ThandoDube

Csm4000013

Jul
yint
ake

Keybusi
nessr
isksf
acedbyMbeugr
oupandmi
ti
gat
orymeasur
es

Ri
sk Mi
ti
gat
orymeasur
e

1.Mbeugr oupisli
stedont he - AppointaCompl i
anceof f
icerwho
ZimbabweSt ockexchange willberesponsi
bleforensuringthat
(ZSE)
.Theref
oretherei sari
skthati
t thecompanymeet sallt
helisti
ng
maynotcompl ywi t
ht heli
sti
ng requir
ement s.
requi
rementsandr egulat
ionsofthe
ZSE.

2.Mbeui saut hori

sedtomar ketseed -Appointaquali
tyi
nspect
orwhowi l
lbe
varieti
esdev el
opedbyi tself, responsibl
eforchecki
ngthequal
i
tyof
gov ernmentandot herassoci ated seedsbef or
etheyaremarket
ed.
seedbr eeders.Thereisar iskthat
otherbr eeder smaypr oduceseeds
whi char eofpoorqual it
yt hereby
affectingther eput
ationofMbeu.

3.Mbeuhasoper at
ionsi
nmor ethan -Hedgeagainstt
heforei
gnexchanger
ate
fi
ft
eenAf r
icancountri
es.Thi
smay ri
skbybuyingorsell
ingthei
rcommodit
ies
exposethem toforei
gnexchange usingafor
war dpri
ce.
rat
efluct
uations.

4.Mbeumayincurlossesduetothe -Resear
chanddev el
opseedv
ari
eti
est
hat
on-
goingdr
oughtinbothSouther
n aredroughtr
esi
stant.
andEastAf
ricanmarket
s

5.Delayedandbel ow-aver
ager ains -
Devel
opearl
ymaturi
tyseedsf
ormar
ket
s
sincetheonsetoft heplant
ing wi
thdel
ayedrai
ns.
seasoninSout hernAfri
camay
resulti
nlowdemandf orseeds
therebyleadi
ngt olowsalesv olume.

6.Mbeuhaslimi
tedpr
oductoff
eri
ngs -
dev
elopnewpr
oductof
fer
ings
asi
tfocusesononl
yproduci
ng
 seedsandmar keti
ng.This
i
ncreasestheconcentrat
ionr
iskand
thebusinessmayshutdowni fthe
droughtconti
nues.

7.Ashi f
tinr ai
nfal
lpatt
ernshas -Resear
chont heshi
ft
sinrainf
all
patt
erns
result
edinhi ghinci
dencesof anddev el
opseedvari
eti
esthatarei
nli
ne
diseases.Thismayr esul
tinl
ow withtherai
nfal
lpat
ter
ns.
demandf orseedsandaf f
ect
profi
tabil
i
t y.

8.Mbeu’sinv
entor
ymaybecome -Cont
inuousl
yanalysetherai
nfall
patt
erns
obsolet
eduethedampeneddemand andestimatethedemandf orseedsbased
causedbythedroughtanddel
ayed ontheseinordertoavoidoverst
ocki
ng.
rai
ns.

Obsol
eteinventor
ywi l
lhavetobe
wri
tt
enoffintheperiodthereby
r
educingprofi
tabi
li
ty.

9.SinceMbeuoper at
esbot hlocal
l
y -
Off
erquali
tyandaf fordabl
eseedsin
andr egionalitmayf acecompet i
ti
on mar
ketswherether eisstif
fcompetit
ion.
fr
om ot herpr oducer
si ntheregi
onal
-
Ext
ensiv
elymar kettheirproduct
sinthe
mar ketst hatitoper
at esin.
r
egi
onalmarkets.

10.Therei sri
skthatt henewseed -
Producethenewv ariet
iesonasmal l
scal
e
vari
etiesbeingpr oducedmaynotbe i
nordertodeterminewhet hert
heyappeal
prof
itableduetot headver
se t
othecurrentcondit
ionsornot.
weatherconditionst hatar
e
curr
ent l
yprevai
ling.

11.Thecur r
entseedmaizehandli
ngis - Appointsecur
it
yoff
icer
swhowil
lbe
100%f i
elddryi
ng.Thismayleadto r esponsibl
eformonit
ori
ngt
heharvest
ing
theftbyseedgrowersort
hehar v
est process.
beingeatenbybirds.