AGRICULTURE

A Closer Look at Business Education February 2007 ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ : AGRICULTURE INTRODUCTION: For many, the term “agriculture” conjures Jeffersonian imagery of the tranquil family farm. In contrast, genetically modified food and agriculture biotechnology endeavors provoke passionate debate about consumer safety and global hunger. While the agriculture sector has dramatically changed over the years in developed countries, it continues to have an enormous impact on the global economy.1 The Aspen Institute’s Beyond Grey Pinstripes data reveal a number of interesting points regarding MBA programs and the integration of agriculture issues. First off, very few full-time MBA programs address this business sector explicitly. Not surprisingly, those within the United States that do broach the topic of agriculture tend to be land-grant institutions.2 Next, the courses available tend to come from three distinct angles: a sustainable development outlook, an ethical perspective (particularly as related to biotechnology), and from a public policy standpoint. An example of these notable courses can be found below. Perhaps more common than integration of agriculture concepts into MBA curriculum are joint degree programs, such as the University of Alberta’s joint MBA/MAg (Master of Agriculture) degree.3 While agriculture may seem like an esoteric topic to some in the world of business education, this Closer Look aims to highlight the coursework and programs of BGP-participating schools that are excelling in the field. THE BOTTOM LINE: ■ Dynamic and popular agriculture programs in the United States generally exist where the agriculture industry is active, such as in California, Texas, Iowa, Indiana, Nebraska, and Michigan. Dr. Akridge, featured below, believes almost every state has a program in agricultural economics, although whether the program focus is business or policy-based varies. It appears that few international business courses and courses on sustainability use examples from within the agribusiness sector to illustrate theories and concepts. Agribusiness programs aren’t limited to the United States and Canada; popular programs exist in Brazil, Argentina, Australia, Uruguay, France, Spain, the United Kingdom, and more. Reducing a nation’s dependence on oil likely requires further agricultural research into renewable fuels, bioenergy, biodiesel, amongst others. An opportunity exists to integrate these ideas into entrepreneurship courses. ■ ■ ■ For an interesting overview of the agriculture industry’s transformation in the United States, see “Agriculture, Technology and the Economy”, written by J.B. Cooper and Fiona Sigalla of the Federal Reserve Bank of Dallas (1996). For statistics on agriculture and the global economy, see the Food and Agriculture Organization of the United Nations’ statistics division website: http://www.fao.org/es/ess/index_en.asp. 2 Additional information on the agriculture-based original mission of land-grant educational institutions can be found in “About the Land-Grant System” from the West Virginia University Extension Service: http://www.wvu.edu/~exten/about/land.htm. 3 Alternatively, there exist some agriculture-specific MBA programs and a handful of MBA programs that offer an Agribusiness minor or concentration. Notably, Iowa State University offers both an agriculture MBA and a minor in sustainable agriculture. 1 A Closer Look A FACULTY POINT OF VIEW: at Business Education _________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ Dr. Jay Akridge is the James and Lois Ackerman Professor of Agricultural Economics at Purdue University and Director of the Center for Food and Agricultural Business and the Purdue-Kelley MSMBA in Food and Agricultural Business. His research has examined the buying behavior of commercial agricultural producers, applications of customer lifetime value in agribusiness, adoption of precision agricultural technologies, and the role of e-commerce in the agribusiness industries. In 2003, he was awarded the USDA Food and Ag Science Excellence in Teaching Award. On industry realities and related business concerns: “Modern production agriculture applies a tremendous amount of mechanical, information, and biological technology. Many sectors have consolidated rapidly and are dominated by a relative few very large organizations. People outside the industry think American Gothic, while those in the industry put the advances in genetic engineering, global positioning systems, and sensor technology to work. Of course, there is a growing demand for a ‘lower input’ agriculture – organic, natural, etc. But, ‘lower input’ does not mean less management in most cases and even many firms in this area are growing quickly to meet a growing demand.” On MBA exposure to agriculture issues: “I could see a role for an elective that provided insight into the industry and the issues the industry deals with. Many of these represent interesting and important management/ethical dilemmas and could serve as the foundation for a useful elective. Issues around biotechnology raise a variety of regulatory, international trade, and ethical dilemmas. Food safety issues open up important supply chain concerns. Trade in agricultural technology gets into international property rights. And, the slow growth of some food and agricultural markets brings important strategy issues to the fore. Of course, my bias says that some understanding of the global food and fiber industry could be interesting and important to MBA students, and an elective would likely be the best way to accomplish this.” On student placement post MS-MBA in Food and Agribusiness: “Most of the students end up in a food or agribusiness firm, a consulting company, or a government agency. Some of course go on for a Ph.D.” NOTABLE COURSEWORK: The following course descriptions are drawn exclusively from Beyond Grey Pinstripes, a research survey conducted biennially by the Aspen Institute. ■ Cornell University, Samuel Curtis Johnson Graduate School of Management Sustainable Development Seminar (Elective Course) Instructors: Norman Scott, Alan McAdams, and Stuart Hart “Sustainable development is the most beneficial concept to come out of the environmental movement in years. The concept of a sustainable world, however, is not a constant. There are many aspects of sustainability involving economics, environment, and political, social, scientific, and technological developments. This seminar explores topics such as energy, agricultural and food systems, green buildings and ecological design, corporate sustainability, and other contemporary issues. This seminar-style course will involve readings and discussion of issues in environmental management, and will also involve four significant outside speakers on the subject of environmental management. Major topic areas include: Sustainable Futures, Corporate Sustainability, Agriculture & Food System, Ecological Design, Energy and Sustainability.” -2- A Closer Look ■ at Business Education _________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ California Polytechnic State University, San Luis Obispo, Orfalea College of Business Agricultural Programs and Policy Analysis (Elective Course) Instructor: Jim Ahern “This course is concerned with the economic, political, and social objectives of domestic agricultural policies and programs. It covers the consequences of government's policies and programs to control production, allocate resources, support market prices, and provide benefits to food and fiber producers, marketers, and consumers. It also includes a topical analysis of government's current effort to direct agriculture.” The University of Michigan, Stephen M. Ross School of Business Business Ethics, Science and Technology (Elective Course) Instructor: Tim Fort (No longer at Michigan; now at George Washington University) “This course will provide a normative foundation for analyzing the ethical issues arising from the commercialization of advances in science and technology. The course will begin with a typological framework assessing how ethical analysis can critique, follow, stand separate from or be integrated with scientific knowledge and technological advances. The course will then focus on topical issues. The specific issue will vary from offering to offering as new cases arise, but the cases will be drawn from life sciences issues (such as Genetically Modified foods and application of Human Genome knowledge), ecological issues (such as distribution of water resources and environmental stewardship), Internet and computer-related issues (such as the difficulties in applying moral and legal rules in borderless environments), chemistry-rooted issues (such as artificial intelligence and the commercialization of outer space).” University of Western Ontario, Richard Ivey School of Business Biotech Stream Courses (Elective Course) Instructor: Jim Hatch “In the biotech MBA stream students had a lecture/discussion on the use of biotechnology in agriculture to create sustainability of energy resources. Also, there was a lecture/discussion on the use of bioengineering to create genetically modified foods which would provide greater agricultural output for the hungry and to create new products that had enhanced health characteristics.” Monterey Institute of International Studies, Robert L. and Marilyn J. Fisher Graduate School of International Business Sustainable Development (Elective Course) Instructor: Laura Strohm “Is ‘sustainable development’ a revolutionary idea or a tired cliché? An expression of concern for future generations, or only a strategic compromise? Many groups are quite happy to leave the definition of sustainable development in abstract limbo, or alternatively, to expend extensive theoretical effort in search of precise definition. We examine the question of whether and how one would actually implement sustainable development in various international settings. The literature and conceptual history of sustainable development, and the agendas of organizations charged with that implementation task are covered, along with sustainable agriculture, urban design, and forestry as case studies.” For additional courses on related subjects, search 1,672 descriptions at Beyond Grey Pinstripes. ■ ■ ■ NOTABLE TEACHING MATERIALS: Materials referenced are meant to represent the diversity of related teaching resources available at Caseplace.org. Most are available as free downloads to registered faculty members. -3- A Closer Look ■ at Business Education _________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ Case Study: Innovating: Monsanto versus DuPont Source: Marcus, Alfred A. 2006. Winning Moves: Cases in Strategic Management. Marsh Publications: Lombard, IL. This case examines why the need to apply biotechnology to agriculture originally arose and how Monsanto and DuPont became involved. Given the opposition that exists to this technology, the case asks what these companies should do next. ■ Case Study: Monsanto Europe (A&B) Source: Richard Ivey School of Business (2002) Monsanto, one of the world's largest producers of commodity chemicals, had decided to focus its operations on the biotechnology and pharmaceutical industries. The first shipment of genetically modified soybeans arrived in Europe in November of 1996. Genetic engineering promised to reduce the use of pesticides and curtail world hunger. Therefore, Monsanto was dismayed at the powerful opposition that developed over the next few years. ■ Case Study: Agriculture Canada: Adoption of the Poultry Condemnation Program- CDXP Source: Richard Ivey School of Business (1998) After spending many months developing and testing a new tracking and reporting program called CDXP, an end-user with the Department of Agriculture's Food Production and Inspection Branch in Alberta, Canada, must decide on an action plan to convince his superiors at Agriculture Canada, the Corporate Information Systems group and poultry processors to adopt this program. ONGOING QUESTIONS: ■ How will the consumer trend towards organic and “all-natural” foods affect agriculture business programs, if at all? o Will this trend draw more attention to the agriculture sector in non-agriculture focused MBA programs? ■ ■ In agriculture MBA programs, how much opportunity is available for new insights from new people, especially those with potentially relevant scientific backgrounds? What role does/should business play in anticipating and responding to increasing public concern about rising levels of obesity? (For a case study related to the opportunities and challenges for business in response to the so-called “obesity epidemic,” see: “Kraft Foods and the Public Debate on Obesity”, written by Dr. Mary C. Gentile.) RESOURCES: BeyondGreyPinstripes.org – World’s biggest MBA database, including detailed records on 1,672 courses, 1,730 extracurriculars, and 216 research articles at 128 schools on six continents. CasePlace.org – A free and practical on-line resource for up-to-date case studies, syllabi, and innovative teaching materials on business and sustainability. Created for the educators who will shape our next generation of business leaders! _________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ A Closer Look is a monthly series of briefing papers on topical issues in MBA education, based on the research and programs of the Aspen Institute. The Aspen Institute Business and Society Program works with senior corporate executives and MBA educators to prepare business leaders who will effectively manage the financial, social, and environmental impacts of the private sector. Contact Justin.Goldbach@aspeninstitute.org to order reprints or to offer feedback. -4-