The Ginge Industry Essay Example | Topics and Well Written Essays - 1500 words

The Ginge Industry - Essay Example The demand for space has driven exploration and globalization. Its value has not just been recognized economically but also socially as an element of culture and scientifically for its potential in pharmacology and medicine. Considering the Europe naval race for the Asian spice islands which laid the foundation for imperialism in the 14th and 15th century, there is no doubt that it is an industry of world importance. One of the spices that have figured well in the spice trade is ginger, a spice that seems inconsequential today but was once considered as an indication of class and culture (Hutton & Cassio 2003). Estimates of the global spice industry have been generally positive, growing by about 5% since 1998 (Food and Agricultural Organization [FAO] 2005). The industry is dominated by India followed by Indonesia and China, which is exhibiting the most significant growth in recent years (see Appendix A). Spice production in Thailand from 1998 to 2001 list garlic, ginger, hot pepper, chili pepper, shallot, clove and pepper as key products (â€Å"Ginger† 2003). In previous years, there has been a focus on peppers because of rising in world prices. However, subsequent declines in global indices have also been credited for the deceleration of the industry. Appendix A also documents the 2001 standing of the Thai spice industry worldwide. Based on estimates done by the Thai Ministry of Agriculture and Cooperatives (MAC), it estimates the value of the industry to US$19.36 million in 2001 (FAO 2005). As seen in Appendix B, pepper cultivation represents the bulk of spice production in country. Thus, though there has been decline in the price of the commodity, the size of its market supports its role as primary spice commodity for the country. The bulk of revenues from the trade of spices are supported significant domestic consumption but the main motivation for players in the Thai spice industry is to supply international demand. As seen in Appendix C, Thai spice exports make up the majority of total production. Ginger Cultivation and Trade China holds market leadership in the ginger category, 25% of the total world production, eclipsing spice trade leader India ("Ginger", 2003). However, though China ranks as the world's leader in production, export of ginger has been dominated by Japan. This is because much of China's production has been directed to its domestic markets (FAO 2005). Cultivation of ginger was

Debate about the true market value of Telstra shares and about the Essay

Debate about the true market value of Telstra shares and about the financial management of the company - Essay Example Aside from the aforementioned services, it is also involved in the provision of cable distribution and management of business information technology or telecommunication services. The company also provides wholesale services to other carriers, carriage service providers, and Internet service providers (Telstra Corporation Limited 1). The company has made its IPO (initial public offering) in 1991. Currently, the company is under joint public/private ownership, with the Australian government holding 51.8% of its share as of the mid-2005 (Telstra 1). The privatization of Telstra has begun in the late 1990’s by the coalition government. However, full privatization which would mean divesting all the government’s shares had been blocked until the 14th of September 2005. The true value of the company’s stock is currently under hot speculation from the different industry players. Experts assert that the company’s stock is overvalued as some financial information were revealed to the government, the company’s largest stakeholder yet remained concealed to the remaining 1.6 million shareholders. The company had allegedly borrowed US$500 million from its reserves to cover its dividend payout in 2005 and another US$2.5 billion for its dividend obligations in 2006. It was also reported that the company needs a minimum of US$3 billion cash outlay in order to rehabilitate its faulty lines. This investment is necessary as Telstra Limited Corporation had not been making investments to maintain its lines (Haynes 20-21). This information significantly affected the value of the telecommunication giant as investors become wary of the true performance of the company and its future directions. During the first week of September, the market value of its stocks plunged to its lowest in two years. Stock prices further dipped reaching $4.00. After its IPO in 1997, Telstra Corporation Limited has become a profitable investment in security, giving healthy