Mitigating risk in the agricultural sector is of vital importance, argues Ryno du Toit, business development executive at Risk Benefit Solutions (RBS).
With a global rise in inconsistent weather weather patterns with negative impacts on consumers and businesses, the agricultural sector is under a lot of strain. Recently, Statistics SA announced that the local agricultural sector contracted by 17.4% this quarter. Additionally, the country is facing its worst drought since 1992.
In order to ensure sustainable food production, the industry must mitigate risk within the agricultural environment. Currently, the goverment offers cover for strike-related incidents and the insurance market has several offers to cover assets and crops.
Du Toit recommends a set of guidelines to mitigate risk, including investigating applicable government funds to receive compensation for natural disasters and conducting research into insurance products available.