Message from the MD

I think we can all agree that 2022 has been a better year than the previous couple. Yes, we did have the devasting floods in April and the damage caused by these frustratingly continues to linger, but we seem to have moved on from Covid. The removal of restrictions and the freedom of movement regained makes you cherish something that you previously took for granted. Our use of available technology has increased exponentially with the use of Teams fully supporting our value of collaboration.

At the end of 2021 I wrote “I am looking forward to 2022, the construction and commissioning of the maize plant are behind us and the focus will be the continual improvement of operational performance. Everything we do will support and promote the key drivers of volume, quality, efficiency and competent, committed people. It is worth considering NCP’s purpose, “inspiring the realisation of potential through relationships to achieve extraordinary outcomes”.

2022 has been exactly that, we have continually increased daily production levels and in September achieved average daily production higher than the design capacity of the plant. The 12-month production till end October ’22 was a 50% increase on 2021 volumes. At the beginning of the year product quality was a concern and we sacrificed efficiency to achieve acceptable quality, we are now achieving our highest ever quality with continually improving efficiency. Overall sales volumes have increased 26% as own production replaced traded alcohol volumes with local and export sales growing strongly.

Unfortunately these achievements have coincided with the highest maize prices in South Africa’s resulting in tight margins. However, the solid operational base being set, with the continual focus on ongoing improvement, will stand us in good stead when commodity prices eventually soften and maize prices drop.

It is clear that our plant runs best when running at full steam, the focus for 2023 will be fine tuning for further optimization, with continually increasing daily production as best operating practices become embedded and routine.

To everyone that is part of the NCP family, thank you for your commitment to our values and purpose throughout 2022, please enjoy the festive season. Have great time, stay safe, be responsible and share time with your own families and friends.