Risk management: control what you can, manage what you can’t

July 2013 | Written by John Wilton, AgFirst | Australian Fruitgrower article

John Wilton takes a whole-business view of orchard risk, separating risks that can be reduced through disciplined management from those that cannot be eliminated and therefore need to be managed. The article covers market, variety, pest and disease, operational and business-structure risks relevant to apple and pear growers.

Variety choice is highlighted as a long-term commercial risk because orchards can become locked into obsolete cultivars or production systems. The article discusses the role of club and trademarked varieties, noting the potential of strong brands such as Pink Lady® while warning that not every managed variety will succeed in the market.

Pest and disease control is presented as an area where growers have substantial control. Cutting corners on spray programs can create losses that far exceed the apparent savings, and orchard size needs to remain compatible with the capacity to complete critical operations such as spraying on time.

The wider message is to identify the risks that threaten crop, quality, market access and business continuity, invest in the areas that can be controlled, and build enough resilience into the orchard business to cope with the risks that remain.