The uncertainties inherent in humans, production, weather, yields, prices, government policies, financials, markets, and other factors that impact farming can cause wide swings in farm productivity and income. AgroMall’s risk management involves helping with choosing, implementing and operationalising among alternatives that reduce the effects that can result from such uncertainties.
Using its agent deployment, extension capability, data collection and analytics platforms, AgroMall is able to help its clients to analyse and present sound options to manage their specific and peculiar risks including five general types of agricultural risk as described here: production risk, price or market risk, financial risk, institutional risk, and human or personal risk.
Operations and production risk
AgroMall helps to identify and manage the uncertain natural growth processes of crops as weather, disease, pests, and other factors affect both the quantity and quality of commodities produced.
Agricultural business strategies and plans are prone to risk of being unsuccessful due to several internal and external factors ranging from decision, resources, regulation and changes in business environment. AgroMall provides its farmers and clients with the situational awareness to quickly identify failing strategy and plans on the field and operational capacity to correct failing strategy and support quick implementation of new plans.
Price or market risk
Uncertainty about the prices farmers will receive for commodities or the prices they must pay for inputs may cause reasons for concern to agricultural value chain participants. The nature of price risk varies significantly from commodity to commodity. AgroMall’s yield prediction, aggregation and market intelligence capability helps to identify and present sound options to its clients while supporting the implementation of the chosen options with on time and in full reporting.
AgroMall helps financial institutions to implement identification, KYC, monitoring, evaluation, control and reporting practices on farm businesses that borrow money and have obligations to repay debt. cost of funds, the prospect of loans being called by lenders due to unwholesome practices and restricted credit availability are also aspects of financial risk that AgroMall helps farmers and other stakeholders in the agriculture value chain to manage.
Human or personal risk
With its extensive deployment of well trained agents, AgroMall helps to manage factors such as problems with human skill, integrity, health or personal relationships that can affect the farm business.