From the desk of Group MD, Neil Oosthuizen

Our worldwide team ensures that every hour of every day someone, somewhere in the world delivers.

2006 was a fruitful year for Capespan with a doubling in profits from 2005. Still we constantly seek out greater heights, growing our business on the back of a service beyond compare.

The future means that Capespan positions itself as a global innovator, applying technology and fresh thinking in dealing with all challenges, or rather opportunities that our business partners present. Backing this is our research division Experico and virtual global innovation team.

We've defined our business as a leader in marketing fruit globally and providing supply chain service solutions. To this end, our marketing entities in Canada, Hong Kong, Japan, the UK, European Continent, USA and UAE ensure entry into about 60 Northern Hemisphere countries. In addition, we also sell fruit into Africa and the Indian Ocean Islands. Having grown and strengthened relationships with the top global and local retailers, we have, more often than not, increased supply to these leading business partners during 2006. We're extremely proud to have an impressive group of retailers as customers and will grow in this area.

Our full service basket includes newly formed division, The Fresh Chain (TFC), focusing on "fresh" supply solutions. They complement existing supply services as our shipping operations are faced with challenges of the relentless growth on the containerization front. Now, customers that were previously out of reach relish what TFC offers and the returns are speaking volumes.

Non-core investments are out, only the bottom line drives any strategic movement in fostering growth. Capespan will continue to acquire farming properties that will yield a healthy profit.  Our associate company, Rapiprop, with shareholders Total Produce and Africa Alliance have taken up the opportunities that the Orange River and Sunday's River regions presented. Our logistical subsidiary, Fresh Produce Terminals (FPT) saw the inception of the state-of–the–art Addo Cold Store in Sunday's River, a Public Private Partnership. Here the Addo Cold Store Community Trust acquired a 49% stake in the venture via government grants.

Via the Capespan Foundation, the Group is committed to land reform, skills development, capacity building and the development of new farming entrepreneurs. In a newly formed 3 year partnership with the World Bank's IFC, the IFC Thandi Land Reform Program is charged with completing at least 30 projects with a US$2.4m budget. Furthermore, FPT has already achieved a BBB official rating and is in line to hold a good contributor BEE status soon.   

Going forward, we'll have to spot major trends and adjust just as speedily. Retailer consolidation and fewer suppliers have meant dealing differently with our customers. By the same token, because of the trend of shortest route to market and more grower-exporters, Capespan has changed its business practices significantly. For 2007 and beyond, the rapid growth of electronic and wireless based technologies, as well as growing environmental and climatic change concerns will increasingly influence the focus of our business. The impact of China and India on the global economy and our industry will be significant. And we will be ready.