CORPORATE GOVERNANCE FINANCIAL REVIEW
41 / 104 Graph 8 : World vs SA Inflation
World CPI % |
SA CPI % |
8,0 % |
7,3 % |
7,2 % |
7,0 % |
6,6 % |
6,1 % |
6,0 % |
5,0 % |
5,7 % |
5,8 % |
5,2 % |
6,1 % |
5,0 % |
4,5 % |
4,5 % |
4,5 % |
4,1 % |
4,1 % |
4,0 % |
4,8 % |
3,3 % |
4,4 % |
3,0 % |
3,3 % |
3,7 % |
3,2 % |
2,0 % |
2,8 % |
2,6 % |
2,3 % |
2,2 % |
2,4 % |
2,1 % |
1,0 % |
1,4 % |
1,5 % |
0,0 % |
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2009 |
2010 |
2011 |
2012 |
2013 |
2014 |
2015 |
2016 |
2017 |
2018 |
2019 |
2020 |
2021 |
2022 F |
Graph 9.1 : FAO Food Price Index in Nominal and Real Terms
2014-2016 = 100
160,00 140,00
Nominal
120,00
Real *
100,00 80,00 60,00 40,00 20,00
- 1961 1965 1969 1973 1977 1981 1985 1989 1993 1997 2001 2005 2009 2013 2017 2021
* The real price index is the nominal price index deflated by the World Bank Manufacturers Unit Value Index ( MUV ).
Graph 9.2 : FAO Nominal Food Price Index
Basket of meat , dairy , cereals , oils and sugar prices |
Food Price Index |
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160,0
140,0
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120,0 |
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100,0 |
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80,0 |
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60,0 |
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40,0 |
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1990 |
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2010 |
2012 |
2014 |
2016 |
2018 |
2020 |
2022 |
Graph 9.3 : FAO Nominal Food Price Index ( monthly change )
Basket of meat , dairy , cereals , oils and sugar prices
Monthly % change |
15 % |
+ 12,9 % |
10 % |
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5 % |
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0 % |
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-5% |
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-10% |
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-15% |
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1990 |
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2012 |
2014 |
2016 |
2018 |
2020 |
2022 |
Graph 10 : Agbiz / IDC Agribusiness Confidence Index
3 . OUR SECTOR
Multinational competitors in the input channel and financial services channel , are nothing new to South African agribusinesses .
Local competitors have , for the last 15 years , not been geographically focused and have become nationally deployed to a larger extent . The Senwes Group operates in 292 locations across seven of the country ’ s provinces .
The net effect of this is less concentration in all sectors of our group and higher competitiveness and a wider choice for the client base .
Our core strategy is to be better – if the result of that brings volume and scale , it means that client needs are being served .
4 . BENCHMARKING OUR DIVIDEND PERFORMANCE
In a highly competitive and volatile commodity-based business , risk forms the basis of the strategic view of our business models . It therefore has both offensive and defensive components . Each of our businesses in the portfolio has different maturity profiles , competitors , product and service offerings , etc . and consequently , their own unique risk matrix .
Notwithstanding this challenging operating environment , the group managed to maintain healthy dividend yields , which consistently outperformed industry averages since 2012 , as shown in graph 11 on the next page .
80 75 70 65 60 55 50 45 40 35
Neutral level = 50 Agbiz / IDC Agribusiness Confidence Index
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Mar-12 |
Jan-13 |
Nov-13 |
Sep-14 |
Jul-15 |
May-16 |
Mar-17 |
Jan-18 |
Nov-18 |
Sep-19 |
Jul-20 |
May-21 |
Mar-22 |
SENWES INTEGRATED REPORT 2022
41