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Agrecourse

Risk Mitigation Measures

The risks associated with our mode of operation come in different forms. In order to mitigate against these risks and protect our partners and the farmers, a lot is being considered and put in place.

Farmer Risk - We usually do not work with individual farmers. Every farmer we engage is always a part of a larger community, like a cooperative or association, duly verified by the local government. The farmers are usually required to sign an agreement and they are guaranteed by the cooperative or association. We also engage Extension service agents who monitor the farmers' production activities from planting to harvesting.

Weather Risk - Apart from the fact that we will plant crops that fit each season and weather conditions, the crops will always be insured. We have partnered with Leadway Assurance to insure all uncertainties that may arise as a result of bad weather conditions. This cost will be included in the total amount to be provided by partners as cost of inputs.

Pest Risk - Pesticides will be used in the process of farming and the cost will also be included in the cost of inputs. Farmers are also provided with access to agriculturist to infuse best practices in pest prevention/mitigation. Crop insurance also covers damages from pests.

Market Risk - In order to eliminate this risk, we usually sign offtake agreements with potential offtakers before we start production. These agreements will usually help protect us from future price uncertainties.