Risk Management

Understanding and managing the risks of farming is essential to ensuring longevity of our farming operations and enabling us to keep standards and quality in line with international standards.

Weather Risks:
  • We have ensured that the land we use for the projects have sufficient access to water
  • All trees are irrigated through the drip fertigation method
  • More recently flooding has caused delays in planting. We have taken preventative measures in all areas of the land that could be effected by excessive rains
  • We buy Force Major insurance for each of the projects to insure against any of these unforeseen risks
Political Risks:
  • The project will always be exposed to this risk being in a farming area in South Africa
  • Farmers in the Swartland have been in discussions with Government regarding the possibility of “land redistribution” - The government officials have stated that the Swartland area is not earmarked for anything like that.
  • We lease the land and so this is less of a threat for us.
    o This could be a plus for the business in the future as we would have the experience in leased farmland and could be a model for the distribution of land in the future
Currency Risks:
  • The intention is to export all the fruit that gets produced
  • Pomegranates are currently priced in dollars and so any devaluation of the Rand would be beneficial for the business
  • A significant appreciation would be a greater problem as it would lower the Rand price that we receive
Fruit Cracking: causes
  • Fruit cracking is a serious problem and is more intense in arid regions
  • Cracked fruits show reduction in fruit and aril weight and volume of juice
  • In young fruits, it is due to deficiency of Calcium, Boron and Potassium
  • In fully developed fruits it is due to moisture imbalance i.e.,high fluctuations in soil moisture and high diurnal variation in vapour pressure deficit and temperature
  • Prolonged drought causes hardening of the peel. If this is followed by heavy irrigation or rains, the pulp grows and the peel cracks
Fruit Cracking: Prevention
  • Maintenance of optimum soil moisture without much fluctuation in soil moisture depletion levels
  • Ensure adequate and regular irrigation during fruit development period
  • Application of borax @ 25g/tree
  • To avoid cracking of young fruits Spray Borax @ 1.0g/Litre + Cytozyme @ 1.0ml/Litre or Solubor @ 2.0g/Litre
  • Spray 1.0 kg CaCl2 in 100 Litres of water or Hydro Calcium Nitrate @ 5 to 7.5g/Litre at fruit development stage
Plant illnesses:
  • Altenaria
  • Botrytis
  • Phytoptera
  • Black stain.
  • White fly
  • Plant-louse
  • Thrips (blaaspootjie|),
  • Bollworm
  • Valskodlingmoth
  • Karobmoth
  • Fruit fly