Kenya Fertilizer Essay

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Negotiation for Fertilizer One Acre Fund (OAF) was founded by Andrew Youn in 2006 as a non-profit organization. By working with the poorest populations in Africa, OAF’s vision is “Empowering the chronically hungry to pull themselves out of poverty.” (One Acre Fund Site). Their goal is not to give food away, but to provide necessary resources (seed, fertilizer, and education) to farm families owning up to one acre of land to grow enough food to feed themselves and ideally a surplus, which can be used for sale and family income. OAF’s business model is to purchase fertilizer in bulk and distribute 25 kg bags to each farmer. Farmers are also taught how to use the fertilizer effectively with seed. A conservative yield target is set, and if targets are reached, farmers will be able to feed their families and pay back OAF with a percentage of the surplus crop. The case involves a negotiation between OAF’s manager of external relations and research, Moises Postigo, and five perspective vendors, for the purchase of fertilizer. This was OAF’s first time purchasing bulk fertilizer and Postigo’s first time negotiating for OAF. In order to determine what a good and fair price would be, it was necessary for Postigo to spend time researching fertilizer and understanding how to negotiate in the cultural context of Kenya. He first became educated of the price of fertilizer using the Wholesale Mombasa Index. Postigo gathered all of the information necessary to understand his limits as well as his target price. He opened up the bidding to five different vendors that had been recommended to him as reliable suppliers. The negotiations took place over cell phone because traveling to meet each vendor would be too time-consuming and expensive. This form of communication made it especially difficult due to the Kenyan cultural emphasis on relationships and the fact that he had no

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