Chairman’s Report
Dear Stakeholder Macro-environment
It is a privilege to report on the performance of the Senwes
Group for the year ended 30 April 2014 for the first time as
Chairman of Senwes. The business environment during the past year has been the
most difficult in eight years. A second successive drought year,
coupled with very difficult macro-elements, had a negative
impact on producers in the Senwes area of operation. As a
result, lower grain volumes flowed through the silo network of
Senwes and the spending patterns of producers in respect of
capital goods and input products were cut back and postponed
to future seasons. Competition in the shrinking market was
severe and Senwes became aware of a number of local and
international companies attempting to protect and pursue
market share at all costs. Numerous irrational situations arose,
which the market could not escape.
In this integrated report you will receive feedback on the financial
performance for the 2014 financial year, the strategic progress
and positioning of the Group, the challenges of the environment
in which we conduct business and particular insight into the
sustainability of the Group and its ability to survive over the
longer term.
On our way to 2020
Senwes was transformed into a strategically driven company
and continued focus is being placed on this aspect, irrespective
of the short-term market challenges. Our co-operation initiatives
are on track and a broader base and good partners will improve
the sustainability of the Group over the longer term.
Hinterland, the combination of the retail businesses of AFGRI
and Senwes, with its widely distributed asset base and strong
market position, ensures a good position from which to unlock
value. The business will focus strongly on integration and
optimisation of the business model.
Danie Minnaar
16
Senwes attempts to
maintain its involvement
in the community,
irrespective of weaker
cycles, and believes in long-term
and sustainable social
development projects.