Standard Bank - Agriculture : Winner-Tongaat Hulett
2017-08-28
Tongaat Hulett is an agriculture and agri-processing business, focusing on the complementary feedstocks of sugarcane and maize. Its ongoing activities in agriculture have resulted in the company having a substantial land portfolio within the primary growth corridors of KwaZulu-Natal with strong policy support for conversion at the appropriate time. A core element of Tongaat Hulett’s strategic vision is to maximise the value generated from the conversion of land in the portfolio by responding to key demand drivers and identifying its optimal end use for all stakeholders. Through its sugar and starch operations, Tongaat Hulett produces a range of refined carbohydrate products from sugarcane and maize, with a number of products being interchangeable. Global sweetener markets continue to be dynamic and the business seeks to optimise its various market positions, leveraging off its current base to maximise revenue from these products. The business’s sugar operations are well placed to benefit from evolving dynamics of renewable electricity and ethanol in South Africa, and the SADC region. Value creation for all stakeholders through an all-inclusive approach to growth and development is a key focus area for the business and Tongaat Hulett regards its constructive interfaces with governments and society to be of significant importance.
Societal dynamics are increasingly relevant, and therefore the strong relationships that Tongaat Hulett has developed with various stakeholders are of significant importance. These partnering relationships continue to contribute towards the achievement of the business’s strategic objectives, while also meeting the objectives of its various stakeholders, including shareholders, governments, private farmers and their representative bodies, communities, employees and people impacted by the company’s operations and its growth and development activities.
FINALISTS
ILLOVO SUGAR SOUTH AFRICA
Illovo Sugar South Africa (Pty) Ltd has a long history and proud association with primary agriculture in KwaZulu-Natal. Approximately 94% of the sugarcane throughput for its mills is procured from private growers farming on communal, state and private title land. Illovo is an agri-processor with heavy industrial plant situated in the deep rural areas. As a large employer, Illovo is well aware of the significant economic activity the diversified supply chain supports.
Illovo has established itself as a reliable implementing agent of multi-stakeholder agricultural developments focused on communal farmers and land reform beneficiaries in situations where sugarcane is selected as the most suitable enterprise to derive value from the land. Illovo guarantees a market for sugarcane from these projects and provides extension, administrative / governance and mentorship support and has a vested interest in delivering successful projects because of its position in the value chain. Apart from the direct products of sugar milling (brown sugar, refined sugar and molasses), which are sold mainly in the domestic market, the sugarcane fibre (bagasse) is used to power the factories with steam and electricity and value-added products (ethanol, syrup, flavours,
furfural and furfuryl derivatives) are sold internationally.
NCT FORESTRY CO-OPERATIVE
NCT Forestry Co-operative Limited is a marketing co-operative for private and independent timber growers established in 1949.
As a co-operative, its members who share in profits, own NCT. Today membership stands at 1 800 shareholding members, representing a total area of over 300 000ha - 21% of afforested land in South Africa.
NCT is recognised as an international supplier of quality round wood timber, hardwood pulp chips and the largest forestry marketing organisation in south. NCT also has limited access to international biofuel markets.
NCT’s mission is to assist members to achieve their full forestry potential and optimise financial results on a sustainable basis.
Members not only benefit from the wide range of services NCT offers, but also share in its profits and qualify for bonuses based on their patronage and committed supply, depending on available funds.
Nkonzo Mhlongo, Tongaat Hulett Socio-Economic Development Manager, receiving the
Agriculture Award (Photo credit: ISh K Bugwandass, eLan Property Group)