Australia: Grain brokers promote credit risk insurance
Source: Asia Insurance Review | May 2019
The need for management of credit risk by farmers has been highlighted in recent months by the failure of two grain-trading companies on the east coast of Australia in the first quarter of 2019. In each case, market participants are owed many millions of dollars, and grain growers are amongst the creditors.
According to an article in Grain Central that was contributed by Grain Brokers Australia, estimates are that the grain production sector in Australia has lost more than A$50m ($36m) in recent years due to the insolvencies of a range of traders across the country.
While this is small compared to the gross value of grain production over the same period, it has had an enormous impact on many individual farm businesses, who are mostly unsecured creditors. A