Senwes Scenario August / September 2017 | Page 7

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. ••• • • • • 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 5