CLIENTS AND CUSTOMERS
To be the preferred supplier of products and services to
clients and customers in the agricultural sector.
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FINANCING PROVIDED
R’m
5 000
4 500
4 000
3 500
3 000
2 500
2 000
1 500
1 000
500
ISSUES DURING THE YEAR
� The late planting season meant that crops were harves ted
much later than normal, which had a direct impact on the
quali ty of grain (lower grades).
� Low levels of liquidity in the farm property market.
� Lack of planning to ensure sustainable agriculture.
� The equipment market continued its decline from the previous
year.
� The crop was not profitable enough to stimulate the sale of
capital goods.
� Producers’ cash flow was under pressure.
� The 2019 harvesting season started eight weeks later than usual
and two weeks later than the previous season.
� Quality of grain and certain entities did not comply with national
grading standards of maize.
� The market went into backwardation from December onwards.
� Unsure political environment resulted in the deferral of customer
purchase decisions.
5 500
2011 2012 2013 2014 2015 2016 2017 2018
2019
2020
COMPANY’S RESPONSE TO THESE ISSUES
� Senwes Credit provided innovative payment and cash flow solutions
to accommodate clients in respect of arrears due to the
late harvest and poor quality of grain.
� Senwes Credit supported clients to find appropriate buyers and
facilitated a number of transactions for clients with rising debt
levels and cash flow concerns.
� Senwes Credit Agricultural Economic Services was involved in
THE BIG FIVE concept (Strategy; Management systems; Staff
management; Financial planning and Performance evaluation
and partnerships) during the annual Senwes Future Focus Day.
� Senwes Equipment introduced service plans on new equipment
and added value products such as extended warranties and inspection
plans on most of the products to mitigate the producers’
cash flow issues.
� Accelerated diversification to broaden Senwes Equipment’s geographic
footprint and create additional income streams.
� The transaction with Falcon Agricultural Equipment was completed
as part of the diversification strategy.
� Senwes Equipment consolidated the Ottosdal and Schweizer-
Reneke workshops into one mega workshop in Wolmarans stad.
� Customer service of Senwes Equipment was improved to an all-
time high and market share was increased.
� Senwes Grainlink accepted grain at a higher than normal moisture
content to accommodate producers in complying with their
grain contracts.
� Senwes Grainlink maintained investments in assets to offer further
solutions to the market.
� Senwes Grainlink assisted producers with their pricing and marketing
of grain by offering various pre-season and spot contracts.
� Capitalisation of the loyalty programme to enable customers to
convert their AgriRewards into shares.
� Tradevantage eventually had to wait for SAFEX deliveries in
March to get access to maize for its April obligations. It was decided
not to participate in longer-term contracts, including Astral.
No future contracts for delivery beyond December pricing will be
concluded.
32 ROOTED IN AGRICULTURE