RISK TREND
MARKET SIZE AND
MARKET SHARE RISK
Risk Events
� Longest decline in equipment market size – black swan event.
� Record April 2019 rainfall leading to significant crop quality issues
– black swan event.
� Loss in input sales due to surplus on-farm stock from smaller
areas planted the previous year.
� Aggressive and unsustainable market penetration strategies by
competitors.
Description
The agricultural industry is highly competitive with regards to inputs,
commodity production, equipment and retail business. The
limited local diversification opportunities increase the exposure to
strong competition.
Mitigation and Control
Senwes Grainlink’s continued investment in technology and infrastructure
at its silos remains a focus area in order to increase market
share by means of offering a more attractive value proposition to
clients. Similar investments are made throughout the group in order
to grow market share.
Opportunities
� Consolidation and/or expansion to achieve critical mass
and market share growth.
� Continuous research, innovation, evaluation and, where
necessary, improvement of the group’s core activities and
solutions, in order to maintain a competitive advantage
and grow market share.
Strategic focus areas triggered
� Diversification, horizontal integration and consolidation.
� Internal integration of the customer.
� Increased investment in efficiencies within the value
chain.
� Externalisation.
For more info on the group strategy see p. 44
The retail and equipment service offering remains under pressure due
to a smaller market size. Senwes Equipment is, however, offering
competitive financing solutions in order to maintain and grow its
market share.
86 ROOTED IN AGRICULTURE