CFO Magazine features Johan Geel, COO of AFGRI Group Holdings

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Johan rejoins AFGRI Group Holdings from GWK, where he served as group FD until April 2020.

On 1 May 2020, Johan Geel rejoined AFGRI Group Holdings as the COO. He left as group FD in January 2018 and served as the group FD of GWK until April 2020.  About his appointment, Johan says it is a “great privilege” to be back at Afgri.

“The AFGRI environment has changed since I left, but I am looking forward to the new challenges in a changing global environment with things like Covid-19.”

He adds that he will review the current company structures with a focus on cost. “In short, we need to get back to basics and focus on what is important and what will make a difference for the new future of the agri and foods environment.”

This is not the first time Johan will be in the COO role at AFGRI. In 2009, he also served as COO until 2012 before being appointed group FD.

Johan was a CFO Awards 2016 and 2017 nominee for his work as the Group FD of AFGRI.

 

Hot-stepper Aplon joins #BullsFamily

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The Vodacom Bulls confirm the signing of Springbok utility back Gio Aplon, who will join the team from June or as soon as he is able to travel back to South Africa, as Director of Rugby Jake White continues to build his player group. Aplon proved to be a nemesis of his new team when he played in the colours of the DHL Stormers and DHL Western Province.  He epitomised the phrase ‘size doesn’t matter’ with his explosive speed and nimble feet allowing him to score tries from almost anywhere on the field, taking on the biggest and the best the game had to offer.

A long and illustrious career in Cape Town, which saw the former Hawthorn School scholar lifting the coveted Currie Cup in 2012, came to an end in 2014 as he moved to French Top 14 club, Grenoble, where he flourished despite the heavier fields.

Aplon joins the Vodacom Bulls from Toyota Verblitz where he played under White’s tutelage. There is no doubt that his experience and amazing skillset will not only benefit the team but also assist in the further development of the exciting younger outside backs.

The hot-stepping speedster shared his respect for the #BullsFamily: “The Vodacom Bulls have always been a formidable force in the rugby world. I have always had a great deal of respect for the brand and what it has achieved, and I am truly looking forward to running out at Loftus. Coach Jake has an amazing vision and plan for the team, and I am just honoured that he wants me as part of it. I look forward to making the #BullsFamily proud.”

UNIGRO gaan voort om eAccounts fooie op te skort

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Gegewe die inperkingsverlenging tot en met 30 April 2020, sowel as die bekendstelling van Vlak 4 inperking vanaf 1 Mei 2020, verstaan ons dat ons boere steeds vir die afsienbare toekoms ernstige uitdagings in die gesig staar.  Daarom is dit vir ons aangenaam om aan te kondig dat UNIGRO en GroCapital Financial Services sal voortgaan om eAccounts fooie op te skort met ingang Mei 2020 en waarskynlik selfs langer.

Ons wil u weereens bedank vir u voortgesette ondersteuning en die bydrae wat u lewer in die voorsiening van voedsel vir ons land se etenstafels.

Ons vertrou dat die fooiopskorting sal help om finansiële laste ligter te maak in hierdie tyd en u finansiële adminstasieproses vergemaklik.

Wees veilig.

Ross Simmonds

Besturende Direkteur, UNIGRO Financial Services

UNIGRO continues to suspend fees for eAccounts

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Given the lockdown extension to 30 April 2020, and the introduction of Level 4 from 1 May 2020, we understand that our farmers will continue to face a number of serious challenges for the foreseeable future. We are therefore pleased to announce that UNIGRO and GroCapital Financial Services will continue our eAccounts fees suspension into May 2020 and possibly beyond this.

Once again, thank you for your ongoing support and for helping ensure that food reaches the table across the country. We hope that this fee suspension will help ease any financial burden and make your financial administration process more convenient.

Stay safe.

Ross Simmonds

MD, UNIGRO Financial Services

AFGRI Grain Management Kennisgewing: AFGRI Grain Management-2020/2021 Graandienste tariewe en Bedryfsreëlings

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AFGRI Grain Management-2020/2021 Graandienste tariewe en Bedryfsreëlings vir die volgende provinsies:

• Vrystaat

• Mpumalanga en Gauteng

• Limpopo

• Noordwes

• Natal

 

Geagte Belanghebbende

 

Vertrou dat dit goed gaan met u en dat u en u gesin gesond en veilig is.

 

Met hierdie skrywe gee AFGRI Grain Management amptelik kennis van:

 

1. Tariefstrukture:

a) Graanhantering;

b) Graanopberging;

c) Graandienste; en

 

2. Bedryfsreëlings:

Vir Somergraan-2020/2021 bemarkingseisoen:

• Sonneblom/Sojabone: 1 Maart 2020 tot 28 Februarie 2021

• Mielies/Sorghum: 1 Mei 2020 tot 30 April 2021

 

Ons herinner u ook daaraan dat die “Standaard hantering en opbergingsvoorwaardes” van toepassing is op alle graan wat by AFGRI-graanfasiliteite ontvang en opgeberg word en vorm saam met hierdie skrywe die geheel ooreenkoms. Hierdie voorwaardes is elektronies op die AFGRI-webblad beskikbaar en by u naaste Silobestuurder asook by AFGRI-hoofkantoor te Centurion (011-0632311 Marlene Momberg).

 

COVID-19 het oornag die wêreld en ons lewenswyse verander. In hierdie onsekere tye is dit belangrik om aan te hou om dienste aan ons kliënte te lewer. Ons volg die aanbevelings van die Wêreld Gesondheids Organisasie (WGO), omdat ons daarna streef om ons kliënte en ons personeel te beskerm.

 

AFGRI Grain Management wil u verseker van ons volgehoue goeie dienslewering en is ons enige tyd beskikbaar om na voorstelle te luister om diensvlakke te verbeter. Skakel gerus u naaste Silobestuurder.

 

Dit is vir ons belangrik dat u die beste diens by AFGRI-graanfasiliteite sal ervaar en word u ‘n voorspoedige oestyd toegewens.

 

Vir enige verder navrae verwys ons u na www.afgri.co.za en of kontak u naaste Silobestuurder.

 

Vriendelike groete

 

Jerry Maritz

Besturende Direkteur: AFGRI Grain Management

AFGRI Grain Management Notice: AFGRI Grain Management 2020/2021 Grain Services rates and Operating arrangements

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AFGRI Grain Management 2020/2021 Grain Services rates and Operating arrangements for the following provinces:

• Free State

• Mpumalanga and Gauteng

• Limpopo

• North West

• Natal

 

Dear Stakeholder

 

Trust that you are well, and that you and the family are healthy and safe.

 

As of this writing, AFGRI Grain Management officially announces:

 

1. Tariff structures:

a) Grain handling;

b) Grain storage; and

c) Grain services

 

2. Operating arrangements:

For Summer Grain 2020/2021 marketing season:

• Sunflower / Soybeans: 1 March 2020 to 28 February 2021

• Maize / Sorghum: 1 May 2020 to 30 April 2021

 

We also remind you that the “Standard handling and storage conditions” apply to all grain received and stored at AFGRI grain facilities and together with this letter form the entire agreement. These conditions are available electronically on the AFGRI website and at your nearest Silo Manager as well as at the AFGRI head office in Centurion (011-0632311 Marlene Momberg).

 

COVID-19 has changed the world and our way of life overnight. And in these uncertain times, it’s even more important to continue to provide services for our customers. We are following recommendations from the World Health Organization (WHO) as we strive to help protect our customers and our team members.

 

AFGRI Grain Management wants to assure you of our continued good service delivery and we are available at any time to listen to suggestions to improve service levels. Please contact your nearest Silo Manager.

 

It is important to us that you will experience the best service at AFGRI grain facilities and we wish you a prosperous harvest time.

 

For any further inquiries please visit www.afgri.co.za or contact your nearest Silo Manager directly.

 

Yours sincerely

 

Jerry Maritz

Managing Director: AFGRI Grain Management

What the Land Bank’s potential event of default means for UNIGRO Financial Services

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UNIGRO Financial Services (“UNIGRO’’) received and took note of the Land Bank’s (“the Bank’’) SENS announcement on 20 April 2020. UNIGRO and the Bank have a significant partnership in place through a Service Level Agreement, which has endured since 2011. Having held several meetings and having been in communication with the Bank in the weeks prior to this, as well as more recently, we would like to assure our clients that the Bank and UNIGRO are doing all we can to ensure farmers’ needs are addressed at this time. We also commit to keeping you informed of any new developments regarding this issue.

The background
On 21 January 2020 Moody’s Investor Service (“Moody’s”) announced the downgrade of the Bank’s issuer rating from Baa3 to Ba1, and its long-term national scale issuer rating (NSR) from Aa1 to Aa3. Following Moody’s downgrade of South Africa’s sovereign credit rating on 27 March 2020, another downward rating adjustment was made to all state-owned entities. This meant that the Bank’s issuer rating was downgraded again from Ba1 to Ba2.

What caused the Land Bank to declare a potential event of default?
The above events had a significant impact on the liquidity position (cash flow) of the Bank, with the following developments being noted by the Bank as having exacerbated the situation:

  • some of the Bank’s lenders withdrew their facilities with the Bank, while other investors reduced the roll-over of maturing facilities in order to operate within their investment policies that have restrictions on the level of investments made to organisations with the Bank’s current credit rating;
  • most of the Bank’s funders and investors began a review process to establish their risk appetite position in relation to the Bank’s ability to service its funding facilities; and
  • all of these events took place at a time when the Bank was in its peak period of loan drawdowns by its customers (as farmers prepared for both the summer and winter planting periods).

As a result, the Bank experienced a liquidity shortfall, which means it is not able to meet immediate obligations to settle a repayment under the terms of a revolving credit facility with one of its lenders.

What is the Bank doing to resolve the issue?
The non-payment constitutes a default that the Bank needs to remedy – it is currently in consultation with the lender concerned to negotiate a waiver and an extension of the repayment date.

What does this mean for UNIGRO?

  1. The SENS issued by the Bank ‘advises note holders holding listed notes issued under Land Bank’s JSE-listed (i) ZAR 20 Billion DMTN Programme dated 18 October 2010 (the “2010 Programme”) and its (ii) ZAR 30 Billion DMTN Programme dated 13 March 2017 that a potential Event of Default has occurred under the terms of both the 2010 Programme and the 2017 Programme.’ UNIGRO does not hold any notes in these programmes and so is not exposed to the risk of default under the note programmes.
  2. Will the potential default affect UNIGRO and most importantly the farmers who have Land Bank loans through UNIGRO? The Bank uses the note programmes to fund its balance sheet. While the potential default could impact the Bank’s ability to maintain or raise funding, we are confident that through our joint efforts that UNIGRO and the Bank can support current farmer commitments.
  3. UNIGRO and the AFGRI Group have enjoyed a long relationship with Land Bank. What is the status of this relationship now? The relationship remains positive and we are working with the Bank to ensure our farmers are serviced effectively.
  4. What is the current total size of the book that UNIGRO manages on behalf of the Bank? UNIGRO currently manages R15 billion of the farmer debtor book on behalf of the Bank. For now, we are able to and will continue to service this book.
  5. What will happen in the longer term? The potential default could prevent the Bank from raising funding. This could negatively impact on UNIGRO’s ability to provide liquidity to farmers through their loan agreements. This could mean that farmers funded by UNIGRO might not be able to procure their inputs to plant for the next season, which could in turn potentially affect food security in South Africa. However, again we stress that the Bank and UNIGRO are working together to ensure that this does not happen. As part of AFGRI Agri Services, one of South Africa’s leading agribusinesses, we are backed by a more than 90-year heritage in grain and agriculture. We are committed to the continued success of our farmers and to the agricultural sector, now and into the future.

SOYBEAN DELIVERIES 2020

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Dear AFGRI Customer,

 

We trust it is going well and that you are safe!!!

 

In times of uncertainty, character is tested. Business conditions changed dramatically since 26 March at 23:59 and AFGRI Grain Management strives to live up to its values in these “unusual” circumstances.

 

Thank you for the openness through which you communicated directly to us as well as to GrainSA. It has come to our attention that uncertainty exists among soybean producers about the handling of the soybean moisture-base and handling loss for the 2020 delivery season at AFGRI Grain Management delivery points.

 

Our relationship with you, the customers, is important and we do not want to enter the delivery season with uncertainty. It is hereby confirmed that the handling of soybean moisture-base and handling loss will be dealt with on the same basis in the 2020 delivery season at AFGRI Grain Management delivery points in line with the previous season. The necessary corrections will be made where applicable.

 

For any further inquiries please visit www.afgri.co.za or contact your nearest Silo Manager directly.

 

Jerry Maritz

Managing Director: AFGRI Grain Management

SOJABOON LEWERINGS 2020

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Geagte AFGRI Kliënt,

 

Vertrou dit gaan goed en dat u veilig is!

 

In tye van onsekerheid word karakter beproef. Sedert 26 Maart om 23:59 het besigheidsomstandighede ingrypend verander. AFGRI Grain Management steef daarna om in die “unusual” omstandighede steeds sy waardes uit te leef.

 

Baie dankie vir produsente se openlikheid wat direk met ons gekommunikeer het en ook deur GraanSA. Dit het onder ons aandag gekom dat daar onsekerheid by sojaboon produsente bestaan oor die hantering van sojaboon vog basis en hanteringsverlies met lewering vir die 2020 leweringseisoen by AFGRI leweringspunte.

 

Ons verhouding met klante is belangrik en wil ons nie die lewerings seisoen met onsekerhede afskop nie. Hiermee word bevestig dat die hantering van sojaboon vog basis en hanteringsverlies op dieselfde basis hanteer gaan word in die 2020 leweringseisoen by AFGRI leweringspunte as op die vorige seisoen. Die nodige regstellings sal gemaak word waar van toepassing.

 

Vir enige verder navrae verwys ons u na www.afgri.co.za en of kontak u naaste Silobestuurder.

 

Jerry Maritz

Besturende Direkteur: AFGRI Grain Management

UNIGRO and GroCapital suspend eAccounts fees during lockdown

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Dear valued client,

31 March is UNIGRO and GroCapital Financial Services year-end and is usually the time of year when we communicate our fee increases to you. However, this year is anything but usual, and has called on us to make an unusual decision.

UNIGRO and GroCapital Financial Services is pleased to announce that it will suspend eAccounts fees for April 2020 as a result of the COVID-19 lockdown and delay its other fee increases until lockdown is over and things return to normality. We understand the severity of the lockdown and the task that lies ahead for farmers and food producers to continue to produce food for South Africa. We hope that this small gesture will alleviate some of your financial pressure. This zero eAccount fee could be extended should the lockdown endure for longer than 21 days, but you will be kept informed of developments.

For those customers not yet using the eAccounts system who would like to join, the same suspended fee structure applies.

We care about our customers and trust that you have all the necessary structures in place to look after yourself, your loved ones and those working in your business to ensure the critical functioning of food availability in South Africa.

Thank you for your support and for embracing food production in South Africa. We hope your free use of our eAccounts platform during this time will make your financial administration just a little bit easier.

 

Please be safe during this time

 

Kind regards

 

Ross Simmonds

MD, UNIGRO Financial Services