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| AFGRI
continues to create value for all
its stakeholders, be they shareholders,
employees, customers or the communities
in which it operates. This policy
has become the vision of the Company,
and is embedded within the structures
and culture of the Group.
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| AFGRI subscribes
to the principles of good corporate
citizenship, and these have in the
last two years become an integral
part of its strategic process. |
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AFGRI
is involved in several
community
upliftment programmes,
such as literacy
classes, pre-primary school
training, and
provision of lap desks. |
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| This
report provides information
about the Group’s
activities in the following
areas: |
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Employment
equity |
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Black
Economic Empowerment
(BEE) |
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Health
and safety |
| • |
HIV/AIDS |
| • |
Community
involvement |
| • |
Training
and development
(Education) |
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Environment |
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| Employment
equity |
The investment
by a BEE partner, two-and-a-half years
ago, in the form of The Agri Sizwe
Empowerment Trust, is beginning to
bear positive results as far as employment
equity is concerned. Employment Equity
Consultative Committees (EECC) have
been elected and have begun to make
significant progress, particularly
in the achievement of employment equity
targets at middle and junior management
levels, and within lower job categories.
In addition, AFGRI has set up an experiential
learning programme whereby suitable
university students are identified,
awarded bursaries and, on the completion
of their studies, considered for employment
within the Group. Inspired by the
Joint Initiative for Priority Skills
Acquisition (Jipsa), driven by the
country’s Deputy President,
the Hon Mrs Phumzile Mlambo-Ngcuka,
this initiative has effectively accelerated
meeting the employment equity challenges
with which the Group is faced.
The second programme the Group is
embarking upon is an apprenticeship
programme in Diesel Mechanics aimed
at engineering technical students
with minimum N3 qualification. The
programme is run in partnership with
John Deere SA, one of the largest
agricultural equipment and mechanisation
companies in the world.
During the year, a new employment
equity recruitment approval process,
intended to further empower the EECC
in its monitoring function, has also
been approved by the AFGRI Board.
Employment equity is a strategic imperative
and will remain a priority focus for
AFGRI in the foreseeable future. |
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| Black
Economic Empowerment |
In line with good
corporate citizenship, AFGRI continues
to be mindful of its responsibilities
in playing a part in poverty alleviation
and inequalities of wealth, income,
skills and business opportunities,
and believes it will continue to set
the standard for transformation in
the agricultural sector.
The Agri Sizwe partnership has been
very successful, as evidenced by the
Group’s transformation and involvement
in a number of strategic initiatives
with a broad range of stakeholders
including Government.
In one such initiative, AFGRI will
be actively involved in the identification
of suitable geographic locations and
assistance with post settlement support
for new land owners. The following
services will be provided: |
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The development
of tailor-made financing for
production purposes for new
commercial black farmers; |
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Risk mitigation
through brokering for appropriate
insurance products; |
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Creation
of access to markets with appropriate
pricing mechanisms and off-take
contracts; and |
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Provision
of project management services
and mentorship. |
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AFGRI, together
with a partnering retail financial
institution, financed the first
BEE projects in Matatiele in
Southern KZN and Nigel in Gauteng.
The success of the two projects
is a positive indication to
expand into Mpumalanga and other
high yield areas. The plan is
to expand the project to reach
more farmers and assist them
in improving yields. |
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The Bethlehem
Farmers Trust (BFT) Apple Project,
originally launched by SOK and
taken over by AFGRI, continues
to receive management support
from the Group and in the 2006/7
financial year is poised to
reflect its first operating
profit. The orchards are carrying
record tonnages, and the quality
has been well received by the
markets both locally and off-shore.
This result was boosted by the
acquisition of high tech frost
control equipment from New Zealand
and the BFT was the first apple
orchard in the country to install
such equipment. The project
continues to improve the lives
of the beneficiary community
in Bethlehem. |
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| Health
and safety |
| The Group constantly
reviews its compliance with the relevant
provisions of the Occupational Health
and Safety Act and monitors all reported
accidents involving employees. Each
operational site has appointed and
well trained fire control and first
aid personnel. Systems are also in
place to ensure the safety and health
of workers through emergency planning,
fire and loss controls. |
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| HIV/AIDS |
From a study undertaken
by Deloitte for AFGRI which indicated
a prevalence of approximately 20%
of HIV/AIDS among employees, the company
resolved to develop and implement
a broad-based plan to deal with the
HIV pandemic and a comprehensive due
diligence study was conducted throughout
the Group.
The study comprises two phases. Phase
1 is a repeat prevalence surveillance
coupled with an awareness and communication
campaign which will be run for 18
months, with the effect measured after
six months. Phase 2 will commence
and run concurrently, focusing on
the development and implementation
of a comprehensive treatment programme.
This initiative is linked to AFGRI’s
plan to have all employees who are
not currently covered by medical aid
to be catered for and will go a long
way in improving their well being.
The overall target is to achieve a
downward trend in HIV/AIDS prevalence. |
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| Community
involvement |
AFGRI recognises
its obligations to society and therefore
strives to both support communities
and reduce the impact of its activities
on the social, economic and natural
environments in which it operates.
AFGRI actively looks for projects
that allow for sustained company participation
rather than just providing funds and
is involved in several community upliftment
programmes, such as literacy classes
and pre-primary school training, with
the objective of creating functional
communities capable of integration
into a modern, developing economy.
Several sports teams and feeding schemes,
especially those at crèches
and primary schools, receive regular
support from the Group. Various non-profit
organisations are also supported: |
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Roundabout
Playpumps – AFGRI is involved
in an initiative that supplies
water to rural communities through
the reconstitution of disused
boreholes, with the water pumped
by children playing on a roundabout.
To date, AFGRI has sponsored
the erection of three Roundabout
Playpumps in school environments
in the greater Mpumalanga area. |
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Karatara
– Eden College, Karatara
in the Eastern Cape operates
an outreach educational programme
for underprivileged youth within
the region. During 2006/7 AFGRI
made a founding pledge with
the provision of seed funding
for an agricultural training
facility at the college. This
project is to be monitored and
ongoing management resources
will be allocated as required. |
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Lapdesks
– AFGRI has also made
a commitment to the provision
of lapdesks and refurbishment
resources to rural schools within
its geographic operationing
areas, to ensure that each child
has a facility on which to write. |
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Buhle Farming
Academy – Identified as
the primary sustainable social
investment initiative for the
Group, this dedicated agricultural
learning facility offers several
opportunities for comprehensive
and sustainable involvement
with the emerging farmers populace
for all companies within the
Group. The first project, the
erection and management of a
dedicated poultry training facility
in conjunction with Daybreak
Farms, is anticipated to commence
during the second half of 2007. |
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Roundabout playpumps
supply water through
reconstitution of
disused boreholes. |
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| Training and development
(education) |
Training and development is
a continuous process at AFGRI, of which the main
objective is to place talented staff in educational
and other training programmes. Functional training
courses are presented to comply with legal requirements
for different disciplines. Employees are also
encouraged to apply for assistance for part-time
studies at various institutions, in order to obtain
further qualifications.
Replacement Risk Analysis and Succession Pool
Identification exercises are undertaken as a management
strategy with the focus on longer-term development
and preparation of talented managers for promotion
to internal appointments in middle and senior
management positions.
Learnership training programmes are offered to
staff at junior levels to develop the specific
skills required for specialised positions. The
outcome of most learnerships is a qualification
on NQF 2 and 3 levels, equivalent to Grades 11
and 12. There are currently more than 30 trainees
taking part in learnerships for qualifications
such as Chartered Accountant (CA(SA)) and tractor
technicians. AFGRI’s first qualified CA(SA),
who trained under the Training Outside Public
Practice programme, finished her training at the
end of December 2006. Candidates from the designated
groups are targeted for new intake.
A new approach to training and future recruitment
is currently being developed in the grain silo
industry, where a number of designated candidates
will be taken in to work and train at different
sites. Training material will be available in
five languages and will be presented in accordance
with the Unit Standards of the South African Qualifications
Authority. External assessors will carry out assessments.
AFGRI is to take part in the development of accredited
training courses for learners in the milling industries,
where an outside service provider has already
been appointed by the AgriSeta to develop course
material.
The company’s Workplace Skills Plan and
Annual Training Report will be submitted to the
AgriSeta by 30 June 2007. |
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| Environment |
AFGRI places emphasis on the
identification and management of environmental
risks and has control measures in place to ensure
the Group’s activities are environmentally
friendly. Systems, policies and rules are designed
to minimise any negative environmental impact
of our operations. These are implemented at all
sites and checked by regular internal and external
audits and, where appropriate, comply with the
ISO9002 rating. At all AFGRI operations, contingency
plans are in place to manage possible threats
to the immediate environment, especially with
regard to waste disposal.
Actions to date include: |
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Environmental Impact
Assessments have been conducted at the Animal
Feed factories and deviances arising from
the assessments are being addressed. |
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AFGRI is seeking ISO9002
accreditation at its Seed and Citrifruit
factories. |
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Most factories and silo
operations have power factor correction
installed to reduce power consumption. |
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Waste recycling programmes
and separation are in place at factory operations
and are managed on a daily basis. |
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New Environmental Impacts
Analysis and Major Hazardous Impact Studies
are performed as required. |
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