Chapter 24

Due Diligence Guidelines –

Biological Assets

Appendix II – Examples of Factors for Consideration for Biological Assets

1. Plants (Trees/ Crops/ Other Plants)

• Site, size, location and nature of terrain

• Details and history of standing timber (for forestry)

• Production risks

• Rotation length

• Impact of weather, seasonality and/or pollution

• Disasters such as landslides, fire, earthquakes

• Cultivation plan, growth cycle and time to maturity

• Soil quality and improvement

• Irrigation

• Methods of harvesting and timing of harvesting

• Inventory checks – by weight or numerical count, remote sensing, field survey, aerial inspection and photography, satellite imagery

• Species and age profile

• Seed/genetic source

• Year of establishment or regeneration treatment

• Initial stocking

• Fertiliser and weedicide treatments

• History of pruning or thinning

• Insect and disease attacks and treatments

• Effect of any previous fires, flooding and storms

• Growth, mortality and removals

• Planned or potential future silviculture, strategies and projected growth rates

• Wildlife management

• Other uses of the land

• Operational practices

• Sustainability and environmental impact

• Supply strategy

2. Animals (Livestock)

• Life cycle

• Precautionary disease control

• Hygienic handling, sanitation and waste treatment facilities

• Contamination of feed (for example, melamine contamination), water or air

• Inventory control – records of quantity on regular basis, age group

• Inventory control of feed (as feed is perishable)

• Categorisation of breeder and progeny livestock

• Veterinary care, microbial tests, vaccination

• Disposal of aging breeders or unfit livestock – are they retired as scrap?

• Reproductive ability

• Slaughtering process

• Sustainability and environmental impact