Bob Harrison said:
>> "Part of the *new* cooperative agreement between the Sioux Honey Assn. and
>> the Argentine cooperative FACAP *includes* the exportation of *Argentine*
>> honey, bottled and labeled under the Sioux honey brand.
...and Aaron Morris said:
> Is this decision driven by the bottom line (dollars) or is it a supply/demand issue
> (coop members aren't able to produce enough to meet Sioux Bee's needs)?
> If the former and I were a coop member, I think I'd be a bit POed.
Given views like Aaron's, perhaps Sioux Bee needs to sign an agreement
with FACAP in Florida quick! The "Florida Advisory Committee on
Arson Prevention" http://www.facap.org :)
Seriously, this was a very well-timed announcement, and a very smooth move.
Vote the people who did this a raise, Sioux Bee members - they earned it.
The net effect is that Sioux Bee may now suddenly be the largest purchaser/packer
of Argentine honey, and will no longer be undercut by those who traditionally traded
in Argentine honey. They are sure to buy up as much Argentine honey as they can,
even if they must stockpile it. This, combined with the ban of Chinese honey, will
make a rather large vacuum, leaving a number of honey importer/packers with one
less major source of supply.
If the Chinese situation remains unchanged, some packers could be put in the
position of not being able to supply long-standing customers, and Sioux Bee
will be sure to be interviewing now for someone to answer the phones on "3rd shift".
It also allows Sioux Bee to process and bottle honey year-round, which means that
their capital equipment can be amortized over the same period, but produce many
more pounds of honey during the productive lifespan of the equipment. (Don't laugh,
this is serious money for any business with a "plant".)
Its nothing but a another game of Monopoly, but played with real money, real
buildings, and a game board as big as the planet. Since Sioux Bee is a co-op,
the members profit on both sides of the deal.
Hey! - If Sioux Bee cuts a deal with the Alberta Honey Producers, that would make
THREE properties in the same hemisphere, entitling the combined groups to place a
hotel on the board. :)
The Sherman Antitrust Act, the Clayton Act, the Capper-Volstead Act, and the NAFTA
agreement make very informative reading for the megalomaniac in training. It is amazing
what co-ops are allowed to do. I sure hope that someone has enough of a sense of humor
to hand out eye patches and Jolly Roger flags to all Sioux Bee members at their next meeting.
All together now.... "Arrrrr! Arrrrgentina!"
jim
|