Kaap Agri banks on growth of wheat harvest to bag bigger profit
Storage subsidiary Wesgraan has already received 88% more wheat than in the past year
Kaap Agri, which offers retailing and services to the agricultural sector, should reap a bigger profit harvest in financial 2019 on a marked increase in its important wheat business after the prolonged drought in the Western Cape was broken in the 2018 winter. Speaking after the release of the year to end-September results on Thursday, Kaap Agri MD Sean Walsh reported that storage subsidiary Wesgraan had already received 88% more wheat than in the past year.
The drought in the Western Cape reduced wheat storage in the 2018 financial year to its lowest level since 2005. He added that wheat seed sales were also up 40%, and that most fruit farmers canvassed by Kaap Agri predicted a normalised harvest in 2019. “Agricultural conditions in the Western Cape have largely improved year on year and farm dam levels are in a good position.” Walsh says that a continued focus on Kaap Agri’s strategic goals will also contribute to the business recovering from the subdued 2018 performance. “W...