New Horizon Farms (NHF) has already leased over 180,000 acres from First Nations communities and strategies to grow to one million acres. An immediate challenge is the leasing procedure whereby INAC receive lease payments, which are later turned over to the First Nations and must review and sign leases. The procedure impedes the partnering procedure and the rate of cash flow to First Nations and many First Nations object on principle to authorities control over their land. However, without INAC included, the leases are not legally enforceable, an essential factor for its own public parent company and NHF.
NHF provides leasing earnings but in addition employment, training, and shares in the company to the First Nations it partners with. Will the control of one million acres of First Nations land of NHF be seen as a form of economic colonialism? How can this type of initiative fit with INAC's and First Nations' mandates to improve economic and social conditions among First Nations communities? How will the provinces and neighbouring communities view and react to the scenario? New Horizon Farms also has to consider its long-term strategy. Will the operation fulfill its target of one million acres? What are the dangers for the business? How should it approach the training problem now that funding has concluded?
PUBLICATION DATE: April 12, 2012 PRODUCT #: W12864-PDF-ENG
This is just an excerpt. This case is about STRATEGY & EXECUTION
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