Breadth, diversity, scope

The Spearhead International business model helps to mitigate the inherent risks of climate and the variable nature of commodity markets.

The range of latitudes in which we operate afford some security through diversity of soil type, climate and crop selection.  Quality of soil is of paramount importance, as is local logistics, local economic conditions and political stability.

Crop selection is determined by the principles of good husbandry, by economic factors and by local markets.  This results in some diversity of enterprise which can help to reduce risk.

The risks inherent in commodity production can be mitigated by marketing strategies and by the use of hedging instruments.  Some products such as potatoes are grown largely on contract, others are sold forward and where there is no physical market, the futures market is used when appropriate to reduce exposure.