Corporate Services
Skills development continues to receive primary attention at
all levels in the organisation, with R4,2 million being spent on
training programmes, representing an average of 3.2 training
days per employee, 45% of which was spent on previously
disadvantaged employees. The Senwes Academy awarded 70
learners with national certificates or diplomas during the year
under review.
Ongoing engagement with government and especially local
government took place, mainly to deal with service delivery,
local development and billing issues, in order to mitigate service
risk and contribute to local economic development.
Future prospects and
challenges
Normal to above normal rain was received during the 2013/2014
production season, which could result in larger volumes of grain
for Senwes Grainlink.
The 2013/2014 year was characterised by low production but
above normal exports. This resulted in record low grain stock
levels by 30 April 2014. The low opening stock levels will have a
negative effect on the 2014/2015 results of Grainlink. However,
expectations are that this season will create the opportunity for
the grain industry to rebuild stock levels.
The large local crop will more than likely result in the local
maize price trading at below export parity for the medium term.
This situation may see exports stimulated, primarily in respect
of yellow maize, which can result in more white maize being
utilised for animal feed. This situation and the low carry-over
stocks may result in a lower stock situation during the latter half
of the year, even with the relatively large local crop. The large
local crop will more than likely stimulate market spread, enticing
market participants to carry stock for longer periods of time.
Expectations are that higher grain yields will result in a better
financial position for the producer. This should result in higher
capital spending patterns of producers, which should have a
positive effect on mechanisation turnover.
Planting levels during the coming season should be in line with
the current season. Senwes Credit expects its book to grow
with input inflation, as well as marginal growth in market share.
The integration and positioning of Hinterland will continue,
which could result in a material increase in direct business.
Further cost synergies will be unlocked by Hinterland during the
2014/2015 financial year.
The consolidation focus will be driven by Senwes and its holding
company Senwesbel in the coming year. Larger groupings are
being formed and Senwes will attempt to position itself in such a
manner as to create value for the Group and its partners.
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