MAINTAINING STEADY
MAINTAINING STEADY SUPPLIES IN TROUBLED TIMESSupply diversification and bulk shipments have helped cushion African agricultural supplies from turmoil, saysJacques de Villiers, Executive: Manufacturing, Operations and Supply Chain at Omnia Holdings.Conflict and piracy can make shipping dangerous.TThe Red Sea crisis has sent ripples through supply chains worldwide.For South African farmers, however, the impacts have been mitigatedby a combination of strategic agility and a steadfast commitmentto sustainability.The Red Sea crisis refers to the geopolitical tensions and conflicts inthe region, an important maritime route linking Europe, Asia and Africa.Key issues include territorial disputes, piracy, competition for controlover strategic chokepoints like the Bab-el-Mandeb Strait and rivalriesamong regional powers such as Saudi Arabia, the UAE, Egypt and Turkey.These tensions are exacerbated by proxy conflicts and concerns overresource access, including fishing and oil shipping lanes.Jacques de Villiers, Executive: Manufacturing, Operations and SupplyChain at Omnia Holdings, says that supply diversification – both locallyand internationally – has been pivotal in cushioning the South Africanagricultural sector from the brunt of these global challenges.“The crisis has primarily affected container flows between China,Europe and the east coast of the United States. This means South Africa’sagricultural supply chains have been relatively insulated,” explainsDe Villiers.“Most of our products bypass the Red Sea, coming from regions likethe Middle East and Europe, along Africa’s east and west coasts. Whileglobal container disruptions do create market instability, a focus on bulkshipments rather than containers minimises the impact. It helps maintaina reliable supply of agricultural inputs, ensuring that our farmers areequipped to sustain food security.”One observable shift is the increased traffic of goods past Africa,presenting potential opportunities for trade realignments. However,De Villiers notes that practical benefits have yet to fully materialise,highlighting the need for strategic exploration of these opportunitiesacross the continent.20PHOTO: Chris Pagan on Unsplash
LOGISTICSlimited resources while reducing environmental impact. De Villiershighlights that the company’s long-term vision includes transitioningto green ammonia, a critical step towards producing fully sustainableammonium nitrate-based fertilisers.“Although current market realities demand a careful balance betweencost, reliability and environmental sustainability, it is important that we,as an industry, remain committed to moving towards greener agriculturalinputs,” says De Villiers.The recent geopolitical crises have underscored the importance ofagility and reliability in supply chains. De Villiers reflects: “The worldhas shifted from a ‘just-in-time’ to a ‘just-in-case’ model. While the lattermay involve higher costs, it ensures supply chain resilience and providesopportunities to explore new markets.”Omnia’s preparedness has been evident through various crises, fromthe Covid-19 pandemic to the Russia-Ukraine conflict. “We’ve neverrun out of product, thanks to our pre-emptive contingencies. Whilesome competitors struggled to adapt, our agility allowed us to maintainuninterrupted supply,” De Villiers emphasises.Building sustainable value chainsCreating sustainable value chains extends beyond a business’soperations. By actively engaging with farmers, producers can ensureminimal disruption to agricultural activities while promoting long-termenvironmental and economic benefits, says De Villiers.“Africa’s biggest challenge is logistics. Our focus is not just on addressingimmediate challenges but also on shaping a future where sustainabilityand resilience go hand in hand,” concludes De Villiers.Ensuring stability amid global disruptionsWhile the Red Sea crisis may not be impacting South Africa’s trade routesdirectly, proactive measures are critical in weathering global disruptions.“At Omnia, for example, we’ve diversified our supply sources acrossmultiple geographies, including Europe, North America, Asia and theMiddle East. This approach ensures that we remain resilient, regardlessof geopolitical developments,” De Villiers explains.This diversified sourcing strategy is complemented by localmanufacturing capabilities. Omnia’s Sasolburg facility, described byde Villiers as the “most carbon-efficient, green and technologicallyadvanced production site of its kind in the country”, plays a critical rolein supporting South Africa’s agriculture and mining sectors.In this sense, sustainability remains a cornerstone of Omnia’s supplychain strategy. By prioritising nutrient-use efficiency, water-use efficiencyand the integration of bio-stimulants, Omnia helps farmers maximiseThe Red Sea crisis has badly affected the flow of containers.PHOTO: Noel Broda on Unsplash21
