2019, Volume 22, Paper 8
Understanding and Mitigating Risks for Pacific Island Agribusinesses
Manoj Kumar M K – Postgraduate student, Masters of Global Food and Agricultural Business, University of Adelaide, Adelaide.
An efficient and flourishing agribusiness sector is vital for sustainable economic growth in Pacific Island Countries (PICs). Agribusiness plays a major role in poverty reduction, mainly in rural communities, and in delivering an improved trade balance in PICs. However, Pacific Island agribusinesses have generally failed to flourish and live up to their potential to be a major provider of employment and export income. A major factor adversely impacting on the sector is the risk environment in which Pacific Island agribusinesses operate. Risks may include those in production, the value chain, environmental impacts, markets, regulatory regimes and public policy. This paper explores how Pacific Island agribusiness managers can better understand and mitigate risks to increase business resilience. The study involves an identification and review of risks from selected relevant case studies of agribusinesses which are established in Fiji, Vanuatu and Tonga. This is followed by the development of a risk minimisation and mitigation framework and strategies for one of the case studies, Nature’s Way Co-operative Fiji Limited. The Risks and Options Assessment for Decision-making (ROAD) approach is used to develop the risk assessment tool. It is a straightforward process model that can be readily adapted for use in the context of assessing and mitigating risks to agribusiness in PICs. The tool fits well with other analytical tools such as Value Chain Analysis. The application of an adapted risk assessment framework to a selected agribusiness is the key output of this paper.
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