CEO: Review and strategic objectives/Uitvoerende Hoofbestuurder: Terugblik en strategiese oogmerke

A year in which fundamental cornerstones shook

The year under review contained many challenges for Grain SA and its members. You believe that you are in control of your environment and everything that affects it, but then factors outside your control shake what you regard as the fundamental principles. In such situations you cannot allow your emotions to rule your decisions; you have to think rationally. This is where an organisation like Grain SA can add value to the business of its producer members by negotiating a better dispensation on their behalf.

Land reform

Political statements on the drastic reform of farm land made in the year under review and also in January 2015 once again, reminded the local grain industry and the greater world of agriculture that the tail does not wag the dog. Producers produce sufficient and safe food for the country, but we cannot escape the reality that the majority party has the power to make and carry out decisions.

These events shook the grain industry and made us realise that our attitude towards land reform must leave room for innovative, proactive and inclusive solutions. The past year made great demands on Grain SA to contribute to this. Fortunately we can say that there are plans on the table already.

During the past year almost 40% of my capacity was spent on land reform, and one should not lose sight of the fact that Grain SA is a commodity organisation whose core business is grains and oilseeds. However, a core business of grain without land would be useless. The climate in grain production is definitely one of uncertainty – as is the economy with respect to input costs. Although demand and the food needed by people and animals are secure, land as base is currently very insecure. An effective production climate and agricultural land as factory are two fundamental matters that both contain inherent uncertainties. Both aspects required considerable attention during the past year

'n Jaar waarin fundamentele hoekstene geskud is

Die verslagjaar was een met baie uitdagings vir Graan SA en sy lede. Jy glo dat jy in beheer is van jou omgewing en alles wat 'n invloed daarop het, maar dan word dit wat jy as die fundamentele sien, deur faktore buite jou beheer geskud. In sulke situasies kan 'n mens nie toelaat dat emosies jou besluite oorheers nie; jy moet rasioneel dink. Dit is hier waar 'n organisasie soos Graan SA waarde tot sy produsentelede se besigheid kan toevoeg deur namens hulle te onderhandel vir 'n beter bedeling.

Grondhervorming

Politieke uitsprake oor die drastiese hervorming van landbougrond wat gedurende die jaar onder oorsig en opnuut in Januarie 2015 gemaak is, het die plaaslike graanbedryf én die groter landbougeheel opnuut daaraan herinner dat die stert nie die hond swaai nie. Produsente voorsien voldoende en veilige voedsel aan die land, maar ons kan nie wegkom van die realiteit dat die meerderheidsparty die mag het om besluite te neem en uit te voer nie.

Dié gebeure het die graanbedryf wakker geskud en die besef sterk na vore gebring dat ons ingesteldheid teenoor grondhervorming ruimte moet laat vir innoverende, proaktiewe en inklusiewe oplossings. Die afgelope jaar het groot eise aan Graan SA gestel om hierin ‘n bydrae te lewer. Gelukkig kan ons sê daar is reeds planne op die tafel.

Structures in agriculture

Organised agriculture and unity in agriculture clearly have not yet reached their end destination, although we are well on our way. With the unity forum, ASUF, as point of departure, the vehicle and structures with which agriculture is approaching the future are slowly but surely taking shape. The process is expected to gain new momentum in the coming year.

Skills and mentorship

Another major moment that I would like to emphasise is the energy, resources and focus invested by Grain SA in the skills development of our producers, leaders and staff. The emphasis here falls not only on technical skills, but also on the so-called soft skills like dealing with conflict, diversity, and how leadership should assert itself in new circumstances. They can use these skills effectively to the benefit of the producer in their negotiations with government officials and input suppliers.

Considerable energy was invested in the Grain SA/Syngenta Grain Academy, and the Young Leader Laboratory continues to establish the value of mentorship in the lives of our young grain leaders. We must use our relationships, networks and skills to find solutions together for major obstacles like land reform and restructuring.

Quite a number of Grain SA’s staff are currently continuing their studies. Almost all the staff in the Financial Department are involved in BCom or CA studies. Many of the staff are currently enrolled for courses and/or diploma courses. We have therefore placed a high premium on improving our skills pool.

Restructuring of research

Research enjoys a high priority at all times. Dr Marinda Visser, manager of Grain SA’s Industry Services, established a certain dynamic by diversifying grain-specific research and integrating it across the spectrum of the industry. This means that researchers from various institutions work for this organisation and its producers.

The project run by Dr Hendrik Smith has a conservation approach and attempts to turn producers into researchers so that the realities occurring at grassroots level are easier to get hold of more quickly, and producers can be integrated with research first hand.

Grain SA’s focus on accomplishing sustainability by taking climate change into account has introduced a new dimension. The entire conservation concept and drought-resistant cultivars came further to the fore this year. Food security – with the focus on mycotoxins – was the other matter that started to require attention. Something that I noticed in particular was how advanced the research was. Young researchers are currently conducting dynamic research on biotechnology in plants. In this way we are creating young capacity working on the newest biotechnology. This gives me hope that we shall be able to produce enough food for the country.

Job creation

The contribution of the grain industry to job creation in the country from 2008 to 2014 is clear from the graph below, which was compiled by the Central Statistical Services.

Strukture in landbou

Georganiseerde landbou en eenheid in landbou het duidelik nog nie ‘n eindbestemming bereik nie al is ons op pad daarheen. Met die eenheidsforum, ASUF, as vertrekpunt is die voertuig en strukture waarmee landbou die toekoms moet ingaan stadig maar seker besig om vorm aan te neem. Dit sal na verwagting in die komende jaar nuwe momentum kry.

Vaardighede en mentorskap

‘n Ander groot moment wat ek wil uitlig, is die energie, hulpbronne en fokus wat Graan SA in die vaardigheidsontwikkeling van ons produsente, leiers en personeel investeer. Hier val die klem nie net op tegniese vaardighede nie, maar ook op die sogenaamde sagte vaardighede, soos die hantering van konflik, diversiteit en hoe leierskap hulself in nuwe omstandighede moet handhaaf. Hulle kan hierdie vaardighede effektief benut tot die produsent se voordeel in hul onderhandelinge met regeringsamptenare en insetverskaffers.

Heelwat energie is in die Graan SA/Syngenta Graanakademie belê en die Jong-leierslaboratorium gaan voort om die waarde van mentorskap in ons jong graanleiers se lewens te vestig. Ons moet met ons verhoudinge, netwerke en vaardighede saam oplossings vind vir belangrike struikelblokke soos grondhervorming en herstrukturering.

Heelwat van Graan SA se personeel is tans besig om verder te studeer. Omtrent al die personeel in die Finansiële Departement is besig met BCom- of GR-graadstudies. Talle van ons personeel volg tans kursusse en/of diplomakursusse. Ons het dus ‘n hoë premie daarop gesit om ons vaardigheidspoel te verbeter.

Herstrukturering van navorsing

Navorsing geniet deurgaans ‘n hoë prioriteit. Dr Marinda Visser, bestuurder van Graan SA Bedryfsdienste, het ‘n stuk dinamika gevestig deur graanspesifieke navorsing te diversifiseer en dit sodoende oor die spektrum van die bedryf te integreer. Dit bring mee dat navorsers van verskeie instansies vir hierdie organisasie en sy produsente werk.

Die projek wat dr Hendrik Smith met ‘n bewaringsbenadering dryf, is om van produsente navorsers te maak, want dan kry jy die werklikhede wat op grondvlak gebeur makliker en vinniger in die hande en produsente skakel eerstehands by navorsing in.

Graan SA se fokus om volhoubaarheid te bewerkstellig deur klimaatsverandering in ag te neem, het ‘n nuwe dimensie gebring. Die hele bewaringskonsep en droogteverdraagsame kultivars het vanjaar verder na vore getree. Voedselveiligheid – met die fokus op mikotoksiene – is die ander saak wat aandag begin vereis. Iets wat my in besonder opgeval het, is hoe gevorderd die navorsing is. Op die oomblik doen jong navorsers dinamiese navorsing oor biotegnologie in plante. So is ons besig om jong kapasiteit te skep wat op die nuwe biotegnologie fokus. Dit gee my hoop dat ons genoeg kos vir die land sal kan produseer.

Werkskepping

Die graanbedryf se bydrae tot werkskepping in die land vanaf 2008 tot 2014, blyk duidelik uit die grafiek hieronder wat deur die Sentrale Statistiekdiens saamgestel is.

Ná ‘n strategiese besluit deur Graan SA het ons graanprodusente aangemoedig om ter wille van voedselsekerheid meer te plant – en dat ons die produkte sal uitvoer en die markte sal groei. As ‘n strategiese intervensie het dit ‘n positiewe invloed op werkskepping in die landbousektor gehad en goeie momentum is opgebou. Daarenteen het politieke uitsprake oor grondhervorming deur die regering gedurende 2014 ‘n merkbare negatiewe impak hierop gehad.

Our members' attention is constantly drawn to best labour practices through a column on this in SA Graan/Grain, the organisation’s monthly grain magazine.

Grain SA’s external image

During the past year attention was given to the organisation’s external image in more than one area. Examples are as follows:

• Grain SA’s regional offices – as a destination for all our members – received a facelift during the past year. Signage was put up at the offices and they were equipped with better office furniture and equipment. The opening of a third regional office in the Eastern Cape in Maclear in August last year by the Minister of Agriculture, Forestry and Fisheries, Senzeni Zokwana, was a good strategic completion of the process.
• Independent media monitoring indicated that the grain industry’s exposure to the English media increased over the past year. Although this is definitely positive for our media profile, it is encouraging that the keywords identified by the monitoring included the core aspects of Grain SA’s message and strategy. We would like to acknowledge the continued support of the Afrikaans media for the cause of the grain producer.
• The Marketing Division successfully promoted Grain SA’s presence on the social media platforms Facebook and Twitter this year. I feel that our communication footprint is now well established and that it includes the mainstream media, internet, digital media and electronic and printed publications. Finding the right mix of media to reach our target markets at all times remains a constant focus point.
• Recognition and acknowledgement of successful grain producers and role-players in research remain a priority. The Grain Producer of the Year event in Midrand the past year was a celebration of the full scope of the grain industry – from subsistence farming and new-era commercial farmers to large-scale commercial producers. The traditional awards were replaced by various categories – which created room for different producers with different capacities without them being weighed against each other. A highlight of this special evening was the presence of Minister Zokwana.
• Grain SA’s NAMPO Harvest Day once again ensured an effective networking opportunity with our members this year. The opening of a new members' hall during the Harvest Day week created a hospitable atmosphere in which we could liaise with members. The same hospitality was demonstrated at Grain SA’s members’ tent at the Agri Mega Week in Bredasdorp.
• A donation of 12 tons of maize meal was made in July this year to the victims of the mining strikes in the Rustenburg platinum belt. Grain SA, in collaboration with Pioneer Foods and Loubser Transport, launched the action in terms of which the meal was delivered and distributed effectively.
• The Grain SA staff got to work in July during an outreach to the Bramley Children’s Home for the 2014 Mandela Day 67 Minutes initiative. The staff did some painting at the children’s home and Grain SA provided the children's home with maize meal and the children received gift packages.

Finance

In an environment with hundreds of qualified audit reports, Grain SA once again obtained an unqualified audit and the factual findings of the Maize Trust and other trusts with respect to funding were also in order.

Ons lede se aandag is deurgaans gevestig op beste arbeidspraktyke deur middel van ‘n rubriek hieroor in SA Graan/Grain, die organisasie se maandelikse graantydskrif.

Graan SA se eksterne beeld

Die afgelope jaar is daar op meer as een terrein aandag geskenk aan die organisasie se beeld na buite. Voorbeelde hiervan is soos volg:

• Graan SA se streekkantore – as ‘n bestemming vir al ons lede – het oor die afgelope jaar ‘n gesigwas ondergaan. Naamborde is by die kantore aangebring en dit is toegerus met beter kantoormeubels en toerusting. Die opening van 'n derde Oos-Kaapse streekskantoor op Maclear, in Augustus verlede jaar deur die minister van Landbou, Bosbou en Visserye, Senzeni Zokwana, was ‘n mooi strategiese afhandeling van die proses.
• Onafhanklike mediamonitering het aangetoon dat die graanbedryf se blootstelling aan die Engelse media oor die afgelope jaar verhoog het. Hoewel dit beslis positief is vir ons mediaprofiel, is dit bemoedigend dat die trefwoorde wat na vore kom uit die monitering, die kernaspekte van Graan SA se boodskap en strategie insluit. Ons erken ook graag die Afrikaanse media se volgehoue ondersteuning van die saak van die graanprodusent.
• Die Bemarkingsafdeling het Graan SA se teenwoordigheid vanjaar suksesvol op die sosiale media platforms Facebook en Twitter bekend gestel. Ek reken dat ons kommunikasievoetspoor nou goed gevestig is en die hoofstroom media, internet, digitale mediums asook elektroniese en gedrukte publikasies insluit. Ten einde die regte mengsel van media te vind om ons teikenmarkte deurgaans doeltreffend te bereik, bly ‘n konstante fokusarea.
• Erkenning en verering van suksesvolle graanprodusente en rolspelers in navorsing, bly ‘n prioriteit. Die afgelope jaar se Graanprodusent van die Jaar-geleentheid wat in Midrand plaasgevind het, was vir my ‘n viering van die graanbedryf se volle omvang vanaf bestaansboerdery, nuwe era kommersiële boere tot by grootskaalse kommersiële produsente. Die gebruiklike toekennings het plek gemaak vir verskeie kategorieë – wat ‘n spasie geskep het waarin verskillende produsente van verskillende kapasiteite vereer kon word sonder om teen mekaar opgeweeg te word. ‘n Hoogtepunt van dié besondere aand, was die teenwoordigheid van minister Zokwana.
• Graan SA se NAMPO Oesdag het vanjaar weer vir 'n doeltreffende netwerkgeleentheid met ons lede gesorg. Die ingebruikneming van ‘n nuwe ledelokaal tydens die Oesdagweek het ‘n gasvrye atmosfeer geskep waarin ons met lede kon skakel. Dieselfde gasvryheid kon gedemonstreer word by Graan SA se ledetent by die Agri Megaweek op Bredasdorp.
• ‘n Donasie van 12 ton mieliemeel is in Julie vanjaar gemaak aan slagoffers van die mynstakings in die Rustenburg platinumgordel. Graan SA, in samewerking met Pioneer Foods en Loubser Transport, het die uitreik van stapel gestuur waarvolgens die meel afgelewer en doeltreffend versprei is.
• Die personeelspan van Graan SA het in Julie hul moue opgerol tydens ‘n uitreik na die Bramley-kinderhuis vir die 2014 Mandeladag 67 minute-inisiatief. Personeel het hulself handig gemaak met verfwerk by die kinderhuis, Graan SA het mieliemeel aan die kinderhuis voorsien en die kinders het geskenkpakkies ontvang.

Finansies

In ‘n milieu van honderde gekwalifiseerde ouditverslae het Graan SA weer eens ‘n ongekwalifiseerde oudit gekry en die feitelike bevindings van die Mielietrust en ander trusts ten opsigte van befondsing, was ook in orde.

Die heffingaanpassing wat tydens die 2014 Kongres goedgekeur is, is geïmplementeer en het positiewe resultate meegebring. Produksiegewys het die bedryf ‘n goeie graanjaar agter die rug en die styging in die heffingsfonds is ‘n aanduiding dat ons lede die heffing goed ondersteun het. Ons is egter steeds in ‘n proses om aan volhoubare finansiering en die verhoging van die persentasie heffingbetalers aandag te gee. Intussen behou Graan SA sy outonomiteit aangesien dit ‘n vrywillige organisasie is wat homself befonds. Tans sorg die heffinginkomste vir sowat ‘n derde van die totale inkomste – die res word verkry uit die NAMPO Oesdag, SA Graan/Grain, beleggings en trusts.

Prospects

A number of fundamental questions were asked during the year under review regarding the current appearance of organised agriculture as a vehicle. This leads to the question as to how Grain SA should be structured internally.

The relocation of the head office to Pretoria was the start of a cultural shift for the organisation, although the structure was left largely unchanged at the time. In the season ahead we will have to reflect on how we can adapt the structure to provide an even better service to our producer members, and we should focus on relevant matters that help to create an ideal climate within which all sizes of producers can flourish. If necessary, Grain SA’s resources and areas of influence should be re-aligned.

The promotion of new and more sustainable export markets for grains remains a key focus area for Grain SA. Innovative interventions are investigated all the time to capitalise on these market opportunities. Particular emphasis is placed on the establishment of alternative markets for maize (which could even include Asia, the Middle East and further afield) outside the traditional markets in Africa. The signing of a phytosanitary protocol for exporting maize to China by the governments of South Africa and China in December 2014 paved the way for the local industry to produce surpluses that can be exported to China.

This export market for maize was initiated in 2011 by a previous chairperson of Grain SA, Neels Ferreira, and Tina Joemat-Pettersson, the previous Minister of Agriculture, Forestry and Fisheries. Grain SA would like to thank Minister Zokwana and the staff of the Department of Agriculture, Forestry and Fisheries for their hard work in finalising this agreement.

Conclusion and thanks

Thank you to every member of Grain SA for their contributions towards the levy fund. A special word of thanks to the institutions that act as collection agents and the agricultural input providers who provide financial support to the cause of the grain producer in South Africa.

The excellent guidance provided by our chairperson, Louw Steytler, and the inputs and cooperation of the rest of the leadership place the organisation in a class of its own. It is therefore understandable that Grain SA’s executive team and staff once again succeeded in keeping the flag of agriculture flying with purpose – regardless of the punishing pace and the additional pressure added to the grain agenda by current affairs.

I conclude with the following thought: In a time of change we should continue to do the right things, regardless of what happens around us. We cannot allow uncertainties to change our character and affect stability in agriculture. Retain integrity and leadership and guard against slipping into politicking – we must remain grain producers.

Grain greetings

JF DE VILLIERS
Chief Executive Officer

Vooruitsigte

‘n Klomp fundamentele vrae is gedurende die jaar onder oorsig gevra oor hoe die georganiseerde landbou-voertuig tans lyk. In aansluiting hierby kan die vraag tereg gevra word oor hoe Graan SA intern gestruktureer moet wees.

Die hervestiging van die hoofkantoor in Pretoria was die begin van ‘n kultuurskuif vir die organisasie, hoewel die struktuur destyds grootliks onveranderd gelaat is. In die seisoen wat voorlê, sal besin moet word oor hoe die struktuur kan aanpas om ons produsentelede nog beter te bedien en met die fokus op relevante aangeleenthede wat ‘n ideale klimaat help skep waarbinne alle groottes produsente kan gedy. Indien nodig, moet Graan SA se hulpbronne en gebiede waar ‘n invloed uitgeoefen word, herbelyn word.

Vir Graan SA bly die bevordering van nuwe en meer volhoubare uitvoermarkte vir grane ‘n sleutelfokusarea. Innoverende intervensies word deurlopend ondersoek ten einde op hierdie
markgeleenthede te kapitaliseer. Klem word veral geplaas op die vestiging van alternatiewe markte vir mielies (wat selfs Asië, die Midde-Ooste en verder kan insluit), buite die tradisionele markte in Afrika. Die ondertekening, vroeg in Desember 2014, van ‘n fitosanitêre protokol vir die uitvoer van mielies na China deur die regerings van Suid-Afrika en China, baan die weg vir die plaaslike bedryf om surplusse te produseer wat daarheen uitgevoer kan word.

Hierdie uitvoermark vir mielies is reeds in 2011 geïnisieer deur ‘n voormalige voorsitter van Graan SA, Neels Ferreira, en Tina Joemat-Pettersson, die vorige minister van Landbou, Bosbou en Visserye. Graan SA bedank minister Zokwana en die personeel van die Departement van Landbou, Bosbou en Visserye vir hulle harde werk om hierdie ooreenkoms te finaliseer.

Afsluiting en dank

Dankie aan elke lid van Graan SA vir sy/haar bydrae tot die heffingsfonds. ‘n Spesiale woord van dank aan die instansies wat as vorderingsagente optree asook die landbou-insetverskaffers wat die saak van die graanprodusent in Suid-Afrika finansieel ondersteun.

Die uitstekende leiding verskaf deur ons voorsitter, Louw Steytler, en die insette en samewerking van die res van die leierskap, plaas die organisasie in ‘n klas van sy eie. Dit is dus te verstane dat Graan SA se uitvoerende bestuurspan en personeelkorps weer eens daarin kon slaag om die landbouvlag vanjaar doelgerig te laat wapper – ongeag ‘n strawwe tempo én die bykomende druk wat sake van die dag op die graanagenda plaas.

Ek sluit af met die volgende gedagte: In ‘n tyd van verandering moet ons aanhou om die regte dinge te doen, ongeag van wat rondom ons gebeur. Ons kan nie toelaat dat onsekerhede ons karakter verander en die stabiliteit in landbou aantas nie. Behou integriteit en leierskap en waak daarteen om in politiekery te verval – ons moet graanprodusente bly.

Graangroete

JF DE VILLIERS
Uitvoerende Hoofbestuurder