SENWES Integrated Report 2020 | Page 94

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