SUPPLIERS
To be the preferred supplier of products and services to
clients and customers in the agricultural sector.
PAID TO SUPPLIERS OF GOODS AND SERVICES
R’m
4 000
3 500
3 000
2 500
2 000
1 500
1 000
500
-
2016 2017 2018 2019
2020
* The increase in the value paid to suppliers of goods and services is largely
attributable to the acquisition of subsidiaries during the year under review,
namely: KLK Landbou, Falcon Agricultural Equipment and Grainovation.
*
[ ! ]
ISSUES DURING THE YEAR
� Clients’ cash flow was under pressure.
� Slow response time from suppliers as a result of the national
lockdown due to Covid-19.
� Non-competitive prices for new John Deere whole goods.
COMPANY’S RESPONSE TO THESE ISSUES
� Hinterland offered extended payment periods of up to two
months on seed and up to 150 days on crop protection chemicals,
which ensured that suppliers were paid on time and clients
enjoyed the benefit of interest-free extended payments with the
same discount as initially negotiated.
� Hinterland also offered extended payment periods until the
end of March on animal feeds purchased since January.
� Hinterland stocked up on essential merchandise prior to the
lockdown to ensure adequate stock levels.
� Realignment of price structures resulted in increased market
share.
36 ROOTED IN AGRICULTURE