Benefits to Canada
Gum Arabic is a speciality product that is primarily grown in Africa (UNCTAD, 2013) and because of this Canada will not be producing a specific product. For the purpose of this project a Canadian trading company can be used to export the product from Africa to Nepal.
The use of Agrocorp International as the Canadian trading company involved in the trade of the gum arabic to Nepal will be beneficial to Canada for multiple reasons. This company will be able to develop two new global trading partnerships. The first partnership would have to be established with the Gum Arabic Company of Sudan, whom of which is the largest exporter of Gum Arabic (IDE-JETRO, 2009). This would also ensure that Canada would have a share in the African economy. Secondly Canada would need to partner with a Nepalese seed distributor such as Anubahv International (Business Portal, 2014). Partnering with Nepal is essential for the success of this product.
The use of gum arabic as an inoculant is still a niche market which means that there will not be a major competition in the marketplace, making the three companies involved the sole producers and distributors of the gum arabic as an inoculant.
If needed a trained professional from Canada could be hired by the Anubahv International company to be in charge of inoculation if the proper technique has not yet been perfected in Nepal. Several inoculation techniques are available such as dusting, slurry, pelleting, and vacuum impregnation (Deaker et al., 2004). The seeds can be inoculated by farmers immediately prior to use or by custom inoculation through the seed distributor that can be used within a week of inoculation (Deaker et al., 2004).
If the product does well and farmers are satisfied with the results that they receive on the crop it would bring positive attention to Agrocorp International, and their ability to source and provide a quality product to its customers. This use of marketing for the company could lead to business growth for Agrocorp International. This new growth will lead to foreign money entering Canada which will benefit the Canadian economy, as well as benefitting the Nepalese people with a way in which to better grow legumes.
The use of Agrocorp International as the Canadian trading company involved in the trade of the gum arabic to Nepal will be beneficial to Canada for multiple reasons. This company will be able to develop two new global trading partnerships. The first partnership would have to be established with the Gum Arabic Company of Sudan, whom of which is the largest exporter of Gum Arabic (IDE-JETRO, 2009). This would also ensure that Canada would have a share in the African economy. Secondly Canada would need to partner with a Nepalese seed distributor such as Anubahv International (Business Portal, 2014). Partnering with Nepal is essential for the success of this product.
The use of gum arabic as an inoculant is still a niche market which means that there will not be a major competition in the marketplace, making the three companies involved the sole producers and distributors of the gum arabic as an inoculant.
If needed a trained professional from Canada could be hired by the Anubahv International company to be in charge of inoculation if the proper technique has not yet been perfected in Nepal. Several inoculation techniques are available such as dusting, slurry, pelleting, and vacuum impregnation (Deaker et al., 2004). The seeds can be inoculated by farmers immediately prior to use or by custom inoculation through the seed distributor that can be used within a week of inoculation (Deaker et al., 2004).
If the product does well and farmers are satisfied with the results that they receive on the crop it would bring positive attention to Agrocorp International, and their ability to source and provide a quality product to its customers. This use of marketing for the company could lead to business growth for Agrocorp International. This new growth will lead to foreign money entering Canada which will benefit the Canadian economy, as well as benefitting the Nepalese people with a way in which to better grow legumes.