We are in the final stages of the 2021 crushing season and upon reflection it has indeed been a tough season for the Sezela site with both highs and low points. We successfully accomplished the shortest off-crop in recent months despite the challenges posed by the COVID-19 pandemic and with some of our key suppliers.
Even with the unseasonal rainfall in June during which we received 398mm of rain in just three days, we clawed back 63% of the crush deficit by the end of June. Backed by the ‘Back to Basics’ initiative from the start of the season our recoveries were ahead of plan and a new value recovered record of 103,88 was set, beating the previous record of 103,38 achieved in back in 2017.In addition our Downstream factory set a new daily furfural production record of 111 tons.
A major setback for the site was the unrest in July which resulted in the factory crash stopping without a boilout due to the inability to move sugar to the terminal. This event cost the business 100 000 tons in lost crush opportunity. Further production was lost in October due to a boiler 4 superheater tube failure and blockage of the ash line to the ash dam affecting our normally good LTA record negatively.
On a positive note Downstream profit for FY21 improved from R88.8m to R92m. We managed to pack 25 700 tons of sugar at our Umzimkulu site to help fill the shortfall of brown sugar that arose. After many years of hard work, we were finally awarded a 10 year effluent permit for the Downstream business by the Department of Environmental Affairs which removed a serious licence to operate risk.
Despite the challenges, Sezela’s strength lies in its resilient people who have risen to overcome these challenges in order to deliver our latest targets for the FY22 financial year. The focus areas for FY22 is to ensure our must win targets for cane crush, recoveries, furfural and furfural alcohol production are delivered cost effectively.
As we close the 2021 season, we are in advanced preparation for our 2021/2022 off-crop. All the best to the various teams with this task!
I would like to wish all our employees a blessed Christmas and prosperous 2022. Please ensure you are COVID-19 compliant at all times. Please do vaccinate if you have not done so already.