FOOD SECURITY
Tongaat Hulett is of the view that a sustainable food system should be “reliable, resilient and transparent,” producing food within ecological limits, developing food producers, and ensuring accessible and sufficient food supply. The company is a principal member of the World Wildlife Fund and is looking at the operational and reputational challenges that face businesses in the food sector. The business has identified that there is potential to make unconventional approaches, such as inclusive agriculture through the Operation Vuselela Project, more commercially viable. The business is of the view that it can partner with governments and communities, towards building a sustainable food system, in the areas that it is able to impact. Delivery of this objective will require the implementation of new techniques and collaboration among farmers, rural communities businesses and governments.
The business continues to operate in an environment impacted by a number of external factors. Tongaat Hulett acknowledges that energy security dynamics are closely linked to food security, water security and climate security. The Food and Agriculture Organisation released a guide highlighting the need to move to more sustainable practices, as intensive crop production since the 1960s has degraded soils, depleted ground water and caused pest outbreaks. The food system is affected by environmental impacts including habitat degradation, greenhouse gas emissions and freshwater use and there is increasing evidence that crop yields are dropping.
Tongaat Hulett acknowledges that agriculture has a significant role to play in opening the way for food security, while protecting precious natural resources and contributing to rural economic growth.
At the same time, Tongaat Hulett appreciates the circumstances experienced by many cities, around which it operates, as well as the ever increasing issues of poverty, unemployment and inequality that are prevalent throughout the region. In response to these dynamics, Tongaat Hulett works closely with local and provincial municipalities in facilitating the conversion of agricultural land to other uses, at the appropriate time and in locations aligned with municipal and provincial spatial policies and plans. This land conversion enables the provision of new housing, employment, economic, social and recreational facilities for growing cities and increasing urbanisation but significantly, is carefully managed and undertaken in synergy with the extensive cane and rural development initiatives.
Value Added Analysis
For the Year Ended 31 March 2013
| Rmillion | 2013 | 2012 |
| Revenue | 14 373 | 12 081 |
| Bought-in materials and services | (9 327) | (7 893) |
| VALUE ADDED BY OPERATIONS | 5 046 | 4 188 |
| Dividends and other income | 358 | 203 |
| Capital profit on land | 16 | 3 |
| Capital loss on other fixed assets | (1) | |
| TOTAL VALUE ADDED | 5 419 | 4 394 |
| Applied as follows: | ||
| TO PAY EMPLOYEES | ||
| Salaries, wages and benefits | 2 748 | 2 081 |
| TO PAY PROVIDERS OF CAPITAL | 953 | 815 |
| Interest on borrowings | 596 | 527 |
| Distributions to shareholders | 357 | 288 |
| TAX | 389 | 351 |
| RE-INVESTED IN BUSINESS | 1 329 | 1 147 |
| Depreciation | 472 | 366 |
| Retained earnings after distribution to shareholders | 857 | 781 |
| TOTAL VALUE DISTRIBUTED | 5 419 | 4 394 |
The BEE IFRS 2 charge and transaction costs have been excluded from this schedule.
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| Working with communities to provide water and ensure food security - Luwamba community, Northern KZN |
