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DECEMBER 2015 • VOLUME 23

u h t e w o n o b Um

PICTURED HERE: Wendy Stander Receptionist and Sihle Zulu Conveyor Attendant planting a USM flower bed at the companys Heritage Celebrations earlier this year.

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Tough times in the Sugar Industry but USM is excited about the future

By Adey Wynne (Chief Executive Officer) PART OF A COMMUNITY USM’s vision is to deliver a sustainable profit year on year by producing quality products for our customers and to help our grower shareholders to improve their cane supply. Achieving this vision will safeguard USM jobs and foster team spirit during these tough time, and ultimately will sustain indirect jobs in and around Mtubatuba. Our vision means that the people working side by side rely on each other to play their part, so that we can all provide for our families. Our farmers, their employers and their families also rely on USM. In fact, as the single largest business in the area, most people in Mtubatuba directly or indirectly rely on a successful USM. The community is counting on every individual at USM to work to the very best of their ability. It is therefore no secret that, at USM, we believe human capital is our key to success. Our vision is bigger than just making a sustainable profit. It’s about playing our part in growing this wonderful nation of ours.

MAKING A TANGIBLE DIFFERENCE Some of USM’s small scale growers have been worst affected by the drought. Although there is nothing USM can do about the rain, USM is committed to peoples’ welfare. The small scale growers, more than ever, rely on the support they receive and, more than ever, USM and other industry bodies need to work hard at collaborating for best effect. USM helps its small scale growers identify suitable expansion opportunities and how to apply for funding through financial proposals to various financial institutions. Through these consultation processes, USM has and will continue to facilitate the establishment of cooperatives that create jobs and downstream opportunities for many unemployed people in the region. USM also continues to assist small scale growers with cane harvesting and logistics services. As a registered strategic partner with the Department of Rural Development and Land Reform (DRDLR), USM has dedicated one of its employees to overseeing the governments New Freehold Grower program. This partnership has been a tremendous success, where USM has and continues to act as treasurer for

grant funding, enlists suppliers and management services for various recapitalization projects, reviews harvesting plans and provides advice in terms of best farming practices. Tough times have included electricity shortages. Thankfully, USM has and will continue to supply renewable energy into the national grid, literally giving power to the people! Given USM’s BEE scorecard, USM signed up to Eskom’s Short Term Power Purchase Program (STPPP) and was granted an electricity generation licence from the National Energy Regulator of South Africa (NERSA).

HAVING A HEART

GRIT USM understands that extraordinary times require extraordinary effort, which inevitably implies selfsacrifice and determination. True success is measured by the number of obstacles we overcome. True success can be achieved by all of us! Despite the drought and the other challenges that present themselves, USM is thankful for the opportunities it has to help others.

Cream of the cane crop! It is a well-known saying, ‘’n boer maak ‘n plan’, but local sugarcane farmer Charles Senekal gives a whole new meaning to the expression. No matter what the issue or cause, if it spells trouble for fellow farmers, disadvantaged communities or the sugarcane industry as a whole, Charles rolls up his sleeves to save the day. In the past 15 years, he has assisted the Zululand District Municipality supply 350 000 people in Mkhuze with clean drinking water from his farm, Senekal. He has built houses; fixed roofs destroyed by bad weather; extended rural schools; aided struggling farmers; supplied them with sugarcane seed and; last but certainly not least, initiated the development of a ‘green’ commercial power plant and local sugarcane transloading station. For his countless acts of compassion and generosity, he was recently awarded with an Honorary Doctorate in Agriculture and Community Upliftment from the Good Shepherd College in collaboration with the University of SA. USM CEO Adey Wynne extended a hearty ‘congratulations!’ ‘This is no small achievement. ‘On behalf of USM, we congratulate Charles. ‘Very well done.’  

iSimangaliso Half Marathon Sponsor

USM recognizes that community spirit is a key ingredient for the development of human capital and nation building. In so doing, USM has and will continue to uplift numerous people and host exciting events within the surrounding community. This year alone, among other events, the USM team revamped the Fezimpilo Crèche on Mandela Day; hosted a ‘fun day’ beach clean-up and sponsored both the annual iSimangaliso St Lucia Half Marathon & Fun Run and Monzi Mountain Bike Challenge. USM must continue to lend a helping hand to those working and living around it. It’s good for the soul. It’s good for the country.

Projects create jobs

With all hands on deck to boost job creation in the region, Charles is currently in the final process to launch a R1.1-billion bio-mass power plant to generate ‘green’ electricity. He said it is an economic imperative which will create 350 to 400 permanent jobs. ‘Negotiations with government are going well so I hope to start construction in March.’

Charles Senekal and his wife Elize Senekal. Another exciting project is a R80-million local transloading station on Senekal land near Mkuze - adjacent to the railway line. ‘I have received immense support from the Tongaat Group for this to take off in April next year so we can be in business by beginning 2017. ‘The station will save farmers R75 to R80 per ton of cane and it will transform many farms into medium size plantations. ‘The cane will be marked for the Felixton Mill and create 75 to 80 permanent jobs. ‘And with farm expansions, we expect around 500 jobs to open over the next three years!’ Charles added he is currently in the process of debushing an additional 800ha of new land for sugarcane.

Pest and Disease Training The Umfolozi Pest & Disease team conducted training focussing on identifying Eldana to 45 of USM’s Large and Small Scale Farmers on Charles Walley and Marius Vermaak’s farms between 5 and 6 October. Local businesses Jock Morrison supplied take-away goodies and snack packs with USM and Aquifer supplying the water. The farmers and their employees received hands-on training and the group was divided into smaller groups under the guidance of a pest and disease team member. Discussions on variety identification followed where after the characteristics of the sugar cane plant and the different varieties were discussed. More practical training followed after a well-deserved lunch break sponsored by Coastal Farmers and an explanation of pest and diseases in sugarcane with a practical Smut and off type survey to finish the day. USM Employee Children Site Visit

‘There was a lot of positive feedback from participants and Umfolozi sugar farmers and USM should be thanked for their support and sponsorship of what has been a very successful training day for farmers and their staff,’ Alex Searle, extension specialist at the South African Sugar Association.

Cane Supply

Good news in the very long dry season is that USM crushed all their home cane this season. The total crush for the season was 1 076 492million tons of cane. Cane Supply Manager, Nhlakanipho Dlodlo thanked his staff for their great work and commitment and wished them a well-deserved time with loved ones.

USM Small Growers Awards

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page 2 Absenteeism Awareness: Hard work spotlights the character of people: some turn up their sleeves, some turn up their noses and some don’t turn up at all.

Absenteeism Awareness: You don’t get what you wish for. You get what you work for.


Safety audit highlight’s USM’s strengths and weaknesses A recent audit by global leader in Safety, Health and Environmental (SHE) management NOSA has shown USM where the company needs to make urgent improvements to keep disabling injuries at bay.

New systems reap major rewards It has been a big year for the USM engineering team tackling several big projects at the Mill. From installing a state-of-the-art distributed control system (DCS) that will increase sugar quality, to sinking boreholes for sufficient water next year, their main aim is to allow USM to (quite literally) crush the 2016 season. Operations Director Alan Williamson shared the significant positive impacts all the projects will have on both the company and community. ‘This year, Phase 1 of the DCS replacement has been one of our most exciting tasks. ‘This is part of a multi-phase project which will see USM spending upwards of R20-million over the next few years in replacing the redundant ORSI system with a state of the art Yokogawa DCS system. ‘The installation of the Western States ‘A’ Batch Centrifugal and the rationalisation of the Evaporator Station were completed this year. ‘These projects will increase the Boiling House Recovery at USM and will ensure that the sugar being sold to our customers is of a very high standard. ‘The rationalisation of the evaporators will ensure that less colour is formed during the process and will also help in reducing the Undetermined Loss.’ Goals for 2016 With the year now coming to an end, the team is ready to take on the next set of goals. ‘The target for USM is to achieve a throughput of 1 300 000 million tons cane crushed in a 36-week season at an Overall Time efficiency of 82 and an average crush rate of 260tch. ‘This will ensure that the USM business will continue to be sustainable ensuring the stability of the surrounding area.’ To achieve this, Alan says they are working on putting an end to the water woes. ‘As the continuing drought tightens its grip on the area, one of the top priorities is to ensure that there is sufficient water for the community we supply as well as the factory in the 2016 season. ‘In this regard, USM has spent over R400 000 sinking boreholes in the area to supplement Colin’s Lake and water from the Umfolozi River. ‘A total of three boreholes have been sunk and these are yielding roughly 70 000 litres per hour. ‘This is sufficient to keep the

The agency visits the Mill annually to determine if SHE management systems are compliant with relevant legislation, determine potential hazards and ensure the company complies with set safety standards and procedures.

factory running with the help of Colin’s Lake.’ Maintaining momentum Another focus will be moving to the off crop maintenance plan and overhauling and repairing the equipment for the next season. ‘The priority here will be to ensure that the factory is in a position to crush the 2016 season’s cane as efficiently as possible. ‘With the fact that the crop will be down in 2016 due to the continuing drought, it is imperative that we focus on maximising the throughput at the same time maximising the Overall Recovery and minimising the LTA. ‘The target LTA for 2016 is 7.5.’ Putting more sugar in the bag Over the next two seasons, there are projects to the value of R80-million to ensure USM reaches the target of 1.3 million tons cane. ‘We will be installing a new C Massecuite reheater as the existing reheater is undersized and no longer fit for duty. ‘The new reheater will ensure that we are able to cool the massecuite effectively for maximum exhaustion, resulting in lower molasses losses, hence more sugar in the bag. ‘A new set of lifting screws will be installed in the diffuser and this will help to reduce flooding as well as help to achieve a more even bed which will result in an increase in extraction. ‘The combined result of both these projects is expected to increase the overall recovery, adding an additional 600 tons of sugar in the bag.’ Other projects for 2016 include additional A and C crystallizers, Phase 2 of the DCS replacement, retubing of evaporator vessels, upgrading juice and vapour lines as well as extra boiler maintenance. ‘There are also a few other smaller projects planned.’

While no critical concerns were raised, NOSA was displeased with the 10 disabling injuries between 1 December 2014 and 30 November 2015. The auditor suggested USM line management to thoroughly investigate disabling injuries and completing corrective action in order to prevent similar incidents.

Happy to close the season alongside the end-of-season scare crows or Mzekezeke is Nokuthula Manukuza, Safet y Assistant and Thobile Ntuli, Electrician.

Risk assessments also have room for improvement. To drive down the disabling incident frequency; before any job commences a “hands-on risk assessment” should be completed to highlight any hazards and risks and remedial steps should be taken, including wearing the correct PPE.

Global agency backs USM sugar To add to the Mill’s many accreditations, USM has recently registered with Sedex - the Supplier Ethical Data Exchange. The international agency empowers sustainable and ethical supply chains and has already made tangible interventions to boost USM’s sugar quality in the near future. On the 1 ton and 25kg bagging lines, magnets have been upgraded from 4000 gaus to 10 000 guas. These magnets are not only stronger, but easier to clean and will minimise foreign material in the sugar. The aperture size on the rotary screen has been reduced from 5mm to 3mm, which will largely eliminate sugar lumps. And as a precautionary, the Mill has also decreased the aperture size on the 1 ton bagging line from 10 mm to 5 mm, and on the 25kg line installed an additional screen with a 5mm aperture as well as a second 4000 guas magnet. To top it all off, a new Western States centrifugal machine is being installed to replace three older machines. This will reduce sugar colour and moisture as well as enhance pol %. ‘These measures will bolster our aspiration to meet customer product quality expectations through our commitment to continuous improvement,’ said CEO Adey Wynne.

Management will ensure people are properly inducted and trained for their specific areas of work. Comprehensive inspections will be rolled out. The Mill will buckle down on highlighted deviations in Occupational Hygiene Surveys on noise, dust and lighting as well as high levels of welding fumes in the fabrication workshop and boiler workshop by implementing ventilation systems. Ensure all permits are closed out, a repeat finding was issued.

Achievements On the bright side, NOSA was pleased with statutory inspections and performance tests on lifting equipment, pressure vessels and fire fighting systems. The audit also highlighted that boilers are well managed, medical surveillance is tiptop and employees comply with PPE rules. Corporate Communication briefs and newsletters also got the thumbs up and NOSA stated Occupational Hygiene Surveys are conducted legally. Unfortunately, owing to the high number of disabling incidents, USM was awarded only three Green Stars. However, management is positive about ensuring progress is made moving forward. ‘Let us focus on the future and the things we can change,’ said CEO Adey Wynne. ‘The first step is to lead by example. ‘The second is to celebrate when your teams follow!’ Risk Control Officer Karin Kruger pointed out USM’s paper work system comply with a four star grading system. ‘I would like to thank each and every one who participated in the preparation effort for this audit,’ said Karin. ‘Well done, the plant looked great. ‘The success lies in maintaining the improved housekeeping standard.’

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page 4 Absenteeism Awareness: You can’t have a million rand dream with a minimum wage work ethic.

Absenteeism Awareness: The speed of the boss is the speed of the team.


Beat the Budget Blues

Thank you USM team!

It’s silly season, not only in terms of our personal finances but also with the company’s budgeting processes in full swing. According to Rose Woolmore and Jacques de Beer both finance team members it’s the time when we put our heads together and determine the most financially effective way to achieve our goals for the year ahead. When collating and reviewing our budget the USM finance team follow a very similar approach as suggested in “Budgeting Basics” cut-out. ‘In difficult times even the smallest saving, says Jacques de Beer - Cost Accountant, can make a huge difference to the bottom line. Saying this, we as a finance team, encourage and challenge you all to identify and drive even the smallest of savings.’

Rose Woolmore - Accountant, thanks the finance team for their dedication and hard work displayed over the past year. ‘We wish you all plenty of holiday cheer and we hope to see you all in January with a favourable bank balance,’ she says.

Budgeting Basics

Your Income Take a few minutes to fill in the following table outlining your net monthly income.

What is budgeting? A budget is simply planning to use your income to cover all of your monthly

Monthly Income

expenses. A budget will reduce your stress and allow you to pay for the things you need. Knowing how you are spending your money each month is important and identifying a variety of expenses that you can reduce or eliminate is very important. Make sure you review your monthly expenses from time to time to make sure you are spending your money wisely and hopefully make regular deposits to your savings account for unexpected or emergency expenses.

How to start? Simply list your MONTHLY INCOME and REALISTIC expenses so that you can see what you have available to pay for the vital things you need. TABLE 2 Monthly Expense List

TABLE 1 Wages, salary and tips R Alimony, child support R Interest of investments R Other income R MONTHLY INCOME R Now that you have a clear picture of your total monthly income, carefully fill out Table 2 itemizing your monthly expenses using column A only.

A B C What you WANT to What you NEED to REALISTIC spend spend expense list

Bond Payment or Rent Property Taxes Water Electricity Insurance (vehicle, health, life) School / Study Fees Cell phone + Data Car Maintenance Petrol /Travel Expenses Credit Card or Other Accounts

(List Amounts You Receive)

Don’t be alarmed at this point if your monthly expenses that you WANT to spend nearly equal or exceed your monthly income. Let’s examine the items on your monthly expense list.

Everyone was a winner during this year’s Wellness Week at the Mill, says USM clinic Sister Rachel Calitz. ‘A big thank you to the USM clinic staff, assistants and all those who made the annual Wellness Week such a success, said Rachel. ‘USM worked as a team and every person who helped played a vital role, from those who spread the word of the event to those who came in early to issue HIV/Aids ribbons at security on 1 December. ‘The greatest acknowledgement, however, must go to those who took the HIV/Aids test. ‘You made the right choice. ‘By choosing to know your status, you help yourself and de-stigmatise the illness. ‘USM is indeed a great employer!’

USM employees giving back this Christmas USM Employees held a Christmas party for 50 ladies of the Masithembe Care Centre in Kwamsane on Friday, 11 December. Employees decided to spoil these courageous ladies who work in harsh conditions everyday visiting terminal or severely handicapped people on foot at their homes to clean, feed and make sure they take their medicine. The lady volunteers do not have their own transport and have to walk km’s far every day to reach all their ‘patients’. Gifts to the ladies included ‘girly’ items such as beauty products and other nice smelling goodies.

Go back to the listing and identify the expenses that you NEED to spend in column B. You may find that there are a number of discretionary expenses that, with discipline, can be reduced or eliminated. Write in the REALISTIC monthly expense amounts in column C. Next, add the amounts in column C REALISTIC monthly expense and subtract the total from your Net Monthly Income. If your available excess income increased, you have taken a step forward.

(list minimum paid for each credit card)

Card 1 Card 2 Card 3 Card 4 Food Bill Entertainment Cleaning Services Other Expenses (list separately) #1 #2

Earlier this year, USM draughtsman Ben Nel was instrumental in drawing up plans for a hospice the centre plan on building after securing funding from the Department of Health. According to project leader, Happiness Mhlambo the plan, and a donation of tribal land from local Nduna the Department of Health should consider a grant to their non-profit project so that building could start as soon as next year.

The key is to monitor your expenses throughout the month to insure that you stick to your REALISTIC expense list.

TOTAL MONTHLY EXPENSES Note: If expenses are not incurred every month, take the annual cost and divide by 12. Excess Monthly Income MONTHLY INCOME – TOTAL MONTHLY EXPENSES = Available Excess Income _______________ – _______________ = _______________

BUDGETING TIPS: 1. Review how you spend your money each month. 2. Cut back on unnecessary expenses. 3. Remember to pay yourself first. Setting aside funds for an unexpected or emergency expense is important. 4. Your budget should be flexible, allow it to work with you AND for you. 5. Revisit your budget every few months to ensure it is working for you as effectively as possible. Revise any expense areas that will improve any available excess income.

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page 6 Absenteeism Awareness: It is not about you. It’s not about me. It is about “we” working together. As one.

Absenteeism Awareness: DO what is right. NOT easy.


USM reNEWed

As the year draws to a close, USM has re-evaluated its goals and have adopted a new vision, mission and values which they will roll-out using three one minute management rules. According to management experts and authors Ken Blanchard and Spencer Johnson, setting one minute goals followed by one minute praisings or reprimands is highly effective in the workplace.

One Minute Goals

• Starting with goals, a single sheet of paper with desired targets and performance standards provides immediate feedback that is motivational to an employee. • An example is, if you are playing soccer and you are not aware of how many points you scored, you would lose interest in the game. • But if you know you need five points to win and have scored three, you will try your best to get two more points. • Without specific goals, people inevitably keep beating around the bush without producing accurate results. • This is why it is crucial for an employer and employee to know what is expected from the get-go. • Writing down levels of progress allows staff to view their performance against their targets. • The end result is efficiency – one of USM’s top priorities.

One Minute Praisings

• Once goals are set, the next step is to see where employees are doing things right and are deserving praise. • And it only takes one minute to compliment a person on their good work. • More importantly, it shows that management is sincerely interested in each and every staff member’s work and care about their success. • The idea is not to ‘catch a person doing something wrong’, but to ‘catch someone doing something right’.

One Minute Reprimands

• One minute reprimands are intended to be helpful, to inform employees of the mistake. • It is followed by explaining what they are capable of and how much they are valued. • An important aspect of this is that the reprimand focuses on the behaviour that negatively impacts the business, not the person. • This has been proven to be effective because the feedback is immediate, unlike annual reviews where staff are charged for things committed months ago. • If mistakes are pointed out straight away, people are better able to understand and learn from the feedback and in so doing grow and develop.

USM’s VISION IS TO DELIVER A SUSTAINABLE PROFIT OF AT LEAST R80 MILLION PER ANNUM by producing quality products for our customers resulting in (1) a growing cane supply (2) sustainable USM jobs that fosters team spirit and (4) sustainable indirect jobs in and around the Mtubatuba Local Municipality that alleviates poverty.

One Minute Praisings 1 2 3 4 5 6 7

USM Vision

USM’s vision is to deliver a sustainable profit of at least R80-million per annum by producing high quality products for our customers. This will result in growing cane supply, sustainable jobs at the Mill that fosters team spirit as well as sustainable indirect jobs in and around the Mtubatuba Municipality to alleviate poverty.

Value our Values

Five beliefs form the framework of values at the Mill. 1. Integrity – We are open, honest and consistent in all that we do and conduct business in an ethical way. 2. Continuous Improvement – We are eager to achieve the USM vision by keeping up to date with world class development, by optimising USM’s processes and systems; taking pride in maximising sustainable profits and not tolerating substandard workmanship. 3. Above The Line – We aspire to be victors that pro-actively influence the future by taking ownership and by holding ourselves accountable and responsible for our own and our Team’s performances. 4. Team Work – We recognise that effective teams set and achieve their goals by having committed leaders that reprimand poor performance, recognise good performance and have fun/laugh together. 5. Communication – We treat each other like we would like to be treated by pro-actively presenting each other with the facts; by listening attentively; by avoiding the ‘drama’ and practising respect.

On a Mission

Our company mission is to accomplish the following goals: 1. Cane Quality of sucrose greater than 13.4% and a purity greater than 84.7%. 2. Cane Crush of 1.3 million tons in 36 weeks. 3. Sugar Recovery of 151 000 tons of sugar with a pol greater than or equal to 99.3% and ICUMSA less than or equal to 1200. 4. Sugar Bagged of 80 000 tons on the local market at optimum margins. 5. Business Systems implemented that maximise sustainable profits.

USM FOCUS DOCUMENT Quarterly (Subordinate completes template, Superior finalises)

Goals Set

One Minute Goals

Praise the behaviour (with true feelings) Do it soon Be specific Tell the person what they did right And how you feel about it Encourage the person (with true feelings) Shake hands / High Five

SMART goals & behaviour focus, not the person

Goals Achieved

Goals Reviewed

One-on-One Session Scheduled Weekly S specific M measurable A achievable R relevant T time based E evaluate R recognise results

Goals Evaluated

Make it happen! page 8

KEN BLANCHARD’s ONE MINUTE MANAGER VISION IS TO HELP EVERYONE (1) to set goals (2) to praise and reprimand behaviours (2) to encourage people (3) to speak the truth (4) to laugh (5) to work (6) to enjoy and (7) to inspire others to do the same!

USM FOCUS DOCUMENT Quarterly (Subordinate completes template, Superior finalises)

One Minute Reprimands Goals NOT Achieved

Goals Clarified

1 2 3 4 5 6 7

Reprimand the behaviour (with true feelings) Do it soon Be specific Tell the person what they did wrong And how you feel about it Encourage the person (with true feelings) Shake hands / High Five

SMART goals & behaviour focus, not the person

ABOVE THE LINE

Ownership Accountability Responsibility

BELOW THE LINE

Blame Excuses Denial

VICTORS FUTURE PROACTIVE

REACTIVE PAST

VICTIMS

Published by: Umfolozi Sugar Mill +27 (0)35 550 7700 Writing, Layout & Design: SeaFrog Communication +27 (0)79 495 7126 Absenteeism Awareness: No matter how you feel. Get Up. Dress Up. Show Up. And never ever give Up.

Profile for Umfolozi Sugar Mill

USM Newsletter December 2015  

USM Newsletter December 2015  

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