2021 INTEGRATED REPORT - Senwes
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resilience
2021
INTEGRATED REPORT
THEME
RESILIENCE DURING A TIME OF CRISIS
T he 2021 integrated report showcases
the strategic worth of Senwes’ future-
focused business approach, while at the
same time highlighting the importance of
adaptability and resilience during times of ON THE COVER
turmoil. Globally, the past financial year will Amidst a constantly changing external environment,
be remembered in history as a season of a global pandemic, the prevalence of natural disasters
great instability, digital transformation and and one of the largest agricultural mergers in recent his
the transition to a new norm. On the home- tory, the Senwes Group demonstrated great resilience.
front the same can be said for South Africa, Its robust response to uncertainty was navigated by
the agricultural sector and, by association, the group’s long-term strategy and its adaptability to
Senwes. change.
By reimagining our future as an agri-business
during this time of unprecedented change,
Senwes not only reaffirmed its commitment
to relevance, innovation and value creation,
but also enabled stakeholders to re-envision in the second quarter of 2020 (April - June), included the largest canola crop ever
and ultimately re-engineer their business which made it the only positive contributor to (167 000 tonnes) and the largest wheat
potential. the GDP. harvest since 2008 (2,1 million tonnes).
Cold and harsh conditions were recorded Below-average rainfall delayed the start of
RESILIENCE IN THE FACE from May 2020 to August 2020 where 75 the summer grain planting season. By the
OF ADVERSITY days saw temperatures below freezing point, end of November, the central and western
Since the start of the 2020/2021 financial the highest number of days in 14 years. parts of the summer rainfall area received
year, the Covid-19 pandemic continued to Furthermore, frost was evident on 51 days, a cumulative rainfall of 109 mm, compared
cause widespread instability and angst, while making it the coldest winter since 2001. to the long-term average cumulative rainfall
the measures implemented to contain the of 153 mm for the same area. However, an
A bumper maize crop of 16,2 million tonnes,
spread of the virus wreaked havoc through- above-average rainfall trend continued into
the second largest in history, with an average
out the global economy. the new year, and a well-developed La Niña
yield of 5,87 tonnes per hectare and strong
weather system, which gave way to heavy
On home soil, South Africa’s weakened eco overall sales of agricultural produce in the first
downpours in the central and eastern parts
nomy was further exacerbated by the pande four months of the Covid-19 pandemic, bore
of the summer rainfall area, resulted in flood
mic. Reduced economic activity, challenges testament to the sector’s resilient nature.
damage to crops and infrastructure. The La
with regard to infrastructure maintenance, Niña system is set to continue weakening
Devastating wildfires during October 2020
reliable electricity supply, capacity of critical towards mid-winter before the next system
put immense pressure on agri-activities in
public services and consecutive downgrades develops.
the Free State and Northern Cape and saw in
to the country’s sovereign credit rating further
excess of 100 000 hectares of veld destroyed,
impacted the lack-lustre economy. However, Amidst all the challenges which the
while losses of livestock, game and infrastruc-
the government’s decision to leave the agri- 2020/2021 financial year posed, whether it
ture were also suffered. It was also during the
cultural sector and broader food supply was the Covid-19 pandemic, economic in-
month of October when Senwes concluded
chains fully operational from the onset of the stability, wildfires, floods, pests as a result of
the biggest merger in the agri-sector to date
lockdown provided conducive business condi- the heavy rains and many more, the sector
with the acquisition of Suidwes Holdings.
tions and saw the sector emerge as a beacon remained focused on food security as the
of hope for the South African economy. The Winter grains performed exceptionally well, critical issue for the survival and well-being
sector reflected an impressive growth of 15% and bumper crops were recorded, which of all South Africans.
A bumper maize crop of 16,2 million tonnes,
the second largest in history, bore testament to
the sector’s resilient nature.
RESILIENCE SENWES INTEGRATED REPORT 2021 1
REPORTING SUITE CONTENTS
1 INTRODUCTION 45 STRATEGIC AND OPERATING CONTEXT
Senwes’ integrated report provides a succinct over-
1 Theme 46 Reflections by the Group Chief Executive
view of the group’s strategies, risks, opportunities,
2 Reporting Suite 50 Group strategy
corporate governance, operational activities and
4 Responding to the impact of Covid-19
financial performance for the financial year ended 57 CORPORATE GOVERNANCE
30 April 2021. This report, supported by the suite of 5 OVERVIEW 58 Corporate governance report
online publications, provides a holistic overview of the 6 About our integrated report 70 Senwes board of directors
group’s activities and is available on Senwes’ website 8 365-review 72 Remuneration report
at www.senwes.co.za. 10 Senwes brand
12 Key features by forms of capital 79 FINANCIAL REVIEW
80 Report by the Group Chief Financial Officer
13 THE BUSINESS 84 Managing risk in the agricultural sector
14 Reflections by the Chairman
92 Senwes Group 5-year review
16 Value-creating business model
96 Financial statements
Related media coverage 18 Business overview
For related media coverage, such as press releases or radio inter- 102 Glossary of terms
views with Senwes’ Group CEO, visit http://senwes.co/results21 26 How Senwes creates value using the six capitals
104 Corporate information
36 Creating value for stakeholders
IR and AFS enquiries or feedback
Corné Kruger (Group Chief Financial Officer)
Telephone: 018 464 7476
SR and AGM enquiries or feedback Senwes is committed to creating value for all its stakeholders by conducting sustainable
Elmarie Joynt (Company Secretary and Chief Legal Counsel)
Telephone: 018 464 7104 business through ethical dealings, protecting the environment and contributing to the
socio-economic development of its employees and the societies in which it conducts business.
REPORTING PRINCIPLES AND
resilience
GUIDELINES
The International Integrated Reporting Framework
South African Companies Act 71 of 2008, as
amended
King Code of Governance Principles for South Africa
(King IV™) (applied as far as practically possible) 2021
INTEGRATED REPORT
International Financial Reporting Standards (IFRS)
IR AFS SR AGM
Department of Trade and Industry’s Codes for
An integrated report which provides The annual financial statements of A web-based digital sustainability A notice which informs shareholders of
Broad-Based Black Economic Empowerment
a holistic view of how Senwes creates the group which provide an in-depth report provides a summarised overview the company about the matters which
value, with extracts from the annual analysis of the group’s financial results of the group’s sustainability activities, will be discussed at the annual general
G4 Sustainability Guidelines and performance. strategies and ongoing processes. meeting, is available online.
financial statements.
2 SENWES INTEGRATED REPORT 2021 RESILIENCE RESILIENCE SENWES INTEGRATED REPORT 2021 3
RESPONDING TO THE
OVERVIEW
IMPACT OF COVID-19
Dubbed a “black swan” phenomenon, the Covid-19 pandemic represented an entirely un-
expected and completely unpredictable occurrence, the impact of which affected all of us in
almost every way imaginable.
GLOBAL OVERVIEW SENWES’ RESPONSE
On 11 March 2020, the World Health Organisation (WHO) During the financial year, Senwes continued to manage
declared Covid-19 as a pandemic. At this point in time there the escalating spread of the Covid-19 outbreak in a
were more than 3 million infections worldwide. Since then the proactive and responsible manner.
statistics have skyrocketed and exactly a year later the global
statistics continue to tell the story of a world amidst a humani- In the company’s response to the pandemic, precautio
tarian crisis: 102 million infections and 2,7 million deaths. nary and preventive actions were implemented to help
ensure the health and well-being of all our staff, clients
The impact of the Covid-19 pandemic supersedes that of a and other stakeholders, and to ensure business conti
public health crisis. It brought about a disruption and continues nuity and continuous value-added service delivery across
to unsettle the interconnected world economy in unpreceden the group’s operations.
ted ways. Infections reduce labour supply and productivity,
while interventions such as national lockdowns, quarantine Apart from stringent adherence to the set Covid-19
and social distancing contribute to major disruptions, lay-offs preventative measures, Senwes established a Core Crisis
and loss of income across all economic sectors. In addition, the Committee to oversee the group’s actions and manage-
extreme uncertainty of the duration, magnitude and impact ment of unfolding Covid-19 related risks.
of the pandemic gives way to a vicious cycle of dampening
business and consumer confidence and to even more restrictive The impact of Covid-19 and the company’s response
financial conditions. thereto will be featured throughout this financial report
and are illustrated by the use of this Covid-19 icon.
SOUTH AFRICAN OVERVIEW
With more than 1,6 million confirmed cases by 30 April 2021,
the country has not been spared from the socio-economic
effects of the pandemic. The stringent lockdown, as the main
response to curb the spread of the virus in March 2020, sent our
already weakened economy into a downward spiral, which saw
it contract by 7,8% during 2020. During this period the national
unemployment rate reached an all-time high of 30,8%.
The agricultural sector largely remained operational during the
onset of the strict alert level 5 lockdown, with the exception of
a few sub-sectors such as the wine, tobacco, wool and floricul-
ture industries. These sub-sectors subsequently became opera-
tional during alert levels 4 and 3. During the second quarter of
2020, agriculture came out as the strongest performer in the
South African economy, growing by 15,1%.
4 SENWES INTEGRATED REPORT 2021 RESILIENCE
OVERVIEW THE BUSINESS STRATEGIC AND OPERATING CONTEXT CORPORATE GOVERNANCE FINANCIAL REVIEW
KEY CONCEPTS
NAVIGATION
ABOUT OUR INTEGRATED REPORT Defining integrated thinking
Integrated thinking is the process OUR CAPITALS STRATEGIC FOCUS AREAS
where relationships between the Senwes relies on various forms of capital to Senwes’ strategic focus areas are defined
various operating units and the achieve set targets and goals. These capitals as the deliberate goals established to
The primary purpose of Senwes’ integrated report capitals are actively considered in form the basis of Senwes’ value creation achieve our purpose, mission and fulfil the
is to demonstrate to the providers of financial decision-making to add value over and are not independent of one another. company’s responsibility and can be identi-
the short, medium and long term. The following icons are used to identify fied by the following icons:
capital and potential investors, how Senwes creates these capitals:
Defining value
sustainable value over the short, medium and long Diversification, horizontal
Value is the occurrence where the integration and consolidation
Financial capital
term. consequences of our successful
resource application have a positive Increased investment in
Human capital
I n acknowledging the fact that sustained value creation does not happen in impact on a stakeholder. efficiencies in the value chain
isolation, the group’s approach to value creation is best illustrated through Intellectual capital
its integrated value-adding business model, strategies, risk assessments, op- Defining materiality Internal integration of the
customer
portunities, performance and governance practices. A balanced and accurate Materiality refers to the actions or Manufacturing capital
reflection of these material aspects forms the essence of Senwes’ integrated issues of substantial importance that
Reorganisation of business
report. The report also provides stakeholders with a balanced, accurate and affect the group’s strategy and there- Natural capital models
transparent assessment on whether the company can deliver on its brand fore its ability to create value over
promise. the short, medium and long term Social and relationship capital Unlocking value synergies
and/or actions and decisions by the
OUR APPROACH TO REPORTING group that may affect its stakehol
STAKEHOLDERS Externalisation
ders, either positively or negatively.
This report is prepared in accordance with the International Framework of Senwes focuses on serving the various
the International Integrated Reporting Council (IIRC) and provides our stake- needs of all stakeholder groups, while pri- RISKS
The emergence of the Covid-19 pan-
holders with a concise and transparent assessment of our ability to use our oritising actions and leveraging resources in Senwes deems its risk management practi
demic in South Africa in March 2020
expertise to create sustainable value. a manner that ensures a long-term positive ces to be practical and fully acknowledges
impacted on all our material matters.
impact on the organisation. The following the volatile agricultural industry and our
Our response to the evolving pan-
Reporting period icons are used to identify each stakeholder need to be agile, smarter, more effective,
demic is addressed throughout the
The Senwes integrated report is compiled and published annually and this group:
report. proactive, forward-looking and, at the
report focuses on the activities and operations of the group for the period
same time, appropriately responsive. The
1 May 2020 to 30 April 2021. Defining short, medium and Shareholders and investors following icon is used to identify our risks
FORWARD-LOOKING STATEMENTS
long term throughout the report:
This report contains certain forward-looking statements Scope and boundary Short term is less than 12 months, Clients and customers
with respect to Senwes’ financial position, results, ope This report extends beyond financial reporting and includes non-financial in- medium term is one to three years Our risks are as follows:
rations and businesses. These statements and forecasts formation attributable to, or associated with, our key stakeholders, who have Employees
and long term is beyond three years. 1 Environmental and health and safety risk.
involve risk and uncertainty, as they relate to events and a significant impact on, or interest in the group’s ability to create value.
Defining the capitals Business partners 2 Political and economic climate risk.
depend on circumstances that may or may not occur in the
future. Combined assurance Capitals refer to the fundamental 3 Market size and market share risk.
Suppliers
The group’s external auditor, Ernst & Young Inc. (EY), has conducted an inde- pillars of value which the organisa 4 Credit, liquidity and market risk.
The group does not undertake to update or revise any pendent audit of the group’s consolidated annual financial statements. Other tion depends on for its success and
Government and regulators
of these forward-looking statements publicly, whether sections of the report, consisting of non-financial information, have not been which increase, decrease or are 5 Commodity price risk.
to reflect new information, future events or otherwise. subjected to an independent audit or review and have been compiled, based transformed through the activities Communities 6 Weather and climate risk.
The forward-looking statements have not been audited, on internal records and information in the public domain under supervision and outputs of the group.
7 Information technology - systems and
reviewed or reported on by EY. of CF Kruger CA (SA), Group Chief Financial Officer.
cyber risk.
8 Urbanisation, scarcity and retention of
Board responsibility statement skills risk.
The Senwes board of directors acknowledges its responsibility 9 Transition and customer risk.
of ensuring the integrity of this integrated report which, in the 10 Diversification and agricultural industry
board’s opinion, addresses all the issues that are material to the risk.
group’s ability to create value and fairly presents the integrated Danie Minnaar Francois Strydom Venete Klein Dries Kruger Nico Liebenberg Kobus Marais Jaco Minnaar Simon Mohapi
performance of the Senwes Group. Chairman Group Chief 11 Unique competitor risk.
Executive Officer
12 Regulation and compliance require-
The board has applied its collective mind to the preparation and ments risk.
presentation of this report and believes that it has been prepared 13 Theft and fraud risk.
in accordance with the IIRC Framework and under the supervision
of senior management. It furthermore underwent a rigorous pro-
Steve Booysen Corné Kruger Pieter Stander Thabo van Zyl Andrew Waller Frans Marx Gert Malherbe Hansie Viljoen
cess using both internal and external assurances. The report was Vice Chairman Group Chief
approved by the board of directors of Senwes on 1 July 2021. Financial Officer IV King IV Covid-19 related
6 SENWES INTEGRATED REPORT 2021 RESILIENCE RESILIENCE SENWES INTEGRATED REPORT 2021 7
OVERVIEW THE BUSINESS STRATEGIC AND OPERATING CONTEXT CORPORATE GOVERNANCE FINANCIAL REVIEW
365-REVIEW
QUARTER 1 QUARTER 2 QUARTER 3 QUARTER 4
1. A new client portal was introduced using OneAgri, which 1. Senwes developed and implemented new fuel forecourt techno 1. Thobo Trust launched a new Early Childhood Development 1. Senwes Equipment effectively merged with Agrifriend Equipment,
resulted in an improved user experience and more self-help logy utilising a single device and enabling clients to link accounts (ECD) centre at the Itokisetseng Combined School in consolidating the two mechanisation businesses. Seven of the
features. to a digital transaction experience. Wesselsbron. The annual Christmas Tree project was also nine Agrifriend Equipment branches remained operational. These
2. Senwes’ continuous risk response with regards to the global 2. Senwes Grainlink supported producers who suffered losses during hosted. branches will supply surrounding areas as John Deere dealers.
Covid-19 pandemic ensured that residual risk remained the wildfires by donating significant tonnages of maize for animal 2. Senwes, together with various partners and sponsors, 2. The integration of the Suidwes branches into Hinterland has been
within our risk tolerance levels and mitigated certain opera- feed purposes. extended drought relief to the drought-stricken areas of completed and the benefits are already becoming evident.
tional losses. 3. Senwes redesigned the group’s strategic approach to that of a risk- Kenhardt, Brandvlei, Calvinia and Pofadder in the Northern 3. The Agrinet wholesale business was successfully incorporated into
3. Senwes Grain Procurement designed a new weighted based strategic approach. Cape in the form of 160 tonnes of white maize. Prodist.
average commodity price product and introduced it to the 4. KLK obtained Competition Commission approval during August 3. Senwes provided flood relief to producers affected by 4. The Hinterland retail division achieved a record turnover during
market. 2020 to acquire an additional 30% in Carpe Diem Raisins. above-normal rainfall in the Free State districts of Hoop- February 2021. Pre-season sales for February 2021 were more than
4. During the lockdown, Raddix implemented premium relief 5. Senwes Equipment’s parts division hit record figures with an stad and Bultfontein by making earthmoving equipment double compared to the previous year.
measures to more than 1 000 policy holders. increase in sales of 43,9%. available and sponsoring the diesel thereof. 5. In terms of Hinterland’s turn-around strategy, a new management
5. Grainovation changed its business model to being an asset- 6. Bastion’s plant at Buhrmansdrif was upgraded in response to higher 4. From 1 November 2020 the Suidwes retail branches were team was appointed and cost reduction measures were implemen
light brokerage-only solution and therefore sold its fleet. demand and production capacity increased from 90 tonnes per hour integrated into Hinterland. The Suidwes retail branches in ted. Total expenses were 19,8% lower than the 2020 financial year.
6. Senwes launched the Agricultural Value Chain (AVC) Food to 120 tonnes per hour. Wesselsbron and Bultfontein were closed. The Hinterland Inventory processes were also optimised with the development and
Umbrella Project, to help ensure food security amidst the 7. Bastion’s market share increased at Britten and Marico due to fo- retail branches in Bothaville and Wolmaransstad were implementation of a new automated ordering system.
Covid-19 pandemic and in doing so, fed in excess of 440 000 cused marketing and optimised utilisation of the retail channels of closed and transferred to the Suidwes branches. 6. The sales of Agrinet increased by 24% and new product ranges
people. agri-companies. Sales increased by 35% and production by 68% 5. Wynland (Pty) Ltd, a 100% subsidiary of NviroTek Labo- were introduced including Revet cleaning products, Agpro sanitisers,
7. The AVC virtual discussion series continued and broadcasted compared to the previous year. ratories, was incorporated into NviroTek Laboratories as Worksmen handtools, Skudo, Basecamp, Cascade pumps and Wor-
nine sessions in total, which focused on various value chains 8. Senwes effectively obtained a 100% share of the Hinterland Group a division, and new financial and laboratory information tex pumps.
within the agricultural sector. after the unbundling of the JV with AFGRI. management systems were implemented. 7. During the month of March, Agrifriend Equipment was appointed
8. Senwes Equipment generated record used whole goods sales 9. Competition Commission approval was obtained for the Senwes 6. Bastion procured and constructed a modular plant at as agent for John Deere Construction and Forestry Equipment in the
with a growth rate of 15% compared to the previous year. and Suidwes merger, which became effective on 31 October 2020. Marico to permanently increase production capacity. The Northwest, Free state, Northern Cape and Eastern Cape. Agrifriend
9. Senwes Credit introduced new financing products for long- 10. Senwes Equipment’s new whole goods division realised a significant production at Marico increased by 150% compared to the Equipment will launch these product ranges during the 2022 finan-
term crops and a seasonal account for producers along the increase in sales of 99,9% compared to the previous year. same period during the previous year. cial year.
Orange River was designed and is operational. Focused atten- 11. Staalmeester extended its product ranges in the rakes and drum 7. Bastion obtained 51% shareholding in Pelelani (Pty) Ltd, 8. Bastion’s gypsum plant in Britten was upgraded and the production
tion is being afforded to supporting the expansion in the mower product groups. Staalmeester also expanded its market which will be focusing on the optimisation of limestone capacity improved from 10 tonnes per hour to 30 tonnes per hour.
Northern Cape region through our KLK credit office. reach into Botswana and Zimbabwe with approved dealers. resources. 9. Phokeng gypsum was added to Bastion’s product offering and
10. Upgrading of lifts at various silos at a cost of R4,2m in order 12. The retail business obtained the OK Grocer franchises as a diver- 8. Senwes Credit transferred its operations to a separate calcite-dolomite-gypsum and calcite-dolomite blends are now also
to ensure the safety of staff, save maintenance costs and sification method of reducing business risks. However, since the legal entity (Agri Credit Solutions) as part of the group’s produced at the Marico plant.
ensure effective quality management. opening of the OK Grocers at Jan Kempdorp and Bultfontein, restructuring process. 10. KLK rolled out a new credit model in conjunction with Agri Credit
these two businesses made yearly losses. During September 2020 9. As a result of Covid-19, all Hinterland capital projects were Solutions and they will continue with the insurance broking model on
and October 2020 the board approved the sale of the OK Grocers suspended and limited to emergencies only. This includes an agency basis with Certisure, which will also align with the credit
at Jan Kempdorp and Bultfontein. upgrades at the Oberholzer, Bloemfontein and Hoopstad solution.
13. KLK installed the new biodegradable tub production line at Cool fuel stations. A point of sale forecourt system was installed 11. Agribel Holdings, Senwes’ holding company, acquired Grindrod’s
Raisins for Woolworths production. at all the fuel stations and a property in Doringkruin, Senwes shares during March 2021. These shares were in the market
14. KLK decreased working hours to counteract lower slaughter volumes Klerksdorp was acquired to erect another fuel station. for quite some time since Grindrod was exiting non-core investments
in the skins division due to the drought in the Northern Cape. 10. The results of the subsidiary of KLK Landbou, Carpe Diem in terms of its strategy. Agribel now holds 74% of the issued shares
15. Senwes Equip Holdings acquired Falcon Agricultural Equipment Raisins, increased by 111% compared to the previous year, in Senwes and is well positioned to consider potential strategic equity
on 1 November 2019. Falcon Agricultural Equipment is now fully mainly due to 3 768 more tonnes sold and the impact of opportunities.
incorporated into the Senwes Equip Holdings Group. the weaker rand as most of these raisins are exported. 12. As part of the Suidwes transaction, Senwes acquired two petfood
16. Senwes Credit debt in arrears as percentage of the total outstanding 11. As a result of the Suidwes merger, Senwes’ storage capaci- businesses, namely Supreme Pet and AgriPet. The Senwes Group
debt as at 30 September 2020, was 7,9% lower than the average ty increased by 30% due to the additional silos of Suidwes strives to hold investments in companies closely linked to the
September arrears for the previous three years. Landbou. agricultural sector only and therefore subsequently sold these two
12. A bin at Allanridge which was damaged due to sponta- businesses to external parties.
neous combustion, was replaced at a cost of R10,4m. 13. The growth in the debtors’ book for the 2020/21 financial year
13. A strategic decision by Senwes resulted in the closure of its amounted to 6%. This was primarily due to an increase in pro-
grain trading business, Tradevantage. This resulted in the duction credit and term loans. The production credit increased by
business model being changed to sell grain on an equal 7,5% (R187,5m) and term loans by 5% (R83,7m). The growth was
basis on Basislink to all role players in the market. primarily in the traditional Suidwes area, as well as the Eastern Free
State, Mpumalanga and KZN-areas where the integrated production
credit model with Hinterland was rolled out.
14. Silo aeration upgrades were completed at a cost of R10m in order
to improve the efficiency of receiving grain at higher moisture
levels.
8 SENWES INTEGRATED REPORT 2021 RESILIENCE RESILIENCE SENWES INTEGRATED REPORT 2021 9
OVERVIEW THE BUSINESS STRATEGIC AND OPERATING CONTEXT CORPORATE GOVERNANCE FINANCIAL REVIEW
SENWES’ DNA
SENWES BRAND WHAT DIFFERENTIATES
THE CORPORATE CULTURE
REIMAGINING AGRI-BUSINESS IN THE 21ST CENTURY SENWES?
Senwes wants to be the preferred investment partner,
STRONG ALLIANCES WITH STRATEGIC PARTNERS employer, supplier and distribution channel as well as
By forming strong alliances with strategic business partners, a good corporate citizen. Senwes also strives to break
Senwes expands its geographic presence, product ranges and new ground in every segment of the food value chain,
At Senwes we are continuously reimagining MISSION STATEMENT service offerings and unlocks new income streams. where a strategic thought process has been adopted for
Senwes is one of the leading agricultural companies in South Africa.
our future to enable us to expertly assist our EMPOWERED AND COMMITTED WORKFORCE attaining knowledge and being experts in what we do.
The group is solution-driven and focuses on providing integrated
clients in reimagining theirs. product and service solutions to agricultural producers, encompassing Senwes’ employees are humble in success and remain de-
finance, insurance, wealth planning and advice, agricultural services, termined in the face of adversity, constantly striving towards LIVING THE COMPANY’S
VALUES BY:
O ver the course of 112 years we have not only succeeded in
reimagining the future of our company, but also that of the
broader South African agricultural sector in unprecedented ways.
input supplies, agricultural machinery and equipment, grain storage
and handling services integrated with logistics, as well as market
excellence, focused on the company’s vision and committed to
the company’s corporate values. Doing the right things for the right reasons,
access for producers’ products. The group also provides solutions to acting with integrity.
Along this journey Senwes has transcended its role as a mere catalyst grain off-takers with regards to their procurement needs. SUSTAINABLE VALUE FOR SHAREHOLDERS
of agricultural success to that of an enabler of sustainability and Senwes creates value for shareholders by delivering return on Satisfying our stakeholders’ needs and solving their
growth for the entire agricultural value chain. THE BRAND PROMISE equity, despite challenging climatic conditions, extreme weather problems, applying business orientation.
• To approach every interaction with a solution-driven mindset. fluctuations and a constantly changing industry.
Maximising people’s true potential and being in
Our company’s history can be traced back to the fall of 1909, when • To see the clients’ businesses from their perspective.
INTEGRATED AND INNOVATIVE SOLUTIONS pursuit of the company’s purpose, demonstrating
24 pioneering farmers came together to discuss the idea of a co- • To provide an integrated solution.
operative in the then Western Transvaal, near the town of Ottosdal. Senwes is committed to the interests of clients and focuses self-motivation.
on providing integrated and innovative sustainable solutions,
Following the devastation left in the wake of the Anglo-Boer War, STATEMENT OF COMMITMENT Finding creative and resourceful solutions to business
the need arose for sustainable grain handling and seed processing whilst strengthening long-term relationships.
Senwes is committed to creating value for all its stakeholders by con- challenges and customer needs, exhibiting innovation.
on a large scale. Looking back, the establishment of De Centraal ducting sustainable business through ethical dealings, protecting the STRATEGIC AGILITY UNDER PRESSURE
Westelijke Co-operatieve Landbouw Vereniging on 1 June 1909, environment and contributing to the socio-economic development of Building a strong allegiance with the company, while
The Senwes team has the ability to adapt rapidly to unforeseen
was the spark that ignited our company’s business philosophy of its employees and the societies in which it conducts business. acting in the best interest of the company and our
circumstances, changing them into opportunities, whilst still
providing solutions to enable our customers to effectively conduct stakeholders, showcasing loyalty.
implementing sufficient risk-mitigating actions.
their business.
SENWES’ RESPONSIBILITY
SINCERE INVOLVEMENT IN COMMUNITIES Accepting responsibility by providing complete, trans-
Senwes has the responsibility of making a meaningful contribution
PURPOSE STATEMENT towards food security in South Africa through sustainable agriculture, The company is committed to making a sustainable difference parent, truthful, accurate and timely information to
To provide innovative and integrated solutions for our customers in by providing innovative and integrated solutions to food producers and to the welfare of the communities in which it conducts business. all stakeholders, illustrating accountability.
order to enable them to conduct business. the other role-players in the applicable stages of the food value chain.
10 SENWES INTEGRATED REPORT 2021 RESILIENCE RESILIENCE SENWES INTEGRATED REPORT 2021 11
KEY FEATURES
THE BUSINESS
BY FORMS OF CAPITAL
FINANCIAL HUMAN NATURAL
Earnings before interest and tax Employee headcount Head office electricity consumption
(EBIT) (R’m) for the year (MWh)
2021 2020
2021 2020
2021 2020 5 098 48,8% 3 427
868 63,2% 532 1 452 4,3% 1 392
Total employee costs (R’m) Head office CO2 savings for the
Net profit after tax (R’m)
2021 2020 year due to solar energy generation
2021 2020 942 56,5% 602 (tonnes)
595 76,6% 337 2021 2020
Average cost per employee (R’000) 935 19,9% 780
Normalised HEPS (cents/share)
2021 2020
Electricity consumption of Grainlink
2021 2020 184,8 5,2% 175,7
silos for the year (GWh)
244,4 69,5% 144,2
2021 2020
Employee turnover (%) 30,2 5,6% 28,6
Return on opening equity (%)
2021 2020
2021 2020 21,0% 1,1% 19,9% CO2 savings of Grainlink silos for the
20,5 7,5% 13,0 year due to solar energy generation
(tonnes)
Total shareholders' return (capital MANUFACTURING 2021 2020
growth and dividends) (%) 372 3,9% 387
2021 2020 Maintenance expenditure (R’m)
12,7 7,2% 5,5 Head office water consumption for
2021 2020 the year (kℓ)
104 33,3% 78
Dividend yield (on opening market 2021 2020
price) (%) 5 212 3,6% 5 031
New investment in property, plant
2021 2020 and equipment (R’m)
8,2 2,7% 5,5 2021 2020 SOCIAL AND
188 29,9% 268
RELATIONSHIP
Price-earnings ratio (on normalised
HEPS) (times)
Value allocated in respect of
2021 2020
INTELLECTUAL authorities (R’m)
4,7 38,2% 7,6
2021 2020
Total training costs (R’m)
207 60,5% 129
Price-book ratio (%)
2021 2020 Value created for suppliers of goods
2021 2020 14,5 51,0% 9,6 and services (R’m)
66,9 6,1% 73,0
2021 2020
Total business consultation costs 5 603 58,6% 3 532
Own capital ratio (%) (R’m)
2021 2020 2021 2020 Corporate social investment and
31,9 2,9% 34,8 11,6 68,1% 6,9 community spending (R’m)
2021 2020
6,4 106,5% 3,1
Loyalty scheme (AgriRewards)
allocation (R'm)
2021 2020
139 40,4% 99
12 SENWES INTEGRATED REPORT 2021 RESILIENCE
OVERVIEW THE BUSINESS STRATEGIC AND OPERATING CONTEXT CORPORATE GOVERNANCE FINANCIAL REVIEW
As a diversified agri-business, Senwes continues to serve the sector by
providing integrated product and service solutions.
the process of exiting non-core investments
in terms of its strategy. Agribel now holds
Take advantage of DANIE MINNAAR
74% of the issued shares in Senwes and is
well positioned to consider potential strategic
opportunities Senwes Chairman equity opportunities.
– even when the As a diversified agri-business, Senwes
continues to serve the sector by providing
macro-environment integrated product and service solutions.
These services and solutions are not limited
requires a more to the intake of grain, but include input
cautious approach supply services, financial services, market
access, processing, conditioning and market
intelligence.
It is my pleasure to welcome Hansie Viljoen,
Gert Malherbe and Frans Marx to the Senwes
REFLECTIONS board, joining us from the Suidwes ranks. As
BY THE CHAIRMAN we bid farewell to Tom van Rooyen at the an-
nual general meeting in August 2020, I want
to extend my sincerest gratitude to him for
seven years of service and devotion to always
act in the best interest of the group. With this
Last year’s report was written at the outset of the Covid-19 lockdown period. As I am writing said, I wish to thank my fellow board mem-
this report, each one of us has gained a year’s experience of the impact of this severe pandemic. bers for their guidance and the unrestrained
contributions of their time and advice.
Although we are all learning and adapting as we go along, we don’t know when life will return
to normal. We can, however, be certain of the fact that the virus will be with us for the foresee- To the executive management teams across
the group, thank you for your efforts and
able future.
continued focus during the past year. Your
contributions are noted. I also applaud each
I t is becoming increasingly difficult to con-
duct meaningful business in rural areas. Not
only is South Africa resisting the disruptive
weather the proverbial storms. Communities
across the country are coming together in
ways never seen before to repair infrastruc-
intake of soybeans while taking heed of the
shift in traditional crop composition choices.
one of our employees who continued to
champion service excellence during a very
challenging and disruptive year.
effects brought about by Covid-19, it is ture and rejuvenate local economies. Senwes’ long-term strategy of consolidation
also navigating crippling social, political and has reached momentum and saw the group We look ahead with a sense of optimism
economic issues of deep concern. From an During 2020 the global oil price surged attaining a 57,7% share in KLK Landbou and hope.
economic and political perspective, the period dramatically on the back of a slump in prices during the previous financial year. This finan-
I wish to end my report by thanking our
under review has been a bruising time for as low as $20 a barrel. This boosted grain cial year saw the consolidation of Senwes
Heavenly Father, who holds His hand over
South Africa. Policy uncertainty, such as the prices significantly after a four-year period with Suidwes Holdings and its operating
Senwes and its stakeholders every day. May
land reform issue, poor economic growth, of declining stock levels. At present, the US companies. Through this consolidation we
we live each day according to His will.
international credit rating downgrades and corn price is double last year’s price. will continue to provide unsurpassed services
the financial and operational woes of state- and unlock value for our shareholders and all
owned enterprises continue to negatively Last year’s harvest, along with fair market our stakeholders. Another exciting develop-
impact the country’s fragile economy. Add prices, favoured our customer base. This is ment in this regard is the announcement that
to this escalating crime levels and rampant reflected in the group’s noteworthy decline Senwes Equipment is expanding its product
corruption as a consequence of state capture in outstanding debt. These conditions great- offering by including the newly launched
and counter-productive cadre deployment, ly contributed towards the sector’s sterling John Deere construction and forestry equip-
JDM Minnaar
and it becomes clear that the country’s chal- performance over the past eighteen months. ment range.
Chairman
lenges are mounting.
It is also noteworthy that soybean produc- Agribel Holdings (“Agribel”), Senwes’ holding 1 July 2021
However, one of the features which stood tion in South Africa is increasing to the point company previously known as Senwesbel, Klerksdorp
out during these recent times of disruption where the country is set to reach a level of acquired Grindrod’s shares in Senwes during
and crisis, has been the collaborative way in self-sufficiency soon. With this in mind, March 2021. These shares were in the market
which South Africans have come together to Senwes is well positioned to increase its for quite some time since Grindrod was in
14 SENWES INTEGRATED REPORT 2021 RESILIENCE RESILIENCE SENWES INTEGRATED REPORT 2021 15
OVERVIEW THE BUSINESS STRATEGIC AND OPERATING CONTEXT CORPORATE GOVERNANCE FINANCIAL REVIEW
VALUE-CREATING BUSINESS MODEL PERFORMANCE
Net profit after tax (R'm) Return on opening equity (%) Total shareholders’ return (%)
2021 2020 2021 2020 2021 2020
595 76,6% 337 20,5 7,5% 13,0 12,7 7,2% 5,5
EXTERNAL ENVIRONMENT For more detail, see p. 92
INPUTS OUTCOMES STAKEHOLDERS
OUR CAPITALS GOVERNANCE KEY HIGHLIGHTS
Shareholders and
Normalised headline earnings (R’m) Investors
2021 2020
Financial FUTU
The group paid dividends to the amount of:
420 70,7% 246
RE O R122m ............................................
The pool of available funds Senwes UT
uses to achieve its strategy. LO New investment in property, plant
E OK
C and equipment (R’m) Clients and Customers
AN S
I CE 2021 2020 The group increased its financing book by:
RV I NP
M
Manufacturing 188 29,9% 268
UT
OR
S E E
13% .................................................
IC SU
RF
Head office electricity consumption for the
L
The property, plant and equipment PE V corpora
and
A
year (MWh)
te Employees
CI
Senwes uses to deliver its services and
AD
s
PP
pr
ice
2021 2020
products.
AN v o The group paid salaries to the amount of:
LY
D
1 452 4,3% 1 392
AN
r
gr
FI N
se
am
Electricity consumption of Senwes R942m ............................................
te and shared
Natural
SENWES
Grainlink silos for the year (GWh)
m
2021 2020
es
The land, water and energy Senwes
uses to generate income. GROUP 30,2 5,6% 28,6
Community
Community spending increased since
Head office water consumption for the the previous year:
Mission and
G
year (kℓ)
106,5% ............................................
N IN
Intellectual purpose p. 10
a
2021 2020
r
po
3,6%
EAS
5 212 5 031
M
S
Business Partners
T IO
or
The group’s investment in the right
ET
AR
AR
skills and systems.
C
Total training costs (R’m) Investments in subsidiaries and JVs
K
DI
K
amounted to:
R
2021 2020
S
ET
N
A
CU
51,0% R808m .............................................
AC 14,5 9,6
O
M
Human
FO
C
D , CE
N SS Average cost per employee (R’000)
IC
A G
Suppliers
EG
N
Employees are Senwes’ key S I
T ES 2021 2020
stakeholders. RA PROC The group’s payments to suppliers of
184,8 5,2% 175,7
M
ST AT goods and services amounted to:
ER
Social and R5 603m ..........................................
L RI IA Corporate social investment and
community spending (R’m)
Relationship
SKS
2021 2020
Senwes strives to be a responsible and Government and
accountable corporate citizen, taking into
6,4 106,5% 3,1
Regulators
account its stakeholders, the environment Loyalty scheme (AgriRewards) The group’s payments to government
and the community. allocation (R’m) amounted to:
2021 2020 R207m .............................................
For more detail, see p. 26
139 40,4% 99
MATERIAL RISKS STRATEGIC FOCUS AREAS For more detail, see p. 12 For more detail, see p. 36
1 Environmental and health and 8 1 Diversification, horizontal integration and
FUTURE OUTLOOK
Transition and customer risk
safety risk consolidation
9 Diversification and agricultural Business Strategy Economic
2 Political and economic climate risk industry risk 2 Internal integration of the customer There is a clear shift in traditional The Senwes Group will continue to reimagine its strategic With a good turnover generated from the
3 Credit, liquidity and market risk crop composition choices. Soybean purpose of adding value and solutions to its client base and 2020/21 harvest, business confidence and
10 Unique competitor risk 3 Reorganisation of business models
production is increasing and the keep on analysing the sector for meaningful acquisitions planting intentions will probably be higher for
4 Market size and market share risk 4 Unlocking value synergies
11 Urbanisation, scarcity and country is nearing levels of self-suffi- to add to its well-developed agri-business platform. This the next season. High soil moisture levels should
5 Commodity price risk retention of skills risk 5 Increased investment in efficiencies in the ciency. In this regard Senwes is well future fit agri-business platform will provide access to clients also result in producers spending more on the
value chain positioned to increase its intake of (market share and share of pocket), integrate the group’s next season’s inputs. However, the uptake of
6 Weather and climate risk 12 Regulation and compliance risk
soybeans. activities and most importantly, provide better access to credit should slow down because of the surplus
7 13 Theft and fraud risk 6 Externalisation markets for clients as well as input partners. cash available in the market.
Information technology -
systems and cyber risk
For more detail, see p. 86 For more detail, see p. 50 For more detail, see p. 14 For more detail, see p. 46 For more detail, see p. 80
16 SENWES INTEGRATED REPORT 2021 RESILIENCE RESILIENCE SENWES INTEGRATED REPORT 2021 17OVERVIEW THE BUSINESS STRATEGIC AND OPERATING CONTEXT CORPORATE GOVERNANCE FINANCIAL REVIEW
BUSINESS OVERVIEW
REINTRODUCING THE SENWES GROUP
The Senwes Group’s operations can broadly be divided into five pillars, namely: financial services
and advice; input supply; market access; processing, conditioning and markets; and corporate
shared services.
FINANCIAL SERVICES AND ADVICE
FINANCING INSURANCE FINANCIAL & BUSINESS ADVICE DEALMAKING FOOTPRINT PER PROVINCE
Northwest 20
PRODUCERS OFF-TAKERS BROKER ADMIN UNDERWRITING WEALTH INVESTMENT FINANCIAL CORPORATE TRANSACTIONING Agri Credit Solutions 1
Certisure 10
SS-Wealth Planning 1
Molemi Sele Management 1
MAIN BUSINESS DRIVER PROFIT BEFORE TAX (R’m) Raddix 7
Expense : Income Ratio Free State 12
121 Agri Credit Solutions 1
80%
76% Certisure 9
60% 67%
40% 201 Raddix 2
20% Northern Cape 7
0% Agri Credit Solutions 2
2021 2020
Certisure 1
Financing Insurance, wealth and financial planning KLK 4
services and advice
Agri Credit Solutions 2021 2020
[Subsidiary of Senwes] Certisure
Agri Credit Solutions is a registered credit provider which offers [Joint venture with NWK]
financial products to producers via the Senwes Credit, Suidwes The Certisure Group is an insurance group, which specialises in
NUMBER OF BUSINESS UNITS PER PROVINCE
Credit and KLK Credit brands. Agri Credit Solutions serves as the financial planning, asset, crop, credit life, corporate and game
financing link between agricultural producers and Senwes' other insurance, as well as funeral cover and medical aid schemes.
operations. Certisure renders broker and administrative services as well as 20
financial planning solutions, which cater for and address the risk
requirements of clients.
Agri CS Asset Finance
[Division of Agri Credit Solutions with WesBank as partner] 12
The Agri CS Asset Finance brand offers comprehensive financial Raddix 7
services, focused on movable assets. [Subsidiary of Senwes]
The Raddix Group renders insurance brokerage and intermediary
services as well as financial planning solutions across various
market segments. Intermediary services are rendered across the
Credit life insurance personal, commercial, agricultural and crop insurance segments
whilst life insurance brokering is provided in a wide variety of
Molemi Sele Management segments.
[Joint venture with AFGRI and NWK]
Molemi Sele Management is the owner of a cell captive for credit
SS Wealth Planning
life insurance within Guardrisk Life. Molemi Sele Management
focuses on underwriting risks within the credit life insurance [Partnership between Senwes and S-BRO Financial Services]
domain. SS Wealth Planning is an authorised financial services provider
which facilitates wealth creation by means of a wide range of
wealth planning and related services to ensure long-term finan-
cial peace of mind for clients.
18 SENWES INTEGRATED REPORT 2021 RESILIENCE RESILIENCE SENWES INTEGRATED REPORT 2021 19BUSINESS OVERVIEW – continued OVERVIEW THE BUSINESS STRATEGIC AND OPERATING CONTEXT CORPORATE GOVERNANCE FINANCIAL REVIEW
INPUT SUPPLY
AGENCIES & DEALERSHIPS: BRANDS & EQUIPMENT MANUFACTURING AND DISTRIBUTION,
RETAIL WHOLESALE
BULK INPUT SUPPLY SERVICES AND EQUIPMENT AND VEHICLE DEALERSHIPS
RETAIL ONLINE PEST CONTROL LABS &
RETAIL WHOLESALE DISTRIBUTION DIRECT ANIMAL AGRICULTURAL LARGE SMALL MANUFACTURING VEHICLE
FUEL RETAIL SEED FERTILISER AND PLANT AGRI-
BRANCHES FUEL CENTRES FUEL FEEDS LIME EQUIPMENT EQUIPMENT & DEALERSHIP DEALERSHIP
STATIONS OFFERING NUTRITION SERVICES
NUMBER OF BUSINESS UNITS PER PROVINCE
fuels
39 7
48
42 1
Equipment, manufacturing, distribution
Wholesale distribution and vehicle dealerships
Agrinet Agricultural lime Senwes Equipment 9
[Subsidiary of Senwes]
Bastion Lime [Subsidiary of Senwes]
5
Agrinet and Prodist are wholesalers and distributors of a wide se-
[Joint venture with NWK] Senwes Equipment and Agrifriend Equipment are agricultural
lection of industrial products, general merchandise and irrigation
The Bastion Group specialises in the production and marketing equipment and service businesses, which offer agri-mecha-
ranges to retail and trade markets in South Africa and neigh
of high quality lime and gypsum products for agricultural and nisation, construction and mining products and implements,
bouring countries. Agrinet is in the process of being amalgama FOOTPRINT PER PROVINCE
industrial purposes. maintenance and precision farming solutions to producers and
ted into Prodist.
customers alike. Senwes Equipment is a John Deere agent. Northwest 39
Senwes Equipment was amalgamated into Agrifriend Equipment Senwes Equipment 14
Input trade and retail Labs and agricultural services during the 2021 financial year. Hinterland 20
Staalmeester 1
Hinterland Group NviroTek JD Implemente Bastion 3
[Senwes as majority stakeholder] NviroTek 1
[Subsidiary of Senwes] [Subsidiary of Senwes with the Tomlinson family as partner]
NviroTek Labs is one of the largest independent agricultural labora- Free State 48
The Hinterland Group, which encapsulates both the Senwes JD Implemente broadens Senwes Equipment’s geographical foot-
tories in Southern Africa. The group performs a multitude of labo- Senwes Equipment 23
Village and Suidwes retail branches, specialises in supplying input print by providing agri-mechanisation and maintenance solutions
ratory tests to assist with decision-making across various sectors.
products for a variety of farming practices through its retail and in the Western and Eastern Cape. Hinterland 24
fuel businesses. The group also offers a wide range of hardware Prodist 1
and convenience products to the general public. Senwes Agricultural Services Staalmeester Gauteng 7
[Division of Agri Credit Solutions] [Subsidiary of Senwes with the Coetzee family as partner] Senwes Equipment 2
KLK Retail and Fuel Senwes Agricultural Services specialises in agricultural econo Staalmeester expands Senwes Equipment’s product offering by Hinterland 2
[Subsidiary of Senwes] mic services, performance and technical efficiency analyses and manufacturing and importing agricultural equipment for small Prodist 1
benchmarking. and medium-sized producers. Agrinet 1
The KLK Landbou Group, through its retail branches and Build
It stores, as well as wholesale and retail fuel businesses, aims to Protek 1
distribute and sell agricultural input supplies as well as various Falcon Northern Cape 41
convenience products to the general public. [Subsidiary of Senwes] Senwes Equipment 2
MAIN BUSINESS DRIVER PROFIT BEFORE TAX (R’m) Hinterland 2
Falcon further increases the competitive edge of Senwes
KLK 37
Gross Profit % Equipment in the agri-sector by manufacturing and distributing
Home and garden pest control and 25,0% tractor-drawn implements and parts to the South African and Western Cape 5
plant nutrition 20,0% 23,2% sub-Saharan agricultural and turf markets. JDI 3
15,0%
Agrinet 1
Protek 16,8%
KLK vehicle trade and dealerships NviroTek 1
10,0%
[Senwes as a majority shareholder] KwaZulu Natal 1
5,0% [Subsidiaries of KLK Landbou]
Protek offers solutions in home and garden pest control and 148 Falcon 1
0% The KLK vehicle trade and dealerships encompass Nissan, Datsun,
plant nutrition. Its products are distributed to all leading hard- 2021 2020 Eastern Cape 9
584 Isuzu and Renault dealerships, as well as used vehicle trader, KLK
ware stores, nurseries, chain stores, co-operatives and indepen-
Auto. Senwes Equipment 6
dent retailers across South Africa. 2021 2020 JDI 3
20 SENWES INTEGRATED REPORT 2021 RESILIENCE RESILIENCE SENWES INTEGRATED REPORT 2021 21BUSINESS OVERVIEW – continued OVERVIEW THE BUSINESS STRATEGIC AND OPERATING CONTEXT CORPORATE GOVERNANCE FINANCIAL REVIEW
FOOTPRINT PER PROVINCE MAIN BUSINESS DRIVER PROFIT BEFORE TAX (R’m)
Northwest 31 Throughput tonnes (t’000)
MARKET ACCESS
Senwes Grainlink 11 4 000
215
Suidwes 14 3 000 3 224
SILO
OPTIMISATION INTELLIGENCE CENTRE PROPERTIES 186
SERVICES Grainovation 1 2 000 2 504
Grain Market Intelligence 5 1 000
Free State 69 -
HIGH PROBABILITY STOCK 2021 2020
SILO SILO LOGISTICS STOCK SALES SOLUTION
CERTIFICATES TRADING & PROCUREMENT DECISION ASSETS SPV Senwes Grainlink 52
OPERATIONS EXECUTION & DELIVERY DESIGN
OPTION BOOK MAKING Grain Market Intelligence 9
Suidwes 8 2021 2020
Gauteng 4
Senwes Grainlink 3
SENWES SECURITIES NUMBER OF BUSINESS UNITS PER PROVINCE
ESC 1
Northern Cape 5
Senwes Grainlink 4 31 4
Grain Market Intelligence 1
Market access
69
Senwes Grainlink 5
[Division of Senwes]
The grain divisions of both Senwes Grainlink and Suidwes spe-
cialise in the handling and storage of grain and oilseeds and are
positioned between the producer and the off-taker.
Silo certificates
Electronic Silo Certificates (ESC)
[Joint venture with AFGRI]
Electronic Silo Certificates (ESC) provides a safe and effective
way of managing electronic silo certificates via the internet or
smartphones.
Logistical optimisation
Grainovation
[Subsidiary of Senwes]
Grainovation is an asset-light logistics broker, focused on optimi
sing logistics across the Senwes Group.
Intelligence Centre
Grain Market Intelligence
[Division of Senwes]
Grain Market Intelligence focuses on high probability trading and
option book, grain procurement, stock decision-making, stock
offers via Basislink, delivery and solution design.
22 SENWES INTEGRATED REPORT 2021 RESILIENCE RESILIENCE SENWES INTEGRATED REPORT 2021 23BUSINESS OVERVIEW – continued OVERVIEW THE BUSINESS STRATEGIC AND OPERATING CONTEXT CORPORATE GOVERNANCE FINANCIAL REVIEW
PROCESSING, CONDITIONING AND MARKETS
SEED ABATTOIR & FEEDLOT RAISINS SKINS & HIDES MILLS
NUMBER OF BUSINESS UNITS PER PROVINCE
1 1
12
Seed Mills
Senwes Seed Africum Mills
[Division of Senwes] [Subsidiary of Senwes]
Senwes Seed established itself over decades as an excellent seed Africum Mills is located in Wolmaransstad in the Northwest
processor with a sound reputation amongst producers in the province and is linked to the group’s Wolmaransstad silo. The
market. mill can produce various maize products. Africum Mills has been
mothballed and is not currently operational. It is also held for
FOOTPRINT PER PROVINCE
sale.
Raisins Northwest 1
Botselo Mills Senwes Seed 1
Carpe Diem Raisins
[Senwes as a minority shareholder] Northern Cape 12
[Joint venture of KLK Landbou]
Botselo Mills is a family operated maize milling operation located KLK 12
Carpe Diem Raisins is an established brand name in the in- in Delareyville in the Northwest province. Botselo Mills produces a Gauteng 1
ternational raisin market. Carpe Diem Raisins buys, processes comprehensive range of quality white and yellow maize products.
and packages raisins which are organically produced along the KLK 1
The mill also has its own beer plant, which produces its own spe-
Orange River and markets it largely to the international market. cialised beer powder. Senwes’ share in Botselo Mills is currently
held for sale.
MAIN BUSINESS DRIVERS
Feedlot, abattoirs and auctioneering
Skins and hides Raisins sold (t'000) Skins sold and Slaughtered sheep
KLK Feedlot, Abattoirs and Auctioneering 20 hides processed ('000) count ('000)
600
[Division of KLK Landbou] SA Dorper 15
16
The KLK sheep feedlot aids in getting animals market-ready. [Joint venture of KLK Landbou] 400 500 462 400
10 12 420
KLK’s abattoirs and auctioneering sites handle the slaughtering 373
SA Dorper handles the processing and exporting of Dorper skins
and selling of lamb and beef carcasses in the Northern Cape. 5 200 246 200
and cattle hides. 185
0 0 0
2021 2020 2021 2020 2021 2020
Skins sold Hides processed
CORPORATE AND SHARED SERVICES
CENTRAL SPECIALIST HR & MARKETING CORPORATE
FINANCE CORPORATE COMPLIANCE
SERVICES COMMUNICATIONS PROGRAMMES
GROUP FINANCE CORPORATE BUSINESS CENTRAL INFORMATION CSI & SHAREHOLDER INTERNAL RISK SECURITY MARKETING
TREASURY PAYROLL SHEQ HR AGRIREWARDS
& TAX FINANCE ENGINEERING ADMINISTRATION TECHNOLOGY COMMUNICATION AUDIT MANAGEMENT UNIT COMMUNICATIONS
PROPERTY PROJECT
MANAGEMENT
24 SENWES INTEGRATED REPORT 2021 RESILIENCE RESILIENCE SENWES INTEGRATED REPORT 2021 25You can also read
