African Agriculture Risk Management Services (U) Ltd

Many  kinds of risks threaten the success of agricultural enterprises: production risks, weather risks, financial management/credit risks, market/price risks or other value-chain risks, human risks, legal and policy risks, and the risks that organizations (associations, cooperatives) to which farmers/operators belong have a low capacity. But if these risks can be assessed and prioritized then a plan can be developed to manage them.

If the risk of failure of the farming or other agriculture-related enterprise can be reduced through comprehensive assessment and a risk management plan that uses resources strategically, then not only can the enterprise maximize its chances of succeeding but as a consequence is more able to obtain the crucial financing needed for  expansion and success in commercial agriculture.

Uganda needs a diversified economy which includes agriculture-related enterprises as a major sector. But for the commercial agriculture sector to be strong, farming needs to be more planned, efficient and successful; and more processing and value-added agriculture, and other agricultural enterprises along the value chains, need to be developed. For this to happen, comprehensive and careful risk assessment and management are essential.