Control and mitigation
Spearhead International's business is exposed to a number of risks, that it works hard to mitigate and overcome.
Natural hazards - The effects of climate, pests and disease can to some extent be mitigated by land selection, geographical spread, irrigation and agronomic measures.
Food safety - The maintenance of high standards is a regulated requirement and essential for retaining customers, achieved with skilled staff and careful management.
Health & safety - Management procedures, staff training and regular reviews of operations are used to manage risks.
Markets - Commodity markets are subject to supply and demand volatility. Spearhead seeks to reduce its exposure, primarily with progressive physical sales, and with some use of derivative hedging mechanisms.
Currency - There are considerable currency risks within Spearhead. Trading risks are managed by usually transacting business in the local currency, and by using financial instruments to secure transactions and commitments that are not in the local currency.
Political - Food production may be subject to political intervention. Spearhead has benefitted from the relative stability of the European Union.