Supporting South Africa's farmers
“ The deal involves 80,000 hectares, which would be expected to produce around 400,000 tonnes of grain in a normal year. We provide yield index cover: if production falls below a given level, for whatever reason, we pay out.”
Swiss Re Corporate Solutions’ Global Head Food & Agriculture Business
From variable weather to fluctuating prices, the greatest challenge facing farmers everywhere is uncertainty. Farmsecure, South Africa’s biggest integrated agribusiness company, is looking to ease that pressure.
In fact, Farmsecure is looking to go one step further: by creating sustainable and profitable agricultural enterprises, its ultimate goal is to help secure the world’s food supply. The company works with farmers to manage their entire value chain. It applies precision farming techniques for increased yield, supplies working capital, seed and fertilizer, and helps with processing, logistics, and marketing – reducing uncertainty and securing production at every step.
And where uncertainty is still a factor, insurance can play a critical role. So when Jerome Yazbek, Farmsecure’s CEO and founder, attended a presentation by Bernard Belk, Swiss Re Corporate Solutions’ Global Head Food & Agriculture Business, he knew he had found a partner who could help Farmsecure achieve its mission. Bernard explains: “The deal involves 80,000 hectares, which would be expected to produce around 400,000 tonnes of grain in a normal year. We provide yield index cover: if production falls below a given level, for whatever reason, we pay out.”
Farmsecures operations include large-scale maize production in the Free State province, South Africa
“We start with our own statistical models from our worldwide agri business,” Bernard continues, “then adapt them to a tailor-made solution using the client’s own field-by-field data. That sounds simple, but in order to work, the cover needs to fit the client’s situation precisely. With its commitment to precision farming, Farmsecure is a highly numbers-driven company. We made a very good fit.”
The result is cover that is innovative in scale, simplicity, and customisation. By taking on the yield risk, Corporate Solutions helps reduce uncertainty – and thus helps Farmsecure support farmers and food security.