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The South African Forestry and The South African Forestry and Forest Products Industry 2009 Forest Products Industry 2009 Produced By Roger Godsmark Produced By Roger Godsmark Forestry South Africa, September 2010 Forestry South Africa, September 2010

The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

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Page 1: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

The South African Forestry and The South African Forestry and Forest Products Industry 2009Forest Products Industry 2009

Produced By Roger GodsmarkProduced By Roger Godsmark

Forestry South Africa, September 2010Forestry South Africa, September 2010

Page 2: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

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

Page 3: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Section 1 Section 1 Introduction Introduction

Page 4: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Land Use in South AfricaLand Use in South Africa

68.6%

13.7%

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

1 274 869 ha

Page 5: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Land Use in MpumalangaLand Use in Mpumalanga

39.8%

21.4%

28.5%

6.4%

3.9%

Grazing Arable Nature Conservation Other Forestry

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

519 817 ha

Page 6: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Land Use in KwaZulu NatalLand Use in KwaZulu Natal

58.3%

12.6%15.1%

5.5%

8.5%

Grazing Arable Nature Conservation Other Forestry

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

504 393 ha

Page 7: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Land Use in the Eastern CapeLand Use in the Eastern Cape

80.0%

6.8%

3.7%

0.8%

8.7%

Grazing Arable Nature Conservation Other Forestry

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)

141 819 ha

Page 8: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Land Use in the Western CapeLand Use in the Western Cape

70.4%

20.0%

5.6%

0.5%

3.5%

Grazing Arable Nature Conservation Other Forestry

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)

59 171 ha

Page 9: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Land Use in LimpopoLand Use in Limpopo

74.0%

14.3%

9.7%

0.4%

1.5%

Grazing Arable Nature Conservation Other Forestry

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

49 668 ha

Page 10: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

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

0.42%

0.46%

0.83%

5.51%

6.35%

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

Page 11: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Land Use ComparisonsLand Use Comparisons1999, 2004 & 20091999, 2004 & 2009

0.417

0.718

1.402

3.567

0.427

0.830

1.334

3.204

0.389

1.275

2.896

0.648

0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5

Sugar

Wheat

Forestry

Maize

Million Hectares

1999 2004 2009

Drop in Forestry Area – 127 000 ha (9.1%)Drop in Forestry Area – 127 000 ha (9.1%)

Page 12: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Plantation Area ComparisonsPlantation Area Comparisons20092009

1.275

2.284

4.425

4.920

4.982

9.871

10.682

16.238

17.340

32.578

45.083

0.0 10.0 20.0 30.0 40.0 50.0

RSA

Iran

Ukraine

Thailand

Brazil

Indonesia

Japan

USA

Russia

India

China

Million Hectares

Page 13: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Section 2Section 2The Forestry Industry The Forestry Industry

Page 14: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Plantation Area by Species 2009Plantation Area by Species 2009

51.0%

40.4%

8.2% 0.4%

Pine Eucalyptus Wattle Other

Total – 1 274 869 haTotal – 1 274 869 ha

Page 15: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Plantation Area by Ownership 2009Plantation Area by Ownership 2009

48.1%

20.3%11.2%

6.8%

3.5%

10.0%

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

Total – 1 274 869 haTotal – 1 274 869 ha

Page 16: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Plantation Area by Province 2009Plantation Area by Province 2009

3.9%

40.8%

39.6%

4.6%11.1%

Limpopo Mpumalanga KZN E. Cape W. Cape

Total – 1 274 869 haTotal – 1 274 869 ha

Page 17: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Plantation Area by Province and Genera 2009Plantation Area by Province and Genera 2009

57 209

27 175

117 698

141 692

306 250

1 962

22 493

24 121

362 701

213 567

0 100 000 200 000 300 000 400 000 500 000

W. Cape

Limpopo

E.Cape

KZN

Mpumalanga

Hectares

Softwood Hardwood

Total – 650 024 ha (softwood)Total – 650 024 ha (softwood)Total – 624 845 ha (hardwood)Total – 624 845 ha (hardwood)

Page 18: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Planted Area ComparisonsPlanted Area Comparisonsby Region & Species 2009by Region & Species 2009

102

72

22 318

27 175

948

2 566

22 569

174 907

3 229

195 134

306 250

1 187

86 212

275 302

141 691

15 204

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

Other

Wattle

Eucalyptus

Pine

Hectares

Limpopo Cape Mpumalanga KZN

Page 19: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Pine Plantation Area by Region 2009Pine Plantation Area by Region 2009

47.1%

21.8%

26.9%

4.2%

Mpumalanga KZN Cape Limpopo

Total – 650 024 ha (51.0% of total)Total – 650 024 ha (51.0% of total)

Page 20: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Eucalyptus Plantation Area by Region 2009Eucalyptus Plantation Area by Region 2009

37.9%

53.4%

4.4% 4.3%

Mpumalanga KZN Cape Limpopo

Total – 515 324 ha (40.4% of total)Total – 515 324 ha (40.4% of total)

Page 21: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Wattle Plantation Area by Region 2009Wattle Plantation Area by Region 2009

14.6%

82.9%2.5%

0.1%

Mpumalanga KZN Cape Limpopo

Total – 104 055 ha (8.2% of total)Total – 104 055 ha (8.2% of total)

Page 22: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Other Hardwood Plantation Area Other Hardwood Plantation Area by Region 2009by Region 2009

59.1%

21.7%

17.3%1.9%

Mpumalanga KZN Cape Limpopo

Total – 5 467 ha (0.4% of total)Total – 5 467 ha (0.4% of total)

Page 23: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Plantation Area by Management Plantation Area by Management Objectives 2009Objectives 2009

57.5%

4.5%

3.8%

34.2%

Pulpwood Mining Timber Other Sawlogs

Total – 1 274 869 haTotal – 1 274 869 ha

Page 24: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Softwood Plantation Area by Softwood Plantation Area by Management Objectives 2009Management Objectives 2009

64.2%

33.5%

1.7%

0.6%

Sawlogs Pulpwood Poles Other

Total – 650 024 haTotal – 650 024 ha

Page 25: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Hardwood Plantation Area by Hardwood Plantation Area by Management Objectives 2009Management Objectives 2009

3.1%

82.5%

4.3%

9.1%

0.9%

Sawlogs Pulpwood Poles Other Mining Timber

Total – 624 845 haTotal – 624 845 ha

Page 26: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Plantation Area by Province and Ownership Plantation Area by Province and Ownership 20092009

6 994

22 211

30 755

29 438

126 563

52 178

27 457

111 064

474 955

393 254

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 – 1 058 908 ha (83.1%)Total Private – 1 058 908 ha (83.1%)Total Public – 215 961 ha (16.9%)Total Public – 215 961 ha (16.9%)

Leased Safcol packages included in

“Private”

KLF included in “Public”

Page 27: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Percentage Plantation OwnershipPercentage Plantation Ownershipby Province 2009by Province 2009

94%88%78%

55%

76%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Limpopo Mpumalanga E.Cape W. Cape KZN

Province

Publicly Owned Privately Owned

Total Private – 1 058 908 ha (83.1%)Total Private – 1 058 908 ha (83.1%)Total Public – 215 961 ha (16.9%)Total Public – 215 961 ha (16.9%)

Page 28: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Plantation Area by Species and Ownership Plantation Area by Species and Ownership 20092009

1 002

3 627

48 708

162 625

4 465

100 428

466 616

487 399

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

Other Hard.

Wattle

Eucalyptus

Pine

Hectares

Public Private

Total Private – 1 058 908 ha (83.1%)Total Private – 1 058 908 ha (83.1%)Total Public – 215 961 ha (16.9%)Total Public – 215 961 ha (16.9%)

Page 29: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Percentage Plantation OwnershipPercentage Plantation Ownershipby Species 2009by Species 2009

97%91%75% 82%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Pine Other Hard. Eucalyptus Wattle

Species

Publicly Owned Privately Owned

Total Private – 1 058 908 ha (83.1%)Total Private – 1 058 908 ha (83.1%)Total Public – 215 961 ha (16.9%)Total Public – 215 961 ha (16.9%)

Page 30: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Planted Area ComparisonsPlanted Area Comparisonsby Region & Product 2009by Region & Product 2009

27 365

2 061

129 313

42 252

7 952

5 148

36 382

186

7 766

207 759

257 148

5 069

2 728

63 178

433 418

47 145

0 100 000 200 000 300 000 400 000 500 000

Other

Mining Timber

Sawlogs

Pulpwood

Hectares

Cape Limpopo Mpumalanga KZN

Page 31: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Roundwood Production Roundwood Production by Product 2009by Product 2009

0.624

0.948

4.375

12.941

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Mining Timber

Other

Sawlogs

Pulpwood

Million m3

Total – 7.7 million mTotal – 7.7 million m33 (softwood) (softwood)Total – 11.2 million mTotal – 11.2 million m33 (hardwood) (hardwood)

Page 32: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Roundwood Production Roundwood Production by Province and Genera 2009by Province and Genera 2009

0.352

0.226

1.475

3.703

1.944

0.016

0.358

0.253

2.968

7.593

0 1 2 3 4 5 6 7 8 9

W. Cape

Limpopo

E. Cape

Mpumalanga

KZN

Million m3

Softwood Hardwood

Total – 7.7 million mTotal – 7.7 million m33 (softwood) (softwood)Total – 11.2 million mTotal – 11.2 million m33 (hardwood) (hardwood)

Page 33: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Roundwood ProductionRoundwood Productionby Province and Genera 2009by Province and Genera 2009

0 2 4 6 8 10 12 14

W. Cape

Limpopo

E. Cape

Mpumalanga

KZN

Million m3

Softwood Hardwood

0.368

0.584

1.727

6.671

9.537

Total – 7.7 million mTotal – 7.7 million m33 (softwood) (softwood)Total – 11.2 million mTotal – 11.2 million m33 (hardwood) (hardwood)

Page 34: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Roundwood Production ex PlantationsRoundwood Production ex Plantationsby Province & Product 2009by Province & Product 2009

0.029

0.266

0.289

0.731

0.257

0.338

0.306

1.086

2.054

0.591

0.001

0.011

0.353

3.886

8.690

0 2 4 6 8 10

W. Cape

Limpopo

E. Cape

Mpum

KZN

Million m3

Other Sawlogs Pulpwood

Total – 18.9 million m3 or 16.2 million tons

Page 35: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Roundwood Production ex PlantationsRoundwood Production ex Plantationsby Province & Product 2009by Province & Product 2009

368

583

1 728

6 671

9 538

0 2 4 6 8 10 12

W. Cape

Limpopo

E. Cape

Mpum

KZN

Million m3

Pulpwood Sawlogs Other

Total – 18.9 million m3 or 16.2 million tons

Page 36: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Total Roundwood Production ex Total Roundwood Production ex Plantations by Province 2009Plantations by Province 2009

50.5%

35.3%9.1%

1.9%

3.1%

KZN Mpumalanga E. Cape Limpopo W. Cape

Total – 18.9 million mTotal – 18.9 million m33 or 16.2 million tons or 16.2 million tons

Page 37: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Total Roundwood Production ex Total Roundwood Production ex Plantations by Product 2009Plantations by Product 2009

68.5%

23.2%

3.3%

5.0%

Pulpwood Sawlogs Mining Timber Other

Total – 18.9 million mTotal – 18.9 million m33 or 16.2 million tons or 16.2 million tons

Page 38: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Softwood Roundwood Production ex Softwood Roundwood Production ex Plantations by Product 2009Plantations by Product 2009

53.8%

44.4% 0.8%

0.9%

Sawlogs Pulpwood Poles Other

Total – 7.7 million mTotal – 7.7 million m33 or 7.9 million tons or 7.9 million tons

Page 39: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Hardwood Roundwood Production ex Hardwood Roundwood Production ex Plantations by Product 2009Plantations by Product 2009

85.1%

5.6%

4.1%

3.2%

2.0%

Pulpwood Mining Timber Poles Sawlogs Other

Total – 11.2 million mTotal – 11.2 million m33 or 8.3 million tons or 8.3 million tons

Page 40: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Total Roundwood Production ex Total Roundwood Production ex Plantations by Species 2009Plantations by Species 2009

40.8%

53.5%

5.6%

0.1%

Pine Eucalyptus Wattle Other

Total – 18.9 million mTotal – 18.9 million m33 or 16.2 million tons or 16.2 million tons

Page 41: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Composition of Roundwood Production Composition of Roundwood Production by Product 2009by Product 2009

95%

26%16% 12% 0.0%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Sawlogs Pulpwood Other Poles MiningTimber

Product

Softwood Hardwood

Page 42: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Total Plantation Area 1980 to 2009Total Plantation Area 1980 to 2009

1 100 000

1 150 000

1 200 000

1 250 000

1 300 000

1 350 000

1 400 000

1 450 000

1 500 000

1 550 000

1980 1984 1988 1992 1996 2000 2004 2008

Years

He

cta

res

Total increase in afforested area over periodTotal increase in afforested area over period : 113 463 ha : 113 463 haTotal % increase in afforested area over period : 9.8%Total % increase in afforested area over period : 9.8%

Page 43: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Total Roundwood Production ex Total Roundwood Production ex Plantations 1980 to 2009Plantations 1980 to 2009

10

12

14

16

18

20

22

24

1980 1984 1988 1992 1996 2000 2004 2008

Years

Mill

ion

m3

Total increase in production over periodTotal increase in production over period : 59.0%: 59.0%Total in increase in afforested area over periodTotal in increase in afforested area over period : 9.8%: 9.8%

Page 44: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Roundwood Production vs. Plantation Roundwood Production vs. Plantation Area 1980 to 2009Area 1980 to 2009

90

100

110

120

130

140

150

160

170

180

190

200

1980 1984 1988 1992 1996 2000 2004 2008

Years

19

80

= 1

00

Plantation Production Plantation Area

Total increase in production over periodTotal increase in production over period : 59.0%: 59.0%Total in increase in afforested area over periodTotal in increase in afforested area over period : 9.8%: 9.8%

Page 45: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Average Productivity per Hectare Average Productivity per Hectare 1980 - 20091980 - 2009

8

9

10

11

12

13

14

15

16

17

18

1980 1984 1988 1992 1996 2000 2004 2008

Years

m3

per

hec

tare

Total increase in productivity over period – 4.6 mTotal increase in productivity over period – 4.6 m3 3 per ha p.a. (45%)per ha p.a. (45%)

Page 46: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Production ComparisonsProduction Comparisons1999, 2004 & 20091999, 2004 & 2009

1.733

7.946

16.500

22.930

1.687

17.410

20.419

1.960

12.570

16.210

20.986

9.737

0 5 10 15 20 25

Wheat

Maize

Forestry

Sugar

Million tons

1999 2004 2009

Page 47: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Value of Roundwood Production 2009Value of Roundwood Production 2009

67.3%2.1%

4.0%

26.6%

Pulpwood Mining Timber Other Sawlogs

Total – R6.7 billionTotal – R6.7 billion

Page 48: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Value of Roundwood ProductionValue of Roundwood Productionex Plantations by Product 2009ex Plantations by Product 2009

0.143

0.266

1.782

4.514

0 1 2 3 4 5

Mining Timber

Other

Sawlogs

Pulpwood

Billion Rands

Total – R6 705 million

Page 49: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Value of Roundwood ProductionValue of Roundwood Productionex Plantations by Province 2009ex Plantations by Province 2009

146

200

646

2 370

3 343

0 500 1 000 1 500 2 000 2 500 3 000 3 500 4 000

Western Cape

Limpopo

Eastern Cape

Mupumlanga

KZN

Million Rands

Total – R6 705 million

Page 50: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Value of Roundwood ProductionValue of Roundwood Productionex Plantations by Province & Product 2009ex Plantations by Province & Product 2009

8

71

80

178

71

138

125

442

837

241

1

4

123

1 355

3 031

0 500 1 000 1 500 2 000 2 500 3 000 3 500

Western Cape

Limpopo

Eastern Cape

Mupumlanga

KZN

Million Rands

Other Sawlogs Pulpwood

Total – R6 705 million

Page 51: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Value of Roundwood ProductionValue of Roundwood Productionex Plantations by Province & Product 2009ex Plantations by Province & Product 2009

2 370

200

146

646

3 343

0 500 1 000 1 500 2 000 2 500 3 000 3 500 4 000

Western Cape

Limpopo

Eastern Cape

Mupumlanga

KZN

Million Rands

Pulpwood Sawlogs Other

Total – R6 705 million

Page 52: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Value of Roundwood Production Value of Roundwood Production 1980 to 20091980 to 2009

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

1980 1984 1988 1992 1996 2000 2004 2008

Years

Bill

ion

Ra

nd

(2

00

8/0

9 R

an

ds

)

Nominal Real

Nominal increase over periodNominal increase over period : R6.5 bn (3 971%): R6.5 bn (3 971%)Real increase over periodReal increase over period : R4.0 bn (148%): R4.0 bn (148%)

Page 53: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

New Afforestation by RegionNew Afforestation by Region1980 to 20091980 to 2009

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

2008

Years

Th

ou

san

d H

ecta

res

Mpum & Limp. KZN Cape Total

New afforestation over periodNew afforestation over period - 382 619 ha- 382 619 haAverage per yearAverage per year - 12 754 ha- 12 754 ha

AVERAGE

Page 54: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Total New Afforestation by Region Total New Afforestation by Region 1980 to 20091980 to 2009

54.3%33.6%

12.1%

KZN Mpumalanga & Limpopo E&W Cape

Total – 382 619 haTotal – 382 619 ha

Page 55: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Total New Afforestation by RegionTotal New Afforestation by Region10 Yr Period - 2000 to 200910 Yr Period - 2000 to 2009

65.1%

30.6%

4.3%

KZN Mpumalanga & Limpopo E&W Cape

Total – 42 336 haTotal – 42 336 ha

Page 56: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

New Afforestation by RegionNew Afforestation by Region10 Year Period – 2000 to 200910 Year Period – 2000 to 2009

0

1

2

3

4

5

6

7

8

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Years

Th

ou

sa

nd

He

cta

res

Northern KZN Cape Total

New afforestation over periodNew afforestation over period - 39 614 ha - 39 614 ha Average per yearAverage per year - 3 961 ha- 3 961 ha

AVERAGE

Page 57: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

New Afforestation by Province 2009New Afforestation by Province 2009

0.2%

80.7%

0.0%

0.0%

19.1%

W. Cape KZN Limpopo Mpumalanga E. Cape

Total – 2 169 haTotal – 2 169 ha

Page 58: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

New Afforestation by SpeciesNew Afforestation by Species1980 to 20091980 to 2009

0

5

10

15

20

25

30

35

40

45

50

1980 1984 1988 1992 1996 2000 2004 2008

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 (17.2% of total)- 10 974 ha (17.2% of total)Average p.a. 1986 to 1990Average p.a. 1986 to 1990 - 24 558 ha (32.1% of total)- 24 558 ha (32.1% of total)Average p.a. 1991 to 1995Average p.a. 1991 to 1995 - 24 406 ha (31.9% of total)- 24 406 ha (31.9% of total)

Page 59: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Total New Afforestation by SpeciesTotal New Afforestation by Species1980 to 20091980 to 2009

47.0%

44.1%

8.0% 0.9%Pine Eucalyptus Wattle Other

Total – 382 619 haTotal – 382 619 ha

Page 60: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

New Afforestation by Species 2009New Afforestation by Species 2009

39.1%

34.2%

25.5%

1.2%Eucalyptus Pine Wattle Other Hardwood

Total – 2 169 haTotal – 2 169 ha

Page 61: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

New Afforestation by ProductNew Afforestation by Product1980 to 20091980 to 2009

0

5

10

15

20

25

30

35

40

45

50

1980 1984 1988 1992 1996 2000 2004 2008

Years

Th

ou

san

d H

ecta

res

Pulpwood Sawlogs Mining TimberOther Total

Average p.a. 1996 to 2000Average p.a. 1996 to 2000 - 7 019 ha (9.2% of total)- 7 019 ha (9.2% of total)Average p.a. 2001 to 2005Average p.a. 2001 to 2005 - 5 044 ha (6.6% of total)- 5 044 ha (6.6% of total)Average p.a. 2006 to 2009Average p.a. 2006 to 2009 - 2 910 ha (3.0% of total)- 2 910 ha (3.0% of total)

Page 62: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Total New Afforestation by ProductTotal New Afforestation by Product1980 to 20091980 to 2009

57.7%22.7%

14.1%

5.6%

Pulpwood Sawlogs Mining Timber Other

Total – 382 619 haTotal – 382 619 ha

Page 63: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

New Afforestation by Product 2009New Afforestation by Product 2009

34.2%

5.3%

0.0%

59.7%

0.8%

Pulpwood Sawlogs Poles Mng. Timber Other

Total – 2 169 haTotal – 2 169 ha

Page 64: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Area Converted Out of Timber Area Converted Out of Timber Production by Species 1980 to 2009Production by Species 1980 to 2009

0

1 000

2 000

3 000

4 000

5 000

6 000

7 000

1980 1984 1988 1992 1996 2000 2004 2008

Years

Hec

tare

sPine Eucalypts Wattle/Other Total

Area converted over periodArea converted over period - 89 390 ha- 89 390 haAverage p.a. Average p.a. - 2 980 ha - 2 980 ha

Page 65: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Total Area Converted out of Timber Total Area Converted out of Timber Production by Species 1980 to 2009Production by Species 1980 to 2009

46.3%

27.6%

23.6%

2.5%Pine Eucalypts Wattle Other

Total – 89 390 haTotal – 89 390 ha

Page 66: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Total Area Converted out of Timber Total Area Converted out of Timber Production by Species 2009Production by Species 2009

91.0%

3.5%

5.0%

0.5%

Pine Eucalypts Wattle Other Hardwood

Total – 3 554 haTotal – 3 554 ha

Page 67: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Net New Afforestation by SpeciesNet New Afforestation by Species1980 to 20091980 to 2009

-10

-5

0

5

10

15

20

25

30

35

40

45

1980 1984 1988 1992 1996 2000 2004 2008

Years

Th

ou

san

d H

ecta

res

Pine Eucalypts Wattle/Other Total

Net new afforestation over periodNet new afforestation over period - 293 229 ha- 293 229 haAverage p.a. Average p.a. - 9 774 ha - 9 774 ha

Page 68: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Net New Afforestation by SpeciesNet New Afforestation by Species1980 to 20091980 to 2009

47.2%

49.1%

3.3%

0.5%

Pine Eucalypts Wattle Other

Total – 293 229 haTotal – 293 229 ha

Page 69: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Net New Afforestation by Species 2009Net New Afforestation by Species 2009

-2 493

722

377

9

-3 000

-2 500

-2 000

-1 500

-1 000

-500

0

500

1 000

Pine Eucalypts Wattle Other

Species

Hec

tare

s

Total net new afforestation - Minus 1 385 haTotal net new afforestation - Minus 1 385 ha

Page 70: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Area Converted Out of Timber Area Converted Out of Timber Production by Region 1980 to 2009Production by Region 1980 to 2009

0

1 000

2 000

3 000

4 000

5 000

6 000

7 000

1980 1984 1988 1992 1996 2000 2004 2008

Years

Hec

tare

s

North KZN South Total

Area converted over periodArea converted over period - 89 390 ha- 89 390 haAverage p.a. Average p.a. - 2 980 ha - 2 980 ha

Page 71: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Total Area Converted out of Timber Total Area Converted out of Timber Production by Region 1980 to 2009Production by Region 1980 to 2009

29.8%

42.3%

27.9%

Mpumalanga & Limpopo KZN W&E Cape

Total – 89 390 haTotal – 89 390 ha

Page 72: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Net New Afforestation by RegionNet New Afforestation by Region1980 to 20091980 to 2009

-10

-5

0

5

10

15

20

25

30

35

40

45

1980 1984 1988 1992 1996 2000 2004 2008

Years

Th

ou

san

d H

ecta

res

North KZN South Total

Net new afforestation over periodNet new afforestation over period - 293 229 ha- 293 229 haAverage p.a. Average p.a. - 9 774 ha - 9 774 ha

Page 73: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Net New Afforestation by RegionNet New Afforestation by Region1980 to 20091980 to 2009

34.8%

58.0%

7.2%

Mpumalanga & Limpopo KZN W&E Cape

Total – 293 229 haTotal – 293 229 ha

Page 74: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Conversion of Plantations out of Production & to Conversion of Plantations out of Production & to Other Species 1980 to 2009Other Species 1980 to 2009

-20

-15

-10

-5

0

5

10

15

1980 1984 1988 1992 1996 2000 2004 2008

Years

Th

ou

san

d H

ecta

res

Pine Eucalyptus Wattle/Other Total

Net loss to production area over periodNet loss to production area over period - 89 390 ha- 89 390 haAverage p.a. Average p.a. - 2 980 ha - 2 980 ha

Page 75: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Total Area Converted out of Production & to Total Area Converted out of Production & to Other Species 1980 to 2009Other Species 1980 to 2009

-64 035

20 755

-49 045

2 934

-70 000

-60 000

-50 000

-40 000

-30 000

-20 000

-10 000

0

10 000

20 000

30 000

Pine Eucalypts Wattle Other

Species

Hec

tare

s

Net loss to production area over periodNet loss to production area over period - 89 390 ha- 89 390 haAverage p.a. Average p.a. - 2 980 ha - 2 980 ha

Page 76: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Area Converted out of ProductionArea Converted out of Production& to Other Species 2009& to Other Species 2009

-6 749

4 254

-1 303

244

-8 000

-6 000

-4 000

-2 000

0

2 000

4 000

6 000

Pine Eucalypts Wattle Other

Species

Hec

tare

s

Net loss to production area Net loss to production area - 3 554 ha- 3 554 ha

Page 77: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Net Addition to Planted Area by Species Net Addition to Planted Area by Species 1980 to 20091980 to 2009

-20

-10

0

10

20

30

40

50

1980 1984 1988 1992 1996 2000 2004 2008

Years

Hec

tare

s

Pine Eucalyptus Wattle/Other Total

Total net addition to production areaTotal net addition to production area - 293 229 ha- 293 229 haAverage p.a. Average p.a. - 9 774 ha - 9 774 ha

Page 78: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Total Net Addition to Planted Area by Species Total Net Addition to Planted Area by Species 1980 to 20091980 to 2009

115 631

189 386

-18 336

6 547

-50 000

0

50 000

100 000

150 000

200 000

250 000

Pine Eucalyptus Wattle Other

Species

Hec

tare

s

Total net addition to production areaTotal net addition to production area - 293 229 ha- 293 229 haAverage p.a. Average p.a. - 9 774 ha - 9 774 ha

Page 79: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Net Addition (Loss) to Planted Area by Species Net Addition (Loss) to Planted Area by Species 20092009

-6 007

5 101

-750

271

-8 000

-6 000

-4 000

-2 000

0

2 000

4 000

6 000

Pine Eucalyptus Wattle Other

Species

Hec

tare

s

Total net gain in production areaTotal net gain in production area Minus 1 385 haMinus 1 385 ha

Page 80: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Damage to Plantations by GeneraDamage to Plantations by Genera1980 to 20091980 to 2009

0

20

40

60

80

100

120

1980 1984 1988 1992 1996 2000 2004 2008

Years

Th

ou

san

d H

ecta

res

Softwood Hardwood Total

Total area damaged over periodTotal area damaged over period - 930 573 ha- 930 573 haAverage p.a. Average p.a. - 31 019 ha - 31 019 ha

Page 81: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Damage to Plantations by FiresDamage to Plantations by Fires1980 to 20091980 to 2009

0

20

40

60

80

100

120

1980 1984 1988 1992 1996 2000 2004 2008

Years

Th

ou

san

d H

ecta

res

Fire Other Causes Total

Total area damaged over periodTotal area damaged over period - 930 573 ha- 930 573 haTotal area damaged by fireTotal area damaged by fire - 548 568 ha (59%)- 548 568 ha (59%)Total area damaged by other causesTotal area damaged by other causes - 382 005 ha (41%)- 382 005 ha (41%)

Page 82: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Damage to Plantations by FiresDamage to Plantations by Fires1980 to 20091980 to 2009

0%

20%

40%

60%

80%

100%

1980 1984 1988 1992 1996 2000 2004 2008

Years

Fire Other Causes

Page 83: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Damage to Plantations by Genera 2009Damage to Plantations by Genera 2009

63.4%

36.6%

Softwood Hardwood

Total – 22 808 ha Total – 22 808 ha (1.8% of total planted area)(1.8% of total planted area)

Page 84: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Damage to Plantations by Cause 2009Damage to Plantations by Cause 2009

86.8%

13.2%

Fire Other Causes

Total – 22 808 haTotal – 22 808 ha

Page 85: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Damage to Plantations by Fire 2009Damage to Plantations by Fire 2009

17.9%

22.4%3.7%

55.9%

Arson Accidental Natural Unknown

Total – 19 805 haTotal – 19 805 ha

Page 86: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

FSC Certified ForestsFSC Certified Forestsby Forest Type: August 2009by Forest Type: August 2009

97.8%2.2%

Plantations Semi-Natural

Certified Area – 1 572 568 ha Certified Area – 1 572 568 ha (incl. planted & non-planted areas)(incl. planted & non-planted areas)

Page 87: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

FSC Certified ForestsFSC Certified Forestsby Ownership: August 2009by Ownership: August 2009

76.6%

11.6%

2.4%9.4%

Private Co's Safcol & Ex Safcol DWAF Individuals

Certified Area – 1 572 568 ha Certified Area – 1 572 568 ha (incl. planted & non-planted areas)(incl. planted & non-planted areas)

Page 88: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

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

Page 89: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Number of Processing Plants by Type 2009Number of Processing Plants by Type 2009

1

4

16

16

47

108

0 20 40 60 80 100 120

Match Factories

Charcoal Plants

Mining Timber Mills

Pulp, Paper & BoardMills

Pole Plants

Sawmills

Number of Plants

Total number of plants: 192Total number of plants: 192

Page 90: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Intake of Roundwood into Processing Plants Intake of Roundwood into Processing Plants 1980 to 20091980 to 2009

0

5

10

15

20

25

1980 1984 1988 1992 1996 2000 2004 2008

Years

Mill

ion

m3

Pulp & Paper Mills Sawmills

Mng. Timber Mills Other

Total

Total increase in intake over periodTotal increase in intake over period - 7.4 million m- 7.4 million m3 3 (67%) (67%)Biggest increase that of pulpwoodBiggest increase that of pulpwood - 8.7 million m- 8.7 million m33 (206%) (206%)

Page 91: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Intake of Roundwood into Processing Plants Intake of Roundwood into Processing Plants 20092009

69.6%

22.3%

4.1%

4.0%

Pulp, Paper & Board Mills Sawmills

Mng. Timber Mills Other

Total – 18.5 million mTotal – 18.5 million m33

Page 92: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Roundwood Intake into ProcessingRoundwood Intake into ProcessingPlants by Province & Product 2009Plants by Province & Product 2009

0.074

0.010

0.325

0.792

0.290

0.424

0.524

0.466

2.065

0.656

0.003

0.000

0.000

2.130

10.765

0 2 4 6 8 10 12

W. Cape

E. Cape

Limpopo

Mpum

KZN

Million m3

Other Sawlogs Pulpwood

Total – 18.5 million mTotal – 18.5 million m33

Page 93: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Roundwood Intake into ProcessingRoundwood Intake into ProcessingPlants by Province & Product 2009Plants by Province & Product 2009

0.534

0.501

0.791

12.711

4.987

0 2 4 6 8 10 12 14

Western Cape

Eastern Cape

Limpopo

Mupumlanga

KZN

Million m3

Pulpwood Sawlogs Other

Total – 18.5 million mTotal – 18.5 million m33

Page 94: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Average Size of Plant by IntakeAverage Size of Plant by Intake1980 vs. 20091980 vs. 2009

46

26

7

72

25

351

96

58

9

47

38

806

0 100 200 300 400 500 600 700 800 900

Average All

Other Plants

Pole Plants

Mng. Timber Mills

Sawmills

Pulp & Paper Mills

Thousand m3

1980 2009

Overall average intake has increased by: Overall average intake has increased by: - 109%- 109%Average intake of PP & Board Mills has increased by: Average intake of PP & Board Mills has increased by: - 130%- 130%Only average intake of MT Mills has declined – byOnly average intake of MT Mills has declined – by - 35%- 35%

Page 95: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Sales of Certain Products from Processing Sales of Certain Products from Processing Plants 1980 to 2009Plants 1980 to 2009

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

2008

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 - 3.5 million tons- 3.5 million tons (652%) (652%)Only decrease that of mining timberOnly decrease that of mining timber - 1.2 million tons (-72%) - 1.2 million tons (-72%)

Page 96: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Value of Sales from Primary Processing Plants Value of Sales from Primary Processing Plants 20092009

52.3%

9.9%

20.8%

3.2%

4.5%

9.3%

Pulp Chips Lumber Panels Mng. Timber Other

Total – R20.4 billionTotal – R20.4 billion

Page 97: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Value of Sales from Primary Processing Plants Value of Sales from Primary Processing Plants 20092009

0.650

0.909

1.891

2.021

4.240

10.666

0 2 4 6 8 10 12

Mining Timber

Other Products

Panels

Woodchips

Lumber

Pulp

Billion Rand

Total – R20.4 billionTotal – R20.4 billion

Page 98: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Value of Sales from Primary Processing Plants Value of Sales from Primary Processing Plants 20092009

52.3%

9.9%

20.8%

3.2%

4.5%

9.3%

Pulp Chips Lumber Panels Mng. Timber Other

Total – R20.4 billionTotal – R20.4 billion

Page 99: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Value of Sales from Primary Processing Value of Sales from Primary Processing Plants 1980 to 2009Plants 1980 to 2009

0

5

10

15

20

25

1980 1984 1988 1992 1996 2000 2004 2008

Years

Bill

ion

Ra

nd

(2

00

8/0

9 R

an

ds

)Nominal Real

Nominal increase over periodNominal increase over period - R19.7 bn (2 823%)- R19.7 bn (2 823%)Real increase over periodReal increase over period - R8.9 bn (78%)- R8.9 bn (78%)

Page 100: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Value of Roundwood Sales from Processing Value of Roundwood Sales from Processing Plants by Product & Province 2009Plants by Product & Province 2009

91

12

378

735

342

435

538

477

2 118

673

3

0

1

2 407

12 167

0 2 000 4 000 6 000 8 000 10 000 12 000 14 000

W. Cape

E. Cape

Limpopo

Mpum

KZN

Million Rands

Other Sawn Timber Pulp / Boards / Chips

Total – R20.4 billionTotal – R20.4 billion

Page 101: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Value of Roundwood Sales from Processing Value of Roundwood Sales from Processing Plants by Product & Province 2009Plants by Product & Province 2009

529

550

856

13 182

5 260

0 2 000 4 000 6 000 8 000 10 000 12 000 14 000

W. Cape

E. Cape

Limpopo

Mpum

KZN

Million Rands

Pulp / Boards / Chips Sawn Timber Other

Total – R20.4 billionTotal – R20.4 billion

Page 102: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Gross Value of Output ComparisonsGross Value of Output Comparisons1999, 2004 & 20091999, 2004 & 2009

2.886

1.665

2.268

5.397

11.813

3.452

1.842

4.216

8.217

14.815

4.420

3.057

6.705

16.346

20.376

0 5 10 15 20 25

Sugar Cane

Wheat

Forestry

Maize

For. Prods.

Billion Rand

1999 2004 2009

Page 103: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Gross Value of Output ComparisonsGross Value of Output Comparisonsper Planted Hectare 1999, 2004 & 2009per Planted Hectare 1999, 2004 & 2009

2.319

1.618

1.513

6.921

8.426

2.219

3.160

2.565

8.084

11.106

4.718

5.259

5.644

11.362

15.981

0 5 10 15 20

Wheat

Forestry

Maize

Sugar

For. Prods.

Thousand Rand per Hectare

1999 2004 2009

Page 104: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Value Addition in Primary Processing Value Addition in Primary Processing Industry 2009Industry 2009

44

546

650

4 240

14 578

20 376

22

225

143

1 782

4 514

6 705

0 5 000 10 000 15 000 20 000 25 000

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)

Page 105: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Value Addition Comparisons in Primary Value Addition Comparisons in Primary Processing Industry 2009Processing Industry 2009

1.98

2.38

2.42

3.04

3.23

4.53

0.0 1.0 2.0 3.0 4.0 5.0

Charcoal Plants

Sawmills

Pole Plants

Total Industry

Pulp / Paper Mills

M. T. Mills

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)

Page 106: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Section 4 Section 4 Contribution to Employment Contribution to Employment

Page 107: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Forest Sector Employment – RSA 2009Forest Sector Employment – RSA 2009

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

ForestryForestry 66,50066,500 30,00030,000 96,50096,500

Pulp and PaperPulp and Paper 13,20013,200 10,80010,800 24,00024,000

SawmillingSawmilling 20,00020,000 10,00010,000 30,00030,000

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 118,900118,900 50,80050,800 169,700169,700

Page 108: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Direct Employment in Forestry Industry Direct Employment in Forestry Industry by Province 2009by Province 2009

45.7%

36.7%12.6%

5.0%

KZN Mpumalanga Cape Limpopo

Total – 66 500Total – 66 500

Page 109: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Direct Employment in Forestry Industry Direct Employment in Forestry Industry by Region 2009by Region 2009

3 300

8 400

24 400

30 400

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

Limpopo

Cape

Mpumalanga

KZN

Number of Direct Jobs

Total estimated direct jobs in Industry – 66 500Total estimated direct jobs in Industry – 66 500

Page 110: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Direct Employment in Forestry Industry as Direct Employment in Forestry Industry as % of Those Employed in 2009% of Those Employed in 2009

0.3%

0.4%

0.5%

1.2%

2.7%

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

Cape

Limpopo

RSA

KZN

Mpumalanga

% of Total Employed in Formal Sector

Total employed in RSA – 13.4 millionTotal employed in RSA – 13.4 million

Page 111: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Indirect Employment in Forestry Indirect Employment in Forestry Industry by Province 2009Industry by Province 2009

13 000

29 000

146 300

182 600

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 – 371 000Total estimated indirect jobs created by Industry – 371 000

Page 112: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Indirect Employment in Forestry Industry Indirect Employment in Forestry Industry as % of Those Employed in 2009as % of Those Employed in 2009

0.9%

1.4%

2.8%

7.2%

16.3%

0% 2% 4% 6% 8% 10% 12% 14% 16% 18%

Cape

Limpopo

RSA

KZN

Mpumalanga

% of Total Employed in Formal Sector

Total employed in Mpumalanga – 897 000Total employed in Mpumalanga – 897 000

Page 113: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Direct & Indirect Jobs in Forestry Direct & Indirect Jobs in Forestry Industry by Province 2009Industry by Province 2009

213 000

16 300

37 400

170 700

0 50 000 100 000 150 000 200 000 250 000

Limpopo

Cape

Mpumalanga

KZN

Number of Jobs

Direct jobs Indirect jobs

Estimated total – 437 400 jobsEstimated total – 437 400 jobs

Page 114: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Total Employment in Industry as % of Those Total Employment in Industry as % of Those Employed in Formal Sector 2009Employed in Formal Sector 2009

19.0%

8.4%

3.3%

1.8%

1.2%

0% 5% 10% 15% 20%

Cape

Limpopo

RSA

KZN

Mpumalanga

% of Total Employed in Formal Sector

Direct Indirect

Total employed in Mpumalanga – 897 000Total employed in Mpumalanga – 897 000

Page 115: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Dependents of Those Working in Dependents of Those Working in Forestry Industry by Region 2009Forestry Industry by Region 2009

536 000

112 000

669 000

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

Estimated total – 1.4 million dependentsEstimated total – 1.4 million dependents

53 000

Page 116: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Total Number of People Dependent on Total Number of People Dependent on Forestry Industry by Region 2009Forestry Industry by Region 2009

882 000

707 000

27 000

69 000

122 000

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

Estimated total – 1.8 million livelihoodsEstimated total – 1.8 million livelihoods

Page 117: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Estimated % of Population Dependent Estimated % of Population Dependent on Forestry Industry 2009on Forestry Industry 2009

1.23%

1.25%

3.77%

9.00%

19.31%

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

Limpopo

Cape

RSA

KZN

Mpumalanga

% of Provincial Population

Page 118: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Section 5 Section 5 Investment in Sector Investment in Sector

Page 119: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Investment in RSA Forestry Industry 2009Investment in RSA Forestry Industry 2009

58.5%

19.4% 13.0%

2.8%

6.2%

Trees LandRoads Fixed AssetsMoveable Assets

Total Investment - R24.8 BillionTotal Investment - R24.8 Billion

Page 120: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Investment in RSA Forestry Industry 2009Investment in RSA Forestry Industry 2009

38.3%

37.3%

16.8%

1.7%

5.9%

Pine Long Gum Short Pine Short

Wattle Gum Long

Total Investment - R24.8 BillionTotal Investment - R24.8 Billion

Page 121: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Investment in RSA Forestry Industry 2009Investment in RSA Forestry Industry 2009

41.8%

36.9%

11.8%

4.3%

5.3%

Mpumalanga KZN E. Cape W. Cape Limpopo

Total Investment - R24.8 BillionTotal Investment - R24.8 Billion

Page 122: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Investment in Plantations – By Province Investment in Plantations – By Province 20092009

1.064

1.308

2.910

9.134

10.334

0 2 4 6 8 10 12

Limpopo

W Cape

E Cape

KZN

Mpumalanga

Billion Rand

Mpumalanga has highest investment - 42% of totalMpumalanga has highest investment - 42% of total

Page 123: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Investment in Mpumalanga Forestry 2009Investment in Mpumalanga Forestry 2009

44.1%

34.0%18.3%

1.5%

2.1%

Pine Long Gum Short Pine Short

Wattle Gum Long

Total Investment - R10.3 BillionTotal Investment - R10.3 Billion

Page 124: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Investment in KZN Forestry 2009Investment in KZN Forestry 2009

15.5%55.6%

15.5%

0.1%

13.3%

Pine Long Gum Short Pine Short

Wattle Gum Long

Total Investment - R9.1 BillionTotal Investment - R9.1 Billion

Page 125: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Investment in E. Cape Forestry 2009Investment in E. Cape Forestry 2009

60.0%

13.4%25.1%

0.3%

1.2%

Pine Long Gum Short Pine Short

Wattle Gum Long

Total Investment - R2.9 BillionTotal Investment - R2.9 Billion

Page 126: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Investment in W. Cape Forestry 2009Investment in W. Cape Forestry 2009

87.5%

0.8%

9.3%

2.4%

0.0%

Pine Long Gum Short Pine Short

Wattle Gum Long

Total Investment - R1.3 BillionTotal Investment - R1.3 Billion

Page 127: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Investment in Limpopo Forestry 2009Investment in Limpopo Forestry 2009

58.0%22.8%

0.1%

19.0%

0.1%

Pine Long Gum Short Pine Short

Wattle Gum Long

Total Investment - R1.1 BillionTotal Investment - R1.1 Billion

Page 128: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Investment in Forest Products Sector Investment in Forest Products Sector by Type of Processing Plant 2009by Type of Processing Plant 2009

82.7%

11.8%

1.0%

4.2%

0.3%

Pulp & Board Sawmills & VeneerPole Plants Mng. TimberOther

Total Book Value of Investments - R15.7 BillionTotal Book Value of Investments - R15.7 Billion

Page 129: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Investment in Forest Products SectorInvestment in Forest Products Sectorby Investment Category 2009by Investment Category 2009

85.2%

12.7%

1.4%

0.7%

Machinery & Equipment Land & Buildings

Moveable Assets Other

Total Book Value of Investments - R15.7 BillionTotal Book Value of Investments - R15.7 Billion

Page 130: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Section 6 Section 6 Contribution to GDP Contribution to GDP

Page 131: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Composition of RSA GDPComposition of RSA GDP20092009

3.3%

9.5%

5.4%

21.7%

41.3%

18.8%

Agric Mining Other Secondary

Manufacturing Finance Other Tertiary

Total GDP – R2 284 Billion (i.e. R2.3 Trillion)Total GDP – R2 284 Billion (i.e. R2.3 Trillion)

Page 132: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Contribution to GDP 1980 to 2009Contribution to GDP 1980 to 2009

0%

2%

4%

6%

8%

10%

12%

14%

1980 1984 1988 1992 1996 2000 2004 2008

Years

% C

on

trib

uti

on

to

GD

PForestry to Agric. GDP FP to Mnfg. GDPFP to total GDP

Increase in Forestry GDP over period from 4.5% to 9.7%Increase in Forestry GDP over period from 4.5% to 9.7%Decrease in For. Prod. GDP over period from 6.3% to 6.1%Decrease in For. Prod. GDP over period from 6.3% to 6.1%

Page 133: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Forestry vs. Other Agricultural GGP per Forestry vs. Other Agricultural GGP per Region 2009Region 2009

8.9%

32.4%

17.7% 15.7% 3.5% 0.8%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Mpum KZN E. Cape Limpopo W. Cape RSA

Province

Forestry Other Agriculture

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

Page 134: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Forest Products vs. Other Manufacturing Forest Products vs. Other Manufacturing GGP per Region 2009GGP per Region 2009

4.8%1.4%2.3%9.1%14.3%16.4%

0%

20%

40%

60%

80%

100%

Mpum KZN Limpopo E. Cape W. Cape RSA

Province

Forest Products Other Manufacturing

Page 135: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Gross Value of OutputGross Value of Outputby Sector & Province 2009by Sector & Province 2009

146

200

646

2 370

3 343

875

550

856

5 260

13 182

0 2 000 4 000 6 000 8 000 10 000 12 000 14 000

Western Cape

Limpopo

Eastern Cape

Mupumlanga

KZN

Million Rands

Forestry Forest Products

Page 136: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Gross Value of OutputGross Value of Outputby Sector & Province 2009by Sector & Province 2009

16 422

8 027

1 128

1 034

832

0 5 000 10 000 15 000 20 000

Western Cape

Limpopo

Eastern Cape

Mupumlanga

KZN

Million Rands

Forestry Forest Products

Page 137: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Forest Industry Contribution to Total Forest Industry Contribution to Total GGP per Region - 2009GGP per Region - 2009

0.04%

0.37%

0.12%

0.29%

0.91%

1.46%

0.27%

0.49%

0.34%

0.91%

3.59%

3.23%

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

Western Cape

Eastern Cape

Limpopo

RSA

KZN

Mpumalanga

% of Regional GGP

Forestry Forest Products

Page 138: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Forest Industry Contribution to Total Forest Industry Contribution to Total GGP per Region - 2009GGP per Region - 2009

4.68%

4.50%

0.31%

0.46%

0.86%

1.20%

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

Western Cape

Limpopo

Eastern Cape

RSA

KZN

Mpumalanga

% of Regional GGP

Forestry Forest Products

Page 139: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

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

Page 140: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Imports vs. Exports of Forest ProductsImports vs. Exports of Forest Products20092009

2.777

0.577

7.897

3.988

4.643

6.139

0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0

Solid Wood &Other

Pulp

Paper

Billion Rand

Imports Exports

Positive trade balance in 2009 = R2.91 billionPositive trade balance in 2009 = R2.91 billion

Page 141: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Forest Product ExportsForest Product Exports20092009

34.4%

42.2%

20.7%

2.7%

Pulp Paper Solid Wood Other

Total – R12.5 billionTotal – R12.5 billion

Page 142: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Forest Product ImportsForest Product Imports20092009

4.1%

74.0%

21.8%

0.1%

Pulp Paper Solid Wood Other

Total – R9.6 billionTotal – R9.6 billion

Page 143: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Trade Balance in Forest ProductsTrade Balance in Forest Products1992 to 2009 (nominal)1992 to 2009 (nominal)

0

2

4

6

8

10

12

14

16

1992 1994 1996 1998 2000 2002 2004 2006 2008

Years

Bill

ion

Ra

nd

Imports Exports Trade Balance

Increase in importsIncrease in imports - R8.1 billion (574%)- R8.1 billion (574%)Increase in exportsIncrease in exports - R10.1 billion (432%)- R10.1 billion (432%)Increase in trade balanceIncrease in trade balance - R2.0 billion (214%)- R2.0 billion (214%)

Page 144: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Trade Balance in Forest ProductsTrade Balance in Forest Products1992 to 2009 (real)1992 to 2009 (real)

0

2

4

6

8

10

12

14

16

18

1992 1994 1996 1998 2000 2002 2004 2006 2008

Years

Bill

ion

Ra

nd

(2

00

9 R

an

ds

)

Imports Exports Trade Balance

Increase in importsIncrease in imports - R5.2 billion (119%)- R5.2 billion (119%)Increase in exportsIncrease in exports - R5.3 billion (73%)- R5.3 billion (73%)Increase in trade balanceIncrease in trade balance - R0.1 billion (2%)- R0.1 billion (2%)

Page 145: The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010

Export ComparisonsExport Comparisons1999, 2004 & 20091999, 2004 & 2009

1.6

4.4

6.7

8.4

6.7

1.6

7.6

9.0

15.6

9.6

3.4

13.6

12.5

35.4

49.5

0 10 20 30 40 50 60

Sugar

Fruit

Forest Prods

Coal

Metal Ores

Billion Rand

1999 2004 2009