Evergreen Valley Avocado Estates — Risk Management Framework
The Company will maintain comprehensive agricultural insurance covering crop loss (hail, frost, fire), property and equipment, public liability, and business interruption. Insurance will be sourced from specialist agricultural insurers including Santam Agriculture, Old Mutual Insure, and Hollard Agri.
Section 13 · Business Plan
Risk Management Framework
The Company will maintain comprehensive agricultural insurance covering crop loss (hail, frost, fire), property and equipment, public liability, and business interruption. Insurance will be sourced from specialist agricultural insurers including Santam Agriculture, Old Mutual Insure, and Hollard Agri.
13.1 Risk Identification and Mitigation
| Risk Category | Description | Likelihood | Impact | Mitigation Strategy |
|---|---|---|---|---|
| Climate / Weather | Drought, hail, frost, unseasonal rainfall | Medium | High | Irrigation infrastructure; hail nets on high-value blocks; crop insurance |
| Pest & Disease | Phytophthora, anthracnose, fruit fly, FCM | Medium | High | IPM programme; Dusa rootstock; SAAGA technical support; scouting |
| Market Price | Decline in global avocado prices | Low–Med | Medium | Diversified markets; cost efficiency; domestic channel as floor |
| Currency | Rand appreciation reducing export returns | Low | Medium | Natural hedge (Rand costs vs FX revenue); forward contracts on receivables |
| Water Availability | Drought; water restrictions; dam levels | Medium | High | On-farm dam storage; water licence compliance; efficient drip irrigation |
| Regulatory | Changes in phytosanitary standards; trade barriers | Low | Medium | SAAGA membership; GlobalG.A.P. compliance; market diversification |
| Operational | Theft, labour disputes, equipment failure | Low–Med | Medium | Security systems; fair labour practices; maintenance programme; insurance |
| Biological Asset | Tree mortality; slow establishment | Low | High | Quality nursery stock; agronomic best practice; replanting contingency |
13.2 Insurance Programme
The Company will maintain comprehensive agricultural insurance covering crop loss (hail, frost, fire), property and equipment, public liability, and business interruption. Insurance will be sourced from specialist agricultural insurers including Santam Agriculture, Old Mutual Insure, and Hollard Agri.
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