Agricultural projects involve significant risk. Outcomes can be lower than expected, delayed or negative, and part or all of the money committed to a project can be lost. Past or current projects are not a reliable indication of future results.
No guarantees
S.O.G. Conglomerate and SOG Agribusiness do not guarantee any yield, return, profit, repayment or protection of capital. Careful selection, management and monitoring can reduce some risks but cannot eliminate them.
Main risks
- Weather and climate: irregular or insufficient rainfall, drought, floods, storms and changing seasonal patterns.
- Pests and disease: crop pests, plant diseases, and fish or animal diseases, which can spread quickly and cause heavy losses.
- Market prices: selling prices can fall and the cost of seed, feed, fertiliser, fuel and labour can rise.
- Logistics and storage: poor roads, transport disruption, lack of storage or processing capacity, and spoilage of perishable products.
- Operational risks: labour shortages, equipment failure, power or water interruptions, theft, fraud and human error.
- Counterparty risks: farmers, suppliers or buyers may not perform as agreed.
- Land and legal risks: land tenure disputes, changes in law, regulation or taxation, and permit requirements.
- Timing risks: production cycles can be longer than planned; tree crops can take several years to reach full production.
- Currency and transfer risks: for international clients, exchange-rate movements and cross-border transfer rules can affect the value and timing of any payments.
- Liquidity: money committed to an agricultural project is generally not available until the project is completed.
Before you take part in any project
Only commit money you can afford to lose. Read all project information and the written agreement carefully, ask questions, and consider taking independent legal and financial advice. Do not rely on this website as the basis for any decision.