RISK TREND
DIVERSIFICATION AND AGRICULTURAL INDUSTRY RISK
Risk Events
� Input pillar risk mitigation over the past few years with diversification opportunities pursued such as Staalmeester , KLK Landbou and Falcon .
Description Senwes is exposed to limited growth opportunities , especially in the local agricultural sector . The company and industry could achieve a level of maturity that could increase the difficulties of volume and profit growth .
Mitigation and Control Senwes continues to work on a rolling 10-year strategy . The focus of our strategy is diversification , horizontal integration and local consolidation , increased investment in efficiencies in the value chain , business unit integration , joint venture repositioning and externalisation .
The reduction of risk in the current business models and geographical exposures therefore remains a high priority .
Opportunities
� Upscaling through consolidation and / or expansion to ensure critical mass as well as value synergies which will position the group for growth and long-term survival .
� Diversification and / or externalisation into new markets or lower risk jurisdictions .
� Development and roll-out of solutions that will ensure growth in the client base ( addition of new clients ) and an increase in the share of clients ’ wallets spent across the Senwes Group .
� Optimise value chain participation through investments aimed at increasing efficiencies .
Strategic focus areas triggered
� Diversification , horizontal integration and consolidation .
� Internal integration of the customer .
� Reorganisation of business models .
� Unlocking value synergies .
� Increased investment in efficiencies within the value chain .
� Externalisation .
For more info on the group strategy see p . 44
92 ROOTED IN AGRICULTURE