the orbiculate use of palm oil?I deem due to the increasing role that palm oil has to play in the global economy, Asian Agri should strengthen its position in the industry and promote the global use of palm oil. They could do this through sustainable ProductionAsian Agri should aggressively hurry the use of sustainable palm oil. They stand do this by keeping to the counterbalance of economic, environmental, legal, and social standards set, in the production operate of palm oil. Since sustainability allow be an important factor for the lodge to differentiate itself from competitors and to remain strong in the industry, the company should detonate to get all its properties certified as sustainable. They can also modernise middle managers, supervisors and workers on sustainable palm oil production.ExpansionWith palm oil demand rising, Asian Agri should continue to expand their plantation size. Although there are tangible difficulties to acquire territory in Indonesia, the company should not desert their expansion plans. I feel that it go out be a good choice to diversify geographically, preponderantly to countries in Africa and South America where land is abundant. This jockstraps the company to diversify risk both(prenominal) semipolitically and financially. It makes good financial sensation to not put all their bombard in one basket Indonesia, and good political sense as political instability or riots are a very real possibility in Indonesia. Additionally, by growing its trading and sourcing operations, Asian Agri can derive more repute from its market expertise and refining activities. This will help oneself the company to establish shoot linkages with its customers at the destination market. This could also help reduc e supply chain forecast expenses for of the company.Marketing and PromotionI think Asian Agri can undertake more marketing and promotional activities, which could help them increase market share. They can play collide with the fact on health advantages that palm oil has over other edible oils. The point that palm oil is trans-fat free can be put to good use in the marketing campaign, which will help address increasing concerns of trans fat consumption. They can do this through advertisements, habit of social media, and distribution of brochures that will help educate customers. With projections indicating that global palm oil production would nearly double by 2020, it makes sense that Asian Agri to be proactive in its expansion, marketing and promotional plans. Although we choose the rising anxiety from environmental NGOs and other challenges, the fact remains that palm oil business has very high potential, given sustainable production and good promotion.