SENWES Integrated Report 2020 | Page 3

THEME ADOPT THE ATTRIBUTE OF ADAPTABILITY The 2020 Integrated Report showcases Senwes’ ability to adapt to an ever-changing environment. With our roots firmly planted in agriculture, our approach to every interaction is strategic by nature and focused on creating value for all our stakeholders over the short, medium and long term. The constant challenge of ensuring relevance, staying ahead of the competition and providing innovative and integrated solutions to our clients, are areas in which we flourish. THE EVER-CHANGING SEASON The 2019/2020 financial year started on the back of the highest average rainfall for April (188,7mm) in the Senwes area of operation in the last 105 years. This meant that temperatures remained high, which kept frost at bay until early June 2019. Planted crops therefore had more time to grow to full maturity but late plantings suffered frost damage and grade quality issues were evident. ROOTED IN AGRICULTURE 2020 INTEGRATED REPORT ON THE COVER Senwes is focused on providing solutions for its clients who work hard from dawn to dusk to ensure food security in Southern Africa. Rainfall tides quickly turned and producers in South Africa’s summer rainfall area then experienced the driest pre-season in 105 years. The pre-season data from 1 May to 31 October 2019 shattered the old drought records with an average of only 13,8mm during this period - a massive 103,6mm lower than the 105-year average of 117,4mm. Moving into summer, the heavens opened and above normal rainfall was received from 1 November 2019 until 30 April 2020. The traditional Senwes area of operation received an average rainfall of 605mm, which is 37% higher than the average rainfall for this period over the past 105 years. The total maize crop was estimated at 15,6 million tonnes, which would make the 2019/2020 harvest the second biggest ever produced in South Africa. Hopes were high and the crops looked promising. A global pandemic shocked everyone and brought the world to a complete halt with the outbreak of the Covid-19 virus in Wuhan, China during late December 2019. The contagious virus spread at a rapid rate across Europe, America and to a certain extent, Africa. Caution was the order of the day and a national lockdown was instated on 26 March 2020. The econo my took a massive blow as non-essential businesses were forced to close down, while the rand came crashing down to an all-time low. The rating agency Moody's downgraded South Africa’s economy to junk-status and consumer demands went from buying non-essential goods to back-to-basics in the blink of an eye. Food security, amidst the Covid-19 worldwide pandemic, remained a critical issue for the survival and well-being of all South Africans and with restrictions placed on agricultural commodity exports such as wheat and rice, short-term demands for South Africa’s staple food, maize meal, increased. Processors and consumers quickly turned towards the agricultural industry for quality white maize and as the financial year came to a close, all eyes were on the food security supply chain. Agriculture, which can also be referred to as the backbone of the South African economy, took centre stage as South Africans once again realised that without primary producers and processors, the country won’t have the resources to ensure adequate food supplies. SENWES INTEGRATED REPORT 2020 1