The South African Forestry and Forest Products Industry 2007 Roger Godsmark Produced by Forestry...

The South African Forestry and Forest The South African Forestry and Forest Products Industry 2007Products Industry 2007

Roger GodsmarkRoger Godsmark

Produced by Forestry South Africa, August 2008Produced by Forestry South Africa, August 2008

Presentation OutlinePresentation Outline

IntroductionIntroduction

The importance of the Forestry IndustryThe importance of the Forestry Industry

The importance of the Forest Products IndustryThe importance of the Forest Products Industry

Industry Contribution to EmploymentIndustry Contribution to Employment

InvestmentInvestment

Industry Contribution to GDPIndustry Contribution to GDP

Industry Contribution to Foreign TradeIndustry Contribution to Foreign Trade

Section 1 Section 1 Introduction Introduction

Land Use in South AfricaLand Use in South Africa

68.6%

13.8%

9.6%

1.0%

6.9%

Grazing Arable Nature Conservation Other Forestry

Total RSA land area – 122.3 million haTotal RSA land area – 122.3 million ha

1 266 196 ha

Land Use in MpumalangaLand Use in Mpumalanga

39.7%

21.6%

28.5%

6.3%

3.9%


Total Mpum. land area – 8.2 million ha (6.7% of total)Total Mpum. land area – 8.2 million ha (6.7% of total)

514 956 ha

Land Use in KwaZulu NatalLand Use in KwaZulu Natal

58.3%

12.8%15.1%

5.3%

8.5%


Total KZN land area – 9.1 million ha (7.5% of total)Total KZN land area – 9.1 million ha (7.5% of total)

486 967 ha

Land Use in the Eastern CapeLand Use in the Eastern Cape

80.0%

6.7%

3.7%

0.9%

8.7%


Total E. Cape land area – 17.1 million ha (13.9% of total)Total E. Cape land area – 17.1 million ha (13.9% of total)

155 078 ha

Land Use in the Western CapeLand Use in the Western Cape

70.4%

20.0%

5.6%

0.5%

3.5%


Total W. Cape land area – 12.9 million ha (10.6% of total)Total W. Cape land area – 12.9 million ha (10.6% of total)

61 097 ha

Land Use in LimpopoLand Use in Limpopo

74.0%

14.4%

9.7%

0.4%

1.5%


Total Limpopo land area – 12.0 million ha (9.8% of total).Total Limpopo land area – 12.0 million ha (9.8% of total).

48 096 ha

Plantation Area as % of Land Area by Plantation Area as % of Land Area by ProvinceProvince

0.40%

0.47%

0.91%

5.32%

6.29%

0% 1% 2% 3% 4% 5% 6% 7%

Limpopo

W. Cape

E.Cape

KZN

Mpumalanga

% of Land Area Afforested

Forestry in Mpumalanga greatest % of land areaForestry in Mpumalanga greatest % of land area

Land Use Comparisons in RSALand Use Comparisons in RSA1996, 2001 & 20071996, 2001 & 2007

0.404

1.294

1.487

3.761

0.429

0.974

1.352

3.189

0.42

1.266

2.897

0.632

0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0

Sugar

Wheat

Forestry

Maize

Million Hectares

1996 2001 2007

Drop in Forestry Area – 221 000 ha (14.9%)Drop in Forestry Area – 221 000 ha (14.9%)

Section 2Section 2The Forestry Industry The Forestry Industry

Plantation Area by Species 2007Plantation Area by Species 2007

53.5%37.7%

8.1% 0.7%

Pine Eucalyptus Wattle Other

Total – 1 266 194 haTotal – 1 266 194 ha

Plantation Area by Ownership 2007Plantation Area by Ownership 2007

48.4%

19.8%11.3%

6.9%

3.6%

10.1%

Corporate Commercial Farmers Corporate (Ex Safcol)SAFCOL State/ Municipalities Small Growers

Total – 1 266 194 haTotal – 1 266 194 ha

Plantation Area by Province 2007Plantation Area by Province 2007

3.8%

40.7%

38.5%

4.8%

12.2%

Limpopo Mpumalanga KZN E. Cape W. Cape

Total – 1 266 194 haTotal – 1 266 194 ha

Plantation Area by Province and Genera 2007Plantation Area by Province and Genera 2007

57 789

27 729

130 305

145 874

315 382

3 308

20 367

24 774

341 092

199 574

0 100 000 200 000 300 000 400 000 500 000

W. Cape

Limpopo

E.Cape

KZN

Mpumalanga

Hectares

Softwood Hardwood

Total – 677 079 ha (softwood)Total – 677 079 ha (softwood)Total – 589 115 ha (hardwood)Total – 589 115 ha (hardwood)

Planted Area ComparisonsPlanted Area Comparisonsby Region & Species 2007by Region & Species 2007

103

78

20 185

27 729

2 610

2 911

22 562

188 094

3 261

182 132

315 382

2 458

85 810

252 824

145 874

14 181

0 50 000 100 000 150 000 200 000 250 000 300 000 350 000

Other

Wattle

Eucalyptus

Pine

Hectares

Limpopo Cape Mpumalanga KZN

Pine Plantation Area by Region 2007Pine Plantation Area by Region 2007

46.6%

21.5%

27.8%

4.1%

Mpumalanga KZN Cape Limpopo

Total – 677 079 ha (53.5% of total)Total – 677 079 ha (53.5% of total)

Eucalyptus Plantation Area by Region 2007Eucalyptus Plantation Area by Region 2007

38.1%

52.9%

4.7% 4.2%



Wattle Plantation Area by Region 2007Wattle Plantation Area by Region 2007

13.8%

83.3%2.8%

0.1%



Other Hardwood Plantation Area Other Hardwood Plantation Area by Region 2007by Region 2007

38.7%

29.2%

31.0% 1.2%



Plantation Area by Management Plantation Area by Management Objectives 2007Objectives 2007

54.9%

5.3%3.4%

36.4%

Pulpwood Mining Timber Other Sawlogs

Total – 1 266 194 haTotal – 1 266 194 ha

Softwood Plantation Area by Softwood Plantation Area by Management Objectives 2007Management Objectives 2007

68.5%

30.4%

0.9%

0.1%

Sawlogs Pulpwood Poles Other

Total – 677 079 haTotal – 677 079 ha

Hardwood Plantation Area by Hardwood Plantation Area by Management Objectives 2007Management Objectives 2007

3.4%

79.7%

3.5%

11.5%

1.9%

Sawlogs Pulpwood Poles Other Mining Timber

Total – 589 118 haTotal – 589 118 ha

Plantation Area by Province and Ownership Plantation Area by Province and Ownership 20072007

562

22 693

31 049

32 245

128 423

60 535

25 403

124 030

454 721

386 534

0 100 000 200 000 300 000 400 000 500 000 600 000

W. Cape

Limpopo

E.Cape

KZN

Mpumalanga

Hectares

Public Private

Total Private – 1 051 223 ha (83%)Total Private – 1 051 223 ha (83%)Total Public – 214 971 ha (17%)Total Public – 214 971 ha (17%)

Leased Safcol packages included in

“Private”

Percentage Plantation OwnershipPercentage Plantation Ownershipby Province 2007by Province 2007

99%93%80%

53%

75%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Limpopo Mpumalanga E.Cape KZN W. Cape

Province

Publicly Owned Privately Owned


Plantation Area by Species and Ownership Plantation Area by Species and Ownership 20072007

1 979

4 106

45 395

163 492

6 414

98 912

432 309

513 587

0 100 000 200 000 300 000 400 000 500 000 600 000

Other Hard.

Wattle

Eucalyptus

Pine

Hectares

Public Private


Percentage Plantation OwnershipPercentage Plantation Ownershipby Species 2007by Species 2007

96%90%76% 76%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Other Hard. Pine Eucalyptus Wattle

Province



Planted Area ComparisonsPlanted Area Comparisonsby Region & Product 2007by Region & Product 2007

25 923

2 026

146 315

41 912

7 911

4 680

35 178

327

5 733

214 187

236 862

3 835

2 649

64 782

415 701

58 174

0 100 000 200 000 300 000 400 000 500 000

Other

Mining Timber

Sawlogs

Pulpwood

Hectares

Cape Limpopo Mpumalanga KZN

Plantation Area by Ownership and Plantation Area by Ownership and Species 2007Species 2007

2 460

4 611

47 218

245 891

5 934

98 407

430 487

431 188

0 100 000 200 000 300 000 400 000 500 000 600 000

Other Hard.

Wattle

Eucalyptus

Pine

Hectares


Percentage Plantation Ownership by Percentage Plantation Ownership by Species 2007Species 2007

96.0%90.5%72.0%63.6%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Pine OtherHardwood

Eucalyptus Wattle

Species


Roundwood Production Roundwood Production by Province and Genera 2007by Province and Genera 2007

0.62

0.35

1.44

4.18

2.44

0.01

0.34

0.31

3.72

6.92

0 1 2 3 4 5 6 7 8 9

W. Cape

Limpopo

E. Cape

Mpumalanga

KZN

Million m3

Softwood Hardwood

Total – 9.0 million mTotal – 9.0 million m33 (softwood) (softwood)Total – 11.3 million mTotal – 11.3 million m33 (hardwood) (hardwood)

Roundwood ProductionRoundwood Productionby Province and Genera 2007by Province and Genera 2007

0 2 4 6 8 10 12 14

W. Cape

Limpopo

E. Cape

Mpumalanga

KZN

Million m3

Softwood Hardwood

0.634

0.684

1.750

7.906

9.356

Total – 9.0 million mTotal – 9.0 million m33 (softwood) (softwood)Total – 1.3 million mTotal – 1.3 million m33 (hardwood) (hardwood)

Total Roundwood Production ex Total Roundwood Production ex Plantations by Province 2007Plantations by Province 2007

46.0%

38.9%

8.6%

3.1%

3.4%

KZN Mpumalanga E. Cape Limpopo W. Cape

Total – 20.3 million mTotal – 20.3 million m33 or 17.8 million tons or 17.8 million tons

Total Roundwood Production ex Total Roundwood Production ex Plantations by Product 2007Plantations by Product 2007

64.9%

26.4%

3.7%

4.9%

Pulpwood Sawlogs Mining Timber Other


Softwood Roundwood Production ex Softwood Roundwood Production ex Plantations by Product 2007Plantations by Product 2007

56.7%

41.6% 0.9%

0.8%

Sawlogs Pulpwood Poles Other


Hardwood Roundwood Production ex Hardwood Roundwood Production ex Plantations by Product 2007Plantations by Product 2007

83.5%

6.7%

3.7%

3.8%

2.3%

Pulpwood Mining Timber Poles Sawlogs Other


Total Roundwood Production ex Total Roundwood Production ex Plantations by Species 2007Plantations by Species 2007

44.4%

50.2%

5.3%

0.0%



Composition of Roundwood Production Composition of Roundwood Production by Product 2007by Product 2007

0.0%22.5%24.0%

25.0%

95.3%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Sawlogs Poles Pulpwood Other MiningTimber

Product

Softwood Hardwood

Total Roundwood Production ex Total Roundwood Production ex Plantations 1980 to 2007Plantations 1980 to 2007

10

12

14

16

18

20

22

24

1980 1984 1988 1992 1996 2000 2004

Years

Mill

ion

m3

Total increase in production over periodTotal increase in production over period : 71.1%: 71.1%Total in increase in afforested area over periodTotal in increase in afforested area over period : 9.0%: 9.0%

Roundwood Production vs. Plantation Roundwood Production vs. Plantation Area 1980 to 2007Area 1980 to 2007

90

100

110

120

130

140

150

160

170

180

190

200

1980 1984 1988 1992 1996 2000 2004

Years

1980

= 1

00Plantation Production Plantation Area

Total increase in production over periodTotal increase in production over period - 71.1%- 71.1%Total in increase in afforested area over periodTotal in increase in afforested area over period - 9.0%- 9.0%

Average Productivity per Hectare Average Productivity per Hectare 1980 - 20071980 - 2007

8

10

12

14

16

18

20

1980 1984 1988 1992 1996 2000 2004

Years

m3

per

hec

tare

Total increase in productivity over period – 5.8 mTotal increase in productivity over period – 5.8 m3 3 per ha p.a. (57%)per ha p.a. (57%)

Production ComparisonsProduction Comparisons1996, 2001 & 20071996, 2001 & 2007

2.712

10.171

16.455

16.714

2.504

14.634

23.876

1.82

7.339

17.756

20.278

7.772

0 5 10 15 20 25 30

Wheat

Maize

Forestry

Sugar

Million tons

1996 2001 2007

Value of Roundwood Production 2007Value of Roundwood Production 2007

68.8%

2.1%

2.8%

26.3%

Pulpwood Mining Timber Other Sawlogs

Total – R5.2 billionTotal – R5.2 billion

Value of Roundwood Production Value of Roundwood Production 1980 to 20071980 to 2007

0.0

1.0

2.0

3.0

4.0

5.0

6.0

1980 1984 1988 1992 1996 2000 2004

Years

Bill

ion

Ra

nd

(2

00

6 R

an

ds

)

Nominal Real

Nominal increase over periodNominal increase over period : R5.0 bn (3 037%): R5.0 bn (3 037%)Real increase over periodReal increase over period : R2.9 bn (129%): R2.9 bn (129%)

New Afforestation by RegionNew Afforestation by Region1980 to 20071980 to 2007

0

5

10

15

20

25

30

35

40

45

50

1980

1982

1984

1986

1988

1990

1992

1994

1996

1998

2000

2002

2004

2006

Years

Th

ou

san

d H

ecta

res

Mpum & Limp. KZN Cape Total

New afforestation over periodNew afforestation over period - 375,811 ha- 375,811 haAverage per yearAverage per year - 13,422 ha- 13,422 ha

AVERAGE

Total New Afforestation by Region Total New Afforestation by Region 1980 to 20071980 to 2007

53.7%34.0%

12.3%

KZN Mpumalanga & Limpopo E&W Cape

Total – 375 811 haTotal – 375 811 ha

New Afforestation by RegionNew Afforestation by Region10 Year Period – 1998 to 200710 Year Period – 1998 to 2007

0

1

2

3

4

5

6

7

8

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Years

Th

ou

sa

nd

He

cta

res

Northern KZN Cape Total

New afforestation over periodNew afforestation over period - 42 010 ha - 42 010 ha Average per yearAverage per year - 4 201 ha- 4 201 ha

AVERAGE

Total New Afforestation by RegionTotal New Afforestation by Region10 Yr Period - 1998 to 200710 Yr Period - 1998 to 2007

55.2%32.8%

12.0%

KZN Mpumalanga & Limpopo E&W Cape

Total – 42 010 haTotal – 42 010 ha

New Afforestation by Province 2007New Afforestation by Province 2007

0.0%

67.9%

0.0%

0.0%

32.1%

W. Cape KZN Limpopo Mpumalanga E. Cape

Total – 2,198 haTotal – 2,198 ha

New Afforestation by SpeciesNew Afforestation by Species1980 to 20071980 to 2007

0

5

10

15

20

25

30

35

40

45

50

1980 1984 1988 1992 1996 2000 2004

Years

Th

ou

sa

nd

He

cta

res

Pine Eucalyptus Wattle/Other Total

Average p.a. 1980 to 1985Average p.a. 1980 to 1985 - 10 974 ha (17.5% of total)- 10 974 ha (17.5% of total)Average p.a. 1986 to 1990Average p.a. 1986 to 1990 - 24 558 ha (32.7% of total)- 24 558 ha (32.7% of total)

Total New Afforestation by SpeciesTotal New Afforestation by Species1980 to 20071980 to 2007

47.4%

43.7%

7.9% 0.9%Pine Eucalyptus Wattle Other

Total – 375 809 haTotal – 375 809 ha

New Afforestation by Species 2007New Afforestation by Species 2007

48.5%

19.0%

31.3%

1.2%Eucalyptus Pine Wattle Other Hardwood

Total – 2 196haTotal – 2 196ha

New Afforestation by ProductNew Afforestation by Product1980 to 20071980 to 2007

0

5

10

15

20

25

30

35

40

45

50

1980 1984 1988 1992 1996 2000 2004

Years

Th

ou

san

d H

ecta

res

Pulpwood Sawlogs Mining TimberOther Total

Average p.a. 1991 to 1995Average p.a. 1991 to 1995 - 24 406 ha (32.5% of total)- 24 406 ha (32.5% of total)Average p.a. 1996 to 2000Average p.a. 1996 to 2000 - 7 019 ha (9.3% of total)- 7 019 ha (9.3% of total)Average p.a. 2001 to 2007Average p.a. 2001 to 2007 - 4 293 ha (8.0% of total)- 4 293 ha (8.0% of total)

Total New Afforestation by ProductTotal New Afforestation by Product1980 to 20071980 to 2007

57.4%

22.7%

14.3%

5.6%

Pulpwood Sawlogs Mining Timber Other

Total – 375 809 haTotal – 375 809 ha

New Afforestation by Product 2007New Afforestation by Product 2007

13.7%7.7%

3.6%

67.3%

7.7%

Pulpwood Sawlogs Poles Mng. Timber Other


Area Converted Out of Timber Area Converted Out of Timber Production by Species 1980 to 2007Production by Species 1980 to 2007

0

1 000

2 000

3 000

4 000

5 000

6 000

7 000

1980 1984 1988 1992 1996 2000 2004

Years

Hec

tare

sPine Eucalypts Wattle/Other Total

Area converted over periodArea converted over period - 85 140 ha- 85 140 haAverage p.a. Average p.a. - 3 041 ha - 3 041 ha

Total Area Converted out of Timber Total Area Converted out of Timber Production by Species 1980 to 2007Production by Species 1980 to 2007

44.7%

28.3%

24.3%

2.6%

Pine Eucalypts Wattle Other


Total Area Converted out of Timber Total Area Converted out of Timber Production by Species 2007Production by Species 2007

24.6%

42.0%

31.4%

2.0%

Pine Eucalypts Wattle Other Hardwood

Total – 793 haTotal – 793 ha

Net New Afforestation by SpeciesNet New Afforestation by Species1980 to 20071980 to 2007

-10

-5

0

5

10

15

20

25

30

35

40

45

1980 1984 1988 1992 1996 2000 2004

Years

Th

ou

san

d H

ecta

res

Pine Eucalypts Wattle/Other Total

Net new afforestation over periodNet new afforestation over period - 290 669 ha- 290 669 haAverage p.a. Average p.a. - 10 766 ha - 10 766 ha

Net New Afforestation by SpeciesNet New Afforestation by Species1980 to 20071980 to 2007

48.2%

48.2%

3.1%

0.4%


Total – 290 669 haTotal – 290 669 ha

Net New Afforestation by Species 2007Net New Afforestation by Species 2007

223

731

439

100

200

400

600

800


Species

Hec

tare

s

Total net new afforestation - 1 403 haTotal net new afforestation - 1 403 ha

Area Converted Out of Timber Area Converted Out of Timber Production by Region 1980 to 2007Production by Region 1980 to 2007

0

1 000

2 000

3 000

4 000

5 000

6 000

7 000

1980 1984 1988 1992 1996 2000 2004

Years

Hec

tare

s

North KZN South Total

Area converted over periodArea converted over period - 85 140 ha- 85 140 haAverage p.a. Average p.a. - 3 041 ha - 3 041 ha

Total Area Converted out of Timber Total Area Converted out of Timber Production by Region 1980 to 2007Production by Region 1980 to 2007

30.6%

43.9%

25.5%

Mpumalanga & Limpopo KZN W&E Cape


Net New Afforestation by RegionNet New Afforestation by Region1980 to 20071980 to 2007

-10

-5

0

5

10

15

20

25

30

35

40

45

1980 1984 1988 1992 1996 2000 2004

Years

Th

ou

san

d H

ecta

res

North KZN South Total

Net new afforestation over periodNet new afforestation over period - 290 669 ha- 290 669 haAverage p.a. Average p.a. - 10 766 ha - 10 766 ha

Net New Afforestation by RegionNet New Afforestation by Region1980 to 20071980 to 2007

35.0%

56.6%

8.4%

Mpumalanga & Limpopo KZN W&E Cape

Total – 290 669 haTotal – 290 669 ha

Conversion of Plantations out of Production & to Conversion of Plantations out of Production & to Other Species 1980 to 2007Other Species 1980 to 2007

-20

-15

-10

-5

0

5

10

15

1980 1984 1988 1992 1996 2000 2004

Years

Th

ou

san

d H

ecta

res


Net loss to production area over periodNet loss to production area over period - 85 140 ha- 85 140 haAverage p.a. Average p.a. - 3 041 ha - 3 041 ha

Total Area Converted out of Production & to Total Area Converted out of Production & to Other Species 1980 to 2007Other Species 1980 to 2007

-55 765

15 320

-47 195

2 500

-60 000

-50 000

-40 000

-30 000

-20 000

-10 000

0

10 000

20 000

30 000


Species

Hec

tare

s

Net loss to production area over periodNet loss to production area over period - 85 140 ha- 85 140 haAverage p.a. Average p.a. - 3 041 ha - 3 041 ha

Area Converted out of ProductionArea Converted out of Production& to Other Species 2007& to Other Species 2007

-3 096

2 829

-363 -163

-4 000

-3 000

-2 000

-1 000

0

1 000

2 000

3 000

4 000


Species

Hec

tare

s

Net loss to production area Net loss to production area - 793 ha- 793 ha

Net Addition to Planted Area Net Addition to Planted Area by Species 1980 to 2007by Species 1980 to 2007

-20

-10

0

10

20

30

40

50

1980 1984 1988 1992 1996 2000 2004

Years

Hec

tare

s


Total net addition to production areaTotal net addition to production area - 290 696 ha- 290 696 haAverage p.a. Average p.a. - 10 766 ha - 10 766 ha

Total Net Addition to Planted Area Total Net Addition to Planted Area by Species 1980 to 2007by Species 1980 to 2007

122 511

179 656

-17 527

6 029

-50 000

0

50 000

100 000

150 000

200 000


Species

Hec

tare

s

Total net addition to production areaTotal net addition to production area - 290 669 ha- 290 669 haAverage p.a. Average p.a. - 10 766 ha - 10 766 ha

Net Addition (Loss) to Planted AreaNet Addition (Loss) to Planted Areaby Species 2007by Species 2007

-2 678

3 893

325

-137

-4 000

-3 000

-2 000

-1 000

0

1 000

2 000

3 000

4 000

5 000


Species

Hec

tare

s

Total net gain in production areaTotal net gain in production area - 1403 ha- 1403 ha

Damage to Plantations by GeneraDamage to Plantations by Genera1980 to 20071980 to 2007

0

20

40

60

80

100

120

1980 1984 1988 1992 1996 2000 2004

Years

Th

ou

san

d H

ecta

res

Softwood Hardwood Total

Total area damaged over periodTotal area damaged over period - 830 615 ha- 830 615 haAverage p.a. Average p.a. - 29 665 ha - 29 665 ha

Damage to Plantations by FiresDamage to Plantations by Fires1980 to 20071980 to 2007

0

20

40

60

80

100

120

1980 1984 1988 1992 1996 2000 2004

Years

Th

ou

san

d H

ecta

res

Fire Other Causes Total

Total area damaged over periodTotal area damaged over period - 830 615 ha- 830 615 haTotal area damaged by fireTotal area damaged by fire - 457 951 ha (55.1%)- 457 951 ha (55.1%)Total area damaged by other causesTotal area damaged by other causes - 372 664 ha (44.9%)- 372 664 ha (44.9%)

Damage to Plantations by FiresDamage to Plantations by Fires1980 to 20071980 to 2007

0%

20%

40%

60%

80%

100%

1980 1984 1988 1992 1996 2000 2004

Years

Fire Other Causes

Damage to Plantations by Genera 2007Damage to Plantations by Genera 2007

55.1%

44.9%

Softwood Hardwood

Total – 97 593 ha Total – 97 593 ha (7.7% of total planted area)(7.7% of total planted area)

Damage to Plantations by Cause 2007Damage to Plantations by Cause 2007

72.4%

27.6%

Fire Other Causes


Damage to Plantations by Fire 2007Damage to Plantations by Fire 2007

7.1%

6.5%

0.9%85.6%

Arson Accidental Natural Unknown


FSC Certified ForestsFSC Certified Forestsby Forest Type: October 2007by Forest Type: October 2007

97.8%2.2%

Plantations Semi-Natural

Certified Area – 1 622 196 ha Certified Area – 1 622 196 ha (incl. planted & non-planted areas)(incl. planted & non-planted areas)

FSC Certified ForestsFSC Certified Forestsby Ownership: October 2007by Ownership: October 2007

63.0%

21.8%

2.2%

13.1%

Corporate Safcol & Ex Safcol DWAF Individuals

Certified Area – 1 622 196 ha Certified Area – 1 622 196 ha (incl. planted & non-planted areas)(incl. planted & non-planted areas)

Section 3Section 3The Forest Products Industry The Forest Products Industry

Number of Processing Plants by Type 2007Number of Processing Plants by Type 2007

57.3%

11.2%

7.3%

21.3%

2.8%

Sawmills Pulp, Paper & Board MillsMng. Timber Mills OtherPole Plants

Total – 178 plantsTotal – 178 plants

Intake of Roundwood into Processing Plants Intake of Roundwood into Processing Plants 1980 to 20071980 to 2007

0

5

10

15

20

25

1980 1984 1988 1992 1996 2000 2004

Years

Mill

ion

m3

Pulp & Paper Mills Sawmills

Mng. Timber Mills Other

Total

Total increase in intake over periodTotal increase in intake over period - 8.7 million m- 8.7 million m3 3 (78%) (78%)Biggest increase that of pulpwoodBiggest increase that of pulpwood - 9.7 million m- 9.7 million m33 (229%) (229%)

Intake of Roundwood into Processing Plants Intake of Roundwood into Processing Plants 20072007

70.2%

22.1%

4.2%

3.6%

Pulp, Paper & Board Mills Sawmills

Mng. Timber Mills Other

Total – 19.8 million mTotal – 19.8 million m33

Average Size of Plant by IntakeAverage Size of Plant by Intake1980 vs. 20071980 vs. 2007

46

26

7

72

25

351

111

59

11

63

43

694

0 100 200 300 400 500 600 700 800

Average All

Other Plants

Pole Plants

Mng. Timber Mills

Sawmills

Pulp & Paper Mills

Thousand m3

1980 2007

Overall average intake has increased by: Overall average intake has increased by: - 141%- 141%Average intake of PP & Board Mills has increased by: Average intake of PP & Board Mills has increased by: - 98%- 98%Only average intake of MT Mills has declined – byOnly average intake of MT Mills has declined – by - 13%- 13%

Sales of Certain Products from Processing Sales of Certain Products from Processing Plants 1980 to 2007Plants 1980 to 2007

0

1 000

2 000

3 000

4 000

5 000

6 000

1980

1982

1984

1986

1988

1990

1992

1994

1996

1998

2000

2002

2004

2006

Years

Th

ou

sa

nd

Un

its

Pulp (t) Lumber (m3) Mng. Timber (t) Chips (t)

Biggest increase that of chipsBiggest increase that of chips - 4.4 million tons- 4.4 million tons (823%) (823%)Only decrease that of mining timberOnly decrease that of mining timber - 1.2 million tons (71%) - 1.2 million tons (71%)

Value of Sales from Primary Processing Plants Value of Sales from Primary Processing Plants 20072007

53.2%

10.3%

17.4%

1.2%

4.9%

12.9%

Pulp Chips Lumber Panels Mng. Timber Other


Value of Sales from Primary Processing Value of Sales from Primary Processing Plants 1980 to 2007Plants 1980 to 2007

0

2

4

6

8

10

12

14

16

18

20

1980 1984 1988 1992 1996 2000 2004

Years

Bil

lio

n R

and

(20

07 R

and

s)Nominal Real

Nominal increase over periodNominal increase over period - R17.8 bn (2 549%)- R17.8 bn (2 549%)Real increase over periodReal increase over period - R8.9 bn (93%)- R8.9 bn (93%)

Contribution to GDP 1980 to 2007Contribution to GDP 1980 to 2007

0%

2%

4%

6%

8%

10%

12%

14%

1980 1984 1988 1992 1996 2000 2004

Years

% C

on

trib

uti

on

to

GD

PForestry to Agric. GDP FP to Mnfg. GDP

FP to total GDP

Increase in Forestry GDP over period from 4.5% to 9.1%Increase in Forestry GDP over period from 4.5% to 9.1%Decrease in For. Prod. GDP over period from 6.3% to 5.7%Decrease in For. Prod. GDP over period from 6.3% to 5.7%

Gross Value of Output ComparisonsGross Value of Output Comparisons1996, 2001 & 20071996, 2001 & 2007

1.751

2.454

1.798

6.043

8.998

3.116

3.560

2.712

6.929

11.867

4.031

4.317

5.167

11.452

18.466

0 5 10 15 20

Sugar Cane

Wheat

Forestry

Maize

For. Prods.

Billion Rand

1996 2001 2007

Gross Value of Output ComparisonsGross Value of Output Comparisonsper Planted Hectare 1996, 2001 & 2007per Planted Hectare 1996, 2001 & 2007

1.607

1.209

1.896

4.334

6.051

2.173

2.006

3.655

7.263

8.777

3.953

4.081

6.831

9.598

14.586

0 2 4 6 8 10 12 14 16

Maize

Forestry

Wheat

Sugar Cane

Forest Prods

Thousand Rand per Hectare

1996 2001 2007

Value Addition in Primary Processing Value Addition in Primary Processing Industry 2007Industry 2007

33

483

230

3 218

9 831

18 466

22

109

110

1 358

3 553

5 167

0 5 000 10 000 15 000 20 000

Charcoal Plants

Pole Plants

M. T. Mills

Sawmills

Pulp / Paper Mills

Total Industry

Million Rand

Output Input

Note : excludes secondary processing (e.g. paper manufacturing)Note : excludes secondary processing (e.g. paper manufacturing)

Value Addition Comparisons in Primary Value Addition Comparisons in Primary Processing Industry 2007Processing Industry 2007

1.50

2.10

2.37

2.77

3.57

4.43

0.0 1.0 2.0 3.0 4.0 5.0

Charcoal Plants

M. T. Mills

Sawmills

Pulp / Paper Mills

Total Industry

Pole Plants

Output as ratio of Input

Note : Based only on input value of raw fibre (i.e. excludes all other input costs)Note : Based only on input value of raw fibre (i.e. excludes all other input costs)

Section 4 Section 4 Contribution to Employment Contribution to Employment

Forest Sector Employment – RSA 2007Forest Sector Employment – RSA 2007

Sub-sectorSub-sector No. of employeesNo. of employees Total Total EmploymentEmploymentDirectDirect Indirect Indirect

ForestryForestry 76,84476,844 30,00030,000 106,844106,844

Pulp and PaperPulp and Paper 13,20013,200 10,78110,781 23,98123,981

SawmillingSawmilling 20,00020,000 n/an/a 20,00020,000

Timber BoardTimber Board 6,0006,000 n/an/a 6,0006,000

Mining TimberMining Timber 2,2002,200 n/an/a 2,2002,200

OtherOther 11,00011,000 n/an/a 11,00011,000

TotalTotal 129,244129,244 40,78140,781 170,025170,025

Direct Employment in Forestry Industry Direct Employment in Forestry Industry by Province 2007by Province 2007

45.0%

38.0%13.4%

3.6%

KZN Mpumalanga Cape Limpopo

Total – 77,000Total – 77,000

Direct Employment in Forestry Industry Direct Employment in Forestry Industry by Region 2007by Region 2007

2,700

10,300

29,300

34,700

0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000

Limpopo

Cape

Mpumalanga

KZN

Number of Direct Jobs

Total estimated direct jobs in Industry – 77,000Total estimated direct jobs in Industry – 77,000

Direct Employment in Forestry Industry as Direct Employment in Forestry Industry as % of Those Employed in 2007% of Those Employed in 2007

0.3%

0.4%

0.6%

1.6%

3.7%

0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0%

Cape

Limpopo

RSA

KZN

Mpumalanga

% of Total Employed in Formal Sector

Total employed in RSA – 12.5 millionTotal employed in RSA – 12.5 million

Indirect Employment in Forestry Indirect Employment in Forestry Industry by Province 2007Industry by Province 2007

16,200

61,800

175,800

208,200

0 50,000 100,000 150,000 200,000 250,000

Limpopo

Cape

Mpumalanga

KZN

Number of Indirect Jobs

Total estimated indirect jobs created by Industry – 462,000Total estimated indirect jobs created by Industry – 462,000

Indirect Employment in Forestry Industry Indirect Employment in Forestry Industry as % of Those Employed in 2007as % of Those Employed in 2007

1.8%

2.1%

3.7%

9.5%

21.9%

0% 5% 10% 15% 20% 25%

Cape

Limpopo

RSA

KZN

Mpumalanga


Total employed in Mpumalanga – 803,000Total employed in Mpumalanga – 803,000

Direct & Indirect Jobs in Forestry Direct & Indirect Jobs in Forestry Industry by Province 2007Industry by Province 2007

242,900

18,900

72,100

205,100

0 50,000 100,000 150,000 200,000 250,000 300,000

Limpopo

Cape

Mpumalanga

KZN

Number of Jobs

Direct jobs Indirect jobs

Estimated total – 539,400 jobsEstimated total – 539,400 jobs

Total Employment in Industry as % of Those Total Employment in Industry as % of Those Employed in Formal Sector 2007Employed in Formal Sector 2007

2.1%

2.4%

4.3%

11.1%

25.5%

0% 5% 10% 15% 20% 25% 30%

Cape

Limpopo

RSA

KZN

Mpumalanga


Direct Indirect

Total employed in Mpumalanga – 0.8 millionTotal employed in Mpumalanga – 0.8 million

Dependents of Those Working in Dependents of Those Working in Forestry Industry by Region 2007Forestry Industry by Region 2007

645,000

227,000

763,000

0 200,000 400,000 600,000 800,000 1,000,000

Limpopo

Cape

Mpumalanga

KZN

Number of Dependents

Direct job dependents Indirect job dependents

9

Estimated total – 1.7 million dependentsEstimated total – 1.7 million dependents

59,000

Total Number of People Dependent on Total Number of People Dependent on Forestry Industry by Region 2007Forestry Industry by Region 2007

904,000

730,000

24,000

64,000

115,000

0 200,000 400,000 600,000 800,000 1,000,000 1,200,000

W. Cape

Limpopo

E. Cape

Mpumalanga

KZN

Number of People Dependent on Industry

Workers Dependents

9

Estimated total – 2.3 million livelihoodsEstimated total – 2.3 million livelihoods

Estimated % of Population Dependent Estimated % of Population Dependent on Forestry Industry 2007on Forestry Industry 2007

1.5%

2.7%

5.0%

10.7%

27.2%

0% 5% 10% 15% 20% 25% 30%

Limpopo

Cape

RSA

KZN

Mpumalanga

% of Provincial Population

Section 5 Section 5 Investment in Sector Investment in Sector

Investment in RSA Forestry Industry 2007Investment in RSA Forestry Industry 2007

54.3%

21.0% 15.8%

1.5%

7.5%

Trees LandRoads Fixed AssetsMoveable Assets

Total Investment - R17.4 BillionTotal Investment - R17.4 Billion


46.9%

28.5%16.2%

1.9%

6.6%

Pine Long Gum Short Pine Short

Wattle Gum Long



41.6%

33.9%

14.2%

4.3%

6.1%

Mpumalanga KZN E. Cape W. Cape Limpopo


Investment in Plantations – By ProvinceInvestment in Plantations – By Province

0.745

1.059

2.460

5.875

7.211

0 1 2 3 4 5 6 7 8

Limpopo

W Cape

E Cape

KZN

Mpumalanga

Billion Rand

Mpumalanga has highest investment - 41.6% of totalMpumalanga has highest investment - 41.6% of total

Investment in Mpumalanga Forestry 2007Investment in Mpumalanga Forestry 2007

50.5%

26.6% 19.3%

1.3%

2.3%


Wattle Gum Long


Investment in KZN Forestry 2006Investment in KZN Forestry 2006

20.7%45.1%

17.8%

0.3%

16.1%


Wattle Gum Long


Investment in E. Cape Forestry 2007Investment in E. Cape Forestry 2007

74.7%

8.5%

14.9%

0.7%

1.2%


Wattle Gum Long


Investment in W. Cape Forestry 2007Investment in W. Cape Forestry 2007

91.9%

1.1%

0.6%

6.3%

0.0%


Wattle Gum Long


Investment in Limpopo Forestry 2007Investment in Limpopo Forestry 2007

62.3%19.5%

0.4%

17.8%

0.1%


Wattle Gum Long

Total Investment - R745 MillionTotal Investment - R745 Million

Investment in Forest Products Sector Investment in Forest Products Sector by Type of Processing Plant 2007by Type of Processing Plant 2007

89.3%

9.4%

0.6%

0.5%

0.2%

Pulp & Board Sawmills & VeneerPole Plants Mng. TimberOther

Total Book Value of Investments - R15.8 BillionTotal Book Value of Investments - R15.8 Billion

Investment in Forest Products SectorInvestment in Forest Products Sectorby Investment Category 2007by Investment Category 2007

90.2%

7.9%

1.9%

Machinery & Equipment Land & Buildings

Moveable Assets

Total Book Value of Investments - R15.8 BillionTotal Book Value of Investments - R15.8 Billion

Section 6 Section 6 Contribution to GDP Contribution to GDP

Composition of RSA GDPComposition of RSA GDP20072007

2.7%

7.9%

4.8%

22.0%

44.4%

18.2%

Agric Mining Other Secondary

Manufacturing Finance Other Tertiary

Total GDP – R1 727 BillionTotal GDP – R1 727 Billion

Contribution to GDP 1980 to 2007Contribution to GDP 1980 to 2007

0%

2%

4%

6%

8%

10%

12%

14%

1980 1984 1988 1992 1996 2000 2004

Years

% C

on

trib

uti

on

to

GD

PForestry to Agric. GDP FP to Mnfg. GDP

FP to total GDP

Increase in Forestry GDP over period from 4.5% to 9.1%Increase in Forestry GDP over period from 4.5% to 9.1%Decrease in For. Prod. GDP over period from 6.3% to 5.7%Decrease in For. Prod. GDP over period from 6.3% to 5.7%

Forestry vs. Other Agricultural GGP per Forestry vs. Other Agricultural GGP per Region 2007Region 2007

14.0%4.0%5.5%28.8%

53.7%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Mpumalanga KZN Limpopo Cape RSA

Province

Forestry Other Agriculture

Forestry in Mpumalanga of major importance Forestry in Mpumalanga of major importance

Forest Products vs. Other Manufacturing Forest Products vs. Other Manufacturing GGP per Region 2007GGP per Region 2007

6.1%1.5%15.0%18.8%20.8%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

KZN Limpopo Mpumalanga Cape RSA

Region

Forest Products Other Manufacturing

Forest Industry Contribution to Total Forest Industry Contribution to Total GGP per Region - 2007GGP per Region - 2007

0.10%

0.10%

0.30%

0.80%

1.10%

0.20%

0.70%

0.80%

1.30%

4.50%

0% 1% 2% 3% 4% 5%

Cape

Limpopo

RSA

Mpumalanga

KZN

% of Regional GGP

Forestry Forest Products

Forest Industry Contribution to Total Forest Industry Contribution to Total GGP per Region - 2007GGP per Region - 2007

5.62%

0.37%

0.8%

1.36%

2.09%

0% 1% 2% 3% 4% 5% 6%

Cape

Limpopo

RSA

Mpumalanga

KZN

% of Regional GGP

Forestry Forest Products

Gross Value of Output ComparisonsGross Value of Output Comparisons1996, 2001 & 20071996, 2001 & 2007

1.751

2.454

1.798

6.043

8.998

3.116

3.560

2.712

6.929

11.867

4.031

4.317

5.167

11.452

18.466

0 5 10 15 20

Sugar Cane

Wheat

Forestry

Maize

For. Prods.

Billion Rand

1996 2001 2007

Gross Value of Output ComparisonsGross Value of Output Comparisonsper Planted Hectare 1996, 2001 & 2007per Planted Hectare 1996, 2001 & 2007

1.607

1.209

1.896

4.334

6.051

2.173

2.006

3.655

7.263

8.777

3.953

4.081

6.831

9.598

14.586

0 2 4 6 8 10 12 14 16

Maize

Forestry

Wheat

Sugar Cane

Forest Prods

Thousand Rand per Hectare

1996 2001 2007

Section 7 Section 7 Contribution to Foreign Trade Contribution to Foreign Trade

Forest Product ExportsForest Product Exports20072007

28.9%

45.2%

23.3%

2.6%

Pulp Paper Solid Wood Other


Forest Product ImportsForest Product Imports20072007

4.3%

66.6%

29.0%

0.1%

Pulp Paper Solid Wood Other


Trade Balance in Forest ProductsTrade Balance in Forest Products1980 to 2007 (nominal)1980 to 2007 (nominal)

0

2

4

6

8

10

12

14

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

Years

Bill

ion

Ra

nd

Imports Exports Trade Balance

Increase in importsIncrease in imports - R8.3 billion (589%)- R8.3 billion (589%)Increase in exportsIncrease in exports - R9.8 billion (421%)- R9.8 billion (421%)Increase in trade balanceIncrease in trade balance - R1.5 billion (164%)- R1.5 billion (164%)

Trade Balance in Forest ProductsTrade Balance in Forest Products1980 to 2007 (real)1980 to 2007 (real)

0

2

4

6

8

10

12

14

16

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

Years

Bill

ion

Ra

nd

(2

00

7 R

an

ds

)

Imports Exports Trade Balance

Increase in importsIncrease in imports - R6.1 billion (168%)- R6.1 billion (168%)Increase in exportsIncrease in exports - R6.2 billion (103%)- R6.2 billion (103%)Increase in trade balanceIncrease in trade balance - R0.06 billion (3%)- R0.06 billion (3%)

Export ComparisonsExport Comparisons1996, 2001 & 20071996, 2001 & 2007

1.5

2.1

4.6

6.6

4.0

2.9

4.6

9.5

15.1

9.1

2.1

10.4

12.2

23.7

31.1

0 5 10 15 20 25 30 35

Sugar

Fruit

Forest Products

Coal

Metal Ores

Billion Rand

1996 2001 2007

The South African Forestry and Forest Products Industry 2007 Roger Godsmark Produced by Forestry...

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