Master Goat Farming — Risk Analysis & Mitigation
Master Goat Farming will take out a comprehensive agricultural insurance package from the first month of operations. Cover will include:
Section 10 · Business Plan
Risk Analysis & Mitigation
Master Goat Farming will take out a comprehensive agricultural insurance package from the first month of operations. Cover will include:
10.1 Risk Register
| Risk | Likelihood | Impact | Mitigation Strategy | Contingency Plan |
| Disease Outbreak (PPR, FMD, Heartwater) | Medium | HIGH | Rigorous vaccination programme; biosecurity protocols; quarantine facility | Mortality reserve fund; livestock insurance cover; DALRRD emergency vet |
| Prolonged Drought / Feed Shortage | Medium | HIGH | Rotational grazing; 90-day feed reserve in silo; water conservation | Temporary destocking; negotiate credit terms with feed suppliers |
| Market Price Decline (>15%) | Low | Medium | Long-term offtake contracts; diversified channel mix (abattoir + direct + breeding) | Switch to direct/ceremonial sales at premium; delay non-essential sales |
| Theft & Livestock Losses | Medium | Medium | Jackal-proof perimeter fencing; RFID tagging; security patrols; guard dogs | Insurance claim; community watch programme; SAPS liaison |
| Key Person Dependency (founder) | Low | High | Experienced Farm Manager hired by Month 2; documented SOPs | Board-level succession plan; management buyout provision |
| Grant Funding Delays / Non-Approval | Medium | Medium | Apply to 5+ institutions simultaneously; phased infrastructure roll-out | Reduce initial herd to 150 head; defer non-critical infrastructure |
| Land Tenure / Lease Insecurity | Low | High | Long-term lease agreement (10 years); option to purchase clause | Identify alternative land; engage DALRRD land redistribution programme |
| Predator Losses (jackals, caracal, baboon) | Medium | Medium | Night kraaling; Anatolian shepherd dogs; jackal-proof fencing | Predator monitoring; coordinate with neighbouring farms |
10.2 Insurance Strategy
Master Goat Farming will take out a comprehensive agricultural insurance package from the first month of operations. Cover will include:
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Livestock mortality insurance (covering disease, drought, flood, fire) — estimated annual premium: R18,000–R24,000
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Farm infrastructure and equipment insurance (all-risk) — estimated annual premium: R12,000–R16,000
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Public liability insurance — estimated annual premium: R6,000
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Key person life and disability cover (Thabo Mokoena) — estimated annual premium: R12,000
Agri-insurers to be approached: Santam Agricultural, Old Mutual Agri, Hollard Agriculture, and ABSA Agri Finance Insurance products.
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