Case Solution for Shrimp Farming in Ecuador

Complete Case details are given below :

Case Name :      Shrimp Farming in Ecuador
Authors :           David W. Conklin
Source :             Ivey Publishing
Case ID :            97H005
Discipline :        Business & Government Relations
Case Length :    05 pages
Solution Sample availability : YES
Plagiarism : NO (100% Original work)
Description for case is given below :
In 1997, Xavier Kayser operated an extensive shrimp farming business in Ecuador. He had introduced several significant technological advances in order to overcome the susceptibility of shrimp to disease, a problem plaguing shrimp farms in Asia. The shrimp value chain consisted of many activities that culminated in the preparation of a wide variety of frozen appetizers and dinners. In order to increase profitability, Xavier faced the challenge of moving up the value chain. Meanwhile, global consumption of shrimp value-added products was increasing rapidly. Foreign food processors and retailers had an interest in guaranteeing supply by integrating backwards into the shrimp farming business. A joint venture might offer benefits to both Xavier and a foreign corporation. This case raises issues of concern from the perspective of both potential partners. Ecuador had just emerged from a political revolution, interest rates and foreign exchange rates were unstable, financial institutions in Ecuador were charging extremely high interest rates, and labor unrest caused fear of work stoppages. In such a rapidly changing business environment, how should Xavier plan for his economic future?
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