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Northwest Grain
International, LLC
TABLE OF CONTENT
Executive Summary……………………………………………………………………………………………….3
Company Description……………………………………………………………………………..….…….…...4
Company Investment………………………………………………………………………………….….….…..4
Products……………………………………………………………………………………………….….…….…….5
Swot Analysis…………………………………………………………………………………….…….….…….…6
Introduction to New Zealand…………………………………………………………………………….….…7
Risk Assessment………………………………………………………………………………….….….…….…..8
Summary Table – New Zealand………………………………………………………………….….……...10
Economic Statistics……………………………………………………………………………………….….….11
Introduction to Guatemala…………………………………………………………………….….….…….…13
Risk Assessment………………………………………………………………………………..….….…….…..14
Summary Table – Guatemala…………………………………………………………..….….…….……....17
Key Economic Facts & Currency……………………………………………………………..….….…….19
Introduction to Kenya……………………………………………………………………………….….….…..21
Political Assessment…………………………………………………………………………..…….…….…...23
Summary Table – Kenya…………………………………………………………………….….…….….……25
Country of Choice: Kenya………………………………………………………………………..….…….…26
Political Risk Management…………………………………………………………………………….….….27
Conclusion………………………………………………………………………………………………….….…..30
Work Cited……………………………………………………………………………………………………….…31
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EXECUTIVE SUMMARY
Northwest Grains International (NGI) successfully built a comprehensive worldwide
network of suppliers including a number of partnerships within North America. These
relationships give Northwest Grains International access to the highest quality grains and grain
products available in the world. Northwest Grains International believes in long-term
relationships with critical customers to succeed. In order to accomplish, NGI has expanded its
traditional way of doing business by listening to customers and responding to their needs. This
synergistic approach gives its customers entry into untapped markets, providing them with
expertise in product development, and offers them access to the finest products which they may
not otherwise have. Now, Northwest Grains International wants to become a leader in the food
and feed industry in which it would possibly build a wholly new owned operation, or maybe
joint venture with local businesses. The key to continuing succeeding is dedication to customer
satisfaction. Over the report, Three LDC’s have been picked based on the potential investments
information each of these countries have provided. The three countries include Guatemala,
Kenya and New-Zealand. Northwest grains is a privately owned company, we could not find any
information on its competitive analysis or any information on its financial situation.
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COMPANY DESCRIPTION
Northwest Grains International, LLC was founded by Gary Mao. Prior to forming
Northwest Grains International Gary operated Northwest Protein and developed a reputation of
integrity and being a reliable shipper of high quality products and excellent service with
customers in China and other countries around the world. Northwest Grains has grown
considerably in the last year and added several experienced personnel to grow the business with
the goal of being the largest exporter of containerized agricultural products in the US. The
company has created a network of dedicated Tran’s loaders and direct ocean carrier contracts to
facilitate the growth of the business and to serve its customers better. By utilizing an efficient and
integrated procurement and logistics process the company is able to deliver competitively priced
products to each customer it serves. The company has focused on sourcing only the highest
quality products from the best production areas in the country.
COMPANY INVESTMENT
Why should Northwest Grains invest in acquisition of a local company, or a possible
merger? As stated in the earlier paragraph Northwest Grains goal is to become the largest export
of containerized agricultural products in the US. International markets can offer growth
opportunities that may not be available in the United States due to differences in the household
income, younger population, and availability of natural resources, export strength, and
movement toward free market economy policies. Economic growth in the United States is
expected to be Subdue in the near term. The International Monetary fund (IMF) is forecasting
growth in the United States to be below world growth over the next several years. International
markets are gaining in importance, and by investing solely in the United States, you may be
passing over growth opportunities, and that is the exact opposite of Northwest Grains plans.
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PRODUCTS
Grain and Oilseeds
Feed grade Corn and Soybeans
Non-GMO Corn and Soybeans
Wheat
Barley
Canola Seed
Grain By-Products
Dried Distillers Grains (DDGS)
Corn Gluten Feed
60% Corn Gluten Meal
Soybean Meal
Proteins
Corn Gluten Meal
Whey Protein Powder
Poultry Meal
Feather Meal
Whey permeate
Fish Meal
Soy Protein Powder
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SWOT ANALYSIS
STRENGTHS WEAKNESSES
– Cooperative with members who are good farmers
– Available land
– Domestic markets
– Grains will always be demanded
– Clean grain handling system
– Low investment costs (minimal overhead)
– Currently have low debt
– Fairly liquid assets
– Low quality varieties
– Lack of agricultural supplies
– Lack of clear direction in marketing
– A poor crop-yield due to the environment will greatly
affect production (limited grain access)
– Limited production types from manufactured goods
OPPORTUNITIES THREATS