THE BUSINESS
The existence of Senwes is solely due to the support of its customers.
Our customers are the producers of food and the processors of agricultural
products. Senwes’ right of existence can only be justified if it
manages to add value to its customers.
We acquired a 57,7% share in KLK Landbou Limited during the year,
which will diversify the income streams of Senwes over the long term.
Senwes also acquired Falcon during the year and, together with Staalmeester,
which we acquired last year, we have expanded the business
of Senwes Equipment significantly. This will offer a better mechanisation
solution to our customers.
Senwes was involved in negotiations regarding the acquisition of a
controlling interest in Suidwes Landbou. Approval from the Competition
Commission and the shareholders of Suidwes Landbou was obtained.
We are only awaiting approval from the Competition Tribunal.
The strategy of the board, which is focused on growth and diversification
through consolidation, gained momentum over the past year.
We would like to welcome Kobus Marais, Pieter Stander and Venete
Klein from KLK, who were appointed to the board of directors of Senwes
during the past year. Thank you for your contributions thus far. We
also took leave of James Botha, who was not available for re-election,
after having served on the board as independent director for approximately
10 years. Thank you James, for your positive contributions during
this time.
The board of directors of Senwes ensures that business is conducted in
accordance with the highest standards of corporate governance and
in the interest of all stakeholders at all times. The group’s corporate
best practices, as contained in the board charter, policies and operating
procedures, and the application thereof, are benchmarked against
practical realities and execution on a regular basis.
The existence of Senwes is solely due to the support of its customers.
Our customers are the producers of food and the processors of agricultural
products. Senwes’ right of existence can only be justified if it
manages to add value to its customers.
We do not compete with our customers - we assist them with solutions
in the value chain. Technology is increasingly being used to add value
- an example is the Senwes Equipment Call Centre, which monitors
John Deere tractors and combine harvesters, as well as JCB equipment,
24 hours per day.
Grain with a high moisture content taken in by Senwes, enables the
producer to harvest earlier, which in turn means that cultivation can
commence earlier.
Long-term relationships with our customers, suppliers and banks are of
the utmost importance to Senwes.
I am of the opinion that all commodity prices will remain under pressure
for the foreseeable future, due to the lower demand for products.
Unemployment will increase and every one of us will have to meet his/
her social responsibilities towards the less fortunate in South Africa.
The changed circumstances will undoubtedly encourage the business
sector, government and the unions to co-operate in order to find solutions.
The aid offered by government will help to kick-start the economy,
but we still have a long way to go. Senwes is privileged to be
taking in such a large crop at present, which will help us through this
difficult time.
The focus of the board will be on cost saving initiatives and maintaining
good service to our customers. Capital expenditure relating to
the expansion of grain drying facilities will, however, remain a priority.
A heartfelt thanks to every member of the board and senior management
of Senwes, and to every customer and employee - without you,
nothing would be possible. Each one of you is a link in the chain which
made Senwes the company that it has become. It is indeed a privilege
to be involved with a company which will be celebrating its 111th
birthday this year.
I would like to thank our Heavenly Father, who holds His hand over
Senwes and its stakeholders every day. May we live each day according
to His will.
JDM Minnaar
Chairman
2 July 2020
Klerksdorp
SENWES INTEGRATED REPORT 2020
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