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November 2016 . The central area received reasonably normal rain . However , rainfall in the southern to south-western areas was at very low levels , particularly in the Bultfontein and Hoopstad areas .
This is also evident in the spending ability of producers . The planting figures are significantly lower , although the planting intentions are much higher . Producers have to farm themselves out of their current difficult situation . The Lord ' s grace was evident over the last week of December 2016 and the first part of January 2017 . Our western areas received more than 100 mm of rain on average , which drastically improved prospects .
BETTER PREPARED THAN AT THE END OF 2015 Planting commenced early this year . By the beginning of December 2016 planting levels were at approximately 60 %. Conditions are more promising than the same time last year . The soil moisture status is better , producers are prepared and I believe very few producers in our area have not been assisted as far as financing is concerned . Should rainfall patterns normalise , volumes should increase in the next production year , which will stimulate the total production cycle and business . " The current year is the middle year - the most difficult one .”
FEB / MAR 2017 • SENWES Scenario
CUSTOMER FOCUS Our balance sheet management , capital allocation costs and efficiency have to be at the highest level . The main focus area of our strategy and the reason for the existence of Senwes , are for its customers . This is where everything starts . No other interest can be serviced if a transaction is not concluded . It provides jobs to personnel and input suppliers have a place to deliver their products , government receives income tax and the shareholder a return on investment . It is therefore understandable that the board of directors decided not to consider a dividend at this stage .
Our strategy is to ensure that the customer is and will remain the focal point . We act in the interest of our customers . The main objective of all personnel is to understand the priority of the customer . Personnel have to offer added value in terms of knowledge and market intelligence . The integration of the businesses is important , since it will ensure the prioritisation of the needs of the customer .
We launched OneAgri , which offers a central identity which ensures easy and integrated access for the customer . AgriRewards is another way in which the customer base is rewarded for business done with Senwes . Senwes Equipment expanded to the Eastern-Cape , namely to Aliwal- North , Ugie and East-London
and JD Implemente expanded to George . We also added the JCB agency to Senwes Equipment . We will also continue with our large investment on the Grainlink side in order to assist producers by taking in grain at a higher moisture percentage .
EXPANDED STRATEGIC OBJECTIVE We are busy with the externalisation of our business . We are considering other risk areas in the world , other areas of income . Due to the weakening of the rand , we are better off in rand terms , but worse off in international currency terms .
NO DIVIDEND The preservation of the company is and will remain the highest priority . It is comforting to have two huge shareholder blocks . Senwesbel holds a 52 % interest and Grindrod a 22 % interest in the company . It was very easy for the board to make the decision not to declare a dividend , since the customers , personnel and input suppliers are the board ’ s priority .
MESSAGE TO PERSONNEL I would like to thank our personnel most sincerely . Thank you for the manner in which you deal with and support our customer base and our input suppliers . You are the people who ensure the success of our business . You have to receive the credit . We also acknowledge that we are at the mercy of our Heavenly Father . We live in His mercy . We praise and honour God for everything that happens in our company .