Karoo Harvest Produce — Risk Management Framework
The Company will maintain comprehensive insurance coverage through a reputable agricultural insurer (Santam Agri, Old Mutual Insure, or equivalent):
Section 12 · Business Plan
Risk Management Framework
The Company will maintain comprehensive insurance coverage through a reputable agricultural insurer (Santam Agri, Old Mutual Insure, or equivalent):
12.1 Risk Register
| Risk Category | Risk | Impact | Likelihood | Mitigation Strategy |
| Climate | Drought / water curtailment | High | Medium | Water storage dam; efficient irrigation; drought-tolerant cultivars |
| Climate | Hail / extreme weather | High | Low | Crop insurance; hail netting on high-value blocks |
| Market | Onion price collapse | High | Medium | Forward contracts; storage for timing; channel diversification |
| Market | Supermarket buyer concentration | Medium | Medium | Multi-channel strategy; minimum 4 buyer relationships |
| Operational | Pest/disease outbreak | Medium | Low | IPM programme; certified seed; crop rotation |
| Operational | Equipment failure | Medium | Medium | Service contracts; spare parts inventory; backup equipment |
| Infrastructure | Load-shedding (Eskom) | High | High | 500kVA diesel generator; solar PV investment (Phase 2) |
| Regulatory | Water licence delays | High | Medium | Early application; specialist consultant engagement |
| Financial | Input cost inflation | Medium | High | Bulk purchasing; forward contracts on fertiliser |
| Financial | ZAR depreciation | Medium | Medium | Export revenue provides natural hedge; import substitution |
| Human Resources | Key person dependency | High | Low | Succession planning; knowledge documentation; share incentives |
12.2 Insurance Programme
The Company will maintain comprehensive insurance coverage through a reputable agricultural insurer (Santam Agri, Old Mutual Insure, or equivalent):
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Crop Insurance: Multi-peril crop insurance covering hail, drought, frost, and fire damage. Estimated annual premium: R450,000–R600,000.
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Asset Insurance: Replacement value cover on all fixed assets, machinery, and infrastructure. Estimated annual premium: R350,000.
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Business Interruption: Cover for loss of income following an insured event. 12-month indemnity period.
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Liability Insurance: Public and product liability cover of R20 million.
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Employer’s Liability: Statutory cover under the Compensation for Occupational Injuries and Diseases Act (COIDA).
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