CASE 2: CARGILL VENEZUELA
Dr. John Ireland
Lian Qiu 121300063
Olessya Sokolova 121300058
1) As farmers use 15kg of seed per hectare, how much profit do farmers make (per hectare) if they buy Cargill seeds? If they buy Pioneer seeds?
|Cargill seeds | |Sales per hectare |3800*0.3=1140 | |Deducted: cost of seeds |15*3.13=46.95 | |Deducted: Growing corn cost |741 | |Profit per hectare |352.05 |
|Pioneer seeds | |Sales per hectare |2800*0.3=840 | |Deducted: cost of seeds |15*2.5=37.5 | |Deducted: Growing corn cost |741 | |Profit per hectare |61.5 |
* Assuming the farmer purchases through associations and does not require paying the distributor’s margin.
So farmers can make profit of $352.05...
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