MA I N A RT I CLE
NATURAL RESOURCES
In terms of alternative energy,
huge initiatives were launched
which are resulting in extensive
savings in respect of electricity
consumption. The electricity con-
sumption at head office declined
by 45% and water consumption
is also lower. These initiatives
were launched at head office, after
which they were rolled out to
branches and silos. A solar project
was launched at Hennenman Silo
- a first for Senwes and in South
Africa.
An ever-increasing problem is,
however, arising. Municipalities in
smaller towns are not paying their
electricity bills, which is a limiting
factor in terms of capacity. It is a
most unsatisfactory situation. We
invest between R12 million and
R15 million per silo to make sure
that we have the necessary power,
which means that Eskom is being
utilised even less.
The poor management of ener-
gy components in South Africa is
not sustainable. For the first time
in history, more people are receiv-
ing grants than people holding
jobs. It is a huge red light. The
government is using the wrong
drivers to stimulate the economy.
The correct drivers will result
in economic growth. More capaci-
ty should be created, local produc-
tion should be protected and there
should be incentives in respect
of tax issues to ensure business
growth. These aspects will create
job opportunities.
MANUFACTURING CAPITAL
Huge investments have been made
on particularly the market access
side of the business over the past
three years, and we will be con-
tinuing with these investments for
the next three years. More than
R500 million has already been
invested, which will be doubled.
Our objective is to empower the
customer. An example of this
is the training initiatives which
enriched the lives of hundreds of
our people over the past num-
ber of years. This empowerment
enables them to harvest earlier
and to create additional time to
increase production capacity.
We have 3,5 million tons of
grain to store this year. Who will
do this? We have to make sure
that agriculture as a whole is
sustainable and we have to make
sure that the customer gets a good
average price and that he receives
payment. It is good to claim that
an organisation will give you a
better price but, if the organisa-
tion does not pay you, then you
have not achieved anything.
We have a good record in
respect of offering a good average
package on the input and market
access side of the business. Paying
and servicing customers are the
most important aspects. We also
implemented a loyalty scheme this
year and R54 per ton was allocat-
ed to producers.
INTELLECTUAL CAPITAL
At Senwes we believe that per-
sonnel have to be developed. Our
training account increases all the
time, since this is how we equip
personnel. We believe in the
development of the potential and
ability of our people.
SOCIAL INVOLVEMENT
Due to the poor performance of
government organisations, we
spend more and more on alterna-
tive energy projects. In addition,
total corporate social investment
increased by 28,6% year-on-year.
After the drought aid, we are help-
ing to subsidise grain donations,
storage and logistics and we are
once again taking the lead in driv-
ing initiatives.
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• •
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Nation in Conversation is also
on a new level. A wide spectrum
of subjects was covered and we
fulfil an even more extensive lead-
ership role. We are doing what
the government is actually sup-
posed to do - protecting the social
structure and keeping people
employed.
THE FUTURE
We are in the process of taking in
the best crop ever after last year's
worst crop. The large crop comes
with additional challenges in
respect of capacity.
Obviously price, input busi-
nesses and producers are under
pressure. Some producers have
good average crops, but they can-
not meet their obligations. For
this reason we are very careful
about the way in which we man-
age our credit book. Having said
this, the cash flow situation is bet-
ter distributed than the previous
year. Last year the Bultfontein/
Hoopstad area had absolutely
no crop. Even if the maize price
was R10 000 per ton, it would
have had no effect in this area.
However, the whole area has a
crop this year. The majority of
producers also had no income last
year.
MESSAGE TO PERSONNEL
We have experienced a very dif-
ficult time. It is a revelation that
personnel, despite the difficult
times, remain motivated and
cust omer-focused. We have excel-
lent personnel with integrity and
they want to do the right thing. I
have a lot of respect for the total
Senwes staff component - they
work very hard.
A POSITIVE MESSAGE FOR PRODUCERS
Something good came from
the bad drought. Everyone now
>CONTINUED ON PAGE 6
SENWES Scenario • AUG/SEP 2017
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