KarooPrime Capretto — Risk Analysis & Mitigation

A structured risk register and the mitigation measures covering market, operational, biosecurity, supply, financial, regulatory and execution risks.

KarooPrime Capretto Business PlanSection 11 › Risk Analysis & Mitigation

Section 11 · Business Plan

Risk Analysis & Mitigation

A structured risk register and the mitigation measures covering market, operational, biosecurity, supply, financial, regulatory and execution risks.

The following risk register identifies the principal risks to the
plan, assesses likelihood and impact, and sets out mitigations. The
financial implications of the most material risks — feed-cost and price
exposure — are quantified in the sensitivity and scenario analysis in
the Financial Plan (Section 12).

Risk Likelihood Impact Mitigation
Feed / maize price shock Medium High Forward feed procurement; on-farm fodder; pass-through pricing; modelled in downside scenario.
Goat price / realisation decline Medium High Channel and geographic diversification; export premium; value-added mix; offtake agreements.
Animal disease / biosecurity Medium High Veterinary protocols, vaccination, intake screening, traceability for rapid response, insurance.
Drought / climate variability Medium Medium Geographically diversified supply base; feedlot buffering; water-secure hub siting.
Supply unreliability (farmers) Medium Medium Broad grower base; fair, reliable pricing; inputs and training; trust-based relationships.
Retail buyer concentration Medium Medium Export and foodservice diversification; branded differentiation; multiple chains.
Execution / commissioning delay Medium Medium Phased gating; experienced team; contingency in capital budget; conservative ramp.
Currency volatility (exports) Medium Low Natural hedge via export receipts; selective forward cover; domestic-revenue base.
Regulatory / export-market access Low Medium Early certification; compliance function; diversified export destinations.
Funding / interest-rate risk Low Medium Blended structure; concessional tranche; RCF buffer; grace period on senior debt.

Table 11.1 — Risk register. Shading indicates relative severity
(darker = higher). Feed-cost and price risks are the most material and
are stress-tested financially.

Most material risk — quantified

The combined feed-cost and realisation exposure is captured in the
downside scenario: an import-parity maize squeeze compresses Year-7
EBITDA margin to ~13.6% and project IRR to 19.8% (from 35.5% base). Even in this stressed case the project returns ~19.8% and remains
NPV-positive, indicating resilience — but the margin of safety narrows,
reinforcing the case for active feed-cost management.

Confidential — this business plan is provided to prospective investors and lenders for evaluation purposes only and may not be reproduced or distributed without the written consent of KarooPrime Capretto (Pty) Ltd.