The group is committed to the sustainable production of primary agricultural products in a manner that is economically viable, socially acceptable and environmentally sound. The company has achieved and maintains its status as an internationally competitive agribusiness through a focus on key drivers, including disciplined cost management, using the latest appropriate technologies and developing the skills of its employees at all levels. As a farming company it proactively supports the socio-economic upliftment of the rural communities in which it operates and from which it draws the majority of its employees.

HUMAN RESOURCES

The group endeavours to align itself with the intentions of the state to establish a society and business community which offer equal opportunity to all and avoid discrimination based on race and gender, not only by adhering to the standards set out in codes of practice, but also by establishing a culture of fairness, transparency, support and reward for effort. The group has launched and reinforced several initiatives to establish a position as employer of choice in the agricultural industry. In addition to competitive salaries and performance based incentives for staff, these include improving the employee wellness programme, revising the induction programmes, upgrading company housing, reviewing corporate social investment initiatives and establishing comprehensive bursary, training and development schemes.

SKILLS DEVELOPMENT

The maintenance and development of an adequate skills base is identified as a critical component in ensuring the sustainability of the agricultural industry into the future. The shortage of suitably experienced and qualified personnel from the ranks of the previously disadvantaged to occupy farm management positions poses a particular challenge. With the objective of meeting this need, the group has introduced a structured Farm Manager Development Programme with the aim of developing graduates in agriculture from universities and colleges, as well as matriculants into capable managers. Similar programmes are run for the training of administrative staff and mechanics. During the 2011 financial year, five employees successfully completed the first level of the Farm Manager Development Training Programme and have progressed to the next level. Currently 14 employees are participating in the group’s training programmes. Application for AgriSeta sponsorship is in the pipeline for 15 trainees and four bursaries for the 2012 financial year. Candidates for these programmes are sourced from within the company as well as externally. Success has also been achieved by the company in identifying candidates from the ranks of supervisors with potential to progress to management level, who then complete the NQF training courses developed by AgriSeta and run by the South African Sugar Association.

ENTREPRENEURIAL DEVELOPMENT

Providing support for emerging black farmers is a further area identified where the group uses its expertise and resources to promote the transformation of the industry. With our commitment to integrity, fairness and community support, the group is emerging as a favoured partner of community recipients of land restitution. Extensive interaction has been undertaken with the Department of Land Affairs and the Land Claims Commission at regional and national levels to establish our credentials and pledge our support in this arena.

The supply of agricultural management services will become a major area of new business for the group in the future. The group is currently managing a joint venture project comprising 720 ha of cane, as well as mangoes and vegetables, on the Mthayiza estate with the Libuyile community in the Malelane region of Mpumalanga. An excellent relationship has been established with the community leadership. The 1 600 ha cane farm at Doornkop near Stanger transferred by CBL to the KwaCele community in March 2009 is also being managed as a community joint venture by the group. Excellent relations have also been established with the community and there are high expectations in terms of future performance. It is the group’s intention to expand operations in this arena. Currently the KwaCele operation is being expanded by 330 ha, also on land leased from the community. In the past year a project to instruct community members in the basics of chicken rearing at KwaCele was established. The project was a great success and very well received by the community, to the extent that the group is now assisting the trainees to set up their own chicken farming enterprise.

In the Scottburgh area the group is in the process of setting up a sand-winning and block making project with the community as partners, with the aim of developing skills and entrepreneurial talent.

HEALTH

The health and wellbeing of its employees and neighbouring communities is of critical importance to the group, especially in view of the fact that the HIV/Aids pandemic has had such a devastating impact in rural areas.

During 2011 the group upgraded Wellness Programmes to include access to clinic services on all estates, to provide on-site counselling services and improve access to state run healthcare facilities.

The group has intensified its information programme to make employees aware of the causes, impact and available treatments for HIV/Aids. Access to the Voluntary Counselling and Testing Services (VCT) offered by local government health clinics is also facilitated. Ongoing efforts are applied to support the programme of the state to combat the pandemic.

CORPORATE SOCIAL INVESTMENT

The group has an active social investment programme to support the rural communities from which it draws its workforce. These programmes include the provision of adult education, school support, crèche services, building sports fields, sponsorship of sports teams and other community activities. These CSI activities are viewed as a vital component in improving the quality of life for all in rural communities.

EMPLOYMENT EQUITY

The group’s workforce now comprises 98% from the designated groups (black employees, women and persons with disabilities). Some success has been achieved in reaching the employment equity targets of the proposed Agri BEE Charter, but further focus will be applied to expedite progress in this area. Management continues to review the equity plan at executive and estate meetings to ensure the group remains focused to reach employment equity targets.

EMPLOYEE RELATIONS

The group continues to enjoy excellent labour relations at all levels and has had minimal labour disruption during the past year. This is achieved by applying fair labour policies and treating all employees with courtesy and respect. The group endeavours to establish a working environment that is supportive without limiting individual initiative. The group’s remuneration policy is included in full in the corporate governance section of this integrated annual report.

ENVIRONMENTAL MANAGEMENT

It is the goal of management to establish the group’s farms as benchmarks for good farming practice. Accordingly the company endeavours to employ best management practices in its operations so as to ensure agricultural production on a sustainable basis with a positive impact on the environment. The management practices are based on farming guidelines as advocated by the Global Good Agricultural Practices (GAP) system and the South African Sugar Research Institute. The Global GAP standard is an international best practice standard designed to minimise detrimental environmental impacts of farming operations, reduce the use of chemical inputs, and ensure a responsible approach to worker health and safety. In all its operations the group aims to conserve and upgrade natural assets, maintain and enhance critical ecosystems and use agricultural resources sustainably. In order to achieve this each estate has drawn up an Environmental Management Plan. A forum consisting of senior agricultural managers has been established to evaluate global best practice standards, and update and monitor the implementation of the Environmental Management Plans. The plans are estate and crop specific and incorporate programmes with the following elements:

Alien plant control
Problem plants are categorised according to the Conservation of Agricultural Resources Act, 1983. A number of the category 1 plants (problematic species) occur on group estates, including triffid, bugweed, lantana and Brazilian pepper. The control process focuses on the initial drastic reduction of the existing population by uprooting, burning, treating with registered herbicides and biological control, followed by repeated programmes to remove seedlings, root suckers and coppice growth. This is coupled with the rehabilitation of indigenous species in the areas that have had the alien vegetation removed.

Conservation of fauna and bird life
Hunting is not permitted on any estates and poaching is controlled by security patrols. The removal of alien vegetation and rehabilitation of indigenous species assists with conservation by creating safe and natural habitats for animals and birds.

Soil improvement
Conservation farming is primarily aimed at improving soil health. Some of the specific techniques used are outlined below:

• A fallow period is allowed between uprooting an old crop or orchard and replanting with the same material;
• Chemical fumigation is limited, with environmentally friendly products used where possible;
• Soil analysis is done to determine the best cultivation methods and the quantity and type of ameliorants to be used. Soil disturbance is thus kept to a minimum;
• Green manures (fallow crops) are planted to rejuvenate certain soils and assist with the eradication of weeds. The areas selected are where the soil has become degraded and requires organic matter to improve soil structure and fertility;
• Organic fertilisers are applied as a means to increase the organic matter content of the soil;
• Green cane harvesting and trash blanketing is implemented as much as possible on the sugar cane estates, as this reduces smoke pollution, increases soil organic matter content, reduces water runoff and limits weed infestation; and
• Drainage and water carrying structures are laid out according to good agricultural practices and land use plans, thereby reducing soil erosion. Artificial waterways are planted with grass to slow down the flow of water.

Mulching
Mulch is applied to increase the organic content of soil, reduce moisture content fluctuations and maintain constant soil temperatures, resulting in better crop health, growth and quality. Straw bales and wood chips are used as mulch on the group’s fruit estates. The wood chips are derived from grubbed orchards, thereby reducing air pollution through burning old trees.

Application of agro-chemicals and fertilisers
Great care is taken when applying pesticides, herbicides and fertiliser adjacent to natural watercourses to ensure that no pollution of water occurs.

Integrated pest management
Wet areas on cane estates are planted with natural habitat to attract eldana borers away from the cane. Areas susceptible to eldana are planted with resistant varieties and cut annually. The use of pesticides is limited.
The deciduous fruit farms have adopted an integrated pest management approach which complies with both Global GAP and Nature’s Choice standards as required by the European and UK retailers. Emphasis is placed on using biologically friendly products that are pest and disease specific.
On our grain farms crop rotation is the main element used to achieve pest and disease control by interrupting the infection chain between subsequent crops.

Electricity
A reduction in electricity consumption and associated electricity costs are the target of an ongoing project. Low energy pumps, optimisation of irrigation systems, use of heat pumps instead of geysers and use of off-peak tariffs are methods used to reduce consumption and costs. The co-generation of electricity from cane bagasse may also offer opportunities in the medium term.

Irrigation
Appropriate irrigation systems are applied to optimise the use of water and electricity. Irrigation is managed by use of a moisture balance which takes into account rainfall, evaporation and the stage of the crop, to plan the irrigation applications accurately to avoid over or under-irrigation.

Training and education
Ongoing training is applied to create an awareness and understanding of the importance of conserving our natural resources. Dissemination of information from the forum of agricultural managers plays a pivotal role in this arena.

EMPLOYEE COMPLEMENT
The race and gender composition of the group’s workforce at 31 March 2011 was as follows:

(Includes seasonal fixed-term employees.)