Forestry South AfricaForestry South AfricaAn OverviewAn Overview

Roger GodsmarkRoger GodsmarkOperations Director, Forestry South AfricaOperations Director, Forestry South Africa

Presentation to Transnet: 8Presentation to Transnet: 8thth April 2014 April 2014

FSA Formed in 2002FSA Formed in 2002

There was a political imperative to create a single, all There was a political imperative to create a single, all inclusive organisation that represented all private timber inclusive organisation that represented all private timber

growersgrowers

Why? Why?

SA Timber Growers SA Timber Growers Assoc. Assoc.

(commercial farmers)(commercial farmers)

Forest Owners Forest Owners Assoc. Assoc.

(corporate growers)(corporate growers)

FSA Constitution 1FSA Constitution 1

Provides for Different Membership CategoriesProvides for Different Membership Categories Ordinary Ordinary (timber growers)(timber growers) Associate Associate (non-timber growers)(non-timber growers) Honorary Honorary

Structured into three “Grower Groups”Structured into three “Grower Groups” LargeLarge (corporate)(corporate) Medium Medium (commercial farmers)(commercial farmers) Small Small (small-scale growers)(small-scale growers)

General Committee feeds into the Executive General Committee feeds into the Executive Committee which is top decision making Committee which is top decision making structurestructure

Main Features Main Features

FSA Constitution 2FSA Constitution 2

Executive Committee decisions reached by Executive Committee decisions reached by consensus consensus

No one member or group of members can No one member or group of members can dominate 11 person Executive Committeedominate 11 person Executive Committee LargeLarge (5 members)(5 members) MediumMedium (3 members)(3 members) SmallSmall (3 members)(3 members)

Chairmanship is rotated annually between the Chairmanship is rotated annually between the 3 Groups3 Groups

Association is apoliticalAssociation is apolitical

Main Features Main Features

In Essence FSA is……..In Essence FSA is……..

A voluntary Association of timber growersA voluntary Association of timber growers

That is registered as a “non-profit organisation” That is registered as a “non-profit organisation”

Whose Overriding Role is ……..Whose Overriding Role is ……..

To represent the best interests of its To represent the best interests of its members; andmembers; and

The interests of the South African Forestry The interests of the South African Forestry Industry Industry

Who Are FSA’s Members?Who Are FSA’s Members?

MEMBER DESCRIPTIONMEMBER DESCRIPTION NUMBERNUMBER HECTARESHECTARES

(1): Corporate Companies Private Ex-SAFCOL SAFCOL (KLF)

941

612 600143 300127 700

SUB-TOTALSUB-TOTAL 1414 883 600883 600

(2): Commercial Enterprises Timber Farmers Timber Co-ops

1 3004

232 78023 600

SUB-TOTALSUB-TOTAL 1 3041 304 256 379256 379

(3): Small-Scale Growers 20 000 45 000

GRAND TOTALGRAND TOTAL 21 31821 318 1 161 3801 161 380**

* * TOTAL PLANTED AREA = 1 273 357: FSA MEMBERS 91.2%TOTAL PLANTED AREA = 1 273 357: FSA MEMBERS 91.2%

Why is FSA’s Membership Base so Strong?Why is FSA’s Membership Base so Strong?

It gives members a powerful collective voiceIt gives members a powerful collective voice

Members benefit from not only from the lobbying actions of FSA itself but also from the Members benefit from not only from the lobbying actions of FSA itself but also from the output of Industry based interventions (e.g. research & forest protection) output of Industry based interventions (e.g. research & forest protection) Deferring or stopping potential costs before they occurDeferring or stopping potential costs before they occur Reducing potential costs through forest protection interventionsReducing potential costs through forest protection interventions Increasing productivity through skills training & research Increasing productivity through skills training & research Reducing Industry costs through leveraging additional fundingReducing Industry costs through leveraging additional funding

Due to its large and representative membership base, FSA Due to its large and representative membership base, FSA is seen as “the” body which represents the Industryis seen as “the” body which represents the Industry

The Bottom Line ……… the cost of membership are far The Bottom Line ……… the cost of membership are far outweighed by the benefits derivedoutweighed by the benefits derived

FSA Operating StructureFSA Operating Structure

Executive Director (Michael Peter)

FSA Executive CommitteeFSA Executive Committee

Finances (Muriel Farquharson)Admin (Precious Singo)Caretaker (Bethuel Maubane)

JOHANNESBURGJOHANNESBURG

Head OfficeHead Office

PIETERMARITZBURGPIETERMARITZBURG

Regional OfficeRegional OfficeOps Director (Roger Godsmark)Bus Dev. Director (Norman Dlamini)Regional Facilitator (Nathi Ndlela)Office Manager (Judy Dowsett)

Large Growers Group

Medium Growers Group

Small Growers Group

Limpopo (2)Mpum. (1)KZN (8)

Working CommitteesWorking Committees

Water & EnvironmentWater & EnvironmentTransportTransport

LandLandHuman ResourcesHuman Resources

ResearchResearchBio-energyBio-energy

FSA General CommitteeFSA General Committee

FSA’s Main ActivitiesFSA’s Main Activities

FSA fulfils its mandate by doing 4 main thingsFSA fulfils its mandate by doing 4 main things

Acts as a Lobby GroupActs as a Lobby Group GovernmentGovernment (National, Provincial & Local)(National, Provincial & Local) NGO’sNGO’s (e.g. Forest Stewardship Council)(e.g. Forest Stewardship Council) Other BodiesOther Bodies (e.g. SETA, Funding, Research, Universities etc.)(e.g. SETA, Funding, Research, Universities etc.)

Acts as collector & distributor of funding Acts as collector & distributor of funding

Acts as the keeper, analyser & distributor of informationActs as the keeper, analyser & distributor of information

Co-ordinates, organises and capacitates small-scale Co-ordinates, organises and capacitates small-scale growers growers

Lobbying is becoming an ever increasing activity Lobbying is becoming an ever increasing activity

FSA’s interventions generally high level & at national level FSA’s interventions generally high level & at national level

How Do We Do What We Do?How Do We Do What We Do?

Financial Resources:Financial Resources: Membership contributions (levy of R1.73 per ton Membership contributions (levy of R1.73 per ton

timber sold)timber sold) Donations / sponsorships Donations / sponsorships Partnership funding (e.g. DAFF, DST)Partnership funding (e.g. DAFF, DST) InterestInterest

Human Resources: Human Resources: Permanent staff (7)Permanent staff (7) Outsourced staff (consultant)Outsourced staff (consultant) Partnerships (e.g. Kwanalu)Partnerships (e.g. Kwanalu) Member’s assistanceMember’s assistance Working Committee structuresWorking Committee structures

In order to do what we do, we need 2 essential things…….In order to do what we do, we need 2 essential things…….

FSA & Industry Expenditure Budget 2014FSA & Industry Expenditure Budget 2014

44.2%

28.1%

3.7%

4.5%

18.9%

0.6%

Research Forest Prot. Env & WaterHR Other * FSA

Total – R30 401 000Total – R30 401 000

R8.6mR8.6m

R13.4mR13.4m

R5.7mR5.7m

* Includes R500 000 income recovery

Total FSA Income Budget 2014Total FSA Income Budget 2014

84.7%

13.7%

1.6%

Levy* Donations Sundry Income

Total – R30 442 000Total – R30 442 000

R25.8mR25.8m

R4.2mR4.2m

* Based on timber sales of 14 900 000 tons

Main Issues Being Dealt with by FSAMain Issues Being Dealt with by FSALand Reform Land Reform (legislation & post-settlement support)(legislation & post-settlement support)

Forest Protection Forest Protection (Sirex, TPCP, fires etc.)(Sirex, TPCP, fires etc.)

Research Research (DST SIF funded projects)(DST SIF funded projects)

Labour Labour (legislation and regulations)(legislation and regulations)

Afforestation & water issues Afforestation & water issues (licence matters)(licence matters)

Environmental issues Environmental issues (certification)(certification)

Transformation issues Transformation issues (Charter Council)(Charter Council)

Transport Issues Transport Issues (road, rail and ports)(road, rail and ports)

Skills Development issues Skills Development issues (FP&M SETA) (FP&M SETA)

Small-scale timber grower development Small-scale timber grower development (Bus Dev Unit)(Bus Dev Unit)

Main Issues Being Dealt with by FSA’sMain Issues Being Dealt with by FSA’sTransport CommitteeTransport Committee

Revitalisation of Thuth ‘ihlathi Project on PMB Cluster Revitalisation of Thuth ‘ihlathi Project on PMB Cluster of branch linesof branch lines

Co-operation in designing new timber wagonsCo-operation in designing new timber wagons

Rail Rail

Road Road

Ports Ports

Toll RoadsToll Roads

Regulations Regulations (ARTO & national road traffic regulations)(ARTO & national road traffic regulations)

Diesel rebateDiesel rebate

Labour carriersLabour carriers

Port cargo duesPort cargo dues

ConclusionConclusion

Despite FSA’s limited resouces, both Despite FSA’s limited resouces, both human and financial, with the assistance human and financial, with the assistance

of its members, FSA has established of its members, FSA has established itself as a credible organisation and one itself as a credible organisation and one

that punches way above its weight.that punches way above its weight.

Thank You Thank You