Landbou-ondernemings Prestasiemetingsopname 2006 Agri ... · 2.5 Voorraad 68 2.5 Stock 2.6...

Bedryf / IndustryLandbou / Agriculture

PwC

Landbou-ondernemings Prestasiemetingsopname 2006 Agri Businesses Benchmarking Survey 2006

PricewaterhouseCoopers het redelike professionele sorg en noukeurigheid aan die dag gelê met die saamstel, verwerking en rapportering van die inligting. Die data is egter van derdepartybronne afkomstig en is nie onafhanklik deur PricewaterhouseCoopers geverifieer, bevestig of geoudit nie. PricewaterhouseCoopers verskaf geen waarborge en doen geen voorstelle ten opsigte van die inligting se juistheid en of dit geskik is vir die doel waarvoor gebruikers dit inspan nie.

PricewaterhouseCoopers kan nie deur enige gebruiker van die verslag of enige ander persoon of entiteit aanspreeklik gehou word wat die inligting se juistheid of enige weglatings of foute in die inhoud daarvan betref nie, ongeag die oorsaak van sulke onakkuraatheid. Voorts sal PricewaterhouseCoopers onder geen omstandighede aanspreeklik gehou kan word vir die gevolglike, toevallige of strafbare skade aan enige persoon of entiteit ten opsigte van enige saak sover dit hierdie inligting betref nie.

PricewaterhouseCoopers has exercised reasonable professional care and diligence in the collection, processing, and reporting of this information. However, the data used is from third party sources and PricewaterhouseCoopers has not independently verified, validated or audited the data. PricewaterhouseCoopers makes no representations or warranties with respect to the accuracy of the information, nor whether it is suitable for the purposes to which users put it.

PricewaterhouseCoopers shall not be liable to any user of this report or to any other person or entity for any inaccuracy of this information or any errors or omissions in its content, regardless of the cause of such inaccuracy, error or omission. Furthermore, in no event shall PricewaterhouseCoopers be liable for consequential, incidental or punitive damages to any person or entity for any matter relating to this information.

ContentsInhoudsopgawe

Bladsy / Page

Voorwoord 3 PrefaceBestuursopsomming 5 Executive summaryGebruik van die publikasie 13 Use of this publicationDie Bedryf 15 The IndustryWinsgewendheid 18 Profitability1.1 Bate-omsetkoers 18 1.1 Asset turnover rate1.2 Netto inkomsteverdeling 22 1.2 Net profit composition1.3 Bate-opbrengskoers 26 1.3 Return on assets1.4 Netto winspersentasie 35 1.4 Net profit percentage1.5 Bruto winspersentasies 39 1.5 Gross profit percentage1.6 Rentedekking 43 1.6 Interest coverage1.7 Silobenutting 45 1.7 Silo utilisation1.8 Silo-tariewe 46 1.8 Silo tariffs1.9 Direkteursvergoeding 46 1.9 Directors’ remuneration1.10 Werkswinkeltarief 47 1.10 Workshop tariff1.11 Departementele personeelkoste 47 1.11 Departmental staff costs1.12 Rekenaarkoste 50 1.12 Computer costsBalansstaatstruktuur 51 Balance sheet structure2.1 Totale bate verdeling 52 2.1 Total asset composition2.2 Ekwiteit en aanspreeklikhede verdeling 57 2.2 Equity and liability composition2.3 Bedryfskapitaalverhouding 62 2.3 Operating capital ratio2.4 Ekwiteitsverhoudings 64 2.4 Equity ratios2.5 Voorraad 68 2.5 Stock2.6 Debiteure 73 2.6 DebtorsMetodologie 80 MethodologyOor PricewaterhouseCoopers 83 About PricewaterhouseCoopersNotas 88 Notes

Landbou Besighede Prestasiemetingsopname 2006 / Agri Businesses Benchmarking Survey 2006 1

� Landbou Besighede Prestasiemetingsopname 2006 / Agri Businesses Benchmarking Survey 2006


Landbou-ondernemings word deurlopend uitgedaag om hulle belanghebbers te versorg en te laat groei. Hulle moet hierdie verantwoordelikheid effektief gestand doen deur dienslewering te balanseer met die diens van kapitaal teen markverwante koerse. Terwyl hulle dit doen, moet landbou-ondernemings heeltyd bewus wees van die dinamiese en veranderende omgewing waarin hulle werksaam is, en aanpas by hierdie veranderinge. Die een ding wat die geskiedenis egter gewys het, is dat Suid-Afrikaanse landbou-ondernemings by uitnemendheid die vermoë het om nie net te oorleef nie, maar ook onder uitdagende omstandighede te presteer.

PricewaterhouseCoopers en die Landboubesigheidskamer poog voortdurend om op nuwe en kreatiewe maniere landbou-ondernemings in te lig en by te staan om die uitdagings binne die internasionale en plaaslike landboubesigheidsomgewing doeltreffend aan te pak. Die PricewaterhouseCoopers Prestasiemetingsopname is een van die belangrikste inisiatiewe in hierdie verband. Hierdie opname bied bedryfs-rolspelers die geleentheid om hulle aktiwiteite onderling te vergelyk. Die primêre doel van hierdie dokument is om vergelykbare data aan landbou-ondernemings te voorsien om besluitneming te ondersteun in die proses van voortdurende verbetering.

Ek bedank graag PricewaterhouseCoopers en die finansiële bestuurders van die deelnemende landbou-ondernemings vir kwaliteit insette om ’n uitstekende produk daar te stel. Landbou-ondernemings se aktiewe deelname in hierdie studie verseker dat die resultate wat verkry word iedere jaar meer relevant is en landbou-ondernemings nog beter ondersteun om die uitdagings wat hulle in die gesig staar die hoof te bied.

Die studie beklemtoon weereens die uitdaging

Voorwoord Preface

Agricultural enterprises face the continuous challenge of taking care of their stakeholders and letting them grow. They must carry out this responsibility efficiently by balancing service delivery with the service of capital against market-related rates. While they are doing this, agri enterprises must constantly be aware of the dynamic and changing environment in which they are operating, and adapt to these changes. However, the one thing

that history has shown is that South African agri industries have the exceptional ability to not only survive, but also to perform well amidst challenging circumstances.

PricewaterhouseCoopers and the Agricultural Business Chamber continuously try to inform and assist agri businesses in new and creative ways in order to tackle the challenges in the international and local agri business environment effectively. The PricewaterhouseCoopers Benchmarking Survey is one of the most important initiatives in this regard. This survey offers industry role-players the opportunity to compare their activities among themselves. The primary aim of this document is to provide comparable data to agri businesses in order to support decision-making in the process of ongoing improvement.

I would like to thank PricewaterhouseCoopers and the financial managers of the participating agri businesses for quality input to ensure an excellent product. The active participation of agri businesses in this study ensures that the results obtained are more relevant each year and support agri businesses even better in overcoming the challenges they face.

The study again emphasises the challenge to agri businesses of balancing client service with the optimal utilisation of capital and assets available to them. This benchmarking exercise offers you the opportunity to look at your performance in a critical manner, debate it, understand it better, improve


aan landbou-ondernemings om kliëntediens te balanseer met die optimale aanwending van kapitaal en bates tot hulle beskikking. Hierdie normvergelykingsoefening bied aan u die geleentheid om u prestasie krities onder die loep te neem, te debatteer, beter te verstaan, swak punte te verbeter en ook om sterk punte nog verder uit te bou. Normvergelykingsoefeninge is, per definisie, ’n vergelyking met die gemiddelde en ek wil graag landbou-ondernemings aanmoedig om nie hierdie studie te gebruik om te streef na die gemiddeld nie, maar om kritiese denke aan die dag te lê om sodoende beste praktyk te ontwikkel waarna die res van die industrie kan streef.

Corwyn BothaVoorsitter: Landboubesigheidskamer

Chairperson: Agricultural Chamber of Commerce

Voorwoord Preface

weak points and also improve further on strong points. Benchmarking surveys are, by definition, a comparison with the average and I would like to encourage agri businesses not to use this study to aim for the average, but to apply critical thought in order to develop the best practice to which the rest of the industry can aim.


Hierdie verslag is die tweede amptelike PricewaterhouseCoopers prestasiemetingsopname van landboumaatskappye/-koöperasies (verder na verwys as landbou-ondernemings). Dit handel oor die finansiële resultate waaroor verslag gedoen is in 2006 vir die bedryf wat hoofsaaklik insette en dienste lewer aan produsente.

Die opname bied ’n vergelyking tussen die resultate van organisasies in streke met uiteenlopende klimaatsomstandighede, groottes en finansiële jaareindes teen die agtergrond van vertroulikheid. Inligting vir die samestelling van die prestasiemetingsprofiel is verkry vanuit vraelyste wat deur deelnemers self voltooi is, asook vanuit hulle finansiële state. Die inligting is gedurende Januarie 2007 ingesamel.

Ekonomiese agtergrond

Die jongste prestasiemeting van landbou-ondernemings is teen die agtergrond van ’n wisselende Suid-Afrikaanse geldeenheid gedoen, wat gedurende die aanvang van 2005 by tye tot onder die vlak van R6.00 per Amerikaanse dollar verhandel het. Te midde hiervan het die internasionale pryse van landbouprodukte sywaarts tot laer geneig.

Hierdie milieu het meegebring dat die landbou met resessietoestande moes worstel. Terselfdertyd moes die landbou ook aandag gee aan die nuwe politieke en maatskaplike realiteite van die Suid-Afrikaanse omgewing.

Buiten weerstoestande was daar in die breë aansienlike druk op die landbou waarvan produsente kennis moes neem om dit uiteindelik die hoof te bied.

Die prestasiemetingsopname het oor ‘n tydperk vanaf Maart 2005 tot September 2006 gestrek. Gedurende hierdie negentien maande het die landbou-ekonomiese omstandighede heelwat verander.

Bestuursopsomming Executive summary

This report is the second official PricewaterhouseCoopers benchmarking survey of agricultural companies/cooperatives (hereafter referred to as agricultural enterprises). It covers the financial results reported in 2006 for the industry that mainly provides input and services to producers.

The survey offers a comparison of the results of organisations in regions

with diverse climates, sizes and financial year-ends against the background of confidentiality. Information for compiling the benchmarking profile was obtained from questionnaires completed by the participants themselves, as well as from financial statements. The information was gathered during January 2007.

Economic background

The latest benchmarking of agricultural enterprises was done against the background of a stronger South African currency, which was occasionally trading at below R6.00 to the American dollar at the start of 2005. In this environment, the international prices of agricultural products tended to drop or remain the same.

These circumstances also made the agricultural industry struggle with recession-like conditions. At the same time, the agricultural industry also had to pay attention to the new political and social realities in South Africa.

Apart from the weather conditions, there were generally significant pressures on agriculture. Producers had to be aware of these in order to eventually combat them.

The benchmarking survey stretched over a period from March 2005 to September 2006. During these nineteen months, the socio-agricultural conditions changed considerably.


Lae produkpryse weens die ooraanbod en die sterkte van die plaaslike geldeenheid, ongunstige weersfaktore en stygende brandstof pryse het die winsgewendheid van veral die graansektor onder druk geplaas. Produsente het primêr gepoog om bedrywighede te konsolideer en die negatiewe impak van die vorige moeilike produksiejare teen te werk deur regstreekse insetkoste te beperk en maksimum opbrengsgebiede te benut. Onderverwagte opbrengste in sekere gebiede en veral lae produkpryse het produsente se finansiële volhoubaarheid verder onder druk geplaas.

In die tydperk onder oorsig het dit duidelik geword dat internasionale voorraadvlakke van grane, soos mielies en koring, twintig- tot dertig-jaar laagtepunte bereik het. Die groeiende bio-energiebedryf en swak winteroeste wat in die Suidelike Halfrond verwag is weens weersomstandighede, het egter later gedurende die opname-tydperk die vraag na grondstowwe verhoog en die internasionale pryse van grane en oliesade sterk opwaarts gedruk.

Aangesien produsente by die aanvang van die tydperk onder oorsig groter hoeveelhede graan vir langer tydperke teruggehou het, het die silo-deurset en benutting daarvan vir landbou-ondernemings aansienlik in vergelyking met vorige jare verbeter. Hantering- en opbergingstariewe was egter onderhewig aan streng mededinging.

Meganisasie is swaar deur die ongunstige finansiële posisie van produsente getref. Met die afskaling van aanplantings het die behoefte aan onderdele vir die herstel van toerusting ook afgeneem.

In die suidelike streke was die algemene ekonomiese omgewing aanvanklik meer positief, met ’n lae inflasiekoers, lae rentekoerse, aanvaarbare ekonomiese groei en politieke stabiliteit. Die inflasiekoers het egter in die laaste gedeelte van die periode onder oorsig begin verander, wat opeenvolgende rentekoersverhogings tot gevolg gehad het.


Low product prices owing to the oversupply and the strength of the local currency, unfavourable weather conditions and rising fuel costs placed the profitability of the grain sector in particular under pressure. Producers’ primary aim was to consolidate activities and counter the negative impact of previous difficult production years by limiting direct input costs and deriving benefit from areas with maximum yield. Lower than expected yields in certain areas and low product prices in particular placed producers’ financial sustainability under further pressure.

In the period under review it became clear that international supply levels of grains, such as maize and wheat, had reached the lowest levels in twenty to thirty years. However, the growing bio-energy industry and poor winter harvests expected in the Southern Hemisphere because of weather conditions caused an upward push in the demand for raw materials as well as international prices of grains and oil seeds.

Because producers kept grain back for longer periods at the start of the period under review, the silo through-put and its utilisation for agri enterprises increased significantly compared to previous years. Handling and storage fees were, however, subject to tough competition.

Mechanisation was hit hard by the unfavourable financial position of producers. With planting being downscaled, the need for spare parts for repairing equipment also reduced.

In the southern regions, the general economic environment was initially more positive, with a low inflation rate, low interest rates, acceptable economic growth and political stability. However, the inflation rate started changing in the last part of the period under review, which resulted in consecutive rate increases.

Landbou Besighede Prestasiemetingsopname 2006 / Agri Businesses Benchmarking Survey 2006 �

Die 2006-wynoeste was, hoewel tot ’n mate normaal, nie voldoende om die negatiewe gevolge van die vorige twee jare uit te kanselleer nie. Dit was veral die lae pryse wat vir produkte behaal was weens internasionale surplusse, wat die totale boerderywinsgewendheid onder druk gehou het.

Produkte wat uitgevoer word, waaronder tafeldruiwe, vrugte en wyn is nadelig beïnvloed deur die wisselkoers, terwyl plaaslik verbruikte produkte soos koring, melk en pluimvee se pryse aan in- en uitvoerpariteit gemeet is.

Landbou-ondernemings se rente-inkomste was egter hoër as gevolg van oorlaatskuld wat ontstaan het nadat die oeste wat ingesamel is, onvoldoende was om insetkoste te dek.

Vernaamste bevindinge

Die volgende bevindinge berus op data wat van die landbou-ondernemings ontvang en verwerk is en verteenwoordig ’n bewese en omvattende oorsig van hierdie sektor in die Industrie. Die vernaamste bevindinge kan soos volg opgesom word:

Areas van grootste sukses

Kredietbeheer is verskerp en word voortdurend op hoër vlakke bestuur. Die hulpprogramme, wat daarop ingestel is om produsente by te staan wat die druk van laer produkpryse moes absorbeer, het verhoed dat die landbou in die algemeen skade ly.

Die inisiatiewe om waarde toe te voeg, skep nuwe geleenthede vir die landbouer en help om die algemene landbou ekonomiese omstandighede te verbeter.

Die kontantvloeisituasies van veral groter landbou-ondernemings is verbeter. Dit dra

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Although the 2006 wine harvests were normal to a certain degree, they were not sufficient to cancel out the negative effect of the two preceding years. The low prices obtained for products due to international surpluses were a leading cause of keeping the total farming profitability under pressure.

Products that are exported, including table grapes, fruit and wine were negatively affected by the exchange rate while the prices of products consumed locally, such as wheat, milk and poultry were measured against import and export parity.

The revenue from interest of agricultural enterprises was, however, higher due to deferred debt that came about after crops that had been harvested were insufficient to cover input cost.

Principal findings

The following findings are based on data received from the agricultural enterprises and which was then processed. The data represents a proven and comprehensive overview of this sector in the Industry. The principal findings can be summarised as follows:

Areas of greatest success

Credit control was increased and is continuously being managed at higher levels. The assistance programmes, which focused on aiding producers who had to absorb the pressure of lower product prices, prevented the agricultural sector in general from suffering damage.

The initiatives for adding value create new opportunities for the farmer and helps improve the general agri-economic circumstances.

The cash flow situations of larger agri enterprises, in particular, were improved. This

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8 Landbou Besighede Prestasiemetingsopname 2006 / Agri Businesses Benchmarking Survey 2006

by tot beter winsgewendheid en verlaag die afhanklikheid van finansiering.

Gegewe die swak ekonomiese omstandighede, het landbou-ondernemings hul verantwoordelikheid om kwaliteit diens te lewer en groei te bewerkstellig, gestand gedoen.

Kompetisie in die mark

Globalisering bring groter mededinging op alle vlakke van die landbou mee. Alhoewel die produsent se insetkoste steeds baie toeneem, is daar nie meer die afhanklikheid van een diensverskaffer nie. Buiten insetmateriaal word daar ook sterk meegeding om fasiliteite beskikbaar te stel vir stoorgeriewe en ander dienste. Prysvergelykings vind voortdurend plaas en met behulp van die tegnologie het die produsent handige hulpmiddels om die bes moontlike pryse te beding.

Weens die ligging van landbou-ondernemings en die aard van die mark wat hulle moet bedien, vergelyk hul resultate nie altyd gunstig met die kleinhandelsektor wat meer op die stedelike gebiede gerig is nie.

Belangrike verwikkelinge

Groter hoeveelhede graan is vir langer tydperke gestoor in afwagting van beter pryse. Dit het die produsente se kontantvloei onder geweldige druk geplaas en streng kredietbeheer moes deur landbou-ondernemings toegepas word. Alhoewel die bedrag van debiteure aansienlik verminder is, blyk dit dat 15% van alle produsente in finansiële knyp verkeer omdat hulle nie hul insetkoste uit vorige oeste kon vereffen nie en op spesiale hulpverlening moes staatmaak. Sou die rentekoerse drasties toeneem as gevolg van nie landboufaktore, byvoorbeeld die styging in die verbruikersprysindeks of die tekort op die handelsrekening, kan dit katastrofiese gevolge vir produsente inhou. Die gevolglike skade sal die hele landbou knou.

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contributes to increased profitability and lowers the dependence on financing.

Given the poor economic circumstances, agri enterprises fulfilled their responsibility of providing quality service and achieving growth.

Competition in the market

Globalisation brings about increased competition at all levels of agriculture. Although the producer’s input cost is still increasing significantly, there is no longer the dependence on one service provider. Apart from input material, there is also strong competition to make facilities available for storage and other services. Price comparisons are being done all the time and with the aid of technology the producer has useful means of assistance in negotiating the best prices possible.

Owing to the location of agri enterprises and the nature of the market they must serve, their results do not always compare favourably with the retail sector, which is more focused on the urban areas.

Important issues

Larger quantities of grain were stored for longer periods in anticipation of better prices. That placed producers’ cash flow under tremendous pressure and strict credit control had to be exercised by agri enterprises. Although the amount of debtors was significantly reduced, it appears that 15% of all producers are in financial trouble because they could not settle their input costs from previous harvests and had to rely on special assistance. If the interest rates were to increase drastically because of non-agricultural factors, such as the rise in the consumer price index or the shortage on the trade account, it could be catastrophic. The consequent damage would damage the entire agricultural industry.

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Landbou Besighede Prestasiemetingsopname 2006 / Agri Businesses Benchmarking Survey 2006 �

Dieselfde omsette kon gevolglik nie gedurende die tydperk deur landbou-ondernemings gerealiseer word nie weens die swak landbou-ekonomiese omstandighede. Die winsgewendheid van landbou-ondernemings het onder druk gekom en strategieë moes hersien word om omset te bewerkstellig. Weens die lae graanpryse is die beleggings in meganisasietoerusting landswyd byna gehalveer. Oor die algemeen het voorraadvlakke van landbou-ondernemings met 25% gestyg weens gebrekkige koopkrag.

Die tradisionele klein koöperasies wat tans nog onafhanklik funksioneer, tree in ’n groot mate as kredietverskaffers op. Die normale handelsbedrywighede lewer slegs 37% van inkomste op. Gegewe die beperkte infrastruktuur waaroor sodanige organisasies beskik, hou kredietbeheer ’n groot risiko in vir die voortbestaan daarvan. Groter ondernemings stel nie daarin belang om in hierdie bedieningsareas te opereer nie weens die hoë koste van voorraadhouding. Sou die kleiner ondernemings bankrot, kan dit groot ontwrigting meebring vir produsente in verafgeleë gebiede. Met hul huidige lae opbrengskoers sal beleggers in hierdie ondernemings moeilik gevind word en is potensiële swart ekonomiese betrokkenheid byna ’n onmoontlikheid.

Die swak landbou-ekonomiese omstandighede skep onsekerheid, wat meegebring het dat die langtermynbeleggings in die bedryf afgeneem het. Heelwat minder is belê in vaste bates en waardetoevoegende bedrywe in vergelyking met die vorige tyddperk.

Verwante bedrywe wat nie noodwendig waarde toevoeg tot produsente se produkte nie, skep nog steeds in baie gevalle probleme. Gedurende die tydperk is heelwat van die verliesmakende bedrywe gesluit of vervreem.

Swart ekonomiese bemagtiging

Terwyl daar by die meeste van die deelnemers vordering gemaak is met swart ekonomiese bemagtiging, bly dit nie sonder groot uitdagings

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Therefore, the same turnovers could not be achieved by agri enterprises during the period as a result of the poor agri-economic circumstances. The profitability of agri enterprises came under pressure and strategies had to be reviewed to achieve turnover. Owing to the low grain prices, the investments in mechanisation equipment were virtually halved countrywide. In general, stock levels of agri enterprises rose by 25% due to the poor buying power.

The traditional small cooperatives that are still functioning independently, also act as credit suppliers to a large extent. The normal trade activities only produce 37% of the revenue. Given the limited infrastructure available to such organisations, credit control poses a risk to their continued operation. Larger enterprises are not interested in operating in these service areas owing to the high cost of keeping stock. Should the existence of smaller enterprises be threatened due to this, it could cause great disruption for producers in remote areas. With their current low yielding rate, it would be hard to find investors in these enterprises and black economic involvement would be almost impossible.

The poor agri-economic conditions create uncertainty, which results in reduced long-term investments in the industry. Significantly less was invested in fixed asset and value-added activities compared to the previous period.

Related activities that do not necessarily add value to producers’ products still create problems in many cases. During the period several of the activities running at a loss were closed or disposed of.

Black economic empowerment

While most participants made progress with regard to black economic empowerment, there are still challenges. The biggest of these is most probably

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nie. Hiervan is die grootste in alle waarskynlikheid om nuwe produsente prakties by te staan as mentor en diensverskaffer in die ontwikkeling as volwaardige kommersiële boere.

Die stadige vordering met die Praktykkodes, en veral die onduidelikheid oor die Landbou se situasie, kortwiek die proses vir die implementering van swart ekonomiese bemagtiging. Die stadige pas van grondhervorming het ’n demper geplaas op inisiatiewe wat ’n nadelige effek op die landbou-ekonomiese omgewing meebring.

In sommige gevalle is die implementering en uitvoering van bemagtiging problematies in die sin dat landbou-ondernemings tradisioneel nie as ’n aantreklike bedryfsektor gesien word vir loopbaangeleenthede nie.

Die tekort aan toepaslik gekwalifiseerde persone uit die voorheen benadeelde groepe wat bereid is om op die platteland te vestig, maak die haalbaarheid van die diensbillikheidsdoelwitte ’n groot uitdaging.

Swart ekonomiese bemagtigingsaksies moet egter oor die lang termyn volhoubaar wees. Ekonomiese volhoubaarheid gaan saam met ’n verbintenis tot ontwikkelingselemente, soos vaardigheidsontwikkeling, die bou van kapasiteit en die ondersteuning van entrepreneursvernuf.

Enkele landbou-ondernemings was gedurende die tydperk suksesvol met die oordrag van ’n gedeelte van eienaarskap, veral ten opsigte van belange in filiale. Die lae opbrengs van sommige kleiner landbou-ondernemings bemoeilik in hierdie stadium enige strategie om die oordrag van eienaarsbelang te bewerkstellig.

Almal besef dat voorkeuraankope en vaardigheidsontwikkeling prioriteite is. Daadwerklike pogings word aangewend om so spoedig moontlik aan die norme te voldoen.

Dringende aangeleenthede

Die steeds toenemende skuldlas van die produsente wek kommer. Produsente sal

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giving practical assistance to producers as mentor and service provider in the development of fully fledged commercial farmers.

The slow progress with the Code of Practice, and especially the uncertainty regarding the situation of Agriculture, is hampering the process of implementing black economic empowerment. The slow pace of land reform has also dampened initiatives, which has resulted in a negative effect on the agri-economic environment.

In some cases, the implementation and execution of empowerment is problematic in the sense that agri enterprises are not traditionally seen as an attractive sector for career opportunities.

The shortage of appropriately qualified people from the previously disadvantaged groups who are willing to settle in rural areas makes the achievement of employment equity targets a huge challenge.

Black economic empowerment actions need to be sustainable over the long term. Economic sustainability goes hand in hand with a commitment to development elements such as skills development, building capacity and supporting entrepreneurial resourcefulness.

A few agri enterprises were successful in transferring ownership during the period under review, especially with regard to interests in subsidiaries. The low yield of some smaller agri enterprises is complicating any strategy to transfer proprietary interest at this stage.

Everyone realises that preferential procurement and skills development are priorities. Real efforts need to be made to comply with these measures as soon as possible.

Urgent matters

The ever-increasing debt of producers is cause for concern. Producers will have to consolidate

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hul bedrywighede moet konsolideer terwyl die georganiseerde landbou en owerhede gesamentlik die leiding sal moet neem om ‘n geordende platvorm te skep sodat ekonomiese herstel kan plaasvind. Marginale boere sal nie die huidige omstandighede kan oorleef nie en hulpprogramme sal ingestel moet word om die steeds kwynende ekonomie van die platteland te herstel. Soos reeds gemeld, sal hoë rentekoerse baie produsente, en gevolglik hul leweransiers, se voortbestaan knou.

Die kleiner landbou-ondernemings se finansiële posisie het verswak. Pro-aktiewe optrede is nodig om die infrastruktuur te onderhou en plaaslike sentiment en eie belange moet opsy geskuif word om sterker en meer doeltreffende organisasies te skep. Die risiko van likwidasies word verhoog deurdat hierdie ondernemings groter risiko’s moet aangaan om as finansierders vir produsente op te tree.

Die plaaslike produsent moet beter beskerm word deur middel van invoerpariteit. Die ekonomie en veral die landbou ly skade as gevolg van die koopkrag wat opgeslurp word deur ingevoerde produkte wat plaaslik gestort word.

Finaliteit moet bereik word oor die swart ekonomiese bemagtigingskodes. Die proses moet vereenvoudig en bespoedig word sodat direksies en bestuur doelgerig effektiwiteit kan nastreef. Die grondhervormingsproses moet dringend bespoedig word om onsekerhede uit te skakel wat investering tans kortwiek.

Ons vertrou dat hierdie normvergelyking en kommentaar ’n bydrae sal lewer tot die suksesvolle bestuur van landbou-ondernemings. Ons verwelkom terugvoer oor die verslag en sien daarna uit om die prestasiemeting met u te bespreek.

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Kobie BekkerNasionale Landboubesigheid – Industrieleier /

National Agri Business – Industry LeaderPricewaterhouseCoopers Ing.

April 2007


their activities while organised agriculture and the authorities jointly take the lead in establishing an ordered platform for economic recovery to take place. Marginal farmers will not be able to survive the current conditions and aid programmes will have to be established to repair the continued decline of the economy in rural areas. As already mentioned, higher interest rates would be a set-back to the survival of many producers and, consequently, their suppliers.

The financial position of the smaller agri enterprises has weakened. Proactive measures are needed to sustain the infrastructure and local sentiment and own interests must be sacrificed for the sake of stronger and more efficient organisations. The risk of liquidations is increased because these enterprises need to take bigger risks in order to act as financiers for the producers.

The local producer must be protected by means of import parity. The economy, and especially agriculture, suffers damage as a result of the reduced buying power that is taken up by imported products that get dumped locally.

Finality has to be reached regarding black economic empowerment codes. The process must be simplified and speeded up in order for boards and management to strive purposefully towards efficiency. The land reform process must be speeded up as a matter of urgency to eliminate all uncertainties that are currently hampering investment.

We trust that this benchmarking and commentary will contribute to the successful management of agri enterprises. We welcome any feedback regarding the report and look forward to discussing the survey with you.

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1� Landbou Besighede Prestasiemetingsopname 2006 / Agri Businesses Benchmarking Survey 2006


Die prestasiemetingsopname is in ooreenstemming met sy doel ontwerp, naamlik om maatstawwe aan deelnemende landbou-ondernemings te bied op grond waarvan hulle hul eie prestasies met die norme in die landboubedryf kan vergelyk. Die publikasie bevat die gemiddelde, soos hieronder uiteengesit.

’n Los bylae wat elke deelnemer se individuele resultate verskaf, sal aan die betrokke uitvoerende hoofde voorsien word.

Anders as in die vorige uitgawe word daar gepoog om ook vergelykende statistiek vir kleiner deelnemers te verskaf. Gevolglik word die tendense van die bedryf in sy geheel, groter landbou-ondernemings en kleiner ondernemings, waar moontlik, onafhanklik bespreek. Die verdeling tussen groter en kleiner landbou-ondernemings is gedoen op grond van die betrokke onderneming se omset, wat onderskeidelik groter of kleiner as R300 miljoen bedra het. Dit is dus vir ‘n gebruiker moontlik om sy betrokke instansie se individuele prestasie op twee vlakke te meet. Tabelle word grafies voorgestel en van toeliggende notas voorsien.

Dit is belangrik om deurentyd in gedagte te hou dat die term “bedryf” vir die doeleindes van hierdie publikasie uitsluitlik as ’n kollektiewe beskrywing vir die groep landbou-ondernemings gebruik word wat aan die opname deelgeneem het.

Die publikasie bied ’n samevattende oorsig van die bedryf wat bestaan uit die gemiddeldes van die inligting wat van alle deelnemers aan die projek verkry is. Dit is soos volg saamgestel:

1. Rekenkundige gemiddelde2. Geweegde gemiddelde

’n Rekenkundige gemiddelde is ’n eenvoudige berekening waarvolgens die relevante syfers van die deelnemers bymekaar getel word en deur die aantal deelnemers gedeel word. In

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Gebruik van die publikasie

Use of this publication

The benchmarking survey was designed in accordance with its goal, namely to provide a benchmark against which participating agricultural enterprises can measure their own performance. This publication contains the averages, as explained below.

A separate appendix, containing each participant’s individual results, will be given to each chief executive.

Unlike the previous edition, we aim to provide comparative statistics for smaller participants. Consequently, there are separate discussions, where possible, of the industry in general, larger agri enterprises and smaller enterprises. The distinction between larger and smaller agri enterprises was done based on the turnover of each enterprise, i.e. whether it is smaller or larger than R300 million. Therefore, the user can measure a particular institutions individual performance on two levels. Tables are presented graphically and supplemented with descriptive notes.

It is important to note that, for the purposes of this publication, the term “industry” is used exclusively as a collective term for the group of agri enterprises that participated in this survey.

The publication offers a brief overview of the industry that consists of the averages of the information obtained from all participants in the project. It was compiled as follows:

1. Mathematical mean2. Weighted average

A mathematical mean is a simple calculation according to which the relevant figures of the participants are added and then divided by the number of participants. In this calculation, each

•


hierdie berekening dra elke deelnemer se syfer dieselfde gewig.

’n Geweegde gemiddelde verteenwoordig ’n berekening waar ’n gewig gekoppel word aan elkeen van die deelnemers se resultate en grootte. In die grafieke word daar na “geweegde gemiddelde” verwys. Die “geweegde gemiddelde” is die resultaat van net die groot of die klein deelnemers. Daar was egter gevalle waar daar ten opsigte van kleiner ondernemings te min deelnemers was om die resultate sinvol te maak. In sulke gevalle is die resultate van die groot en kleiner ondernemings saamgevoeg en word die term “geweegde gemiddelde bedryf” gebruik.

PricewaterhouseCoopers se internasionale beleid is dat geen resultate van prestasiemetingsopnames verstrek mag word tensy daar ten minstens sewe deelnemers is nie. Gevolglik word geen resultate gepubliseer waar minder as die vereiste getal deelnemers die nodige inligting verskaf het nie.

Hou ook in gedagte dat die inligting van alle deelnemers nie noodwendig in al die vergelykings ingesluit is nie. In sommige gevalle is sekere inligting van bepaalde deelnemers nie binne berekening van gemiddeldes gebring nie, weens grondige redes wat uitsluiting regverdig of noodsaak.

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Gebruik van die publikasie

Use of this publication

participants figure carries equal weight.

A weighted average represents a calculation where a weight is attached to the results and size of each of the participants. In the graphs we refer to a “weighted average”. The weighted average is the result of only the larger or only the smaller participants. However, there were cases where there were not enough small enterprises to make the results meaningful. In such cases, the results of the larger and smaller enterprises were added and the term “weighted average industry” was used.

The international policy of PricewaterhouseCoopers is that no results of benchmarking surveys may be released unless there were at least seven participants. Consequently, no results are published where fewer than the required number of participants had provided the necessary information.

Also bear in mind that the information of all participants are not necessarily included in all comparisons. In some cases, some information of particular participants was not taken into consideration due to valid reasons that justify or necessitate exclusion.

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Landbou-ondernemings, wat hoofsaaklik in die platteland bedrywig is, speel ’n baie belangrike rol in die ekonomie van Suid-Afrika. Hulle vorm die slagaar van die landbou en is besonder noodsaaklik vir die produsent, veral waar hulle as agent optree en verantwoordelik is vir die verskaffing van insetmateriaal, stoorgeriewe en finansiering.

Daarbenewens speel landbou-ondernemings ’n belangrike rol in die ontwikkeling van die platteland en die skepping van meer werksgeleenthede deur die belegging in waardetoevoegende nywerhede en verwante bedrywe.

Die vorige en eerste uitgawe van die prestasiemetingsopname het bestaan uit die resultate van elf landbou-ondernemings met ’n totale omset van R8.06 biljoen. Altesame negentien landbou-ondernemings, met ’n gesamentlike omset van R15.4 biljoen, het aan die jongste opname deelgeneem. Hiervoor ons innige dank.

Deelnemers

Die volgende landbou-ondernemings het aan die prestasiemetingsopname deelgeneem. Ons dank aan hul verteenwoordigers vir hul tyd, insette en steun wat die publikasie moontlik gemaak het.

Die Bedryf The Industry

Sentraal-Suid Koöperasie Beperk / Sentraal-Suid Co-operative Limited SwellendamNWK Beperk / NWK Limited LichtenburgOos Vrystaat Kaap Bedryf Beperk / Oos Vrystaat Kaap Operations Limited LadybrandSenwes Beperk / Senwes Limited KlerksdorpSuidwes Beleggings Beperk / Suidwes Investments Limited LeeudoringstadVrystaat Koöperasie Beperk ReitzKaap Agri Beperk / Kaap Agri Limited MalmesburyBKB Beperk / BKB Limited Port ElizabethGWK Beperk / GWK Limited DouglasMGK Besigheidsbeleggings Beperk / MGK Business Investments Limited Brits

Agricultural businesses, which mainly operate in the rural areas, play a very important part in South Africa’s economy. They form the backbone of agriculture and are particularly essential for the producer, especially where they act as agent and are responsible for providing input material, storage facilities and financing.

In addition, agri enterprises play an important part in the development of rural areas and the creation of job opportunities through the investment in value-adding industries and related activities.

The previous, and first, edition of the benchmarking survey consisted of the results of eleven agri enterprises with a total turnover of R8.06 billion. A total of nineteen agri enterprises, with a total turnover of R15.4 billion, took part in this latest survey. We are deeply grateful for this.

Participants

The following agri enterprises took part in the benchmarking survey. We would like to thank their representatives for their time, input and support, all of which made this publication possible.


Die Bedryf The Industry

Klein Karoo Koöperasie Beperk / Klein Karoo Co-operative Limited OudtshoornGraanboere Groep Beperk / Grain Farmers Group Limited MoorreesburgVilliersdorp Koöperasie Beperk VilliersdorpKaroo Vleisboere (Koöperatief) Beperk Victoria-Wes / Victoria WestTuinroete Agri Beperk / Tuinroete Agri Limited Mosselbaai / Mossel BayDie Humansdorpse Koöperasie Beperk HumansdorpOoskaap Landboukoöperasie Beperk / East Cape Agricultural Co-operative Limited

Queenstown

Koup Produsente Koöperasie Beperk LaingsburgLangkloof Boerekoöperasie Beperk / Langkloof Boere Co-operative Limited Avontuur

A t l a n t i c O c e a n

I n d i a n O c e a n

NORTHERN CAPE

/ WESTERN CAPE

EASTERN CAPE

Cape Town

NORTH WEST

FREE STATE

Oudtshoorn Avontuur

Victoria Wes/Victoria West

Humansdorp

Queenstown

Klerksdorp

Landbou Besighede Prestasiemetingsopname 2006 / Agri Businesses Benchmarking Survey 2006 1�


Winsgewendheid Profitability

1.1 Bate-omsetkoers

Die bate-omsetkoers word bereken deur die totaal van verkope uit te druk as ’n verhouding van die totale bates wat aangewend is om sodanige omset te bewerkstellig.

Die landboubedryf

Die toets vir die doeltreffende bestuur van bates in die landboubedryf word deur die bate-omsetkoers weerspieël.

Weens die plattelandse ligging van die deelnemers in hierdie opname, word ’n relatiewe duur belegging vereis om uiteindelik ’n gewensde/redelike omset te genereer.

Vir die doeleindes van die prestasiemeting is omset die syfer volgens die geouditeerde state. Slegs die kommissie op direkte verkope word hierby ingesluit. Voorraadafskrywings en betalingskortings toegestaan word by koste van verkope bygereken vir prestasiedoeleindes. Daarenteen word omset bygewerk met handelskortings toegestaan.

Bate-omsetkoers / Asset turnover rate

1.25 1.30 1.35 1.40 1.45 1.50 1.55

Geweegde gemiddelde - Bedryf /Weighted average - Industry

Rekenkundige gemiddelde - Bedryf /Mathematical mean - Industry

Geweegde Gemiddelde - Bedryf /

Weighted average - Industry

Rekenkundige Gemiddelde - Bedryf /Mathematical mean

- Industry

■ 2006 1.37 1.50

■ 2005 1.40 1.52

1.1 Asset turnover rate

The asset turnover rate is calculated by expressing the total sales as a ratio of the total assets utilised to achieve such turnover.

The agricultural industry

The test for the effective management of assets in the agri industry is reflected by the asset turnover rate.

Due to the remote location of the participants in this survey, a relatively large investment is required to generate a reasonable turnover.

For the purposes of this benchmarking, the turnover figure is obtained from the audited statements. Only commission on direct sales is included. Stock write-offs and payment discounts granted are added cost of sales for benchmarking purposes. However, turnover is updated with trade discounts granted.


In die tydperk onder oorsig is gemiddeld R1.37 (2005: R1.40) in omset genereer vir elke R1 wat deur die landboubedryf in bates belê is. Die omset het egter in die geheel met slegs 2% gestyg.

Altesame 30% van deelnemers het nie ’n genoegsame omset in randwaarde behaal om die waarde van hul belegging in bates te realiseer nie, terwyl net 25% daartoe in staat was om ’n omset te bewerkstellig wat dubbel die omvang van hul belegging in bates was. Die handelsomset van die bedryf het met 10% gestyg, terwyl die omset in onderdele met 12% gedaal het. Implemente se omset het ook met 32% gedaal en graanhanterings- en graanbemarkingsinkomste het met 6% afgeneem.

Die faktore wat daartoe aanleiding gegee het:

Die handelsafdelings is uitgebrei met die toevoeging van produkte waarin nie voorheen handel gedryf is nie. Maar as in ag geneem word dat die produksieprysindeks vir landbou gedurende die tydperk met gemiddeld 15% toegeneem het, was daar in werklikheid ’n daling van omset in reële terme.

Die swak graanpryse het meegebring dat produsente byna geen beleggings in meganisasietoerusting gemaak het nie. Die afskaling van aanplantings het ook die behoefte aan onderdele vir die herstel van toerusting verminder.

Aangesien produsente in die tydperk onder oorsig groter hoeveelhede graan vir langer tydperke teruggehou het, het die silo-deurset en benutting aansienlik verbeter in vergelyking met vorige jare. Sterk mededinging in opbergingstariewe het egter die landbou-ondernemings se inkomste uit hierdie bron, in vergelyking met vorige jare, beperk.

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In the period under review, an average of R1.37 (2005: R1.40) in turnover is generated for every R1 invested in assets by the agri industry. However, the general turnover increased by only 2%.

A total of 30% of participants did not achieve a sufficient turnover in rand terms to realise the value of their investment in assets, while only 25% was able to achieve a turnover that was double the value of their investment in assets. The trade turnover of the industry increased by 10%, while the turnover of spare part decreased by 12%. The turnover of implements declined by 32% and the income from the handling and marketing of grain decreased by 6%.

The following factors influencing this were:

The trade divisions were expanded with the addition of products that were not previously traded. However, if one considers that the production price index for agriculture during this period increased by an average of 15%, there was in fact a drop in turnover, in real terms.

The weak grain prices resulted in producers making virtually no investments in mechanisation equipment. The scaling down of planting also decreased the need for spare parts and the repair of equipment.

Because producers kept larger quantities of grain for longer periods during the period under review, the silo put-through and its utilisation improved significantly compared to previous years. However, strong competition in storage tariffs limited the income of agri enterprises from this source compared to prior periods/years.

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�0 Landbou Besighede Prestasiemetingsopname 2006 / Agri Businesses Benchmarking Survey 2006


Groter ondernemings

Die bate-omsetkoers vir groter landbou-ondernemings het in die tydperk onder oorsig van R1.45 tot R1.49 gestyg vir elke R1 wat in bates belê is. Die omset in geheel het egter met net 1.6% teenoor die vorige tydperk toegeneem.

Bate-omsetkoers / Asset turnover

0.00 1.25 1.30 1.35 1.40 1.45 1.50 1.55


Rekenkundige gemiddelde /Mathematical mean


Geweegde Gemiddelde /Weighted average

Geweegde gemiddelde - Bedryf /


Rekeningkundige gemiddelde /

Mathematical mean

Rekenkundige gemiddelde - Bedryf /Mathematical mean

- Industry

■ 2006 1.49 1.37 1.41 1.50

■ 2005 1.45 1.40 1.37 1.52

Geweegde gemiddelde /Weighted average

Die handelsafdeling se omset het met 9% gestyg, terwyl onderdele-omset met 15% gedaal het teenoor die vorige tydperk. Werkswinkels het terselfdertyd ’n omsetdaling van 25% ervaar.

Groter ondernemings oorheers die mark vir meganisasie en implemente asook graanbemarking en -hantering. Gevolglik verteenwoordig die bedryf se resultate ook dié van hierdie ondernemings.

Larger enterprises

The asset turnover rate for larger agri enterprises increased from R1.45 to R1.49 for every R1 invested in assets during the period under review. The total turnover, however, increased by only 1.6% compared to the previous period.

The turnover of the trade division increased by 9%, while the turnover of spare parts decreased by 15% compared to the previous period. Workshops experienced a 25% downtrend in turnover.

Larger enterprises dominate the market for mechanisation and equipment, as well as grain marketing and handling. As a result, die industry’s results also represent the results of these enterprises.

Landbou Besighede Prestasiemetingsopname 2006 / Agri Businesses Benchmarking Survey 2006 �1

Kleiner ondernemings

Die omset van kleiner ondernemings, wat R1 biljoen in totaal bedra het, het ’n styging van 14% teenoor die vorige jaar getoon. As in ag geneem word dat die produksieprysindeks met ongeveer 15% toegeneem het, was daar egter ’n reële afname in omset.

Die omset per R1-belegging in bates het met net 3.5% vanaf R1.43 tot R1.48 gegroei. Beleggings in aandele is egter uitgesluit by die somtotaal van die bates vir die doel van hierdie berekening, aangesien dit ‘n wesenlike bate-item in sommige van die ondernemings se balansstate uitmaak.

Bate-omsetkoers uitgesluit aandelebeleggings / Asset turnover rate excluding shares investments

0 0.20 0.40 0.60 0.80 1.00 1.20 1.40 1.60 1.80 2.00








Rekenkundige Gemiddelde /

Mathematical mean


- Industry

■ 2006 1.48 1.52 1.84 1.63

■ 2005 1.43 1.49 1.85 1.62

Die ondernemings is hoofsaaklik as insetverskaffers wat handelsafdelings bedryf. Die styging in omset kan, soos hierbo, eerder toegeskryf word aan prysstygings van inset-materiaal. Daar was dus eerder ‘n daling in die volume van die transaksies gedurende die tydperk onder oorsig.


Smaller enterprises

The turnover of the smaller enterprises, which amounts to R1 billion, showed an increase of 14% compared to the previous year. However, if one considers that the production price index increased by about 15%, the turnover decreased in real terms.

The turnover per R1 investment in assets grew by a mere 3.5% from R1.43 to R1.48. However, investments in shares are excluded from the total of the assets for purposes of this calculation, because it constitutes a substantial asset item in the balance sheet of some of the enterprises.

The companies are mainly input providers that operate trade divisions. The rise in turnover should be attributed, as illustrated above, to increases in the prices of input materials. Transaction volumes therefore decreased during the period under review.

�� Landbou Besighede Prestasiemetingsopname 2006 / Agri Businesses Benchmarking Survey 2006

1.2 Netto inkomsteverdeling

Die drie belangrikste komponente van landbou-ondernemings se netto inkomste is handelsbedrywighede, netto finansieringsinkomste en dividende ontvang.

Handelsbedrywighede sluit in “tradisionele bedrywighede” wat handelsvoorraad, onderdele, meganisasie, werkswinkels, graanhantering en versekering behels. Dit is die belangrikste deel van die ondernemings se bedrywighede wat die grootste bydrae tot netto inkomste lewer.

Kredietbeheer is nou verweef met handelsbedrywighede. Netto finansieringsinkomste vloei voort uit kredietverskaffing. Verskeie landbou-ondernemings hanteer dit deesdae as ‘n afsonderlike winssentrum. Dit bring mee dat die doeltreffendheid van hierdie afdeling in ‘n groter mate hierdeur gemonitor word.

Beleggings in waardetoevoegende bedrywe het, soos in die vorige tydperk, ’n goeie opbrengs opgelewer. In teenstelling hiermee het sommige aanverwante bedrywe wat geen waarde tot produsente se produkte toegevoeg nie verliese gely, wat landbou-ondernemings verplig het om dit te sluit of te vervreem.

Die landboubedryf

Die persentasie bydraes van die hoofbronne van inkomste, naamlik handelsbedrywighede, renteverdienste en dividende het in die geheel ongeveer dieselfde gebly.


1.2 Net profit composition

The three most important components of agri enterprises’ net income are trade activities, net financing income and dividends received.

Trade activities include “traditional activities” comprising trading stock, spare parts, mechanisation, workshops, grain handling and insurance. It forms the most substantial part of the enterprises’ activities, rendering the largest contribution to net profit.

Credit control is closely interwoven with trade activities. Net financing income results from providing credit. Currently, various agri enterprises recognise it as a separate profit centre. The result is that the efficiency of this division is monitored to a greater degree.

Investments in value-adding industries have, as in the previous period, yielded a good return. In contrast, related operations that don’t add any value to producers’ products, have suffered losses, which forced agri enterprises to close down or dispose of these operations.


The relative of contributions from the main sources of income, which are operating activities, interest earnings and dividends generally remained constant.


Normale handelsbedrywighede het minstens 81% tot die totale inkomste van landbou-ondernemings bygedra. As in ag geneem word dat rentekoerse in die begin van die tydperk onder oorsig relatief laag was, is die bydrae van hierdie bron van inkomste nie noodwendig ’n weerspieëling van die omvang van die debiteure nie. Rentekoerse het eers aan die einde van die verslagdoeningstydperk, ná meeste van die deelnemers se finansiële jaareindes, begin styg.

Netto inkomste verdeling / Net profit composition

4%

81%

15%

■ Netto bedryfswins /

Net operating profit

■ Netto finansieringsinkomste /

Net financing income

■ Dividende ontvang /

Dividends received

5%

80%

15%






Dividends received

�00�

�005


Normal operating activities contributed at least 81% to the total income of agri enterprises. If one considers that interest rates were relatively low at the beginning of the period under review, the contribution from this source of income is not necessarily a reflection of the extent of debtors. Interest rates only started rising at the end of the reporting period, after most of the participants’ year ends.


Groter ondernemings

Groter landbou-ondernemings was in ‘n mindere mate as hul kleiner eweknieë aan finansiële risiko blootgestel. In die geheel het netto inkomste hoofsaaklik uit handel, meganisasie, brandstof, graanhantering en bemarking voortgevloei.


2%

85%

13%






Dividends received

3%

84%

13%






Dividends received

�00�

�005


Larger enterprises

Larger agri enterprises were exposed to financial risk to a lesser extent than their smaller peers. In general, their income resulted mainly from trade, mechanisation, fuel, grain handling and marketing.



2%

85%

13%






Dividends received

3%

84%

13%






Dividends received

�00�

�005

‘n Aantal landbou-ondernemings het egter ook uitsonderlike winste gerealiseer met die vervreemding van aandele. Hierdie winste is buite rekening gelaat vir die doeleindes van die berekenings.


Net 37% (2005: 25%) van kleiner ondernemings se netto inkomste het uit normale handelsbedrywighede voortgevloei. Die ondernemings tree tans in ’n groot mate as inset-verskaffers en finansierders op.

Wat egter kommerwekkend is, is dat die kleiner landbou-ondernemings vir 63% (2005: 75%) van hul netto inkomste op finansiering- en dividendinkomste staatmaak, oftewel op nie normale handelsbedrywighede.

25%

65%

10%

■ Netto Bedryfswins


■ Netto Finansieringsinkomste


■ Dividende ontvang

Dividends received


■ Netto Bedryfswins


■ Netto Finansieringsinkomste


■ Dividende ontvang

Dividends received

37%

55%

8%

�00�

�005


A number of agri enterprises have, however, also realised exceptional profits by disposing of shares. These profits were not taken into consideration for the purposes of calculations.

Smaller enterprises

Only 37% (2005: 25%) of smaller enterprises’ net income were derived from normal trade activities. The enterprises currently act as input providers and financiers.

What is, however, a cause for concern, is that the smaller agri enterprises rely on income derived from financing and dividends, in other words not the normal operating activities, for 63% (2005: 75%), of their net income.


Soos in die geval van hul groter eweknieë, is die winsgrense op handelstransaksies relatief klein. Om net staat te maak op finansieringsbedrywighede, kan kleiner ondernemings onder geweldige druk kom as gevolg van die risiko van slegte skuld, en beperkte bronne van fondse, naamlik reserwes, kan uitgeput raak.

Die hoofdoel van landbou-ondernemings is die verskaffing van insetmateriaal en nie die verskaffing van finansiering nie. Gesien in die lig van die beperkte personeelstrukture, waar kredietbeheer ‘n gespesialiseerde gebied is, is die gevaar van slegte skulde baie groot. Hierdie situasie sal streng beheer moet word en hou groot risiko’s in vir die voortbestaan van kleiner landbou-ondernemings op afgeleë plekke.

1.3 Bate-opbrengskoers

Die verhouding toon die winsgewendheid van die onderneming se bates. Die wins word gemeet teen die totale bates wat gedurende die jaar aangewend is.

Hier word gepoog om die doeltreffendheid van die bates in die geheel, die kernbates en beleggings afsonderlik te meet.

Die landboubedryf

1.3.1 Voor aansuiwerings

Die bate-opbrengskoers verteenwoordig die onderneming, of die groep in die geval van ‘n houermaatskappy, se netto wins voor rente betaal en belasting, as ‘n persentasie van die totale bates. Die minderheidsbelang in die netto wins, in die geval van groepe, word nie uitgesluit nie.


As is the case with their larger peers, the profit margins on trade transactions are relatively small. By only relying on financing activities, smaller enterprises can come under immense pressure as a result of the risk of bad debt. In addition, the limited source of funds, namely reserves, can be depleted.

The main aim of agri enterprises is providing input materials, and not providing finance. Seen in the light of the limited personnel structures, where credit control is a specialised area, the danger of bad debt looms large. This situation will have to be managed thorroughly and holds great risks for the continued operation of smaller agri enterprises in remote areas.

1.3 Return on assets

This ratio indicates the profitability of the enterprise’s assets. The profit is measured against the total assets utilised during the year.

An attempt is made to measure the effectiveness of the overall assets, the core assets and the investment seperately


1.3.1 Before adjustments

Return on assets represents the net profit of the enterprise or group, in the case of a holding company, before interest paid and tax, as a percentage of the total assets. The minority interest in the net profit, in the case of groups, is not excluded.

Landbou Besighede Prestasiemetingsopname 2006 / Agri Businesses Benchmarking Survey 2006 ��

Die bedryf in sy geheel het byna geen verbetering in winsgewendheid teenoor die vorige jaar getoon nie.

1.3.2 Na aansuiwerings

Met die uitsluiting van uitsonderlike items kan ‘n beter vergelyking getref word tussen deelnemers se resultate. Waardevermindering op nuwe en ouer bates speel ook hier nie ‘n rol nie.

Dit verteenwoordig die opbrengskoers van die maatskappy, of die groep, se bates in die geheel na die volgende aansuiwerings:

Waardevermindering;

Uitsonderlike items;

Bonusse en voorkeurkorting aan lede; en

Amortisasie van ontasbare bates.

Uitsonderlike items sluit enige item in wat na die deelnemer se mening sy netto inkomste uit normale handelstransaksies vir die jaar wesenlik aangetas het en wat buite rekening gelaat behoort te word.

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Bate-opbrengskoers / Return on assets

0% 2% 4% 6% 8% 10% 12%






- Industry

■ 2006 10.82% 8.89%

■ 2005 10.36% 8.64%


The overall industry reported almost no improvement in profitability compared to the previous year.

1.3.2 After adjustments

With the exclusion of exceptional items, a better comparison can be made between the results of participants. Depreciation on new and older assets also does not play a role here.

It represents the return on assets of the overall assets of the company or the group after the following adjustments:

Depreciation;

Exceptional items;

Bonuses and preferential discounts to members; and

Amortisation of intangible assets.

Exceptional items include any item that, in the participant’s opinion, materially affected the net profit on normal trade transactions for the year and should not be taken into account.

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Totale bate-aansuiwerings behels:

Herwaardasiereserwes van eiendom, aanleg en toerusting; en

Ontasbare bates.

Geen aansuiwering word egter vir die billike waarde-aanpassing van beleggings gemaak nie. AI die deelnemers het hulle beleggings teen billike waarde getoon.

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Bate opbrengskoers aangesuiwer / Return on assets after adjustments

0% 2% 4% 6% 8% 10% 12%






- Industry

■ 2006 10.91% 9.14%

■ 2005 11.62% 9.86%

Hierdie resultaat is ‘n beter weergawe van die bedryf se winsgewendheid van die tydperk. Daar was ‘n daling van 10% in netto winsgewendheid van landbou-ondernemings.

1.3.3 Beleggings uitgesluit

Die inkomste verdien uit beleggings speel ‘n belangrike rol in sommige van die landbou-ondernemings se resultate. Sommige pas die beleid toe om sodanige dividende aan hul aandeelhouers oor te dra as vergoeding vir hul belegging en ondersteuning.

Met dié berekening is beleggings en beleggingsinkomste in genoteerde en


Total adjustments of assets involves:

Revaluation reserves of property, plant and equipment; and

Intangible assets.

No adjustment is required to reflect investments at fiar value. All the participants showed their investments at fair value.

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This result is a better reflection of the industry’s profitability of the period. There was a 10% decrease in the net profitability of agri enterprises.

1.3.3 Investments excluded

The income earned from investments compromises an important part in some of the agri enterprises’ results. Some apply the policy of transferring such dividends to their shareholders as compensation for their support and investment.

With this calculation, investments and income from investments in listed and unlisted shares are excluded when determining the total assets


ongenoteerde aandele by die berekening van die totale bates en netto inkomste uitgesluit. Beleggingsinkomste verteenwoordig hoofsaaklik dividende ontvang.

Bate opbrengskoers uitgesluit aandelebeleggings / Return on assets excluding investments

0% 2% 4% 6% 8% 10% 12%






- Industry

■ 2006 11.74% 9.72%

■ 2005 11.95% 10.29%

Dit blyk dat daar ‘n afname van 6% was in die winsgewendheid van die kernbates van die ondernemings.

1.3.4 Kredietlenings uitgesluit

Omdat landbou-ondernemings as ‘n blote kanaal vir die finansiering van produsente se insette optree, kan balansstaatverhoudings in vergelyking met ander instansies versteur word.

Indien kredietlenings, kaskrediete en langtermynfinansiering, wat vir die finansiering van produsente geoormerk is, ook van die totale bates afgetrek word, toon die vergelyking die winsgewendheid van die netto bates van die bedryf.

Sommige landbou-ondernemings beskik oor voldoende reserwes om self sodanige finansiering te verskaf. Om die doeltreffendheid van eie fondse te oorweeg, word ‘n vergelyking met die opbrengs op netto bates getref.


and net income. Income from investment mainly represents dividends received.

It appears that there was a 6% decrease in the profitability of the core assets of enterprises.

1.3.4 Credit loans excluded

Because agri enterprises act as a mere channel for financing producers’ inputs, balance sheet ratios relating to other institutions could be distorted.

If credit loans, cash credits and long-term financing, earmarked for financing producers, are deducted from the total assets, the equation indicates the profitability of the industry’s net assets.

Some agri enterprises, by comparison, have sufficient reserves to provide such financing themselves. To consider the effectiveness of own funds, a comparison is made with the return on net assets.


Die swak landbou-ekonomiese omstandighede het daartoe bygedra dat landbou-ondernemings as bedryf gemiddeld 10% van hul winste moes inboet.

Bate opbrengskoers uitgesluit kredietlenings / Return on assets excluding credit loans

13.50% 14.00% 14.50% 15.00% 15.50% 16.00% 16.50% 17.00% 17.50% 18.00% 18.50%





- Industry

■ 2006 16.20% 15.23%

■ 2005 18.22% 15.75%


Bate opbrengskoers / Asset turnover rate

0% 2% 4% 6% 8% 10% 12% 14%




Rekenkundige gemiddelde - BedryfMathematical mean - Industry

Geweegde Gemiddelde /

Weighted average



Rekenkundige Gemiddelde /Mathematical mean


- Industry

■ 2006 11.95% 10.82% 11.26% 8.89%

■ 2005 10.85% 10.36% 09.86% 8.64%

Die geweegde gemiddele opbrengskoers het in die tydperk onder oorsig ‘n verbetering van 10% getoon. Dit kan tot ‘n mate toegeskryf word aan beter benutting van stoorgeriewe vir graan. Daarenteen het ander bedrywighede se winste drasties gekrimp. Die volgende vergelyking is ‘n beter maatstaf.


The poor economic conditions resulted in agri enterprises as an industry had to forfeit an average of 10% of their profits.

The weighted average return on assets showed an improvement of 10% during the period under review. This can be attributed, to large extent, to improved utilisation of storage facilities for grain. In contrast, the profits of other activities have decreased. The following comparison is a better measure.

Groter ondernemings Larger enterprises


Die teenoorgestelde teenoor bogenoemde blyk egter hieruit. Die opbrengskoers het inderdaad van 12.13% tot 11.90% gedaal met die winste wat onder druk gekom het. Dit is opvallend dat hierdie daling in winste hoofsaaklik toe te skryf is aan ondernemings in die mielieproduserende gebiede in die noorde van die land.


0% 2% 4% 6% 8% 10% 12% 14%



Rekenkundige Gemiddelde /Mathematical mean






Mathematical mean


- Industry

■ 2006 11.90% 10.91% 10.54% 9.14%

■ 2005 12.13% 11.62% 11.14% 9.86%

Bate opbrengskoers uitgesluit aandelebeleggings / Return on assets excluding share investments

0% 2% 4% 6% 8% 10% 12% 14%









Mathematical mean

Rekenkundige Gemiddelde - Bedryf/ Mathematical mean

- Industry

■ 2006 11.98% 11.74% 10.73% 09.72%

■ 2005 12.18% 11.95% 11.24% 10.29%


From this, the opposite emerges from the above. The rate of return did in fact decrease from 12.13% to 11.90%, with the profits coming under pressure. It is noticeable that this decrease in profits is mainly attributable to enterprises in the maize-producing areas in the north of the country.


Weens die kleiner rol wat dividend-inkomste in die geval van groter landbou-ondernemings speel, verskil die resultate nie wesenlik van die vorige vergelyking nie.

Bate opbrengskoers uitgesluit kredietlenings / Return on assets excluding credit loans

0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20%








Rekenkundige gemiddelde /

Mathematical mean


- Industry

■ 2006 16.33% 16.20% 16.60% 15.23%

■ 2005 18.51% 18.22% 18.39% 15.75%

Hierdie resultate beklemtoon die afname in winsgewendheid weens die landbou-ekonomiese omstandighede. Met die afname in koopkrag, en derhalwe kredietverskaffing, is die impak van die heffing wat geplaas is op geleende fondse heelwat minder as in die vorige tydperk. Dit het ‘n daling van 12% in die opbrengskoers op kernbates meegebring.


Due to the smaller influence dividend income had in the case of larger agri enterprises, the results do not differ materially from the previous comparison.

These results emphasize the drop in profitability due to the agri-economic conditions. With the decrease in buying power and, consequently, the provision of credit, the impact of the levy placed on borrowed funds is considerably less than in the previous period. This resulted in a decrease of 12% in the return of core assets.


Bate opbrengskoers / Asset turnover rate

0% 2% 4% 6% 8% 10% 12%









Mathematical mean


- Industry

■ 2006 4.75% 10.82% 6.27% 8.89%

■ 2005 6.44% 10.36% 7.26% 8.64%


Die bate-opbrengskoers van kleiner ondernemings vergelyk egter swak met dié van groter ondernemings. Die ondernemings het gedurende die tydperk onder oorsig ‘n verswakking van 26% in hul winsgewendheid ervaar. Met ‘n opbrengskoers van 4.75%, sal beleggers moeilik gevind word en is potensiële swart ekonomiese betrokkenheid by eienaarsbelang in die kleiner landbou-ondernemings op die platteland byna onmoontlik.


0% 2% 4% 6% 8% 10% 12% 14%









Mathematical mean


- Industry

■ 2006 5.45% 10.91% 7.58% 9.14%

■ 2005 7.37% 11.62% 8.43% 9.86%


Smaller enterprises

The return on assets of smaller enterprises compares poorly with that of larger enterprises. The enterprises experienced a decrease of 26% in their profitability during the period under review. With a rate of return of 4.75%, it would be difficult to find investors and potential black economic involvement in the smaller agri enterprises located in remote arease is almost impossible.


Hierdie resultate verskil min van bogenoemde en daar kan geen ander gevolgtrekkings gemaak word nie. Let egter daarop dat waardevermindering by hierdie berekening as ‘n uitgawe teruggetel is.

Bate opbrengskoers uitgesluit aandelebeleggings / Asset rate of turn excluding investments in shares

0% 2% 4% 6% 8% 10% 12% 14%









Mathematical mean


- Industry

■ 2006 8.99% 11.74% 8.60% 09.72%

■ 2005 9.03% 11.95% 9.23% 10.29%

Indien dividendinkomste buite rekening gelaat word, was daar ’n geringe verskil in die persentasie inkomste.


Bate opbrengskoers / Return on assets excluding credit loans

0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20%









Mathematical mean


- Industry

■ 2006 14.76% 16.20% 13.70% 15.23%

■ 2005 15.10% 18.22% 12.77% 15.75%

These results don’t differ much from the above, and no other conclusions can be drawn. However, note that depreciation was excluded as an expense for purposes of this calculation.

If dividend income is excluded, there is a slight difference in the percentage income.


Die resultaat dui aan watter uitwerking geleende fondse, wat gebruik is om debiteure te finansier, op kleiner landbou-ondernemings gehad het. Die winsgewendheid het met 2% gedaal. Wat hier egter in ag geneem moet word, is dat die totale verpligting ter finansiering van debiteure, van die totale bates afgetrek word. Terwyl die volle verpligting by die onderneming berus, loop dit die risiko ten opsigte van die vorderbaarheid van debiteure. Indien verliese gely word weens slegte skulde, kan dit ‘n uiters nadelige invloed op hierdie resultate meebring.

1.4 Netto winspersentasie

Winsgewendheid word hier gemeet aan die hand van die werklike omset wat behaal is. Die doeltreffendheid van transaksies word dus hier gemeet, teenoor dié van die bates, soos in die geval van 1.3.

Netto wins word soos volg gedefinieer:

Netto wins voor belasting en rente betaal, aangesuiwer vir :


Waardevermindering op eiendom, aanleg en toerusting;

Voorkeurkortings en bonusse aan lede toegestaan;

Afskrywings van ontasbare bates; en

Beleggingsinkomste.

Omset word soos volg bereken:

Verkope van voorraad en dienste, uitgesluit belasting op toegevoegde waarde. In die geval van regstreekse verkope word slegs die kommissiegedeelte ingesluit. Handelskorting toegestaan word by die berekening van omset afgetrek. Die invordering van silokoste is in ag geneem soos verantwoord in die onderskeie finansiële jaarstate.

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The result indicates what effect borrowed funds, which were used to finance debtors, had on smaller agri enterprises. The profitability dropped by 2%. However, what has to be remembered here is that the total obligation regarding the financing of debtors was subtracted from the total assets. While the full obligation rests with the enterprise, it runs a risk due to the recoverability of debtors. If losses are incurred owing to bad debts, it could have an extremely negative effect on these results.

1.4 Net profit percentage

Profitability is measured here according to the actual turnover achieved. Therefore, the profitability of transactions are measured here, as opposed to that of assets, as is the case in 1.3.

Net profit is defined as follows:

Net profit before taxation and interest paid, adjusted for:

Exceptional items;

Depreciation on property, plant and equipment;

Preferential discounts and bonuses granted to members;

Amortisation of intangible assets; and

Investment income

Turnover is calculated as follows:

Sales of stock and services, excluding value added tax. In the case of direct sales, only the commission portion is included. Trade discounts granted is deducted when calculating turnover. The collection of silo costs was taken into consideration as reported in the respective annual financial statements.

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Beleggingsinkomste verteenwoordig hoofsaaklik dividende ontvang uit genoteerde en ongenoteerde beleggings.

Die landboubedryf

Netto wins persentasie / Net profit percentage

7.40% 7.50% 7.60% 7.70% 7.80% 7.90% 8.00% 8.10% 8.20% 8.30%





Rekenkundige gemiddelde - BedryfMathematical mean

- Industry

■ 2006 7.72% 7.81%

■ 2005 8.01% 8.19%

Die daling van 10% in netto inkomste is as gevolg van winsgrense wat drasties verlaag moes word ten einde omset te bewerkstellig, veral ten opsigte van implemente waarvan die omset gewoonlik aansienlik is. Die bruto winspersentasies het wesenlik verlaag. Die beter benutting van silo-ruimte het egter gehelp om die negatiewe uitwerking van bogenoemde te neutraliseer.

Investment income represents mainly dividends received from listed and unlisted investments.


The 10% drop in net income is a result of profit margins being drastically lowered in order to achieve turnover, especially with regard to implements, which normally has a considerable turnover. The gross profit percentages dropped significantly. The improved utilisation of silo space did, however, help to neutralise the effect of the above.


Groter ondernemings

Die klein styging in omset van net 1.6% by groter landbou-ondernemings, wat deur dieselfde infrastruktuur van die vorige jaar gegenereer is, het ‘n negatiewe uitwerking van 4% op die netto winspersentasie meegebring.

Daar moet aanvaar word dat, veral by die groter landbou-ondernemings, die winsmotief nagestreef word. Die winsgewendheid word egter deur sikliese ekonomiese en klimaatsfaktore beïnvloed. Daar word tans wegbeweeg van die ou benadering van blote dienslewering. Landbou-ondernemings wil groter winste genereer ten einde die beste ondernemingsinfrastruktuur te skep.


0% 2% 4% 6% 8% 10% 12%





Geweegde gemiddelde /

Weighted average




Mathematical mean


- Industry

■ 2006 7.87% 7.72% 9.67% 7.81%

■ 2005 8.16% 8.01% 9.68% 8.19%


Larger enterprises

The small increase in turnover at larger agri enterprises of only 1.6%, which was generated by the same infrastructure of the previous year, had a negative effect of 4% on the net profit percentage.

It has to be accepted that, especially at larger agri enterprises, profit making is the objective. However, profitability is influenced by cyclical economic and climate factors. There is currently a new approach away from the old trend of mere service delivery. Agri enterprises want to generate larger profits in order to create the best organisational infrastructure.



0% 1% 2% 3% 4% 5% 6% 7% 8% 9%









Mathematical mean


- Industry

■ 2006 5.95% 7.72% 5.75% 7.81%

■ 2005 6.21% 8.01% 6.52% 8.19%


Teenoor die omset wat behaal is, blyk daar ook ’n daling van 4% in winsgewendheid te wees.

Met die relatiewe klein styging in omset van net 8%, het globale prysmededinging die kleiner maatskappye se winsgewendheid nadelig geraak. Weens die reeds klein infrastruktuur wat daar by die ondernemings bestaan en waarop min, indien enige, kostebesparing bewerkstellig kan word, het ’n wysiging van bruto persentasies ’n wesenlike invloed.

Anders as by hul groot eweknieë, staan die ou koöperatiewe gedagte van blote dienslewering nog sterk in teenstelling met strewe na groter winsgewendheid.


Smaller enterprises

In contrast to the turnover achieved, it seems that there is also a 4% drop in profitability.

With the relatively small increase in turnover of 8%, global price competition influenced the profitability of smaller companies negatively. Due to the already small current infrastructure at the enterprises and on which little, if any, saving can be achieved, a change in gross profit percentages has a considerable impact.

The old cooperative idea of mere service delivery is currently present in smaller enterprised unlike the aim for freater profitability at their larger peers.


Bruto wins persentasies / Gross profit percentage

0% 5% 10% 15% 20% 25% 30%

Onderdele - Voorraadverkope /Spare parts - Stock sales

Implemente /Implements

Brandstof /Fuel

Handel - Voorraadverkope /Trade - Stock sales

Handel - Direkteverkope /

Trade - Direct sales

Onderdele - Voorraadverkope /Spare parts - Stock

sales


Brandstof /Fuel

■ 2006 17.32% 3.24% 24.69% 06.60% 5.57%

■ 2005 14.52% 3.40% 20.63% 10.15% 7.74%


Handel - Direkte verkope /Trade - Direct sales

1.5 Bruto winspersentasies

Hierdie verhouding is bereken vir geïdentifiseerde departemente en verskaf ’n aanduiding van die bruto winspersentasies (omset min koste van verkope) wat departementeel behaal is.

Vir die werkswinkel-, graanbemarking- en graanverhandelingsdepartemente kon geen sinvolle vergelyking getref word nie, weens die interpretasie- en teboekstellingsverskille tussen die deelnemers.

Die landboubedryf


1.5 Gross profit percentages

This ratio was calculated for identified departments and provides an indication of the gross profit percentages (turnover minus cost of sales) achieved in each department.

With regard to the workshop, grain marketing and grain trading departments, no meaningful comparison could be made because of difference in interpretation and accounting between participants.



Omset word soos volg gedefinieer:

Verkope van voorraad en dienste, uitgesluit belasting op toegevoegde waarde. In die geval van direkte verkope word slegs die kommissiegedeelte ingesluit. Handelskorting toegestaan word by die berekening van omset afgetrek. Brandstof en saadverkope is waar nodig uitgesluit.

Koste van verkope word soos volg gedefinieer:

Koste van verkope van voorraad, uitgesluit belasting op toegevoegde waarde. Handelskorting ontvang word by die berekening van koste van verkope ingereken. Brandstof en saadverkope se koste van verkope is waar nodig uitgesluit.

Die bruto winspersentasie van al die deelnemers ten opsigte van handel, onderdele en brandstof verkil nie wesenlik van mekaar nie. In die geval van meganisasie en saad blyk die bruto winspersentasies baie uiteenlopend te wees.

Groter ondernemings


0% 5% 10% 15% 20% 25% 30%



Brandstof /Fuel


Handel - Direkteverkope /




Brandstof /Fuel

■ 2006 17.68% 3.16% 24.79% 06.55% 5.48%

■ 2005 14.80% 3.35% 20.47% 10.45% 7.98%




Turnover is defined as follows:

Sales of stock and services, excluding value added tax. In the case of direct sales, only the commission part is included. Trade discounts granted is deducted when calculating turnover. Fuel and seed sales were excluded where necessary.

Cost of sales is defined as follows:

Cost of sales of stock, excluding value added tax. Trade discount received is included in the calculation of cost of sales. Fuel and seed sales are excluded where necessary.

The gross profit percentage of all the participants with regard to trade, spare parts and fuel does not differ much from each other. In the case of mechanisation and seed, the gross profit percentages seem to be very diverse.

Larger enterprises


Die landboubedryf en groter ondernemings

Handelsvoorraad het in die tydperk onder oorsig ‘n stewige verhoging in die bruto winspersentasie getoon, deur vanaf 14.52% tot 17.32% te styg. Voorraadaankope blyk nou beter bestuur te word. Produkreekse word heelwat uitgebrei om alternatiewe bronne van inkomste te skep.

Die afskrywing van voorraad, wat ’n regstreekse invloed op die bruto winspersentasies het, het min of meer dieselfde gebly, soos gemeld in 2.5.3 hierna.

Op direkte omset, dit wil sê op nie eie handelsvoorraad, bly die gemiddelde heffing ongeveer 3.2%. Hierdie metode van handel lewer ’n wesenlike bydrae tot die netto wins van sommige landbou-ondernemings.

Soos in die geval van handelsvoorraad, word onderdelevoorraad beter bestuur. Minder afskrywings van verouderde voorraad kom voor en gevolglik word beter bruto winspersentasies gerealiseer. Die gemiddelde bruto winspersentasies het derhalwe vanaf 21% tot byna 25% gestyg. Dit blyk ook dat voorraadaankope nou beter bestuur word. Nuwe tegnologie, wat verskaffers en landbou-ondernemings aan voorraadbewegings koppel, lewer ‘n groot bydrae tot beter voorraadbestuur.

Weens die verswakte ekonomiese toestande het die omset uit implemente met 32% gedaal, met groter prysmededinging wat aan die orde van die dag was. Gevolglik is pryse gesny en is die gemiddelde bruto winspersentasie byna gehalveer.

Die toename in brandstofverkope kan slegs aan die prysstygings toegeskryf word en nie aan die toename in volume nie. Die groot toename in brandstofpryse gedurende die tydperk onder oorsig het ’n daling van 30% in bruto winsgrense meegebring.


The agricultural industry and larger enterprises

Trading stock showed a strong increase in gross profit percentage during the period under review, by rising from 14.52% to 17.32%. Stock purchases seem to be managed better now. Product ranges are extended considerably to create alternative sources of income.

The write-off of stock, which has a direct influence on the gross profit percentages, remained more or less the same, as mentioned in 2.5.3 below.

On direct turnover, in other words not on own trading stock, the average levy stays at 3.2%. This method of trading contributes considerably towards the net profit of some agri enterprises.

As is the case with trading stock, spare parts stock is being managed better. There are fewer write-offs of aged stock and, consequently, better gross profit percentages are realised. The average gross profit percentage has, as a result, risen from 21% to 25%. It also seems that stock purchases are better managed. New technology, which links suppliers and agri enterprises to stock movements, contributes a large extent to better stock control.

Due to the weakened economic conditions, the turnover from implements dropped by 32%, with greater price competition being the order of the day. Consequently, prices were cut and the average gross profit percentage was almost halved.

The increase in fuel sales can only be attributed to the price hikes and not to the increase in volume. The large increase in petrol prices during the period under review resulted in a 30% drop in gross profit margins.




0% 2% 4% 6% 8% 10% 12% 14% 16% 18%



Brandstof /Fuel


Handel - Direkte verkope /


Brandstof /Fuel

■ 2006 15.60% 3.81% 5.98%

■ 2005 13.26% 3.82% 6.31%

Soos in die geval groter ondernemings was daar ‘n styging in die bruto winspersentasies. Verbeterde voorraadbeheer het ook bygedra tot stygende bruto winspersentasies.

Die persentasie heffing op direkte transaksies het konstant gebly met dié van die vorige jaar, naamlik 3.8%

Aangesien minder as sewe kleiner ondernemings inligting oor onderdele verskaf het, word u verwys na die resultate van geweegde gemiddelde van die bedryf in geheel.

U word ook verwys na die resultate ten opsigte van implemente van die bedryf in sy geheel, aangesien daar te min kleiner deelnemers was.

Dieselfde argument, soos reeds bespreek oor brandstofverkope vir die bedryf in sy geheel, se resultate geld ook hier – verhoogde pryse het verlaagde bruto winspersentasies meegebring.


Smaller enterprises

As is the case with larger enterprises, there was a increase in the gross profit percentages. Improved stock management also contributed to rising gross profit percentages.

The percentage levy on direct transactions remained constant compared to that of the previous year at 3.8%.

Because fewer than seven smaller enterprises provided information about spare parts, you are referred to the results of weighted averages of the industry in general.

You are referred to the results regarding implements of the industry in general because there were not enough smaller participants.

The same argument, as already discussed with regard to fuel sales for the industry in general, apply here – increased prices resulted in a decrease in gross profit percentages.



0% 2% 4% 6% 8% 10% 12% 14% 16% 18%



Brandstof /Fuel


Handel - Direkte verkope /


Brandstof /Fuel

■ 2006 15.60% 3.81% 5.98%

■ 2005 13.26% 3.82% 6.31%

1.6 Rentedekking

Hierdie verhouding dui die onderneming se vermoë aan om sy renteverpligting op sy uitstaande skuld te vereffen uit netto inkomste.

Netto inkomste word soos volg gedefinieer:

Netto inkomste voor belasting en rente betaal, aangesuiwer vir :


Waardevermindering op eiendom, aanleg en toerusting;

Voorkeurkortings en bonusse aan lede toegestaan; en

Afskrywings van ontasbare bates.

Rente betaal sluit finansieringsbruikhuurkoste in.

•

•

•

•

Rentedekking / Interest cover

0 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 4.50

Kleiner ondermenings - Geweegde gemiddelde /Small enterprises - Weighted average

Groter ondernemings - Geweegde gemiddelde /Large enterprises - Weighted average

Bedryf - Geweegde gemiddelde /Industry - Weighted average

Bedryf - Geweegde gemiddelde /

Industry - Weighted average

Groter ondernemings - Geweegde gemiddelde /

Large enterprises - Weighted average

Kleiner ondermenings - Geweegde gemiddelde /

Small enterprises - Weighted average

■ 2006 3.89 4.03 2.68

■ 2005 3.60 3.72 2.46


1.6 Interest cover

This ratio provides an indication of the enterprise’s ability to settle the interest on its outstanding debts from net income.

Net income is defined as follows:

Net income before tax and interest paid, adjusted for:

Exceptional items;

Depreciation of property, plant and equipment;

Preferential discounts and bonuses granted to members; and

Amortisation off of intangible assets.

Interest paid includes financing lease costs.

•

•

•

•


Landbou-ondernemings het gedurende die tydperk onder oorsig baie klem gelê op verbeterde kontantvloei. Uit die gesamentlike kontantvloei blyk dit dat die vorige jaar gekenmerk was deur ‘n wesenlike toename in voorskotte aan debiteure vir insetkoste. Hierdie proses is in die tydperk onder oorsig deels omgekeer deur ‘n netto verlaging in sodanige voorskotte.

Met inagneming van spesiale strategieë om produsente te akkommodeer, blyk die posisie gesonder as in die vorige tydperk te wees, maar die voortslepende probleem van oorlaatskuld soos vermeld in 2.5.2 moet egter in ag geneem word.

Die realisasie van beleggings gedurende die afgelope twee jaar het ook baie daartoe bygedra om die kontantposisie te verbeter. Dit het ook daartoe bygedra om die rentedekking vir die bedryf marginaal vanaf 3.60 tot 3.89 keer te verbeter.

Die groter ondernemings se rentedekking het verbeter vanaf 3.72 tot 4.03 keer.

Kleiner landbou-ondernemings wat hoofsaaklik op die lojaliteit van hul lede staatmaak, vind dit tans moeilik om groter winste te realiseer ten einde verdere reserwes op te bou. Hul debiteure styg jaarliks hoofsaaklik weens die verhoogde insetkoste. Die beperkte vermoë om self bykomende fondse te genereer, speel hier ‘n belangrike rol. Die situasie wek aansienlike kommer.


Agri enterprises placed extra emphasis on improved cash flow during the period under review. From the joint cash flow it emerges that the previous year had been characterised by a considerable increase in advances to debtors for input costs. This process was partly reversed during the period under review by a net decrease in such advances.

Taking into consideration special strategies to accommodate producers, the position appears to be sounder than in the previous period, but the ongoing problem of carry-over debt, as mentioned in 2.5.2 must, however, be considered.

The realisation of investments during the past two years also contributed to the improvement of the cash position. In addition, it contributed to improving the interest cover for the industry marginally from 3.60 times to 3.89 times.

The interest cover of the larger enterprises improved from 3.72 to 4.03 times.

Smaller agri enterprises which largely rely on the loyalty of their members, currently find it difficult to realise larger profits in order to build additional reserves. Their debtors increase every year, mainly due to the increased input costs. The limited ability to generate additional funds on their own plays an important part here. The situation is cause for significant concern.


1.7 Silobenutting

Hierdie verhouding dui die effektiewe benutting van beskikbare silokapasiteit aan. Dit dien ook in meeste van die gevalle as aanwyser van die oesomvang oor die algemeen.

Die deursettonne (slegs tonne wat regstreeks deur die silo’s beweeg) word as ’n persentasie van die beskikbare kapasiteit uitgedruk.

Weens die swak ekonomiese toestande vir graan en oliesade, was produsente gedwing om hul produkte langer op te berg in afwagting van beter pryse. Dit het daartoe bygedra dat hierdie groot bron van inkomste van landbou-ondernemings stewig gegroei het, ondanks klimaatstoestande wat nie altyd gunstig was nie.

Silobenutting / Silo utilisation

0% 10% 20% 30% 40% 50% 60% 70% 80%






- Industry

■ 2006 64.88% 74.51%

■ 2005 57.90% 61.85%

Hierdie resultate moet beoordeel word met inagneming van faktore soos die groter mededinging vir die verskaffing van stoorgeriewe, die uitdaging van alternatiewe opbergingsmetodes en onsekerhede oor die toekoms van die landbou. Hierdie faktore het daartoe gelei dat die besettingsfaktor van 58% tot 65% gestyg het.


1.7 Silo utilisation

This ratio indicates the efficient utilisation of available silo capacity. It also serves, in most cases, as an indicator of the extent of the harvest in general.

The through-put tons (only tons that move directly through the silos) are expressed as a percentage of the available capacity.

Owing to the poor economic conditions for grain and oil seeds, producers were forced to store their products for longer in anticipation of better prices. That contributed to firm growth of this large source of income, despite weather conditions that were not always favourable.

These results must be judged while taking into consideration factors such as the increased competition for the provision of storage facilities, the challenge of alternative storage methods and uncertainties regarding the future of agriculture. These factors resulted in the rise from 58% to 65% of the occupancy factor.


1.8 Silo-tariewe

Die gemiddelde jaar-, hanterings- en dagtariewe per ton kan soos volg opgesom word:

Die tariewe verskil min tussen die deelnemers. Volgens die inligting wat bekom is, hanteer die deelnemers grotendeels slegs een oes per jaar.

1.9 Direkteursvergoeding

Slegs die direkteursvergoeding van nie-uitvoerende direkteure is vir die doeleindes van die prestasiemeting ondersoek.

Koring / Wheat Mielies / MealiesR R

Gemiddelde jaartarief/stoortarief / Average year/storage tariff 71,80 58,00Gemiddelde hanteringstarief / Average handling tariff 38,75 34,33Gemiddelde dagtarief / Average daily tariff 0,41 0,34

Met die ontvangs van die opgawes is gevind dat direkteursvergoeding meestal soos volg betaal word:

Eenmalige betaling per jaar (honorarium);

Vaste bedrag per dag (dagtoelae); en

Reistoelae per kilometer.

•

•

•

Hoogste grens / Highest margin


Mathematical meanR R

Voorsitter / Chairman 272 000 147 987Onder-voorsitter / Vice chairman 210 000 107 680Ander / Other 116 250 70 220

Die reistoelaag het onveranderd gebly teenoor die vorige jaar, naamlik R3.37 per kilometer.


1.8 Silo tariffs

The average annual, handling and daily tariffs per ton can be summed up as follows:

The tariffs differ little among the participants. According to the information obtained, the participants mainly harvest once a year.

1.9 Directors’ remuneration

Only the director’s remuneration of non-executive directors were investigated for the purposes of the benchmarking survey.

The returns received indicated that directors’ remuneration is mostly paid as follows:

Once-off annual payment (honorarium);

Fixed amount per day (daily allowance); and

Travel allowance per kilometre.

•

•

•

The travel allowance remained unchanged compared to the previous year at R3.37 per kilometre.


1.10 Werkswinkeltarief

Werkswinkeltariewe word in ’n groot mate deur die handel bepaal. Die winsgewendheid van werkswinkels is hoofsaaklik afhanklik van besetting. Gevalle kom voor waar hierdie afdelings gesubsidieer word, aangesien dit hoofsaaklik ’n ondersteuningsfunksie verrig. Die onderdele- en implemente-afdelings trek gewoonlik die voordeel uit hierdie diens.

Die gemiddelde tariewe wissel van R184 tot R268 per uur.

1.11 Departementele personeelkoste

Hierdie verhouding van departementele personeelkoste as persentasie van die departementele omset is bereken vir geïdentifiseerde departemente en verskaf ’n aanduiding van die koste van personeel vir die betrokke departement.

Vir die werkswinkel-, graanbemarking- en graanverhandelingsdepartemente kon egter geen sinvolle prestasiemetingsvergelyking getref word nie weens die interpretasie- en teboekstellingsverskille tussen die deelnemers.

Omset word soos volg gedefinieer:

Verkope van voorraad en dienste, uitgesluit belasting op toegevoegde waarde. Handelskorting toegestaan word by die berekening van omset afgetrek.

Brandstof en saadverkope is waar nodig uitgesluit.

Personeelkoste word soos volg gedefinieer:

Dit is personeelkoste wat direk aan ‘n betrokke departement toegedeel kan word. Dit sluit direkteursvergoeding en personeelkostes van die hoofkantoorpersoneel (administratief) spesifiek uit.


1.10 Workshop tariff

Workshop tariffs are mostly determined by the trade. The profitability of workshops depends primarily on utilisation. There are cases where these divisions are subsidised because it mainly performs a support function. The spare parts and implements divisions usually benefit from this service.

The average tariffs varies from R184 to R268 per hour.

1.11 Departmental personnel costs

The ratio of departmental personnel costs as a percentage of the departmental turnover was calculated for identified departments and provides an indication of the cost of personnel for the department in question.

However, for the workshop, grain marketing and grain trading departments, no meaningful comparison could be made because of differences in interpretation and bookkeeping among the participants.

Turnover is defined as follows:

Sales of stock and services, excluding value added tax. Trade discounts granted is deducted from the calculation of turnover.

Fuel and seed sales were excluded where necessary.

Personnel costs are defined as follows:

It is personnel costs that can be attributed directly to a specific department. It specifically excludes directors’ remuneration and personnel costs of head office personnel.


Groter ondernemings

Departementele personeelkoste / Departmental personnel costs

0% 2% 4% 6% 8% 10% 12% 14% 16%

Onderdele - Rekenkundige gemiddelde /Spare parts - Mathematical mean

Implemente - Geweegde gemiddelde /Implements - Weighted average

Implemente - Rekenkundige gemiddelde /Implements - Mathematical mean

Handel / Trade Onderdele / Spare parts Implemente / Implements



Mathematical mean



Mathematical mean



Mathematical mean

■ 2006 4.81% 5.45% 9.31% 10.98% 4.13% 4.58%

■ 2005 4.98% 4.94% 13.02% 13.58% 2.49% 3.03%

Handel - Geweegde gemiddelde /Trade - Weighted average

Handel - Rekenkundige gemiddelde /Trade - Mathematical mean

Onderdele - Geweegde gemiddelde /Spare parts - Weighted average

Die ondernemings met die grootste omset in hul handelsafdelings was volgens die geweegde gemiddelde die suksesvolste in die besparing van hul personeelkoste. Volgens die rekeningkundige gemiddelde het die personeelkoste van sommige deelnemers egter meer toegeneem as die toename in omset.

Dit blyk asof die hele landboubedryf meer suksesvol was met hul personeelkoste in die onderdele-afdeling en dat dit beter bestuur is.

Weens die groot daling in die verkope van implemente, was die persentasiestyging van 65% in personeelkoste in verhouding tot die vorige jaar te verwagte. Die personeelstrukture moes behou word ongeag die daling in omset.


Larger enterprises

The enterprises with the largest turnover in their operating divisions were, according to the weighted average, the most effective in saving on personnel costs. According to the accounting average, the personnel costs of some participants did however increase more than the increase in turnover.

It seems as though the entire agri industry was more successful with their personnel costs in the spare parts division and that it was better managed.

Owing to the large drop in the sale of implements, the percentage increase of 65% in personnel costs compared to the previous year was expected. The personnel structures had to be retained despite the drop in turnover.


Departementele personeelkoste / Departmental personnel costs

4.00% 4.20% 4.40% 4.60% 4.80% 5.00% 5.20% 5.40%



Handel / Trade



Mathematical mean

■ 2006 5.24% 4.80%

■ 2005 4.49% 4.43%

Dit is opvallend dat kleiner ondernemings, wat hoofsaaklik net handelsafdelings bedryf, se personeelkoste gestyg het teenoor die vorige tydperk. ’n Besparing van hierdie koste sal moeilik bewerkstellig kan word weens die beperkte personeelgetalle wat in diens is.


It is noteable that the personnel costs of smaller enterprises, which primarily operate trade division, increased compared to the previous period. A saving of this cost will be difficult to achieve due to the limited number of personnel employed.

Kleiner ondernemings Smaller enterprises


1.12 Rekenaarkoste

Hierdie verhouding verskaf ’n aanduiding van rekenaarkoste as persentasie tot omset.

Rekenaarkoste as % van omset / Computer costs as % of turnover

0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20%

Groter ondernemers - Geweegde gemiddelde/Large enterprises - Weighted average

Groot ondernemers / Large enterprises Klein ondernemers / Small enterprises



Mathematical mean



Mathematical mean

■ 2006 0.95% 0.89% 0.52% 0.56%

■ 2005 1.02% 0.94% 0.57% 0.63%

Groter ondernemers - Rekenkundige gemiddelde /Large enterprises - Mathematical mean

Kleiner ondernemers - Geweegde gemiddelde /Small enterprises - Weighted average

Kleiner ondernemers - Rekenkundige gemiddelde /Small enterprises - Mathematical mean

Rekenaarkoste behels herstel/instandhouding, waardevermindering, lisensiegelde, huurkoste, salarisse van die rekenaardepartement en konsultasiegelde aan buitepartye.

Omset is die verkoop van voorraad en dienste, uitgesluit belasting op toegevoegde waarde. In die geval van direkte verkope word slegs die kommissiegedeelte in ag geneem. Handelskorting toegestaan word by die berekening van omset afgetrek.

Dit is duidelik dat die bedryf in sy geheel, groter en kleiner ondernemings, poog om rekenaarkoste te verminder deur die effektiewe bestuur daarvan.


1.12 Computer costs

This ratio provides an indication of computer costs as a percentage of turnover.

Computer costs include repair/maintenance, depreciation, licensing fees, rent, salaries of the computer department and consultation fees to external parties.

Turnover is the sale of stock and services, excluding value added tax. In the case of direct sales, only the commission part is included. Trade discounts granted is deductedd when calculating turnover..

It is clear that the industry as a whole, both larger and smaller enterprises, aim to decrease computer costs by managing it effectively.


Balansstaatstruktuur Balance sheet structure

Die grafieke by 2.1 en 2.2 verteenwoordig ’n opsomming van die deelnemende landbou-ondernemings se balansstaatstrukture. Aangesien die groter landbou-ondernemings so ’n oorheersende rol speel, word aparte inligting van die groter en kleiner ondernemings ook verskaf.

Die balansstaatstruktuur word saamgestel uit die maandelikse gemiddeldes van debiteure, voorraad, krediteure en korttermynfinansiering ten einde seisoenale skommelings uit te skakel. Die res van die bates en laste verteenwoordig die waardes soos op die balansstaatdatums van die deelnemers.

The graphs at 2.1 and 2.2 represent a summary of the balance sheet structures of the participating agricultural enterprises. Because the larger agri enterprises play such a dominating role, separate information about the larger and smaller enterprises is also provided.

The balance sheet structure is compiled from the monthly average of debtors, stock, creditors and short-term financing in order to eliminate seasonal changes. The rest of the assets and liabilities represent the values as at the participants’ balance sheet dates.


Balansstaatstruktuur / Balance sheet structure

■ Vaste bates /

Fixed assets

■ Aandelebeleggings /

Investment in shares

■ Gemiddelde Debiteure /

Average Debtors

■ Gemiddelde Voorraad /

Average Stock

■ Kontant /

Cash

■ Ander /

Other

12%

42%

20%

1%

17%

8%

■ Vaste bates /

Fixed assets




Average Debtors


Average Stock

■ Kontant /

Cash

■ Ander /

Other

11%

48%

17%

2%

13%

9%

�00�

�005

2.1 Totale bate verdeling

Die landboubedryf in sy geheel

Balance sheet structureBalansstaatstruktuur

2.1 Total asset composition

The agricultural industry in general



Die groot persentasie wat gemiddelde debiteure van die bates uitmaak is opvallend. Waar die gemiddelde debiteure in die vorige jaar egter 48% van die totale bates uitgemaak het, het dit nou tot 42% gedaal. As gevolg van die daling in debiteure het ander bate-groepe se persentasies gestyg. Voorraad het gestyg deels as gevolg van die swakker koopkrag van produsente.

Volgens die grafiek het die netto belegging in vaste bates met een persentasiepunt gestyg. Daar moet egter na die prentjie in die geheel gekyk word. Weens die ekonomiese omstandighede het groter ondernemings se belegging in langtermynbates gedurende die periode met 33% gedaal teenoor die vorige tydperk, terwyl kleiner ondernemings ook hul vaste bate aankope met 25% afgeskaal het.

Beleggings het relatief min gegroei. Die toename in beleggings in die batestruktuur kan egter hoofsaaklik toegeskryf word aan die herwaardasie daarvan, soos vereis deur internasionale finansiële verslagdoeningstandaarde (IFRS). Verskeie deelnemers het van hul beleggings in die Pioneer Groep en New Holland verkoop.

Altesame R330 miljoen se aandele is oor die afgelope twee jaar gerealiseer. Dit het daartoe bygedra dat die kontantposisie van ondernemings in die geheel verbeter het. Die kontant is in ‘n groot mate gebruik om kredietlenings te delg.


It is striking what a large percentage of the assets consist of average debtors. However, whereas the average debtors constituted 48% of the total assets in the previous year, it has now dropped to only 42%. As a result of the drop in debtors, the percentages of other asset groups have risen. Stock rose partly because of producers’ weaker buying power.

According to the graph, the net investment in fixed assets rose with one percentage point. However, the complete picture has to be taken into consideration. Owing to the economic conditions, the investment of larger enterprises in long-term assets dropped by 33% compared to the previous period, while smaller enterprises also reduced their fixed asset purchases by 25%.

Investments grew relatively little. However, the increase in investments in the asset structure is mainly attributable to its revaluation, as required by the International Financial Reporting Standards. Several participants had sold their investments in the Pioneer Group and New Holland.

Shares totalling R330 million had been realised over the past two years. That contributed to the general improvement of enterprises’ cash flow position. The cash was largely used to settle credit loans.


Groter ondernemings


■ Vaste bates /

Fixed assets




Average Debtors


Average Stock

■ Kontant /

Cash

■ Ander /

Other

22%

12%

11%

1%

45%

9%

■ Vaste bates /

Fixed assets




Average Debtors


Average Stock

■ Kontant /

Cash

■ Ander /

Other

17%

11%

10%

1%

51%

10%

�00�

�005


Groter landbou-ondernemings se debiteure het vanaf 51% tot 45% gedaal, terwyl voorraad van 17% tot 22% toegeneem het. Die kontantvloeistate en ander resultate bevestig dat die debiteure- invordering verbeter het, maar dat die gemiddelde voorraadvlakke met 25% gestyg het.

Larger enterprises

The debtors of larger agri enterprises dropped from 51% to 45%, while stock increased from 17% to 22%. The cash flow statements and other results confirm that debt collecting had improved, but that the average stock levels had increased by 25%.



■ Vaste bates /

Fixed assets




Average Debtors


Average Stock

■ Kontant /

Cash

■ Ander /

Other

22%

12%

11%

1%

45%

9%

■ Vaste bates /

Fixed assets




Average Debtors


Average Stock

■ Kontant /

Cash

■ Ander /

Other

17%

11%

10%

1%

51%

10%

�00�

�005


■ Vaste bates /

Fixed assets




Average Debtors


Average Stock

■ Kontant /

Cash

■ Ander /

Other

15%

43%

20%

3%

14%

5%

■ Vaste bates /

Fixed assets




Average Debtors


Average Stock

■ Kontant /

Cash

■ Ander /

Other

15%

48%

22%

3%

8%

4%

�00�

�005


Kleiner ondernemings Smaller enterprises


Terwyl debiteure in die vorige tydperk 48% van totale bates uitgemaak het, het dit nou tot 43% gedaal. Voorraad het byna konstant gebly op 20% van die totale bates. Kleiner ondernemings het in die tydperk onder oorsig baie min beleggings gemaak omdat hul beleggingsgeleenthede beperk was. Aandelebeleggings maak as gevolg van die herwaardasie daarvan nou 14% van die totale bates uit teenoor die 8% van die vorige tydperk.


While 48% of total assets in the previous period consisted of debtors, it has now dropped to 43%. Stock remained constant at 20% of the total assets. Smaller enterprises made very few investments during the period under review because their investment opportunities were limited. Owing to its revaluation, shares investments now make up 14% of the total assets, compared to the 8% of the previous period.


2.2 Ekwiteit en aanspreeklikhede verdeling

Die landboubedryf in sy geheel

Groter landbou-ondernemings het hul balansstate in die tydperk onder oorsig verstewig, maar kleiner ondernemings se posisie het verswak.

Ekwiteitsstruktuur / Equity structure

■ Ekwiteit /

Equity

■ Langtermynskuld /

Long-term debt

■ Gemiddelde krediteure /

Average creditors

■ Gemiddelde kredietlenings /

Average credit loans

■ Oortrokke fasiliteite /

Overdraft facilities

■ Ander /

Other

6%

24%

1%

43%

14%

12%

■ Ekwiteit /

Equity


Long-term debt


Average creditors





■ Ander /

Other

7%

24%

1%

38%

19%

11%

�00�

�005


2.2 Equity and liability composition

The agricultural industry as a whole

Larger agri enterprises strengthened their balance sheets during the period under review, but the position of smaller enterprises has weakened.


Buiten die reserwes wat voortgevloei het uit die herwaardasie en realisasie van aandelebeleggings, is gemiddeld 34% van die vorige tydperk se netto wins na belasting, uitgekeer as dividend. Ekwiteit het van 38% tot 43% gegroei.

Die langtermynskuld is eerder gedelg as gevolg van verbeterde kontantvloei en het met gemiddeld 10% afgeneem. Dit bedra nou net 6% van die totale fondse wat benodig word teenoor die 7% van die vorige tydperk. Let egter op die verskil in die situasie van groter en kleiner ondernemings, soos hieronder bespreek.

Dit is opvallend dat sommige deelnemers korttermynfinansiering verkies bo langtermynlenings. Handelsvoorraadvlakke het soos vermeld in 2.1 met 25% gestyg weens ekonomiese omstandighede, wat deels deur middel van korttermynlenings en oortrokke fasiliteite gefinansier is.


Apart from the reserves that resulted from the revaluation and realisation of investment in shares, an average of 34% of the previous period’s net profit was paid out as a dividend. Equity grew from 38% to 43%.

The long-term debt was rather paid off as a result of improved cash flow, and decreased by an average of 10%. It now amounts to only 6% of the total funds required, compared to the 7% of the previous period. However, note the difference in situation between the larger and smaller enterprises, as discussed below.

It it striking that some participants prefer short-term financing to long-term loans. As mentioned in 2.1, stock levels rose by 25% due economic conditions, which were partly financed by means of short-term loans and overdraft facilities.


Groter ondernemings


■ Ekwiteit /

Equity


Long-term debt


Average creditors





■ Ander /

Other

40%

25%

16%

6%12%

1%

■ Ekwiteit /

Equity


Long-term debt


Average creditors





■ Ander /

Other

35%

25%

21%

7%

11%

1%

�00�

�005


Larger enterprises


Weens die oorheersende rol wat groter ondernemings speel, geld dieselfde verduidelikings as hierbo. Die ekwiteit het in die tydperk onder oorsig met 23% van 35% tot 40% gegroei. Van die groei van 23% kon 13,5% toegeskryf aan die toename in herwaardasiereserwes, terwyl ’n verdere 3% toegeskryf word aan die realisasie met die verkoop van beleggings.

Korttermynfinansiering bedra nou 41% van die totale fondse teenoor 46% van die vorige tydperk as gevolg van die verbeterde kontantposisie.


Owing to the dominating role played by larger enterprises, the same explanation as above is valid. Equity grew by 23% from 35% to 40% during the period under review. Of this 23% growth, 13,5% could be attributed to the increase in revaluation reserves, while a further 3% could be attributed to the realisation upon the sale of investments.

Short-term financing now amounts to 41% of the total funds, compared to the 46% of the previous period, because of the improved cash position.



■ Ekwiteit /

Equity


Long-term debt

■ Gemiddelde Krediteure /

Average Creditors

■ Gemiddelde Kredietlenings /

Average Credit loans



■ Ander /

Other

11%

10%

49%

20%

8%

2%

■ Ekwiteit /

Equity


Long-term debt

■ Gemiddelde Krediteure /

Average Creditors

■ Gemiddelde Kredietlenings /

Average Credit loans



■ Ander /

Other

14%

3%

51%

18%

12%

2%

�00�

�005



Smaller enterprises

Hierdie ondernemings se ekwiteit het van 51% tot 49% gedaal. Terwyl 10% van die vorige jaar se langtermynskuld gedelg is, het gemiddelde korttermynfinansering egter sterk met 63% teenoor die vorige jaar toegeneem. Dit was tot ’n groot mate om bykomende debiteure te finansier.

The equity of these enterprises dropped from 51% to 49%. While 10% of the previous year’s long-term debt had been settled, average short-term financing nevertheless increased sharply by 63% compared to the previous year. That was largely to finance additional debtors.


2.3 Bedryfskapitaalverhouding

Die verhouding is ‘n aanduiding van die maatskappy se betaalvermoë om sy korttermynverpligtinge na te kom.

Dit is die verhouding van bedryfsbates tot bedryfslaste. Vir prestasiemetingsdoeleindes word die maandelikse gemiddelde van debiteure, voorraad, kaskrediete en krediteure gebruik. Vir al die ander items, word die bedrae soos op balansstaatdatum gebruik.

Vir die alternatiewe berekening word kredietlenings, kaskrediete en langtermyn-finansiering, wat vir korttermyninsetfinansiering geoormerk is, uitgesluit van bedryfsbates en bedryfslaste.

Aangesien landbou-ondernemings ‘n groot rol in die verkryging van finansiering vir produsente speel, tree hul meestal op as ‘n geleipyp vir finansiële hulp wat verkry word om produsente se insette te finansier. Dit kan daartoe aanleiding gee dat die bedryfskapitaalverhouding tot ‘n mate nadelig beïnvloed word.

Indien hierdie finansiering buite rekening gelaat word, dui hierdie verhouding ‘n matige verbetering teenoor die vorige jaar.

Die vuurproefverhouding, wat ‘n soortgelyke berekening is, maar voorraad uitgesluit word by die berekening, word nie verstrek nie, aangesien dit ‘n baie teoretiese norm is wat nie toepaslik is op die landbou-omgewing nie.


2.3 Operating capital ratio

The ratio is an indication of the company’s payment ability with regard to honouring its short-term obligations.

It is the ratio of current assets to current liabilities. For benchmarking purposes, the monthly averages of debtors, stock, cash credits and creditors are used. For all the other items, the amounts as on balance sheet date are used.

For the alternative calculation, credit loans, cash credits and long-term finance, which is earmarked for short-term input financing, are excluded from operating assets and operating liabilities.

Because agri enterprises play a large role in obtaining financing for producers, they mostly act as a conduit for financial aid that is obtained in order to finance producers’ inputs. That can lead to the operating capital ratio being negatively influenced to a certain extent.

If this financing is not taken into account, this ratio indicates a moderate improvement from the previous year.

The quick asset ratio is a similar calculation, but stock is excluded from the calculation, is not given because it is a very theoretic benchmark that is not applicable in the agricultural environment.


Die landboubedryf en groter ondernemings

Die bedryfskapitaalverhouding van die bedryf het in sy geheel teenoor die vorige tydperk verswak. Die fondse wat voortgevloei het uit debiteure, wat met 5% afbestuur is, is aangewend om voorraad te finansier. Krediteure is vinniger vereffen, wat 4% laer is. Dit het uiteraard ’n negatiewe uitwerking op die bedryfskapitaalverhouding gehad. Bykomende finansiering is aangegaan, bo en behalwe die R200 miljoen waarmee die kontant-posisie verstewig is deur die huidige periode se aandeleverkope. Uit die kontantvloeistate blyk dit dat die netto bedryfskapitaalposisie ‘n negatiewe kontantvloei van ongeveer 7.5% van die totale wins getoon het.

Bedryfskapitaalverhouding / Operating capital ratio

0 0.50 1.00 1.50 2.00 2.50 3.00 3.00

Bedryf / Industry

Groter ondernemings /Large enterprises

In geheel / In total Uitgesluit kaskrediete en LT finansiering /Excluding cash credits and LT financing

Bedryf /Industry

Groter Ondernemings /Large enterprises

Kleiner Ondernemings /Small enterprise

Bedryf /Industry

Groter Ondernemings /Large enterprise

Kleiner Ondernemings /Small enterprise

■ 2006 1.45 1.42 1.37 2.90 2.82 1.80

■ 2005 1.58 1.56 1.73 2.47 2.47 2.51

Bedryf /Industry

Kleiner ondernemings /Small enterprises

Groter ondernemings / Large enterprises



The agricultural industry and larger enterprises

The operating capital ratio of the industry weakened in general compared to the previous period. The funds emanating from debtors, which were managed down 5%, were used to finance stock. Creditors, which are 4% lower, were settled quicker. That obviously had a negative effect on the operating capital ratio. Additional financing was obtained, apart from the R200 million with which the cash position had been strengthened by die current period’s sale of shares. From the cash flow statements it appears that the net operating capital position showed a negative cash flow of about 7.5% of the total profit.

In geheel /In total

Uitgesluit kaskrediete en LT finansiering /Excluding cash credits and LT financing



By die kleiner ondernemings is dit kommerwekkend hoe die bedryfskapitaalverhouding verswak het. Waar die verhouding in die vorige tydperk 1,73 was, het dit nou tot 1,37 gedaal. Die geweegde gemiddelde van die verhouding vir die kleiner ondernemings, indien kaskrediete en langtermynfinansiering uitgesluit word, het aansienlik van 2,51 tot 1,80 afgeneem. Die kontantvloeistate toon dat 45% van vanjaar se winste in bedryfskapitaal belê moes word.

Dit moet beklemtoon word dat kleiner ondernemings se posisie baie netelig is. Dit kan in ’n groot mate toegeskryf word aan bykomende finansiering wat bekom moes word om debiteure te finansier. Kleiner ondernemings beskik nie oor die fondse om stygende insetkoste van hul produsente te finansier nie.

2.4 Ekwiteitsverhoudings

�.�.1 Ekwiteit as persentasie van Ekwiteit en Totale skuld

Dit dui aan tot watter mate die onderneming sy bates self finansier deur ekwiteit, of afhanklik is van skuld. Hierdie is dus ‘n maatstaf van die maatskappy se finansiële hefboom. Die bedryf se eie kapitaal en reserwes word as ‘n persentasie van die totale fondse aangewend uitgedruk.

Twee vergelykings word hier getref. Die verhouding word eerstens bereken volgens die huidige finansiële resultate soos dit in die finansiële jaarstate verantwoord word. As alternatief, om as beter vergelyking tussen ondernemings te dien, word herwaardasies uitgesluit.

Skuld sluit alle rentedraende verpligtinge, bedryfslaste en uitgestelde belasting in. Ekwiteit sluit alle kapitaal en reserwes in.


Smaller enterprises

The extent to which the operating capital ratio at the smaller enterprises has weakened, is a cause for concern. Whereas the ratio was 1.73 in the previous period, it has now dropped to 1.37. The weighed averages of the ratio for the smaller enterprises, if cash credits and long-term financing are excluded, have decreased considerably from 2.51 to 1.80. The cash flow statements show that 45% of this year’s profits had to be invested in operating capital.

It has to be emphasised that smaller enterprises are in a very precarious position. That can be attributed, to a large extent, to additional financing that had to be obtained in order to finance debtors. Smaller enterprises do not have the funds to finance the rising input costs of their producers.

2.4 Equity ratio

�.�.1 Equity as percentage of Equity and Total debt

This indicates to what extent the enterprise finances its assets through equity, or is dependent on debt. Therefore, this is a measure of the company’s financial leverage. The industry’s own capital and reserves are expressed as a percentage of the total funds used.

Two comparisons are made here. The ratio is firstly calculated according to the current financial results as reported in the annual financial statements. As an alternative, to serve as a better comparison between enterprises, revaluations are excluded.

Debt includes all interest-bearing obligations, operating liabilities and deferred taxation. Equity includes all capital and reserves.


Ledefondse waarop rente gehef word, word as skuld hanteer. Ledefondse wat rentevry is en geroteer word, word as ekwiteit hanteer.

Herwaardasiereserwes verteenwoordig herwaardasies van eiendom, aanleg, toerusting en beleggings.


Members’ funds on which interest is charged, is handled as debt. Members’ funds that are debt free and are rotated, are handled as equity.

Revaluation reserves represent revaluations of property, plant, equipment and investments.

Ekwiteitverhouding / Equity ratio

0% 10% 20% 30% 40% 50% 60% 70%

Bedryf /Industry


Ekwiteit as persentasie van Ekwiteit en Totale Skuld (Langtermyn en Korttermyn) /

Equity as percentage of Equity and Total debt (Long term and short term)

Ekwiteit (uitgesluit herwaardasiereserwes) as persentasie van Ekwiteit en Totale Skuld /

Equity (excluding revaluation reserves) as percenetage of Equity and Total debt

Bedryf /Industry



Bedryf /Industry



■ 2006 50.22% 46.04% 65.22% 41.35% 41.24% 37.83%

■ 2005 45.38% 42.88% 62.04% 38.32% 37.63% 44.45%

Bedryf /Industry




Ekwiteit as persentasie van Ekwiteit en Totale Skuld

(Langtermyn en Korttermyn) /Equity as percentage of Equity and Total debt

(Long term and short term)

Ekwiteit (uitgesluit herwaardasiereserwes) as persentasie van Ekwiteit en Totale Skuld /Equity (excluding revaluation reserves) as

percenetage of Equity and Total debt


Groter ondernemings

Hierdie grafiek bevestig weereens die verbetering in die finansiële posisie van groter ondernemings met die toename in reserwes wat tot ’n groot mate toegeskryf kan word aan die herwaardasie van aandelebeleggings, die winste wat gerealiseer is met die verkoop van sommige beleggings, en handelswinste wat nie as dividend uitgekeer is nie.


Die aanvanklike ekwiteitsverhouding vertoon beter as dié van groter ondernemings. Wanneer herwaardasies egter uitgesluit word, het die kleiner ondernemings se finansiële stand verswak. Die tendens sal omgekeer moet word.

Soos vermeld in 2.3, tree baie landbou-ondernemings slegs op as tussenganger vir die verkryging van finansiering vir produsente. Daarom word daar eerder na die volgende verhouding gekyk omrede daar geargumenteer kan word dat bedryfslaste hoofsaaklik bedryfskapitaal finansier.

�.�.� Ekwiteit as persentasie van Ekwiteit en Langtermynskuld (Uitgesluit herwaardasiereserwes)

Dit dui aan tot watter mate die maatskappy sy nie-bedryfsbates en netto bedryfsbates deur ekwiteit en langtermynskuld finansier.

Langtermynskuld sluit in alle rentedraende langtermynverpligtinge en uitgestelde belasting. Ekwiteit sluit in alle kapitaal en reserwes.

Ledefondse word soos in 2.4.1 gehanteer.


Larger enterprises

This graph once again confirms the improvement in larger enterprises’ financial position with the increase in reserves that can largely be attributed to the revaluation of investments in shares, the profits realised with the sale of some investments and operating profits that had not been paid out as dividends.

Smaller enterprises

The initial equity ratio appears to be better than that of larger enterprises. However, when the revaluations are excluded, it emerges that the smaller enterprises’ position has weakened. This trend will have to be reversed.

As mentioned in 2.3, many agri enterprises only act as mediator for producers to obtain financing. Therefore, the following ratio is rather considered applicable because it can be argued that operating liabilities mainly finance operating capital.

�.�.� Equity as percentage of Equity and Long-term debt (Revaluation reserves excluded)

This indicates to what extent a company finances its non-operating assets and net operating assets through equity and long-term debt.

Long-term debt includes all interest-bearing long-term obligations and deferred taxation. Equitiy includes all capital and reserves.

Members’ funds are treated as in 2.4.1.


Groter ondernemings

Gemeet aan die norm dat ten minste 50% van die totale fondse aangewend uit ekwiteit moet bestaan, voldoen die oorgrote meerderheid van die landbou-ondernemings daaraan.

Ekwiteitverhouding - slegs langtermynverpligtinge / Equity ratio - long-term debt

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Ekwiteit (uitgesluit herwaardasiereserwes) as persentasie van Ekwiteit en LT Skuld /

Equity (excluding revaluation reserves) as percentage of Equity and LT debt

Kleiner ondernemings /Smaller enterprises

Ekwiteit (uitgesluit herwaardasiereserwes) as persentasie

van Ekwiteit en LT Skuld /Equity (excluding revaluation reserves) as

percentage of Equity and LT debt

Bedryf / Industry Groter ondermenings /Larger enterprises

Kleiner ondernemings /Smaller enterprises

■ 2006 84.83% 68.13% 87.38%

■ 2005 80.38% 73.58% 81.37%



Groter ondernemings /Larger enterprises



Bedryf /Industry


Larger enterprises

Measured against the benchmark that at least 50% of total funds used should consist of equity, the vast majority of agri enterprises comply.



Die algemene tendens dui daarop dat ‘n verswakking ingetree het. Indien die tendens nie gestuit kan word nie, sal daar in sekere gevalle deeglik besin moet word en vroegtydig besluit moet word oor amalgamasies of oornames ten einde die noodsaaklike infrastruktuur te behou.

2.5 Voorraad

�.5.1 Voorraadomsetsnelheid

Die voorraadomsetsnelheid toon die gemiddelde aantal kere per jaar wat voorraad verhandel. Hoe hoër die omsetsnelheid, hoe meer effektief is die belegging in voorraad. Indien die omsetsnelheid laag is, bring dit hoë koste aan finansiering, stoor- en personeelkoste en versekering, onder andere, mee. Dit kan ook dui op ou of verouderende voorraad wat potensieel afgeskryf moet word.

Die verhouding word bereken deur die koste van verkope te deel deur die gemiddelde voorraad.

Koste van verkope

Koste van verkope verteenwoordig die berekening soos gedefinieer in 1.5 hierbo.

Gemiddelde voorraad

Die maandelikse gemiddelde voorraad is vir die doeleindes van hierdie berekening gebruik weens die sikliese aard daarvan.

Daar kan nie verwag word dat landbou-ondernemings, weens hul ligging en die aard van hul handelswaarde, dieselfde omsetsnelheid as die korporatiewe kleinhandelsektor moet handhaaf nie.


Smaller enterprises

The general trend indicates that a weakening has occurred. If this trend cannot be stopped, there will have to be serious consideration in some cases regarding amalgamations or takeovers in order to retain the essential infrastructure and decisions will have to be made well in time.

2.5 Stock

�.5.1 Stock turnover ratio

The stock turnover ration shows the average number of times per year that stock is traded. The higher the turnover ratio, the more efficient the investment in stock. If the turnover ratio is low, it results in high financing, storage, personnel and insurance costs, among other things. It can also be an indication of old or ageing stock that potentially has to be written off.

The ratio is calculated by dividing the cost of sales by the average stock.

Cost of sales

Cost of sales represents the calculation as defined in 1.5 above.

Average stock

The average monthly stock was used for the purposes of this calculation due to its cyclical nature.

Owing to their location and the nature of their trade value, it cannot be expected that agri enterprises maintain the same turnover rate as the corporate retail sector.


Groter ondernemings

Voorraadomsetsnelheid / Stock turnover ratio

0 1 2 3 4 5 6 7 8



In geheel - Geweegde gemiddelde /

In total - Weighted average

Handel - Geweegde gemiddelde /

Trade - Weighted average

Onderdele - Geweegde gemiddelde /

Spare parts - Weighted average

Implemente - Geweegde gemiddelde /

Implements - Weighted average

■ 2006 5.36 3.83 2.26 02.07

■ 2005 6.74 4.50 2.29 1.88

In geheel - Geweegde gemiddelde /In total - Weighted average


Die gebrek aan koopkrag weens die ekonomiese omstandighede het meegebring dat voorraad stadiger beweeg het. Die aantal kere wat voorraad omgesit is, het verminder. Handelsvoorraad het toegeneem, wat blyk uit die voorraadomsetsnelheid wat van 4,50 tot 3,83 keer verswak het. Die onderdele voorraad se omsetswakheid het min of meer konstant gebly teen net meer as 2 keer per jaar. Implementevoorraad se verbetering kan daaraan toegeskryf word dat die vervaardigers self die voorraad moes dra.


Larger enterprises

The lack of buying power resulting from the economic conditions, caused stock to move slower. The number of times that stock was turned over, was reduced. Trading stock increased, which is apparent from the stock turnover rate that weakened from 4.50 to 3.83. The weakness in turnover of spare parts remained more or less the same at just over 2 times per year. The improvement of equipment stock can be attributed to producers carrying the stock themselves.



By kleiner ondernemings wat hoofsaaklik net handelsafdelings bedryf, was die omsetsnelheid van voorraad net 4.98 keer, terwyl dit in die vorige tydperk op 7.31 keer te staan gekom het. Dit blyk duidelik dat die voorraad stadiger beweeg en soos in die geval van debiteure verg voorraad ook bykomende finansiering.

�.5.� Voorraaddae

Die verhouding toon aan hoeveel dae dit neem om voorraad van die hand te sit.

Hierdie verhouding is dieselfde as die in 2.5.1, behalwe dat dit in aantal dae uitgedruk word in plaas van aantal kere omgesit.

Vir die definisie van koste van verkope en gemiddelde voorraad, verwys na definisies onder 2.5.1 hierbo.

Voorraaddae / Stock days

0 50 100 150 200

In geheel - Geweegde gemiddelde /In total - Weighted average




In geheel - Geweegde gemiddelde /

In total - Weighted average

Handel - Geweegde gemiddelde /

Trade - Weighted average

Onderdele - Geweegde gemiddelde /

Spare parts - Weighted average

Implemente - Geweegde gemiddelde /

Implements - Weighted average

■ 2006 68.15 95.25 161.51 176.46

■ 2005 54.19 81.16 159.65 194.67


Smaller enterprises

At smaller enterprises that principally only operate trade divisions, the turnover rate of stock was only 4.98 times, while it had been 7.31 in the previous period. It is obvious that the stock moved more slowly and, as in the case of debtors, stock also requires additional financing.

�.5.� Stock days

This ratio indicates how many days it takes to sell stock.

This ratio is the same as in 2.5.1, except that it is expressed in number of days instead of number of times turned over.

For the definition of cost of sales and average stock, refer to the definitions under 2.5.1 above.


Groter ondernemings

Hierdie grafiek bevestig wat by 2.5.1 gemeld is dat voorraadhouding vir die bedryf op jaareinde toegeneem het van 54 dae tot 68 dae. Handelsvoorraad se toename kan toegeskryf word aan die afname in koopkrag. Onderdele het min of meer dieselfde gebly, wat daarop dui dat dit beter bestuur word. Die voorraadhouding van implemente is afgeskaal weens die onsekerheid oor die ekonomiese herstel.

�.5.3 Voorraadkrimping as persentasie van koste van verkope/omset

Die verhouding verteenwoordig die hoeveelheid voorraad afgeskryf gedurende die jaar weens tekorte, veroudering of diefstal.

Weens die impak van verskillende bruto winspersentasies het deelnemers versoek dat die krimpingsfaktor op beide omset en koste van verkope bereken word.

Voorraadkrimping

Voorraadkrimping verteenwoordig monetêre waarde van alle voorraadafskrywings weens die berekende tekorte van voorraad.

Koste van verkope

Koste van verkope verteenwoordig die berekening soos gedefinieer in 1.5 hierbo.

Omset

Omset word gedefinieer in 1.5 hierbo.

Die persentasie voorraadafskrywings van deelnemers verskil wesenlik van mekaar. Indien ‘n strenger afskrywingsbeleid toegepas word, kan dit ‘n groot impak op hierdie resultaat hê.


Larger enterprises

This graph confirms what was mentioned under 2.5.1, namely that stock keeping for the industry at year end had increased from 54 days to 68 days. Trading stock’s increase can be attributed to the decrease in buying power. Spare parts remained more or less the same, which indicates that it was managed better. The stock keeping of implements was reduced due to the uncertainty regarding economic recovery.

�.5.3 Stock shrinkage as percentage of cost of sales/turnover

This ratio represents the quantity of stock written off during the year due to shortages, ageing or theft.

Owing to the impact of different gross profit percentages, participants requested that the shrinkage factor be calculated on both turnover and cost of sales.

Stock shrinkage

Stock shrinkage represents the monetary value of all stock write-offs because of the calculated shortages of stock.

Cost of sales

Cost of sales represents the calculation as defined in 1.5 above.

Turnover

Turnover is defined in 1.5 above.

The percentages of participants’ stock write-offs differ significantly from one another. If a stricter write-off policy were applied, it could have a significant impact on this result.


Sekere afdelings, veral handelsware, is meer sensitief vir tekorte en moet deur deurlopende voorraadopnames gemoniteer word.

Groter ondernemings

Voorraadkrimping / Stock shrinkage

0% 0.05% 0.10% 0.15% 0.20% 0.25% 0.30% 0.35% 0.40%

Voorraadkrimping en -afskrywing as % van koste van verkope - Geweegde gemiddelde /

Stock shrinkage and write-off as % of stock turnover - Weighted average

Voorraadkrimping en -afskrywing as % van voorraadomset - Geweegde Gemiddelde /

Stock shrinkage and write-off as % of stock turnover-Weighted average

Voorraadkrimping en -afskrywing as % van koste van verkope -

Geweegde gemiddelde /Stock shrinkage and

write-off as % of stock turnover

- Weighted average

Voorraadkrimping en -afskrywing as % van

voorraadomset - Geweegde Gemiddelde /

Stock shrinkage and write-off as % of stock

turnover-Weighted average

■ 2006 0.35% 0.30%

■ 2005 0.31% 0.27%

Daar was groter voorraadafskrywings in die tydperk onder oorsig as in die vorige jaar. Voorafgaande verhoudings bevestig dat meer verouderde voorraad gedra word.


Certain divisions, especially merchandise, are more susceptable to shortages and have to be monitored by continual stock-takes.

Larger enterprises

There were larger stock write-offs during the period under review than in the previous year. The preceding ratios confirms that more aged stock is being carried.


Voorraadkrimping / Stock shrinkage

0.00% 0.10% 0.20% 0.30% 0.40% 0.50% 0.60% 0.70% 0.80%

Voorraadkrimping en -afskrywing as % van koste van verkope /Stock shrinkage as % of cost of sales

Geweegde gemiddeldeWeighted average

Voorraadkrimping en -afskrywing as % van voorraadomset /

Stock shrinkage as % of cost of sales


Voorraadkrimping en -afskrywing as % van koste van verkope /

Stock shrinkage and write-off as % of stock turnover


■ 2006 0.54% 0.48%

■ 2005 0.69% 0.59%

Voorraadkrimping en -afskrywing as % van voorraad omset /Stock shrinkage and write-off as % of stock turnover



Uit die inligting blyk dit dat voorraadafskrywings by kleiner ondernemings afgeneem het. Die gemiddelde afskrywing is egter hoër as by groter ondernemings.

2.6 Debiteure

�.�.1 Debiteuredae

Debiteuredae gee ‘n aanduiding van hoe lank dit vir die onderneming neem om sy debiteure in te vorder.

Die verhouding word bereken deur die gemiddelde uitstaande debiteure in die tydperk te vergelyk met die omset wat gegenereer is.

Gemiddelde debiteure

Dit is die maandelikse gemiddelde bruto debiteure, wat oorlaatskuld insluit.


Smaller enterprises

From the information it emerges that the stock write-offs at smaller enterprises have been reduced. However, the average write-off is still higher than at larger enterprises.

2.6 Debtors

�.�.1 Debtor days

Debtor days provide an indication of how long it takes an enterprise to collect on its debtors.

The ratio is calculated by comparing the average outstanding debtors in the period with the turnover generated.

Average debtors

It is the average monthly gross debtors, which includes deferred debt.


Omset

Omset verteenwoordig bruto omset, maar anders as in die geval van 1.5 hierbo, word die bruto direkte verkope by die berekening in ag geneem. Omdat direkte omset ook deur landbou-onderneming gefinansier word, is daar besluit om die definisie van omset in hierdie geval te wysig.

Debiteure is die mees riskante bate van landbou-ondernemings. Die deeglike monitering daarvan en die verkryging van behoorlike sekuriteit verg deeglike bestuursbeheer. Om hierdie rede word kredietafdelings as ‘n afsonderlike winssentrum gemeet.

Debiteuredae / Debtor days

75 80 85 90 95 100

Groter ondernemings - Geweegde gemiddelde /Larger enterprises - Weighted average

Kleiner ondernemings - Geweegde gemiddelde /Smaller enterprises - Weighted average


Larger enterprises - Weighted average

Kleiner ondernemings - Geweegde gemiddelde /

Smaller enterprises - Weighted average

■ 2006 85.46 97.32

■ 2005 90.37 98.61

Die debiteuredae bevestig weereens die aanvanklike afname van debiteure volgens die landbou-ondernemings se balansstaatstrukture. Daar is beslis pogings aangewend om debiteure te verminder. By groter ondernemings het die aantal dae afgeneem, maar kennis moet geneem word van die al groter wordende persentasie oorlaatskuld wat hierna bespreek word.

Wat kleiner ondernemings betref, het die debiteuredae in verhouding met omset min of meer dieselfde gebly.


Turnover

Turnover represents gross turnover, but unlike the case in 1.5 above, the gross direct sales are taken into consideration for this calculation. Because direct turnover is also financed by agri enterprises, it has been decided to alter the definition of turnover in this case.

Debtors are the most risky asset of agricultural enterprises. Monitoring it thoroughly and acquiring sufficient security for it would require thorough management control. For this reason, credit divisions are measured as a separate profit centre.

The debtor days once again confirms the initial decrease of debtors according to the balance sheet structures of the agri enterprises. Efforts were definitely made to reduce debtors. The number of days decreased at larger enterprises, but one has to take note of the growing percentage of carry-over debt, which is discussed later.

As far as smaller enterprises are concerned, the debtor days remained more or less the same in relation to turnover.


Debiteuredae / Debtor days

75 80 85 90 95 100







■ 2006 85.46 97.32

■ 2005 90.37 98.61

�.�.� Oorlaatskuld as persentasie van debiteure

Hierdie verhouding dui aan tot watter mate produsente / debiteure hul vorige tydperk se insetkoste nie kon vereffen uit oesopbrengste nie.

Oorlaatskuld

Oorlaatskuld verteenwoordig produksielenings wat aan die einde van die seisoen nog nie vereffen is nie. Dit sluit ook spesiale reëlings wat met produsente getref is om skuld oor ‘n langer termyn te vereffen, byvoorbeeld droogtehulp, in.


Dit is die bruto maandelikse gemiddelde debiteure soos gedefinieer in 2.6.1 hierbo.

Hierdie verhouding behoort in ‘n groot mate ‘n rol te speel in die beoordeling van die voorsiening van twyfelagtige skuld en slegte skuld afgeskryf.

Oorlaatskuld / Carry-over debt

0% 5% 10% 15% 20% 25% 30% 35%







■ 2006 14.06% 23.17%

■ 2005 10.01% 31.84%


�.�.� Carry-over debt as a percentage of debtors

This ratio indicates to what extent producers/debtors could not settle the input cost for the previous period from their crop yields.

Carry-over debt

Carry-over debt represents production loans still not settled by the end of the season. It also includes special arrangements made with producers to settle debt over a longer period, for example drought relief.

Average debtors

It is the average monthly gross debtors as defined in 2.6.1 above.

This ratio should, to a large extent, play a role in judging the provision for doubtful debt and bad debts written off.


Die voorsiening van twyfelagtige skuld, soos in 2.6.3, se toename kan toegeskryf word aan die groter persentasie van oorlaatskuld. Dit wek kommer dat daar ‘n al groter wordende persentasie van die debiteure is en wat meer twyfelagtig raak.

�.�.3 Voorsiening vir twyfelagtige skulde as persentasie van debiteure

Dit dui aan tot watter mate die bestuur van die landbou-onderneming twyfel in die vorderbaarheid van debiteure en waar oorlaatskuld ‘n groot rol speel:

Voorsiening vir twyfelagtige skuld / Provision for doubtful debt

0% 1% 2% 3% 4% 5% 6% 7%







■ 2006 6.54% 4.88%

■ 2005 5.34% 5.56%

Voorsiening vir twyfelagtige skulde

Dit is die bedrag wat voorsien is vir twyfelagtige skulde soos bereken op die deelnemers se balansstaatdatum.


The increase in the provision for doubtful debt, as in 2.6.3, can be attributed to the increased percentage of carry-over debt. A cause for concern is the fact that there is a growing percentage of debtors who are becoming more doubtful.

�.�.3 Provision for doubtful debt as percentage of debtors

It indicates to what extent the management of agri enterprises doubt the collectability of debtors. Carry-over debt plays a large role here.

Provision for doubtful debts

It is the amount provided for doubtful debts as calculated on the participants’ balance sheet date.


Voorsiening vir twyfelagtige skuld / Provision for doubtful debt

0% 1% 2% 3% 4% 5% 6% 7%







■ 2006 6.54% 4.88%

■ 2005 5.34% 5.56%

Debiteure

Anders as die definisie in 2.6.1 , word die voorsiening gebaseer op debiteure soos aangedui op balansstaatdatum.

Slegte skuld hou verband met die voorsiening van twyfelagtige skuld. Die voorsiening moet as ‘n voorloper in slegte skuld gesien word. Die huidige landbou-omstandighede noop die bestuur van landbou-ondernemings om meer konserwatief op te tree. Die betalingsvermoë en sekuriteit wat produsente aanbied, speel ‘n belangrike rol in die beoordeling hiervan.

Hoewel die afskrywing van debiteure, soos vermeld in 2.6.4, minder was as in die vorige jaar, is daar meer konserwatief te werk gegaan in die voorsiening vir twyfelagtige skuld. Dit beteken dat nog meer gereserveer word vir potensiële slegte skuld. Hierdie voorsiening se toename is in lyn met die styging in oorlaatskuld, soos vermeld in 2.6.2.

�.�.� Oninbare skulde as persentasie van gemiddelde debiteure

Die verhouding dui aan wat die omvang van verliese bedra weens die onvermoë om skuld in te vorder.

Oninbare skulde

Oninbare skulde verteenwoordig die bedrag wat in die inkomstestaat verantwoord is.


Debtors

Unlike the definition in 2.6.1, the provision is based on debtors as indicated on the balance sheet date.

Bad debt relates to the provision of doubtful debt. The provision must be seen as a precursor to bad debt. The current agricultural conditions compel the management of agri enterprises to act more conservatively. The payment ability and security that producers offer play an important part in this.

Although the writing off of debtors, as mentioned in 2.6.4, was less this year than the previous year, the approach to the provision for doubtful debt was more conservative. This means that even more was reserved for potential bad debts. The increase in this provision is in line with the rise in carry-over debt, as mentioned in 2.6.2.

�.�.� Bad debt as percentage of average debtors

This ratio indicates the extent of losses incurred owing to the inability to collect debts.

Bad debts

Bad debts represent the amount that is accounted for in the income statement.




Dit is die bruto maandelikse gemiddelde debiteure soos gedefinieer in 2.6.1 hierbo.

Oninbare skulde / Bad debt

0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00%






■ 2006 0.64% 0.32%

■ 2005 0.81% 2.52%


Hier is dit duidelik dat die bestuur van debiteure verbeter het en dat die afskrywings teenoor die vorige jaar afgeneem het. Met in agneming van die landbou ekonomiese omstandighede het die bestuur van debiteure baie verbeter.

Average debtors

It is the gross monthly debtors as defined in 2.6.1 above.

It is evident here that the management of debtors has improved and that write-offs have decreased compared to the previous year. Considering the agri-economic conditions, the management of debtors has greatly improved.


MethodologyMetodologie

As die grootste professioneledinste-organisasie ter wêreld en in Suider-Afrika, het PricewaterhouseCoopers (PwC) se spesialiskennis oor en verbintenis met die landbou oor baie jare tot stand gekom. Ons is nou betrokke by en lewer dienste aan die oorgrote meerderheid landbou-ondernemings in die bedryf. Om dié rede is ons uiters gunstig geposisioneer om ‘n formele prestasiemetingsprofiel van hierdie aard in die Suid-Afrikaanse landboubedryf te kan uitgee.

Ons bedryf sake uit 24 kantore in Suider-Afrika en beskik oor die vermoë om ons kliënte in hulle eie gemeenskappe te bedien. Dit het ons in staat gestel om ‘n verteenwoordigende metingsprofiel met betroubare industrienorme saam te stel waarteen die Industrie en sy rolspelers hom kan meet. Weens die groeiende behoefte na dié tipe inligting, het PricewaterhouseCoopers aan die begin van 2005 onderneem om ons bestaande prestasiemetingsprojekte in die landboubedryf landwyd te formaliseer en te konsolideer.

Net soos in die verlede, is die projek met groot entoesiasme aanvaar. Voorbereiding en dataversameling het reeds in Januarie vanjaar begin. Ten einde ‘n betroubare en sinvolle prestasiemeting saam te stel, is die bedryf se vernaamste rolspelers weer genader vir insette waarvolgens bykomende sleutelprestasie-aanwysers geïdentifiseer is.

‘n Elektroniese databasis met ingeboude sekuriteitsbeheer is spesifiek vir hierdie projek ontwikkel en ingespan om die data te verwerk.

Die dokument is ‘n samestelling van ons bevindinge en interpretasie van die inligting wat ons van deelnemers aan hierdie projek ontvang het. Die groot mate waartoe die onderskeie rolspelers in die bedryf deelgeneem en ook hul steun en goedkeuring aan die projek verleen het, het ons oortuig dat die resultate as verteenwoordigend en relevant beskou kan word. As betroubare sakevennoot in die landboubedryf

As the largest professional services organisation, both globally and in Southern Africa, PricewaterhouseCoopers (PwC) has, over many years, developed specialist knowledge in the agricultural industry. We are closely involved with and deliver services to the vast majority of agricultural organisations and related role-players with in the Industry. This places us in an excellent position to publish a formal benchmarking survey of this kind in the South African agricultural industry.

We operate from 24 offices in Southern Africa and have the ability to service our clients with in their own communities. This has enabled us to compile a representative benchmarking profile with trustworthy industry norms, against which the Industry and its role-players can measure themselves. Owing to the growing need for this type of information, PricewaterhouseCoopers undertook to consolidate its existing benchmarking projects in the agricultural industry throughout the country at the beginning of 2005 and to formalise and consolidate them.

Just as last year, the project was accepted with great enthusiasm. Preparation and data collect on for this survey already commenced in January this year. In order to compile a reliable and meaningful benchmarking survey, the Industry’s most important role-players were approached for input according to which additional key performance indicators were identified.

An electronic database with built-in security controls specifically designed for the project was used to process the data.

The document is a compilation of our findings and an interpretation of the information we received from participants in this project. We are confident that the results can be regarded as representative and relevant, considering the degree to which the various Industry role-players participated and gave their support and consent to the project. As a


meen ons dat landbou-ondernemings dié prestasiemetingsprofiel met groot sukses as hulpmiddel kan inspan om ingeligte besluite te neem oor, onder meer, doeltreffende besigheidstrukturering, verbeterde kostebestuur en die verhoging van winsgewendheid.

Vir nadere inligting oor die prestasiemetingsprofiel of die spesialisdienste wat ons in die landboubedryf bied, kontak:

trusted business partner to the agricultural industry, we are of the opinion that agricultural organisations could use this performance benchmarking survey with great success as a tool on which to base informed decisions, including effective business structuring, improved cost management and profitability.

For further information on our performance benchmarking profile or the specialist services we offer in the agricultural industry, please contact:

Worcester 023 347 0941Kobie BekkerDavid van RooyenBarbara du Toit

Ceres 023 312 1140Frans van Wyk

Bloemfontein 051 503 4100Derek Foster

Nelspruit 013 752 5444Henri Pieters

Port Elizabeth 041 391 4400Louis Rossouw

Pietermaritzburg 033 347 0537Des Fourie

Methodology Metodologie


About PricewaterhouseCoopers

Oor PricewaterhouseCoopers

PricewaterhouseCoopers (www.pwc.com) verskaf industrie-gefokusde oudit-, belasting- en besigheidsadviesdienste aan publieke en privaat kliënte. Meer as 130 000 mense in 148 lande span hul idees, ondervinding en oplossings saam om openbare vertroue te bou en waarde te skep vir kliënte en hul belanghebbendes. Ons uitgebreide handel en belegging in ander dele van Afrika word weerspieël in die toenemende hoeveelheid van ons kliënte met belange in Afrika. Dienooreenkomstig hierdie uitbreiding, verskuif ons ons teenwoordigheid in Afrika vanaf drie substreke na een gekoördineerde Afrika-streek. Dit sal ons in staat stel om ons firma regoor Afrika uit te brei tot voordeel van ons kliënte en personeel.

In Suidelike Afrika gebruik ons ons toepaslike plaaslike kennis en ondervinding, sowel as ons ongeëwenaarde hulpbronne om aan ons kliënte se behoeftes te voldoen. Ons het ‘n wesenlike teenwoordigheid in elke hoofmark, beide gevestig en ontwikkelend. Hierdie struktuur koppel plaaslike firmas met ‘n diepgaande kennis van plaaslike besighede, rekeningkundige en beheervereistes, met ‘n wêreldwye netwerk wat die voordele van kennis op ‘n internasionale skaal kan benut. In die lewering van hierdie dienste is ons altyd bewus van die belangrikheid van ons sosiale verantwoordelikheid teenoor die gemeenskappe waarin ons bedrywig is en ons is verbind tot die suksesvolle implementering daarvan, beide in die firma sowel as in ons handeling met kliënte.

Ons dienste in ‘n neutedop

Oudit

Ons Ouditdivisie lewer ouditdienste aan kliënte met betrekking tot hul finansiële prestasie en bedrywighede, en help hulle om hul eksterne finansiële verslagdoening te verbeter, sowel as om wetgewende vereistes soos die 2002 Kingverslagoor korporatiewe bestuur en internasionale standaarde vir finansiële verslagdoening (IFRS) in

PricewaterhouseCoopers (www.pwc.com) provides Industry-focused assurance, tax and advisory services for public and private clients. More than 130 000 people in 148 countries connect their thinking, experience and solutions to build public trust and enhance value for clients and their stakeholders. Our extensive trade and investment in other parts of Africa is reflected in the increasing number of our clients with interests in Africa. In line with this expansion, we are moving our presence in Africa from three sub-regions to one coordinated Africa region. This will enable us to expand our firm across Africa to the benefit of our clients and personnel.

In Southern Africa, we utilise our appropriate local knowledge and experience, as well as our unparalleled resources to meet our clients’ requirements. We have a sign ficant presence in every major market, both established and emerging. This structure links local firms that possess an in-depth knowledge of local business, accounting and regulatory requirements, with a worldwide network that can exploit the advantages of expertise on an international scale. In providing these services we are constantly aware of the importance of our social responsibility to the communities in which we operate, and are committed to the successful implementation thereof throughout the firm and in our dealings with clients.

Our services in brief

Assurance

Our Assurance division provides audits to clients on their financial performance and operations, as well as helping them improve their external financial reporting and adopting new regulatory requirements such as the King Report on Corporate Governance for South Africa 2002 and International Financial Reporting Standards. Our


plek te stel. Onder ons ouditkliënte tel talle van die JSE Effektebeurs SA se top-presteerders, en ook duisende klein- en mediumgrootte-ondernemings. Benewens oudit, bied ons ook rekeningkundige en wetgewende advies, sowel as ander verwante dienste.

Belasting

Ons Belastingdivisie maak van die mees gevorderde tegnologie en gespesialiseerde kundigheid gebruik om ons kliënte te help om aan belastingverwante wetgewing en regulasies te voldoen. Ons advies dek alle aspekte van direkte en indirekte belasting, uitvoerregulasies en werknemerverwante sake in Suider-Afrika. Ons uitgebreide kantoornetwerk stel ons in staat om advies oor die strukturering van internasionale bedrywighede en beleggings te kan gee. Ons ervare span adviseurs kan die belastinglas help beheer en verminder deur vindingryke en praktiese belasting- en sake-oplossings voor te stel wat korporatiewe, internasionale en indirekte belasting en Menslike Hulpbrondienste betref.

Besigheidsadviesdienste

Ons Besigheidsadviesdienste-divisie bied advies en bystand oor finansiële, analitiese en besigheidsprosesvaardighede aan maatskappye, regerings instansies en tussengangers wat die implementering van strategieë betref ten opsigte van:

Die skep/verkryging/finansiering van ondernemings;

Die integrering daarvan met die huidige bedryf;

Verhoogde prestasie;

Verbeterde bestuur en beheer;

Krisishantering; en

Herstrukturering en waarde-ontsluiting.

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audit clients include many of the top-performing companies on the JSE Securities Exchange SA, as well as many small and mid-sized businesses. In addition to audit, other services provided include accounting and regulatory advice, and attest and attest-related services.

Tax

Using cutting-edge technology and specialist skills, our Tax division assists clients in complying with tax-related legislation and regulations. Our advice covers all aspects of Southern African direct and indirect taxes, exchange control regulations and employee-related ssues. Through our extensive network of offices we are also able to provide advice on structuring international business operations and investments. Our experienced team of advisers can assist in controlling and minimising the tax burden by providing innovative and practical tax and business solutions in the areas of corporate, international and indirect taxes and Human Resource services.

Advisory

Advisory provides advice and assistance based on financial, analytical and business process skills to corporations, government bodies and intermediaries in the implementation of strategies relating to:

Creating/acquiring/financing businesses;

Integrating them into current operations;

Enhancing performance;

Improving management and control;

Dealing with crises; and

Restructuring and realising value.

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Opgeleide kundiges wat op hul onderskeie terreine spesialiseer, bied adviesdienste wat kliënte op ‘n objektiewe manier help om belanghebberwaarde te skep, vertroue te bou en met die mark te kommunikeer.

Besonderhede oor hierdie en ander dienste wat deur die firma gelewer word, is beskikbaar in die inligtingsbrosjure ‘Our Expertise’. U kan kopieë hiervan by die Bemarking- en Kommunikasieafdeling in ons Johannesburg-kantoor kry.

Die strewe na sukses

Suksesvolle eienaarbestuurde ondernemings is van deurslaggewende belang vir ‘n sterk ekonomie én landwye werkskepping. Die sake-omgewing in die ontluikende en groeiende sakesektore bied talryke uitdagende geleenthede. Om toekomstige sukses te verseker, verg dikwels komplekse besluite – soos dat u u sake-adviseurs sorgvuldig moet kies. U gekose adviseur sal u sterk punte help ontwikkel en steun verleen op daardie terreine waar u nog min ervaring het of net eenvoudig nie die tyd om betrokke te raak kan bekostig nie. Dit is hier waar ons kan saamwerk om u sukses te verseker.

Hoe kan ons help?

Wanneer u onderneming uitbrei en groei, kom dit voor interne veranderings te staan. Aanvanklike groei ontstaan tipies in ‘n kreatiewe fase, maar gewoonlik kom daar ‘n tyd waar groter behoefte aan ‘n stewiger koers ontstaan. Die onderneming verg dan meer formele strukturering, bestuursinligting en kommunikasie met werknemers. Hierna volg ‘n fase waarin u weer toenemend moet delegeer en die uitdagings begin gewoonlik dan.

Ons weet voor watter probleme, dikwels baie voorspelbaar, u in die onderskeie fases van

Offered by trained professionals specialising in their respective fields, we provide advisory services in an objective manner that helps clients create stakeholder value, build trust and communicate with the marketplace.

Details of these and other services provided by the firm are contained in the firm’s ‘Our Expertise’ booklet, copies of which can be obtained from the Marketing & Communication department in the Johannesburg office.

The quest for success

Successful, owner-managed businesses are vital for a strong economy, and for national job creation. The business environment in the emerging and growing business sector, offer exciting opportunities. To ensure future success, important and often complex decisions must be taken – including choosing your business advisers carefully. Your chosen adviser should help you build on your strengths, and provide support in those areas in which you lack experience or cannot afford the time to get involved. This is where we can work together to ensure your success.

How can we help?

When your business grows and expands, it faces internal changes. Typically, initial growth is the result of a creative phase, but there usually comes a time when there is a need for greater direction. The business needs more formal structuring, management information and communication with employees. This is followed by a phase of increased delegation by you and the challenges usually then starts.

We understand the problems, usually very predictable, faced during the different stages of business growth, and we are able to help. We care




ondernemingsgroei te staan kom. En ons kan u help. Ons koester u sukses en sal ons beduidende sake-ondervinding inspan om te help om op ‘n praktiese, skeppende wyse groei en winsgewendheid te behaal.

Die fokus is op u behoeftes

Ons filosofie is om ‘n persoonlike, voortgesette verhouding met u te ontwikkel en ‘n diepgaande kennis van u onderneming en sy vereistes te verkry. Ons het sake-diensgroepe, spanne veelsydige kundiges wat die uitdagings van groeiende en ontluikende ondernemings begryp, wat op ‘n deurlopende grondslag finansiële en rekeningkundige dienste kan verskaf totdat u onderneming sodanig gegroei het dat u kan bekostig om voltydse finansiële bestuurders aan te stel.

Ons grootte stel ons nie net in staat om ‘n wye spektrum van dienste te bied nie, maar maak dat ons bekostigbare advies van gehalte kan bied tot die unieke uitdagings waarvoor u te staan kom, sodat u onderneming kan groei.

Ons verbintenis met die landboubedryf is oor baie jare opgebou

PricewaterhouseCoopers se verbintenis en betrokkenheid in die lanbou-industrie strek oor baie jare. Ons grondige kennis van die industrie, ons kundigheid in die verskaffing van Swart Ekonomiese Bemagtigingsdienste (SEB-dienste) en ons ongeëwenaarde teenwoordigheid in Suid-Afrika, beteken ons is uitstekend geplaas om alle belanghebbendes in die landbousektor by te staan.

As die grootste verskaffer van ‘n wye reeks finansiële en verwante dienste, het ons ‘n toegewyde Landboubesigheid-Industriegroep wat fokus op die verskaffing van gespesialiseerde dienste aan die landbousektor. Binne die industriegroep word ‘n kundigheidsdatabasis

about your success and will use our considerable business experience to help you find practical, innovative ways to achieve growth and profitability.

Focusing on your needs

Our philosophy is to develop a personal, ongoing relationship with you and to obtain an in-depth understanding of your business and its requirements. We have established business service groups, teams of ‘all-rounders’ who understand the problems of growing and emerging businesses and who can provide financial advice and accounting services on an ongoing basis until your business has grown to the point where it can afford full-time financial managers.

Our size, which enables us to offer such a broad range of services, also enables us to provide quality, affordable advice on the unique challenges that you face in growing your business.

Our commitment to the agricultural industry has been built over many years

PricewaterhouseCoopers’ commitment to the agricultural industry stretches over many years, as does our involvement in the industry. Our solid knowledge of the industry, our expertise in offering Black Economic Empowerment services (BEE services) and our unparalleled presence in South Africa place us in a favourable position to be of service to all parties concerned in the agricultural sector.

As the pre-eminent supplier of a wide range of financial and related services, we have a dedicated Agricultural Business Industry Group that focuses on supplying specialised services to the agricultural industry. Within the industry group,




oor die verskillende vertakkinge van landbou bygehou. Sodoende word verseker dat ongeag welke kantoor of verteenwoordiger van die firma u ook al bedien, hulle toegang het tot die nodige bedryfskundigheid en/of bedryfspesialiste.Die dienste wat deur ons Landboubesigheid-Industriegroep gebied word, sluit in:

Rekenmeestersdienste (rekeningkundige dienste, interne oudit en oudit);

Bestuursbeheer (stelsel- en interne kontroles);

Entrepreneursadvies (finansiële-, belasting-, sekretariële en sakeadvies);

Belasting (korporatief, individueel, internasionaal, doeane en BTW);

Rekenaardienste (opleiding, konsultasie, ondersteuning en installering van rekeningkundige sagteware);

Transaksie-ondersteuning (strukturering, kontrakte, lewensvatbaarheid en omsigtigheidsondersoeke);

Forensiese ondersoeke en regsondersteuning;

Boedel en finansiële dienste aftree-, boedel- en beleggingsadvies, personeelvergoedingspakette, boedel- en trustadministrasie);

Menslike hulpbronne (beleid, ooreenkomste, arbeidshof, arbitrasie, opleiding en konsultasie);

Sekretariële dienste (rekords, opgawes en registers) en

Swart Ekonomiese Bemagtiging (strategie, implementering, nakoming).

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a knowledge database on the various aspects of agriculture is maintained. In this way it is ensured that regardless of which office or representative of the firm services you, they have access to the necessary industry expert and/or industry specialists.

The services offered by our Agricultural Business Industry Group include:

Audit services (accounting services, internal audit and audit);

Management control (systems and internal control);

Advice to entrepreneurs (financial, tax, secretarial and business advice);

Tax (corporate, individual, international, customs duty and VAT);

Computer services (training, consultation, support and installation of accounting software);

Support with transactions (structuring, contracts, viability, due diligence);

Forensic investigations and legal support;

Estate and financial services (retirement, estate and investment advice, staff remuneration packages, estate and trust administration);

Human resources (policy, agreements, labour court, arbitration, training and consultation);

Secretarial services (records, returns and registers) and

Black Economic Empowerment (strategy, implementation, compliance).

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NotesNotas

PwC

www.pwc.com

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