vol. XX no. 3
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Government
Action
 While there are inherent risks faced by the company because of
the nature of its business, Joiner is outspoken about how he feels
government and political actions often affect world trade and the
potential for negative impact on his type of business.
Many
times governments around the world will use non-tariff barriers to
achieve political objectives. Whether it’s a trade dispute or a food
safety concern, Joiner says that governments will “shoot first, and ask
questions later.” He cites as an example the widespread panic created
by the concern over contaminated tomatoes. “The FDA effectively put
many tomato farmers out of business because they couldn’t figure out
the source of salmonella,” said Joiner. “Things like this happen,” he
added, “but to cripple the entire marketplace as a result is wrong.”
Joiner
also raised issue with the government’s ruling to allocate a large
portion of the corn crop for the production of ethanol, a move that
caused an increase in the price of corn, the main feed ingredient for
livestock. Among the consequences, “Farmers planted more corn, leaving
less room for soybeans, which meant that those prices also increased,”
noted Joiner. “Everyone was getting squeezed by the high prices. Then
you have the financial bust, which is what we are dealing with now.”
And
how does Joiner feel about recent economic problems? Like most top
business people, he’s concerned about the global nature of the crisis.
However, he believes that AJC International is better positioned than
ever to deal with the situation. He also believes that with the
financial crisis, as with any of the myriad risks he’s encountered over
the years, constant vigilance is essential. “We will be faced with
reduced demand, the devaluation of currencies, fluctuating fuel prices,
and volatile commodity prices,” says Joiner. “It’s just another day in
the office, but in these unprecedented times, it is the companies that
run their businesses tightly, manage their assets properly, understand
and take appropriate risks that will succeed.”
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