The Dilemma Gar

Executive Summary

The dilemma confronting GAR is whether it should stick to the commitments of being a sustainable organisation or try to force a short-term, profit-maximisation approach. In a country which has economic dependence on tropical rain forests and can least afford to suffer any short term or long term losses; GAR has committed itself to an approach which goes far and beyond the required legalities of Indonesia. Thus, setting benchmarks which although not enforceable under current law are not easy to emulate by others, this far sighted sustainable approach is under question.

Having committed itself to a Forest Conservation Policy (FCP), GAR has not only defined a new scientific approach towards palm oil cultivation but also shown that the path of sustainable agriculture practices is profitable. The support it has started receiving from Greenpeace and other NGO's and also the major multinational companies like Nestle and Unilever is a clear indication that these steps will not go in vain. Sustainability shall be the long run key to profitability and the commitment and leadership that GAR has envisioned shall have to be further strengthened so as to ensure that a profitable business model emerges out of the committed sustainable agricultural practices of no deforestation and conservation of natural habitats for the innumerable species in these beautiful tropical rainforests which are the lungs of the earth.

Now is the time for GAR to leverage its position and take a few strategic leaps forward. The three pronged strategy involves steps which are independent in nature and shall ensure the blossoming of an organization in a multi-dimensional sphere.

1. It has to 'pied piper' the small farmers across Indonesia and form a co-operative organisation which is led by GAR itself; the Indonesian Palm-Oil Farmers Cooperative (IPFC). This shall pave the way for increased profitability with optimum utilisation of existing infrastructure in Indonesia and build an image for the organisation which it can then utilize to its benefit.

2. Expand in the African countries of Liberia and Ghana which have a huge potential foe growth.

3. Set up a research institute with the help of the local government to develop phyto-remediation techniques for palm oil trees. The nitrogen fixation and/or alternatives for nutrient enrichment of soil need to be thoroughly researched and Indonesia is the best place in the world to do so.

Honour the commitment to sustainability in letter and in spirit

The GAR has to show extreme commitment to promote deforestation and conserve the environmental carbon. The firm is working with government to gain the economic development by balancing the environmental concerns associated with Palm Oil Production and boost the rural development & small scale farming.

It is feasible