1. The South African Forestry and Forest Products Industry 2008 Produced By Roger Godsmark Forestry South Africa, September 2009

2. Presentation Outline Introduction The importance of the Forestry Industry The importance of the Forest Products Industry Industry Contribution to Employment Investment Industry Contribution to GDP Industry Contribution to Foreign Trade

3. Section 1 Introduction

4. Land Use in South Africa Total RSA land area – 122.3 million ha 1 257 341 ha

5. Land Use in Mpumalanga Total Mpum. land area – 8.2 million ha (6.7% of total) 510 389 ha

6. Land Use in KwaZulu Natal Total KZN land area – 9.1 million ha (7.5% of total) 486 020 ha

7. Land Use in the Eastern Cape Total E. Cape land area – 17.1 million ha (13.9% of total) 153 380 ha

8. Land Use in the Western Cape Total W. Cape land area – 12.9 million ha (10.6% of total) 59 570 ha

9. Land Use in Limpopo Total Limpopo land area – 12.0 million ha (9.8% of total). 47 982 ha

10. Plantation Area as % of Land Area by Province Forestry in Mpumalanga greatest % of land area

11. Land Use Comparisons 1998, 2003 & 2008 Drop in Forestry Area – 127 000 ha (9.1%)

12. Section 2 The Forestry Industry

13. Plantation Area by Species 2008 Total – 1 257 341 ha

14. Plantation Area by Ownership 2008 Total – 1 257 341 ha

15. Plantation Area by Province 2008 Total – 1 257 341 ha

16. Plantation Area by Province and Genera 2008 Total – 660 265 ha (softwood) Total – 597 076 ha (hardwood)

17. Planted Area Comparisons by Region & Species 2008

18. Pine Plantation Area by Region 2008 Total – 660 265 ha (52.5% of total)

19. Eucalyptus Plantation Area by Region 2008 Total – 491 934 ha (39.1% of total)

20. Wattle Plantation Area by Region 2008 Total – 95 572 ha (7.6% of total)

21. Other Hardwood Plantation Area by Region 2008 Total – 9 571 ha (0.8% of total)

22. Plantation Area by Management Objectives 2008 Total – 1 257 341 ha

23. Softwood Plantation Area by Management Objectives 2008 Total – 660 265 ha

24. Hardwood Plantation Area by Management Objectives 2008 Total – 597 076 ha

25. Plantation Area by Province and Ownership 2008 Total Private – 1 041 502 ha (83%) Total Public – 215 839 ha (17%) Leased Safcol packages included in “Private”

26. Percentage Plantation Ownership by Province 2008 Total Private – 1 041 223 ha (83%) Total Public – 215 839 ha (17%)

27. Plantation Area by Species and Ownership 2008 Total Private – 1 041 223 ha (83%) Total Public – 215 839 ha (17%)

28. Percentage Plantation Ownership by Species 2008 Total Private – 1 041 223 ha (83%) Total Public – 215 839 ha (17%)

29. Planted Area Comparisons by Region & Product 2008

30. Roundwood Production by Product 2008 Total – 8.9 million m 3 (softwood) Total – 11.3 million m 3 (hardwood)

31. Roundwood Production by Province and Genera 2008 Total – 8.9 million m 3 (softwood) Total – 11.3 million m 3 (hardwood)

32. Roundwood Production by Province and Genera 2008 0.596 0.695 1.659 8.058 9.165 Total – 8.9 million m 3 (softwood) Total – 11.3 million m 3 (hardwood)

33. Roundwood Production ex Plantations by Province & Product 2008 Total – 20.1 million m 3 or 17.5 million tons

34. Total Roundwood Production ex Plantations by Province 2008 Total – 20.1 million m 3 or 17.5 million tons

35. Total Roundwood Production ex Plantations by Product 2008 Total – 20.1 million m 3 or 17.5 million tons

36. Softwood Roundwood Production ex Plantations by Product 2008 Total – 8.9 million m 3 or 9.2 million tons

37. Hardwood Roundwood Production ex Plantations by Product 2008 Total – 11.3 million m 3 or 8.3 million tons

38. Total Roundwood Production ex Plantations by Species 2008 Total – 20.1 million m 3 or 17.5 million tons

39. Composition of Roundwood Production by Product 2008

40. Total Plantation Area 1980 to 2008 Total increase in afforested area over period : 95 933 ha Total % increase in afforested area over period : 8.3%

41. Total Roundwood Production ex Plantations 1980 to 2008 Total increase in production over period: 69.5% Total in increase in afforested area over period: 8.3%

42. Roundwood Production vs. Plantation Area 1980 to 2008 Total increase in production over period: 69.5% Total in increase in afforested area over period: 8.3%

43. Average Productivity per Hectare 1980 - 2008 Total increase in productivity over period – 5.8 m 3 per ha p.a. (57%)

44. Production Comparisons 1998, 2003 & 2008

45. Value of Roundwood Production 2008 Total – R6.0 billion

46. Value of Roundwood Production ex Plantations by Product 2008 Total – R6 047 million

47. Value of Roundwood Production ex Plantations by Province 2008 Total – R6 047 million

48. Value of Roundwood Production ex Plantations by Province & Product 2008 Total – R6 047 million

49. Value of Roundwood Production ex Plantations by Province & Product 2008 Total – R6 047 million

50. Value of Roundwood Production 1980 to 2008 Nominal increase over period: R5.9 bn (3 572%) Real increase over period: R3.6 bn (146%)

51. New Afforestation by Region 1980 to 2008 New afforestation over period- 380 452 ha Average per year- 13 119 ha AVERAGE

52. Total New Afforestation by Region 1980 to 2008 Total – 380 452 ha

53. Total New Afforestation by Region 10 Yr Period - 1999 to 2008 Total – 42 336 ha

54. New Afforestation by Region 10 Year Period – 1999 to 2008 New afforestation over period- 42 336 ha Average per year- 4 234 ha AVERAGE

55. New Afforestation by Province 2008 Total – 4 641 ha

56. New Afforestation by Species 1980 to 2008 Average p.a. 1980 to 1985- 10 974 ha (17.3% of total) Average p.a. 1986 to 1990- 24 558 ha (32.3% of total)

57. Total New Afforestation by Species 1980 to 2008 Total – 380 450 ha

58. New Afforestation by Species 2008 Total – 4 641 ha

59. New Afforestation by Product 1980 to 2008 Average p.a. 1991 to 1995- 24 406 ha (32.1% of total) Average p.a. 1996 to 2000- 7 019 ha (9.2% of total) Average p.a. 2001 to 2008- 4 336 ha (9.1% of total)

60. Total New Afforestation by Product 1980 to 2008 Total – 380 450 ha

61. New Afforestation by Product 2008 Total – 4 641 ha

62. Area Converted Out of Timber Production by Species 1980 to 2008 Area converted over period- 85 836 ha Average p.a. - 2 960 ha

63. Total Area Converted out of Timber Production by Species 1980 to 2008 Total – 85 836 ha

64. Total Area Converted out of Timber Production by Species 2008 Total – 696 ha

65. Net New Afforestation by Species 1980 to 2008 Net new afforestation over period- 294 614 ha Average p.a. - 10 159ha

66. Net New Afforestation by Species 1980 to 2008 Total – 294 614 ha

67. Net New Afforestation by Species 2008 Total net new afforestation - 3 945 ha

68. Area Converted Out of Timber Production by Region 1980 to 2008 Area converted over period- 85 839 ha Average p.a. - 2 960 ha

69. Total Area Converted out of Timber Production by Region 1980 to 2008 Total – 85 839 ha

70. Net New Afforestation by Region 1980 to 2008 Net new afforestation over period- 294 613 ha Average p.a. - 10 159 ha

71. Net New Afforestation by Region 1980 to 2008 Total – 294 613 ha

72. Conversion of Plantations out of Production & to Other Species 1980 to 2008 Net loss to production area over period- 85 837 ha Average p.a. - 3 179 ha

73. Total Area Converted out of Production & to Other Species 1980 to 2008 Net loss to production area over period- 85 837 ha Average p.a. - 3 179 ha

74. Area Converted out of Production & to Other Species 2008 Net loss to production area - 697 ha

75. Net Addition to Planted Area by Species 1980 to 2008 Total net addition to production area- 294 613 ha Average p.a. - 10 159 ha

76. Total Net Addition to Planted Area by Species 1980 to 2008 Total net addition to production area- 294 613 ha Average p.a. - 10 159 ha

77. Net Addition (Loss) to Planted Area by Species 2008 Total net gain in production area+ 3 944 ha

78. Damage to Plantations by Genera 1980 to 2008 Total area damaged over period- 907 765 ha Average p.a. - 31 302 ha

79. Damage to Plantations by Fires 1980 to 2008 Total area damaged over period- 907 765 ha Total area damaged by fire- 528 763 ha (58%) Total area damaged by other causes- 379 002 ha (42%)

80. Damage to Plantations by Fires 1980 to 2008

81. Damage to Plantations by Genera 2008 Total – 77 150 ha (6.1% of total planted area)

82. Damage to Plantations by Cause 2008 Total – 77 150 ha

83. Damage to Plantations by Fire 2008 Total – 70 812 ha

84. FSC Certified Forests by Forest Type: August 2009 Certified Area – 1 572 568 ha (incl. planted & non-planted areas)

85. FSC Certified Forests by Ownership: August 2009 Certified Area – 1 572 568 ha (incl. planted & non-planted areas)

86. Section 3 The Forest Products Industry

87. Number of Processing Plants by Type 2008 Total – 183 plants

88. Intake of Roundwood into Processing Plants 1980 to 2008 Total increase in intake over period- 8.5 million m 3 (77%) Biggest increase that of pulpwood- 9.6 million m 3 (227%)

89. Intake of Roundwood into Processing Plants 2008 Total – 19.6 million m 3

90. Roundwood Intake into Processing Plants by Province & Product 2008 Total – 19.6 million m 3

91. Roundwood Intake into Processing Plants by Province & Product 2008 Total – 19.6 million m 3

92. Average Size of Plant by Intake 1980 vs. 2008 Overall average intake has increased by: - 133% Average intake of PP & Board Mills has increased by: - 107% Only average intake of MT Mills has declined – by- 25%

93. Sales of Certain Products from Processing Plants 1980 to 2008 Biggest increase that of chips- 3.4 million tons (645%) Only decrease that of mining timber- 1.0 million tons (-60%)

94. Value of Sales from Primary Processing Plants 2008 Total – R21.4 billion

95. Value of Sales from Primary Processing Plants 1980 to 2008 Nominal increase over period- R20.7 bn (2 964%) Real increase over period- R11.0 bn (105%)

96. Value of Roundwood Sales from Processing Plants by Product & Province 2008 Total – R21.4 billion

97. Value of Roundwood Sales from Processing Plants by Product & Province 2008 Total – R21.4 billion

98. Gross Value of Output Comparisons 1998, 2003 & 2008

99. Gross Value of Output Comparisons per Planted Hectare 1998, 2003 & 2008

100. Value Addition in Primary Processing Industry 2008 Note : excludes secondary processing (e.g. paper manufacturing)

101. Value Addition Comparisons in Primary Processing Industry 2008 Note : Based only on input value of raw fibre (i.e. excludes all other input costs)

102. Section 4 Contribution to Employment

103. Forest Sector Employment – RSA 2008 Sub-sector No. of employees Total Employment DirectIndirect Forestry76,84430,000106,844 Pulp and Paper 13,20010,78123,981 Sawmilling20,000n/a20,000 Timber Board 6,000n/a6,000 Mining Timber 2,200n/a2,200 Other11,000n/a11,000 Total129,24440,781170,025

104. Direct Employment in Forestry Industry by Province 2008 Total – 77 000

105. Direct Employment in Forestry Industry by Region 2008 Total estimated direct jobs in Industry – 77 000

106. Direct Employment in Forestry Industry as % of Those Employed in 2008 Total employed in RSA – 12.5 million

107. Indirect Employment in Forestry Industry by Province 2008 Total estimated indirect jobs created by Industry – 462 000

108. Indirect Employment in Forestry Industry as % of Those Employed in 2008 Total employed in Mpumalanga – 803 000

109. Direct & Indirect Jobs in Forestry Industry by Province 2008 Estimated total – 539 400 jobs

110. Total Employment in Industry as % of Those Employed in Formal Sector 2008 Total employed in Mpumalanga – 0.8 million

111. Dependents of Those Working in Forestry Industry by Region 2008 Estimated total – 1.7 million dependents 59,000

112. Total Number of People Dependent on Forestry Industry by Region 2008 Estimated total – 2.3 million livelihoods

113. Estimated % of Population Dependent on Forestry Industry 2008

114. Section 5 Investment in Sector

115. Investment in RSA Forestry Industry 2008 Total Investment - R18.8 Billion

116. Investment in RSA Forestry Industry 2008 Total Investment - R18.8 Billion

117. Investment in RSA Forestry Industry 2008 Total Investment - 18.8 Billion

118. Investment in Plantations – By Province 2008 Mpumalanga has highest investment - 42.1% of total

119. Investment in Mpumalanga Forestry 2008 Total Investment - R7.9 Billion

120. Investment in KZN Forestry 2008 Total Investment - R6.4 Billion

121. Investment in E. Cape Forestry 2008 Total Investment - R2.6 Billion

122. Investment in W. Cape Forestry 2008 Total Investment - R1.1 Billion

123. Investment in Limpopo Forestry 2008 Total Investment - R808 Million

124. Investment in Forest Products Sector by Type of Processing Plant 2008 Total Book Value of Investments - R15.8 Billion

125. Investment in Forest Products Sector by Investment Category 2008 Total Book Value of Investments - R15.8 Billion

126. Section 6 Contribution to GDP

127. Composition of RSA GDP 2008 Total GDP – R2 151 Billion (i.e. R2.2 Trillion)

128. Contribution to GDP 1980 to 2008 Increase in Forestry GDP over period from 4.5% to 9.6% Decrease in For. Prod. GDP over period from 6.3% to 6.0%

129. Forestry vs. Other Agricultural GGP per Region 2008 Forestry in Mpumalanga of major importance

130. Forest Products vs. Other Manufacturing GGP per Region 2008

131. Gross Value of Output by Sector & Province 2008

133. Forest Industry Contribution to Total GGP per Region - 2008

135. Section 7 Contribution to Foreign Trade

136. Forest Product Exports 2008 Total – R14.8 billion

137. Forest Product Imports 2008 Total – R11.3 billion

138. Trade Balance in Forest Products 1980 to 2008 (nominal) Increase in imports- R9.8 billion (694%) Increase in exports- R12.4 billion (531%) Increase in trade balance- R2.6 billion (281%)

139. Trade Balance in Forest Products 1980 to 2008 (real) Increase in imports- R7.2 billion (176%) Increase in exports- R8.0 billion (120%) Increase in trade balance- R0.9 billion (33%)

140. Export Comparisons 1998, 2003 & 2008