El Niño Could Test More than Crops – Know the Contractual Risks

As South Africa faces the prospect of a strengthening El Niño cycle, agricultural producers, agribusinesses, input suppliers, processors and commodity traders should be paying close attention not only to weather forecasts, but also to the allocation of risk in their commercial contracts. Forecasts indicate that El Niño conditions are likely to bring hotter and drier weather to much of Southern Africa, increasing the risk of supply chain disruptions, drought, wildfires, water shortages, reduced crop yields and livestock losses. This article is written by Lucinde Rhoodie, Director and Liëtte van Schalkwyk, Senior Associate in Dispute Resolution at Cliffe Dekker Hofmeyr (CDH).