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Slide 2: Tongaat Hulett unmatched mix of agri-processing and land assets
“Tongaat Hulett possesses the advantage of owning an unmatched mix of agri-processing and land assets which together with the ability to make things happen enables us to exploit a rapidly changing global agriculture, land, energy and trade environment.” 2
Slide 3: Financial Results Half-year 2007
FINANCIAL RESULTS Half-year 2007 3
Slide 4: Half-year to June 2007
Half-year to 30 June 2007 • Revenue of R2,434 billion (2006 : R2,269 billion) • Profit from Tongaat Hulett operations of R308 million (2006 : R307 million) • Corporate transactions • Once-off BEE IFRS 2 cost : R320 million • Advisory and other transaction related costs : R34 million • Hulamin invest
Slide 5: Profit from Operations
Profit from Operations (Rm) H1 2007 H1 2006 FY 2006 Tongaat Hulett Developments 127 117 325 Tongaat Hulett Starch 37 43 96 Tongaat Hulett Sugar 167 159 295 Triangle dividend - 8 61 Centrally accounted Costs (23) (20) (51) Total 308 307 726 5
Slide 6: Land and Property Developments
Land and Property Developments H1 2007 H1 2006 FY 2006 Operating profit (Rm) 127 117 325 • Achieved from restricted levels of zoned stock • Jan 2007 zoned stock : 148 ha • June 2007 zoned stock : 176 ha • Significant contributors RiverHorse Valley Business Estate, Bridge City, Umhlanga Ridge Town Ce
Slide 7: Starch Operations
Starch Operations H1 2007 H1 2006 FY 2006 Operating profit (Rm) 37 43 96 • Margins under pressure • High domestic maize prices – import parity levels • Improved co-product prices • Domestic prime product sales volume growth : 6,7% • Strong demand in alcoholic beverage and confectionery sectors • Int
Slide 8: Sugar Operations
Sugar Operations H1 2007 H1 2006 FY 2006 Operating profit (Rm) 167 159 295 • Triangle dividends • Mozambique contribution of R45 million (2006 : R20 million) • Xinavane mill consolidated (2006 : R6 million operating profit contribution in Associate Company line) • 2006 crop was second lowest in 10 y
Slide 9: Other Income Statement Items
Other Income Statement Items • Exceptional item • Capital profit realised on land : R5 million • Translation gain in respect of foreign cash • R3 million in H1 2007 (2006: R46 million) • Finance costs • R37 million in H1 2007 (2006: R15 million income) • Higher interest rates in 2007 • Income from H
Slide 10: Corporate Transactions
Corporate Transactions • Approved by shareholders and sanctioned by Court in June 2007 • General Meeting : 84% of shareholders represented, with 99% voting in favour • Major components • The listing and unbundling of Hulamin : completed during June 2007 • The 25% BEE equity participation transaction
Slide 11: Previous Group Structure
Previous Group Structure Other Anglo American plc IDC shareholders 49.7% 50.3% 20.0% 30.0% The Tongaat-Hulett Group 100% 50% Tongaat Hulett Hulett Aluminium 11
Slide 12: New Tongaat Hulett Structure
New Tongaat Hulett Structure Sangena Masithuthukisane Ayavuna Mphakathi Trust Trust 30% 70% 30% 70% Other Anglo BEE BEE BEE shareholders American yoMoba Infrastructure ESOP/MSOP plc SPV SPV 37% 38% 8% 10% 7% Tongaat Hulett 12
Slide 13: Listing and Unbundling of Hulamin
Listing and Unbundling of Hulamin Tongaat-Hulett Group’s 50% share in Hulamin • Investment in Hulamin fair valued through the income statement by R3,348 billion • Unbundled as a distribution in specie to Tongaat-Hulett Group shareholders 13
Slide 14: Broad Based BEE Equity Participation
Broad Based BEE Equity Participation • 18% stake : Strategic Partners and Infrastructure & Cane Growing Communities • Cost measured and recognised at grant date : June 2007 • Once-off IFRS 2 cost of R320 million charged to income statement : H1 2007 • R840 million cash inflow to Tongaat Hulett : Jul
Slide 15: Advisory and Transaction Related Costs; Share Buy-back
Advisory and Transaction Related Costs • R34 million has been charged to the income statement Share Buy-back • Undertaken in July 2007 • R506 million (including STC of R56 million) • To be accounted for in the second half of 2007 15
Slide 16: Cash Flow and Balance Sheet
Cash Flow and Balance Sheet • Cash flow from operations, after tax payments and working capital movements : R220 million • Capital expenditure : R315 million • Dividend payments : R389 million • Net borrowings at 30 June 2007 : R995 million Net debt % equity 30% • Corporate structuring transactions
Slide 17: Financial Outlook
Financial Outlook • Corporate structuring transaction • Once-off headline earnings impact 2007 • Real growth in profit from operations expected for full 2007 year • 2nd half of 2007 exceed 1st half • 2006 was a record year 17
Slide 18: Tongaat Hulett Going Forward
Tongaat Hulett Going Forward 18
Slide 19: Value creation out of agricultural land
Value creation out of agricultural land • Competition for alternative land usages is increasing rapidly • Land and water are the common factors for expansion of bio fuel and food production • The agricultural sector in Southern Africa needs to indigenise • Tongaat Hulett has the competence and platf
Slide 20: Rising profitability out of Land and Property Development
Rising profitability out of Land and Property Development Operating Profit Year H1 FY 2002 4 20 2003 20 90 2004 117 181 2005 77 231 2006 117 325 2007 127 ? La Lucia Ridge : 2007 + Capital Gain 20
Slide 21: Managing the pace of transition for value
Managing the pace of transition for value • Optimal pace affected by • Government approvals and infrastructural investment support • Market demand • Investor confidence • Affordability (interest rate) • Market cycle (supply/demand balance) • Competitive environment • La Mercy Airport / Tradeport 21
Slide 22: Tongaat Hulett's profile enables value optimisation
Tongaat Hulett’s profile enables value optimisation • Leading development skills and competencies • Bulk / concentrated land ownership • Continue to use land up to final transition • Minimal land holding costs / responsibilities / rates exposure • Reduced risk in the development cycle • A number of
Slide 23: The Balancing Act
The Balancing Act • 72% mill capacity utilisation in SA • EBIT impact of R227 million if 100% (full season, 2006 fundamentals, 32% share of industry) • Optimal cane supply area: 167 000 hectares • Area currently supplying mills : 145 921 hectares • Acquired 300 ha in 2006 • Maidstone sugar mill • Ca
Slide 24: South Africa – Land Management Cane Procurement
South Africa – Land Management Cane Procurement • Cane expansion • Vertical (cane yields per ha harvested) • Improve from 50 tch to 66 tch = 240 000 tons / annum sugar • Horizontal • 21 843 hectares yielding 1 431 000 tons of cane • Projects approved – 1 326 000 tons cane (19 802 ha) when fully plan
Slide 25: Development Pipeline
Development Pipeline • Transition is currently focussed on 14 057 ha of prime land in KZN coastal belt • 10 547 ha within eThekwini Municipality • 3 510 ha in KwaDukuza • 1 772 ha under development within 5 years • 12 285 ha for development 5 years + • Globally prime coastal land shows real apprecia
Slide 26: Bulk value of land for development: 5 years +
Bulk value of land for development : 5 years + (12 285 hectares) Affected by Value per Ha Extent Bulk Value Locality land claims (without rights) (Ha’s) (without rights) (Ha’s) # (Rm) (Rm) eThekwini: Izinga – future 151 0,60 91 Sibaya West 319 0,50 160 Shongweni – future (south of N3) 1 823 0,14 255
Slide 27: Value of land for development within 5 years
Value of land for development within 5 years (1 772 hectares) Project Existing Bulk Expected Affected by pipeline development transfer operating profit Locality land claims Extent approvals value contribution (Ha’s) # (Ha’s) (Ha) (Rm) (Rm) eThekwini: Umhlanga Ridge Town Centre 38 36 18 212 Umhlanga
Slide 28: Value Creation out of Agricultural Land Conversion
Value Creation out of Agricultural Land Conversion • Developments within 5 years - 1 772 Ha • Bulk transfer value of cane land R 814m • Expected operating profit contributions R2 526m • Bulk land : developments 5 years + (12 285 Ha) • Bulk value (before rights) R2 427m • Bulk value rights (premium)
Slide 29: Umhlanga Ridgeside
Umhlanga Ridgeside • Bulk transfer value of unsold land : R246 million • Expected operating profit contribution : R571 million Total : R817 million • Commercial : R245 million over 2 years • Residential : R326 million over 5 years • Formerly Umhlanga Triangle • 134 hectares – magnificent sea views /
Slide 30: Umhlanga Ridge Town Centre
Umhlanga Ridge Town Centre • Bulk transfer value of unsold land : R18 million • Expected operating profit contribution : R212 million Total : R230 million • Commercial : R86 million over 1 years • Residential : R126 million over 5 years • 38 hectares unsold • N2 / M4 accessibility • Gateway catalyst
Slide 31: Sibaya - Mdloti
Sibaya - Mdloti • Bulk transfer value of unsold land : R199 million • Expected operating profit contribution: Total : R521 million • within next 5 years : R322 million • 531 hectares • Beach and river frontage • N2 / M4 excellent access • Includes 5 hotel sites • R800 million Afrisun Sibaya Entertai
Slide 32: Renewable Energy
RENEWABLE ENERGY • Co generation • Sugar cane • Bio fuels • Maize • Other 32
Slide 33: Bio Ethanol from Maize
Bio Ethanol from Maize • Potential Kliprivier Project • 140 000 tpa Maize • 55 Million litres of Ethanol per annum • Most attractive Bio ethanol from Maize project in South Africa 33
Slide 34: Maize Trends
Maize Trends • High US Ethanol demand • Strong Chinese industrial demand • Low World stocks • South African maize industry viability significantly improved by higher world prices 34
Slide 35: Starch's EBIT sensitivity to the SA maize price
Starch’s EBIT sensitivity to the SA maize price 400 350 STARCH EBIT (Rm) 300 250 200 150 100 50 0 Import Parity Mid-Point Export Parity SA maize price relative to the world price • Current price near Import Parity due to drought affected season • Expectations for high South African plantings for the
Slide 36: Update on Sugar Fundamentals and Tongaat Hulett's Positioning
Update on Sugar Fundamentals and Tongaat Hulett’s Positioning 36
Slide 37: Mozambique Expansion Projects
Mozambique Expansion Projects • Platform created • Replacement value R1,6 billion • EU sugar reform • Minimum price fixed €335,20 per ton (19,6 US c/lb) • 2009 to 2015 • Duty free access to LDC countries in terms of EBA from 2009 • Xinavane • Sugar production increase to 204 000 tons (2006: 65 000 t
Slide 38: On time and within budget
On time and within budget • Xinavane (2 year project) • Planting program (6 500 ha TH and 1 500 ha Outgrowers) • 2007 – 1 500 ha • 2008 – 3 950 ha • 2009 – 2 550 ha • Bush clearing, land preparation, irrigation and water supply contracts awarded for 2007 plantings • To date, 1 405 ha of land cleared
Slide 39: Mafambisse next phase expansion
Mafambisse next phase expansion • Low cost expansion to 116 000 tons sugar (phase 2) • Further expansion to > 200 000 tons sugar (phase 3) • Bio ethanol / Sugar mix • Possibility of combining phases 2 and 3 Land and water 39
Slide 40: Mozambique Expansion @ Tongaat Hulett
Mozambique Expansion 40 @ Tongaat Hulett
Slide 41: Sugar @ Tongaat Hulett
41 @ Tongaat Hulett SUGAR
Slide 42: Refining, Branding and Distribution
Refining, Branding and Distribution South Africa • Production share 29% • Retail and wholesale market share 47% • Huletts® brand • Leading SA sugar brand • Second most admired food brand in SA 42
Slide 43: Zimbabwe – 2007
Zimbabwe – 2007 • Managing cash flows • Local sales in Z$ • Salaries, wages, operating costs, cane purchases • Export sales in US$ • Imported costs, dividends • Local pricing • Price monitored product since 2001 • Indigenisation • Pro-actively establishing black cane farmers • 800 + farmers • 15 500
Slide 44: Zimbabwe – Replacement Value R5,45 billion
Zimbabwe – Replacement Value R5,45 billion* • Cane Growing • 34 000 hectares – R2,1 billion • Sugar Milling • 600 000 tons sugar • Triangle– R1,47 billion • Hippo Valley - R1,35 billion • Refining and Packing • Refining capacity 140 000 tons – R350 million • Downstream • Distillery – 32 million litr
Slide 45: Zimbabwe Operating Profit potential
Zimbabwe Operating Profit potential > US $100 million • Production costs (net of down stream activities) • 6,5 US c/lb • 73% of cane produced by Tongaat Hulett • Refining premium • 3,9 US c/lb on 140 000 refining capacity • Average ex-factory raw sugar realisation – 15,4 US c/lb Market US c/lb Prefe
Slide 46: Zimbabwe Expansion
Zimbabwe Expansion • Existing capacity – 600 000 tons • Current production – 440 000 tons • Rehabilitation of outgrower yields – 110 000 tons • Improvement in TH yields to previous levels – 50 000 tons • Expansion Phase 1 • Tokwe-Mukorsi dam • Increase of 220 000 tons to 820 000 tons • Additional 17
Slide 47: Future profitability: What is possible!
Future profitability What is possible! Existing Asset Base 2006 H1 2007 Starch R96m R37m Zimbabwe R61m - Sugar Div Mozambique R9m R45m Sugar Remainder R286m R122m Sugar Land and Property R325m R127m Developments R47m R5m Future asset base: Mafambisse phase 2+3 Zimbabwe Expansion Renewable Energy Oth
Slide 48: Additional Information
ADDITIONAL INFORMATION 48
Slide 49: Index
Index Slide Title No Slide Title No Slide Title No BEE yoMoba SPV 50 Zimbali 65 TH Sugar Production 78 Sangena 51 Izinga 66 TH Sugar Production graph 79 TH Refined Sugar Production BEE Infrastructure SPV 52 Kindlewood 67 80 graph Ayavuna 53 Bridge City 68 TH Cane Production graph 81 MSOP ESOP Genera
Slide 50: BEE yoMoba SPV
BEE yoMoba SPV • Sangena will combine with the Masithuthukisane Trust to form BEE yoMoba SPV • Will contribute towards enhanced capacity utilisation in SA sugar milling operations by • Securing increased cane supply to the TH sugar mills • Promotion of small scale cane growing initiatives in communi
Slide 51: Sangena
Sangena • Sangena is a 100% black owned and managed entity • Will own 30% of the BEE yoMoba SPV • Five professional business persons, owning between 13.5% and 36% • Effective interest in TH of between 0.32% and 0.86% • Bahle Sibisi is the Chief Executive of Sangena – 36% • Vuyokazi Mahlati and Claud
Slide 52: BEE Infrastructure SPV
BEE Infrastructure SPV • Ayavuna SPV will combine with the Mphakathi Trust to form BEE Infrastructure SPV • Will secure increased external funding • Provision of bulk and link infrastructure required to enable the achievement of the planned TH property development initiatives in the short and medium
Slide 53: Ayavuna
Ayavuna • Ayavuna is a black controlled women’s group, with the majority of its members based in KwaZulu-Natal • Will own 30% of the BEE Infrastructure SPV • Hixonia Nyasulu is the executive chairperson of Ayavuna and has the largest individual shareholding • Mawavune is an investment vehicle owned
Slide 54: MSOP ESOP General
MSOP ESOP General • Combined interest of 7% in Tongaat Hulett • Rationale • Enhance profitability of Tongaat Hulett and its operations • Retain and attract high calibre black employees • Engender an ownership culture within Tongaat Hulett workforce • MSOP ESOP Share Trusts • Tongaat Hulett and its s
Slide 55: ESOP
ESOP • Participation • All permanent SA based employees up to middle management (UD) • Approximately 87% black • Benefits • Price Appreciation Rights will be allocated • Same Economic Value across the board • Strike price based on 22 day VWAP after unbundling • Vesting period is 5 years • Participan
Slide 56: MSOP
MSOP • Participation • All permanent SA black senior and selected middle management (UD to F) • Benefits • Price Appreciation Rights and Grant Shares will be awarded • Price Appreciation Rights will be allocated at 80% of the strike price based on the 22 day VWAP after the unbundling, i.e. at a disc
Slide 57: Impact of inclusionary affordable housing in residential developments
Impact of inclusionary affordable housing in residential developments • National policy in draft form • Encouraging private developers • 10 – 30% range being considered / 20% suggested • Contribution to housing backlog (40 000 8 000 vs backlog of 2 million) • Social integration • Off-site mitigation
Slide 58: Impact of inclusionary affordable housing in residential developments
Impact of inclusionary affordable housing in residential developments • Tongaat Hulett perspective • Supported in principle/embraced in Mphakathi Trust • Cornubia seen as National model / true integrated human settlement • Working with government (3 tiers), financial institutions and housing develop
Slide 59: Benefit of BEE Deal
Benefit of BEE Deal • Land and development highly emotive • Architects and implementers of change • Raises mixed responses from neighbouring communities / environmental special interest groups • Yet their support is key to acquiring development rights, government infrastructural investment and integ
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Slide 61: “ oe NN
“ oe NN
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Slide 63: Major Competitive Developments
Major Competitive Developments Shongweni/Hillcrest Development Units 1 Phezulu 800 2 Halkirk Farm 200 3 Courtyard Offices (2 500 m2) - 4 Cotsworld Downs 700 5 Cotsworld Fens 150 6 Plantations 700 7 Greenvale Village 50 8 La Domaine 700 9 Clifton Hills 357 10 Kirklington 100 11 Langford (KRD) 197 12
Slide 64: Major Competitive Developments
Major Competitive Developments Kwadukuza / North Coast Development Units 1 Seaward Estates 630 2 Sundum Estates 300 3 Wakenshaw 120 4 Meadowbank 250 5 Ballito Gardens 100 6 Umhlali Country Club 150 7 Bogmore 250 8 Braeside 200 9 Simbithi 2 100 10 Mt Richmore 1 000 11 Dunkirk 325 12 Brettenwood 700 1
Slide 65: Zimbali West / Lakes
Zimbali West / Lakes • Relocated M4 has improved access • 7-star Fairmont Hotel and Gary Player Zimbali Lakes golf course to commence 2007 • Zimbali Lakes launch 2007 / 8 • Strong market demand 65
Slide 66: Izinga – Umhlanga Ridge
Izinga – Umhlanga Ridge • 254 hectares • 132 units sold • Sites for new phases being launched in 2007 • Market strong 66
Slide 67: Kindlewood at Mount Edgecombe South
Kindlewood at Mount Edgecombe South • 550 unit gated estate without golf / adjacent Mt Edgecombe Country Club Estates • Single residential / cluster housing mix • Development rights secured March 2007 • Good market response 67
Slide 68: Bridge City
Bridge City PPP with eThekwini Municipality • 60 hectares in two phases • Significant mixed-use town centre development • Strong support from National, Provincial and Local Government • Market launch Feb 2007 • Government hospital, magistrates court and shopping centre sites sold • Six large negotia
Slide 69: RiverHorse Valley Business Estate
RiverHorse Valley Business Estate PPP with eThekwini Municipality • r 300 ha gross area/110 ha developable • Environmental rehabilitation • Bridging historically divided city / straddling N2 at Effingham • eThekwini Municipality’s Queen Nandi Drive link road access (R250 million) • First phase (80 h
Slide 70: Shongweni
Shongweni • 2 000 hectares • North & South of N3 Shongweni interchange / great accessibility • Benefit from government N3 infrastructure investment plans • Mixed use development (major retail, offices, residential) • Low density niche residential developments • Conservation and recreation potential
Slide 71: Cornubia at Mt Edgecombe North
Cornubia at Mt Edgecombe North • 1 200 hectares • N2 freeway / M41 highway access / Umhlanga Ridge road link • Integrated mixed use development • Residential including affordable housing (35 000+ units) • Commercial 500 000+ m2 • Industrial 100 hectares • 2008 launch • Possible trade-off for afforda
Slide 72: Tinley Manor
Tinley Manor • 680 ha new resort node • Coastal fronting / North and South bank of Mhlali River • N2 access • 5 000 potential units (processing EIA and zoning) • Hotel, Residential and Retail • Golf course, small craft harbour potential • Future opportunities 4+ years 72
Slide 73: Zinkwazi / Thukela
Zinkwazi / Thukela • 2 050 hectares • N2 access • Coastal fronting • Between Nonoti and Thukela Rivers • Future opportunities 4+ years 73
Slide 74: Starch Operations Financial Data
Starch Operations Financial Data Rmillions H1 2007 H1 2006 Revenue: 741 616 Domestic 574 493 Exports 29 33 Co-Products 138 90 Underlying Operating Profit 36 42 Valuation Adjustments 1 1 Operating Profit 37 43 74
Slide 75: Volume Data
Volume Data Volume (tons) H1 2007 H1 2006 Local Starch 46 130 44 976 Local Glucose 159 465 147 671 Total Local 205 595 192 647 Export Starch 4 997 6 942 Export Glucose 3 897 6 390 Total Exports 8 894 13 332 Co-Products 72 549 66 859 Total 287 038 272 838 75
Slide 76: Co-product Pricing
Co-product Pricing Price movement 2007 Co-product Major price drivers on 2006 50%: International edible oil price Germ Up 58,8% 50%: Local maize International protein (Soya, Gluten-60 Up 12,8% fishmeal) prices Gluten-20 Up 55,0% Local maize price 76
Slide 77: Genetically Modified Maize
Genetically Modified Maize • Current customer profile requires significant proportion of non-GM production • Current plant configuration dictates 100% non-GM processing • Additional cost incurred of R80-100/ton of maize • Investigation underway to look at reduction in non-GM usage to 50% or less – p
Slide 78: Sugar Production
Sugar Production 2007 Tons ’000 2000 2001 2002 2003 2004 2005 2006 F’cast South Africa 969 755 860 652 723 753 666 704 Mozambique 39 36 71 82 85 115 106 127 Swaziland RSE 41 45 50 54 50 56 55 54 Zimbabwe 282 264 296 264 222 236 240 442 Total 1 331 1 100 1 277 1 052 1 080 1 160 1 067 1 327 Capacity 1
Slide 79: TH Sugar Production
TH Sugar Production 100% 80% 60% 40% 20% 0% 2005 2006 2007 F 2009 T South Africa Mozambique Zimbabwe Swaziland 79
Slide 80: TH Refined Sugar Production
TH Refined Sugar production 900 000 800 000 700 000 600 000 500 000 Tons 400 000 300 000 200 000 100 000 0 2005 2006 2007 F 2009 T South Africa Mozambique Zimbabwe Swaziland 80
Slide 81: TH Cane Production
TH Cane Production 7 000 000 6 000 000 5 000 000 4 000 000 Tons 3 000 000 2 000 000 1 000 000 0 2005 2006 2007 F 2009 T South Africa Mozambique Zimbabwe Swaziland 81
Slide 82: TH Crop Disposition
TH Crop Disposition 100% 80% 60% 40% 20% 0% 2005 2006 2007 T 2009 T Domestic Regional Preferential World 82
Slide 83: Hectares under Cane
Hectares under Cane Tongaat Hulett Outgrowers Total South Africa* 10 298 135 623 145 921 Mozambique 21 411 3 200 24 611 Zimbabwe 30 055 16 279 46 334 Swaziland 3 818 - 3 818 TOTAL 65 582 155 102 220 684 • To date 11 700 hectares transferred to new black farmers in South Africa • Need at least anothe
Slide 84: Expanded Sugar Production
Expanded Sugar Production * approved projects 2006 2007 forecast 2009 Tons ‘000 production production capacity South Africa 666 704 974 Zimbabwe 240 442 600 Mozambique 106 127 286 Swaziland RSE 55 54 56 Total 1 067 1 327 1 916 84
Slide 85: LDC Countries
LDC Countries • 50 LDC countries • 22 sugar producing LDC countries • Total production 2,5 million tons • Countries that have exported into EU • Ethiopia Tanzania Togo Senegal • Nepal Malawi Mozambique Zambia • Sierra Leone Sudan Congo Benin • LDC criteria • Gross national income per capita < US$750
Slide 86: Sugar Production - SA Industry
Sugar Production - SA 3 Industry: 2 533 000 tons Tons Sugar - Millions THS: 704 000 tons Share of industry 27,8% 2.5 (2006: 29,9%) 2 1.5 THS Industry 1 0.5 0 2000 2001 2002 2003 2004 2005 2006 2007 Year 86
Slide 87: Raw Export Realizations: South Africa
Raw Export Realizations: South Africa Raw Sugar H1 2007 H1 2006 FY 2006 Price in US c/lb* 14,39 11,14 12,81 Average Rand/US$ realisation R6,70 R6,54 R6,56 Average Rand realisations per ton R2 208 R1 645 R1 999 • Table includes raw sugar for refined exports • * Excludes preferential markets and premi
Slide 88: SA Regulatory Framework
SA Regulatory Framework • Sugar Act of 1978 and Sugar Industry Agreement of 2000 under review by DTI • Need for ongoing regulation accepted by DTI • Any changes implemented by 1 April 2009 earliest • Growers and Millers at odds on • Default cane price formula • Definition of net actual price for Div
Slide 89: Value-adding Activities
Value-adding Activities • Animal feeds in South Africa and Zimbabwe • Retail packing operations in South Africa, Mozambique, Zimbabwe, Namibia and Botswana • Refined and direct consumption raw sugar exports from South Africa and Zimbabwe • Speciality sugars and high intensity sweeteners in South Afr
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