Risks facing the Group

The following table outlines the material risks facing Crookes Brothers, which are constantly evaluated by our Risk Committee and Board of Directors.

RISK IMPACT ON CROOKES BROTHERS
COVID-19 The health and productivity of our employees, suppliers and customers, as well as local and international travel restrictions affecting management’s ability to oversee operations in its various estates.
Key input costs Above inflation increases in the costs of electricity, fertilizer, pesticides, herbicides, chemicals, other farming inputs and minimum wage rates undermine our profitability and return on investment targets.
Community partnership governance structures Community Property Association boards can have internal rivalry challenges amongst community members, which at times is having a negative impact on the community Joint Venture operations and on the relationship with Crookes Brothers as a Joint Venture community partner.
Agricultural Commodity price risk Crookes Brothers is very dependent on local and international agricultural commodity prices which affects operating margins.
Climatic risk Extreme weather events such as drought, floods, extreme cold, dry hot conditions, wind, frost and hail affect the volume and quality of our crops.
Country risk Risk of political and government instability, coupled with civil unrest in countries in which we operate impact the safety of our employees, the ability of our suppliers to service the company, the control we have over our assets and our ability to achieve strategic and operational targets.