The AERU Value Chain Compass

Risk

Financial

There is a wide range of professional support offered to help food and fibre exported identify and manage financial risks. New Zealand Trade and Enterprise, for example, invites businesses to join its online platform myNZTE, which offers curated information and guidance as part of tailored advice and support provided by NZTE in areas such as financial capability and market information. Export oriented value chains need to consider how to identify and manage exchange rate risk. All food and fibre enterprises need to consider carefully their insurance arrangements. A key issue for the whole value chain is how risks are shared among partners, and how participants are rewarded for those risks.

Questions for developing a value chain

• Do the partners in the value chain have access to the specialist expertise required to enter into comprehensive and prudent insurance contracts?

• Does the value chain have access to the specialist expertise required to identify and manage exchange rate risk?

• Has the value chain developed a clear policy for sharing and rewarding risk among the partners in the value chain?