The primary focus of insurance is the protection of property, products, and people. But insurance, especially in the grain storage sector, can be complicated. The last topic discussed during the Agbiz Grain, Grain and Oilseed Value Chian Symposium, held in Pretoria, focused on insurability within the grain storage sector.
In his opening remarks, Wessel Lemmer, general manager at Agbiz Grain, noted that the insurance cost for silo operators had escalated notably over the past decade. “The increase in insurance costs pertains to the cost at silo as well as for the grain during transport. What we wish to do during our panel discussion is to dissect all the elements that pertain to insurance in the grain storage sector, but we would also like to show what our industry is already doing to reduce risks and insurance costs.”
Agbiz Grain is an association of 12 storage operators that are active in the South African market. Members handle and store 70% of the grain and oilseeds produced in the country and are the owners of 98% of all JSEregistered sites. “We play a significant role in the functioning of the market in creating an environment in which the storage sector can thrive, expand and be competitive,” Lemmer explained.
The discussion was moderated by Kobus Truter, head: Structured Commodity Finance at Absa. The other members were Sean Harper, national survey manager, Santam Insurance; Zahnn Meyer, head: Global Commodity Finance – Nedbank; Ebbe Rabie, managing director: Speciality – Price Forbes; Gerard Ramage, SHEQ manager – VKB Group; and Letisha van den Berg, director – Aggregate and Sand Producers Association of Southern Africa.
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