HYI states:

“The beauty of this yield hog is that you can depend on its income stream, which is as reliable as a CD. That’s because EIS issuers are required to distribute a stated percentage of their cash flow [me: but that could vary] to shareholders. You can count on its income stream and still enjoy the upside growth potential of a stock. It’s perfect for long-term income investors.”

Even if EIS issuers are required to distribute a fixed percentage of cash flow, that flow can and will vary with the fortunes of the business, as with any stock. If it drops, both dividend and probably share price (since it’s bought for income) will decline.

Also, I’d be curious about their payout ratio, cash flow and profit margins. While food suppliers as an industry may be recession resistant, I believe there is plenty of competition and generally low margins. Would need more info to assess how steady their revenues really are.
Also, like all stock/bond hybrids I’ve seen, this one is thinly traded. Low liquidity means extra volatility, since you just need one big seller to pressure the stock, and in case of bad news or other sudden need to sell out, there are no buyers but the market maker, who can and will gap the price way down to protect himself, making fast exits potentially far more expensive than with more liquid shares. Indeed, many investors in principle will avoid shares trading under2-500,000 shares a day for this reason alone.

For more on stock/bond hybrids and their risks, see http://www.highdividendstocksguide.blogspot.com