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EN_Tipco_Annual Report 2014

ANNUAL REPORT 2014 Type of business Production & export of canned pine-apple, Concen-trate & other canned fruits Production & export of canned pine-apple, Concen-trate & other canned fruits 1. Public sector pol-icy affecting labor and raw material (pineapple) 2. Trade restriction policy 1. Error in forecast-ing output quan-tity & cost of raw materials 1. Government policy to raise the minimum wage rate 2. Cut back of institu-tional loans to farmers Revokation of GSP form A & preferential trade agreement with the Philippines (imme-diate effect) Variable climatic con-ditions affect harvest-ing schedules High production costs Action plan - install machinery to replace labor & lessen im-pact - communicate with the government regarding the company’s plan to guarantee farmers’ income Loss of competitive advantage Action plan - Close monitoring of situation - develop new markets. Error in formulating pro-duction plan result in uncontrollable production costs Action plan - Set up Farmers’ Groups by selecting &organizing Agriculturist Groups to facilitate supervision & support in collaboration with the Association of Canned Pineapple Pro-ducers - set up Integrated Agricultural Teams in line with other Farmers Groups for economic crops such as sugarcane & tapioca - apply modern IT to ensure accu-rate forecasting, Significant Significant High 4. Political Risks (P) 5. Operational risks(O) Type of business Nature of risk Nature of risk Degree of risk Degree of risk Cause Cause Impact and responsive measures Impact and responsive measures


EN_Tipco_Annual Report 2014
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