Sector specific risks

11/06/2015

Cultivation:

- The productivity, yields and cultivation of the Company’s plantations may be affected by natural disasters such as hurricanes, tornadoes, floods, drought, and pests.

Risk management measure:

- The Company has purchased the insurance policies for rubber and oil palm plantations.

- There is a team of technician specialized in plant protection regularly inspecting and monitoring the plantations to timely detect and handle diseases and pests to minimize damages to the plantations.

Livestock:

The herds may suffer any common epidemic among livestock resulting in a fall in quantity or product quality, affecting the Company’s investment cost and business efficiency. 

Risk management measure:

The Company has regularly training courses for the veterinary team who has the width of experience in the common epidemic of cattle and carried out hygienic treatments of foodstuffs, drinking water to strictly control germs that may spread or develop into diseases.