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Springtime Cooperative
You are a member of the executive committee of Springtime Coop (SC), a farmers' cooperative in Camelot, a large developing country in Asia. Until 15 years ago, the economy of Camelot was tightly regulated, and movement within the country was restricted. Because the farmland of Camelot is productive, it was well treated by the central government. The region was not rich, but schools and public facilities were relatively well maintained.
A change of government triggered an opening of the Camelot economy, and rapid economic and industrial development in the major cities. However, SC is located in a region (Springtime) that has not benefited from these changes. Incomes are now low by national standards, and many young people are chosing to move to the cities rather than continue in agriculture, which is the only source of livelihood in the Springtime district. The quality of education is now poor, and the local infrastructure, including the main road that leads from Springtime to the nearest railroad station, is beginning to deteriorate.
The executive committee of SC is exploring two possible ways of securing the future of the community. One is to pursue high-volume agriculture, using genetically modified crops and special pesticides and herbicides. Under current conditions, the introduction of these techniques could increase the total yield of the land by 100%. Some other regions have received technical assistance and free seed and equipment from the government to convert to this new form of agriculture.
Another possibility is to pursue organic farming. The market for organic produce is increasing worldwide, and organic products bring high prices compared to other products. The Camelot government has a "Green Tag" scheme for organic products, which requires that produce have no trace of pesticides or herbicides when they are sent to the market. The Minister of Agriculture has suggested to SC that Springtime might be made a special "Green Tag Zone", to help boost the image of the label.
The executive committee is split between these two approaches. Those who support the "industrial" approach argue that the benefits offered by the government are certain, and that the increases in productivity are also well established, so the total benefits to the community can be known in advance. Those who support the "organic" approach argue that the cost of chemical fertilizers has been increasing, and that the same will be true for genetically modified seed. They also point out that most organic produce is exported, and direct overseas sales would give SC and its farmers income in hard currency. The world demand for organic produce is expected to rise, and some expect prices to double or even triple in the next five years.
Springtime was recently visited by Alan Anderson, president of a large restaurant chain in North America. SC members were impressed by his knowledge of agriculture, and his discriminating eye for quality produce. The restaurant chain, Fruits & Nuts, Inc. (F&N) has now asked to set up a meeting with SC, to discuss the possibility of supplying F&N restaurants with organic produce. Both factions on the executive committee of SC agree, for separate reasons, that SC should keep its options open (i.e. avoid a long-term commitment to this single customer) if possible.
Currently, the Springtime region produces (for example) about 3 million kilos of potatoes, 100,000 kilos of aubergine and 200,000 kilos of carrots per year. The region has only one pest, a destructive beetle that farmers have learned to control using ashes from the tulbo tree, which grows in the region and is used as a cooking and heating fuel in local homes.

Additional facts
At a special meeting before the arrival of the Fruits & Nuts negotiation team, the Executive Committee has given the following information to your negotiating team to prepare for the negotiation: You have authority to negotiate on behalf of the Springtime Cooperative. Springtime has received an approach from "McBucket's Chicken and Casino", a large fast-food restaurant chain. McBucket's plans to add vegetables to their menu, and they have contacted SC about a supply contract. Every vegetable served at McBucket's must be exactly the same size, weight, shape and color. This requires that they be grown from genetically modified seed, with heavy use of chemical fertilizers, pesticides and herbicides. During preliminary talks, McBucket's has suggested that it could commit to purchase a minimum annual dollar value of produce (the amount offered was equal to the full current average income of SC farmers), with the price of individual lots of produce to be fixed by an appraiser proposed by McBucket's and approved by SC. Their negotiator also expressed a wish to use Springtime in its advertising, saying, "It will be good for your community. It will make you famous." The McBucket offer expires on Sunday evening, so you must decide whether to make a final commitment to F&N at this negotation. Most of the land of Springtime has been saturated with pesticides and herbicides, which will be detectable in the soil for two more years. However, it is certain that crops can be grown on this land in a way that will pass the "Green Tag" certification scheme offered by the government of Camelot. The biggest problem for SC farmers is erratic weather, which causes a serious crop failure roughly once every decade. It is important to stabilize the income of the community. The price of organic produce is expected to rise sharply in the future. The Executive Committee may reject a plan that does not permit SC farmers to benefit from increases in the value of organic crops. The specific type and quantity of produce to be sold under the agreement is not an issue in this negotiation. The minimum quality of produce to be sold under the agreement is open for negotiation, but only if it is raised by F&N.
Sample research links:
Report on a scheme in China that is similar to "Green Tag"
http://www.rioa.or.kr/serve/16-8.htm

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