The paper "Sugar Industry in Australia" is a great example of a Management Case Study. The Australian sugar industry over the last few years has recorded enormous significant changes. The industry is exporting nearly more than three-quarters of its sugarcane production, therefore, integrating itself into the overall global economic growth (Antony et al. , 2005). The Queensland parliament move to re-regulate sugar, a move to eliminate International Sugar Agreement, has received impositions to limit and regulate sugar production. Irrespective of these current developments, the sugar industry in Queensland is still highly regulated.
As a form of contrast, regulations imposed on other industries like wheat production in New South Wales have been relaxed or even removed. With the passing of the Sugar Industry act in Australia, regulations were made relating to production and marketing of sugar in Queensland. The marketing and production practices of firms were now assumed by the newly incorporated Queensland sugar Corporation (Antony et al. , 2005). However, the recent move by the Queensland parliaments to re-regulate the sugarcane industry has been received with a lot of contention from many people. As others regard this move as being detrimental to the sugar industry players others perceive this move as beneficial in the sense that production and marketing costs of sugar are now controlled by the state.
Further, some argue that the total output of the industry has been reduced because the industry is not performing as it should be. There is a belief that high domestic sugar prices have prevented the growth of players in the industry (Antony et al. , 2005). This essay, therefore, seeks to understand the two perspectives of ‘ sugar socialism’ and the aspect of ‘ Economic Lunacy’ . Analysis The answer as to why the Queensland sugar industry is so much regulated is to a great extent chronicled.
Household sugar costs or prices were settled and obtaining and showcasing forces were set up in Queensland. Under the Sugar Acquisition Act, all crude sugar created in Queensland was necessarily gained by the Queensland Government and sold for its sake by the Sugar Board, the forerunner of the Queensland Sugar Corporation (Oskam, Meester and Silvis, 2010). In this way, an arrangement of area tasks was acquainted with control the level and area of sugarcane production.
Under this framework, sugarcane must be developed on only designated or doled out areas. Cultivators were required to convey sugarcane to assigned plants; what's more, factories were required to acknowledge all sugarcane developed on relegated land in their plant territory. Generally, other features of the conveyance and valuing courses of action were determined in going with control (Swinnen and Rozelle, 2009). All things considered, it is straightforward why numerous in the business upheld the form of control stipulated by the Queensland parliament (Oskam, Meester, and Silvis, 2010).
Producers dreaded the local monetary force of mill operators and, as the business extended, both producers and mill operators expected that the business could be misused by overseas purchasers (Oskam, Meester, and Silvis, 2010). Directions were additionally seen as a method for diminishing hazard and settling maker’ s earnings, and as a method for keeping up for built-up cultivators the higher costs feasible from residential deals. Be that as it may, the world is altogether different today. Makers in many commercial enterprises now have entry to significant business sector information on which to base creation and promoting choices (McKillop & Zonca, 2015).
Refined money related apparatuses have gotten to be accessible to oversee cost and wage variability. Australian makers have lessened (Oskam, Meester, and Silvis, 2010).
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