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- Chairman's Report - Annual General Meeting 2008 - |
"Ladies and Gendemen, Before proposing the adoption of the Annual Financial Statements for the year ended 31 March 2007, I welcome the opportunity provided by this shareholders' meeting to give you a brief update on the company's prospects for the current year. |
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The year ended March 2007 was satisfactory in the circumstances of reduced cane production offset partially by record RV and sucrose prices. Sugar cane last year contributed below 60% of operating income for the first time but this reduction was compensated for by improved yields from other operations. |
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| However in the coming year, cane production should retum to the higher levels of prior years though the company will not see the full benefit because RV prices are lower than for the past year. In South Africa the forecast price for the current year is R1627 compared to R1702 last year, a decrease of more than 4%. Prospects for other operations are promising at this early stage. with firm fruit, grain and mutton prices, although the recent early cold weather will negatively affect banana production in Mpumalanga. | ||
| On a wider front, the sugar industry in South Attica is seeing changes occurring on a regular basis. The world price of sugar has dropped from a peak of over 18US cents per pound to under 9 cents earlier this year and is currently around 10US cents per pound. This has affected exports from South Africa and hence local prices received by farmers. In the sugar industry, there is some dispute at present between growers and millers over the division of proceeds to be included in the review of Sugar Act. Growers are contending that they are not receiving full benefits of price from the millers. | ||
| The unsettling matter of land claims is causing uncertainty in the farming community throughout the industry. CBL has claims in all its farming areas within South Africa other than the Western Cape, and at this stage none are near settlement. The company is committed to assist claimants with on-going management and to assist the Government in achieving its transformation goals in the agricultural sector without compromising the sustainability of earnings. Management is pro-actively engaging with communities and the Land Claims Commissioners in various areas. | ||
| To conclude, good rains early in July will help stabilize production after a very dry start to the season. Early estimates are that the 2007/2008 year will be similar to the year just ended. However. forecasting in agriculture is fraught with uncertainties and the current forecasts are likely to change significantly as the year progresses. | ||
| The Chairman then moved the adoption of the directors' report and financial statements for the year ended 31 March 2007. | ||
| The Chairman's motion was seconded by Mr A C Crookes. | ||
| The financial statements were declared open for discussion. | ||
| There being no questions, the motion was put to the meeting and carried unanimously. | ||
| FRED PALMER CHAIRMAN DURBAN - 26 JULY 2008 |
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