THEME RESILIENCE DURING A TIME OF CRISIS
The 2021 integrated report showcases the strategic worth of Senwes ’ futurefocused business approach , while at the same time highlighting the importance of adaptability and resilience during times of turmoil . Globally , the past financial year will be remembered in history as a season of great instability , digital transformation and the transition to a new norm . On the homefront the same can be said for South Africa , the agricultural sector and , by association , Senwes .
ON THE COVER Amidst a constantly changing external environment , a global pandemic , the prevalence of natural disasters and one of the largest agricultural mergers in recent history , the Senwes Group demonstrated great resilience . Its robust response to uncertainty was navigated by the group ’ s long-term strategy and its adaptability to change .
By reimagining our future as an agri-business during this time of unprecedented change , Senwes not only reaffirmed its commitment to relevance , innovation and value creation , but also enabled stakeholders to re-envision and ultimately re-engineer their business potential .
RESILIENCE IN THE FACE OF ADVERSITY
Since the start of the 2020 / 2021 financial year , the Covid-19 pandemic continued to cause widespread instability and angst , while the measures implemented to contain the spread of the virus wreaked havoc throughout the global economy .
On home soil , South Africa ’ s weakened economy was further exacerbated by the pandemic . Reduced economic activity , challenges with regard to infrastructure maintenance , reliable electricity supply , capacity of critical public services and consecutive downgrades to the country ’ s sovereign credit rating further impacted the lack-lustre economy . However , the government ’ s decision to leave the agri - cultural sector and broader food supply chains fully operational from the onset of the lockdown provided conducive business conditions and saw the sector emerge as a beacon of hope for the South African economy . The sector reflected an impressive growth of 15 %
in the second quarter of 2020 ( April - June ), which made it the only positive contributor to the GDP .
Cold and harsh conditions were recorded from May 2020 to August 2020 where 75 days saw temperatures below freezing point , the highest number of days in 14 years . Furthermore , frost was evident on 51 days , making it the coldest winter since 2001 .
A bumper maize crop of 16,2 million tonnes , the second largest in history , with an average yield of 5,87 tonnes per hectare and strong overall sales of agricultural produce in the first four months of the Covid-19 pandemic , bore testament to the sector ’ s resilient nature .
Devastating wildfires during October 2020 put immense pressure on agri-activities in the Free State and Northern Cape and saw in excess of 100 000 hectares of veld destroyed , while losses of livestock , game and infrastructure were also suffered . It was also during the month of October when Senwes concluded the biggest merger in the agri-sector to date with the acquisition of Suidwes Holdings .
Winter grains performed exceptionally well , and bumper crops were recorded , which included the largest canola crop ever ( 167 000 tonnes ) and the largest wheat harvest since 2008 ( 2,1 million tonnes ).
Below-average rainfall delayed the start of the summer grain planting season . By the end of November , the central and western parts of the summer rainfall area received a cumulative rainfall of 109 mm , compared to the long-term average cumulative rainfall of 153 mm for the same area . However , an above-average rainfall trend continued into the new year , and a well-deve loped La Niña weather system , which gave way to heavy downpours in the central and eastern parts of the summer rainfall area , resulted in flood damage to crops and infrastructure . The La Niña system is set to continue weakening towards mid-winter before the next system develops .
Amidst all the challenges which the 2020 / 2021 financial year posed , whether it was the Covid-19 pandemic , economic instability , wildfires , floods , pests as a result of the heavy rains and many more , the sector remained focused on food security as the critical issue for the survival and well-being of all South Africans .
A bumper maize crop of 16,2 million tonnes , the second largest in history , bore testament to the sector ’ s resilient nature .
RESILIENCE SENWES INTEGRATED REPORT 2021
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