Who’d have thought so much risk could be attached to egg production? Chickens, eggs, automation, transport, and product safety are but a few of the many areas of loss potential for egg producers. Where there’s a commercial operation, there’s the chance that something could go wrong.

Understanding the risks involved in your egg production operations requires a comprehensive risk assessment and coverage review.  

A few areas of loss potential include:

• Automated processes. Your operation relies on machinery in order to speed your product to market. Keeping equipment in working order should be a top priority. Also, having contingencies in place for equipment breakdown can reduce loss of product and profit.
• Electricity. Automation cannot happen without electricity. Also, refrigeration, animal safety, and safe storage practices are driven by power availability. Ventilation, water, and feed processes often require power to keep poultry safe and to increase egg production. What’s your power backup source?
• Buildings. A direct loss of one or more buildings could irreparably damage your operations. You could lose not only housing for your animals, but also the animals themselves. What is your contingency for loss of a building?
• Poultry. Without chickens, you have no business. Making sure to have healthy animals that are housed and fed properly is essential. Birds respond quickly to changes in environment. Put in place now a process by which you can reduce the impact of operational glitches on your poultry population.
• Workforce. From transportation to poultry handlers, your farm business relies on manpower to maintain a lucrative operation. Understand how a loss of either farm hands or transportation providers can impact your business.

When examining your risks, look at future loss potential, including income loss. Don’t forget to evaluate the impact of new regulations for animal handling and housing as well as food handling and quality standards on your operation. If you’re unsure what to include in your risk assessment, contact me for a risk consultation. I can show you how your current farm insurance coverage stands up to the risks your business faces.

Flikr photo credit: †whiteknight†

Filed under: Agribusiness by afis blogger