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6
A
fter another tough year in agriculture, grain and oilseeds pro-
ducers are currently under great financial pressure as a result
of the ongoing drought and irregular climatic conditions during
the past five production cycles. Low international grain prices have also
placed a further damper on the profitability of the grain producer.
Consequently, producers have major carryover debt and negative cash
flow scenarios that limit credit opportunities and financial sustainability.
The political climate, which includes the debate on land reform and
wrangling about the control of trust funds, unfortunately also did not
benefit agriculture.
However, producers can be reassured by the fact that various success-
ful actions promoting the grain industry were undertaken and complet-
ed by Grain SA during the reporting period up to September 2019. The
Grain SA team is grateful that we were able to spend considerable time
at grassroots level in a very difficult period for our members.
SUCCESSES
Financial statements
Despite a challenging year, Grain SA again reported steady financial
results. Members will note that our finances are positive and that
Grain SA has once again received and unqualified audit.
TURNAROUND STRATEGY FOR WHEAT
After almost two years of negotiations the Wheat Forum has reached
consensus on new specifications for grading and on the price
differences between the different grades. A large quantity of grain
that is delivered now falls in the new super-grade specification
because of high protein levels. This means that producers earn a
premium of 2% above the Safex wheat price.
These positive changes in a dry season support producers and
sustainable food production.
BARLEY CROP
Due to climatic conditions, the barley crop produced a lower yield
and quality. A new concession, namely that a greater part of the crop
may be accepted as malt barley, was consequently negotiated with
AB InBev by Grain SA. The impact of the significantly lower price for
feed barley was therefore reduced.
Research contracts
Medium-term contracts were signed by Grain SA and the Department
of Science and Innovation, signifying a major investment by the
government in research for the grain and oilseeds industry. The
progress of the wheat breeding consortium highlights the value of
collaboration between the government and the agricultural research
initiatives facilitated by Grain SA.
Significant progress has been made by research consortiums. Crop
protection challenges were underlined by the occurrence of and losses
attributed to Sclerotinia infection, and a focused team was appointed
N
a nog ’n strawwe jaar in landbou is graan- en oliesadeprodusente
tans onder groot finansiële druk as gevolg van die voortgesette
droogte en onreëlmatige klimaatstoestande die afgelope vyf
produksiesiklusse. Lae internasionale graanpryse het ook ’n verdere
skaduwee oor die winsgewendheid van die graanprodusent laat val.
Produsente ondervind gevolglik groot oordragskuld met negatiewe
kontantvloeiscenario's wat kredietgeleenthede en finansiële volhou-
baarheid beperk. Die politieke klimaat, waaronder die debat oor
grondhervorming en ’n toutrekkery oor die beheer van trustfondse, was
ongelukkig ook nie bevorderlik vir die landbouklimaat nie.
Produsente kan egter bemoediging daarin vind dat daar in die verslag-
tydperk tot September 2019 verskeie suksesvolle aksies ter bevordering
van die graanbedryf deur Graan SA onderneem en afgehandel is. Die
Graan SA-span is dankbaar dat ons baie tyd op grondvlak kon spandeer in
’n tyd wat dit werklik moeilik gaan met ons lede.
SUKSESSE
Finansiële state
Ten spyte van ’n uitdagende jaar het Graan SA weer eens bestendige
finansiële resultate getoon. Lede kan kennis neem dat ons finansies positief
vertoon en dat Graan SA weer ’n ongekwalifiseerde oudit ontvang het.
OMDRAAISTRATEGIE VIR KORING
Na bykans twee jaar van onderhandelings het die Koringforum konsen-
sus bereik oor nuwe spesifikasies vir die gradering asook oor die prys-
verskille tussen die verskillende grade. ’n Groot hoeveelheid graan wat
gelewer word, val nou binne die nuwe supergraad spesifikasie, danksy
hoë proteïenvlakke. Dit het tot gevolg dat produsente ’n premie van 2%
bo die Safex-koringprys verdien.
Hierdie positiewe veranderinge in ’n droë seisoen is ondersteunend vir
produsente en volhoubare voedselproduksie.
GARSOES
Die garsoes het weens klimaatomstandighede ’n swakker opbrengs en
kwaliteit gelewer. Gevolglik is ’n nuwe toegewing, dat ’n groter deel van
die oes as moutgars ingeneem kon word, deur Graan SA met AB InBev
beding. Die impak van die noemenswaardige laer prys van voergars is
gevolglik verminder.
Navorsingskontrakte
Mediumtermyn-kontrakte is tussen Graan SA en die Departement van
Wetenskap en Innovasie onderteken wat ’n groot belegging deur die
regering in navorsing vir die graan- en oliesadebedryf beteken. Die
koringteelkonsortium se vordering toon die waarde van samewer-
king tussen die regering en die landbounavorsingsinisiatiewe deur
Graan SA gefasiliteer.
Beduidende vordering is gemaak met navorsingskonsortiums. Gewas-
beskermingsuitdagings is uitgelig deur die voorkoms en verliese wat aan
Sclerotinia-infeksie toegeskryf is en ’n gefokusde span is saamgestel om
Chief Executive Officer’s review and strategic objectives
Uitvoerende Hoofbestuurder se terugblik en strategiese oogmerke
A difficult year, but still
one that helped
to build strength
’n Moeilike jaar, maar tog
een wat spierkrag
help bou het