Harvest risk

There are many uncontrollable risks in agriculture: crop damage is caused by extreme weather conditions, insects, diseases and other factors. Many of these risks are closely linked to climate change and monoculture. As these two developments progress, such events are likely to become more frequent and more severe.

While farmers can make an important contribution to converting monocultures into diverse, resilient ecosystems, in many places they bear the risk of environmental impacts alone. A good harvest secures the livelihoods of farmers and their families. However, an impaired harvest can quickly jeopardise their livelihoods.

With TEIKEI we are committed to ensuring that farmers do not have to bear the harvest risk alone. Instead, this risk is spread across the entire community in a spirit of solidarity. A weaker harvest may have a slightly negative impact on the community, but it does not jeopardise livelihoods.

Through Sophisticated distribution systems the harvest risks are already priced in. For example, a crop failure of up to 40% no additional costs for the community. At the same time, the farmer retains his full turnover, as an internal Security fund was set up to cushion such losses. This ensures that both farmers and the community are protected against crop failures.

We currently work with a sales system that already integrates risk into the pricing. However, conditions are changing very quickly these days. Continuous dialogue within the community is therefore essential in order to optimally distribute the risk and secure agriculture for everyone involved in the long term.