The South African Forestry and Forest Products Industry 2011 Produced By Roger Godsmark Forestry South Africa, February 2013 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 Section 1 Introduction Land Use in South Africa Grazing Arable Nature Conservation Other Forestry 13.8% 9.6% 6.9% 1.0% 1 273 357 ha 68.6% Total RSA land area – 122.3 million ha Land Use in Mpumalanga Grazing Arable Nature Conservation 28.5% Other Forestry 3.9% 6.3% 21.6% 518 994 ha 39.6% Total Mpum. land area – 8.2 million ha (6.7% of total) Land Use in KwaZulu Natal Grazing Arable Nature Conservation Other Forestry 15.1% 12.7% 8.5% 5.5% 503 212 ha 58.3% Total KZN land area – 9.1 million ha (7.5% of total) Land Use in the Eastern Cape Grazing Arable Nature Conservation Other Forestry 6.8% 3.7% 8.7% 0.8% 141 413 ha 80.0% Total E. Cape land area – 17.1 million ha (13.9% of total) Land Use in the Western Cape Grazing Arable Nature Conservation Other Forestry 20.0% 5.6% 3.5% 0.5% 61 455 ha 70.4% Total W. Cape land area – 12.9 million ha (10.6% of total) Land Use in Limpopo Grazing Arable Nature Conservation Other Forestry 14.4% 9.7% 1.5% 0.4% 48 284ha 74.0% Total Limpopo land area – 12.0 million ha (9.8% of total) Plantation Area as % of Land Area by Province Mpumalanga 6.34% KZN 5.50% E.Cape 0.83% W. Cape 0.47% Limpopo 0.40% 0% 1% 2% 3% 4% 5% % of Land Area Afforested 6% 7% Land Use Comparisons 2001, 2006 & 2011 2001 2006 2011 2.859 Maize 2.032 3.189 1.273 1.282 1.352 Forestry 0.605 0.765 0.974 Wheat 0.376 0.428 0.429 Sugar 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 Million Hectares Drop in Forestry Area – 79 000 ha (5.8%) 4.5 Plantation Area Comparisons 2011 China 46.670 India 32.578 Russia 17.340 USA 16.238 Japan 10.682 Indonesia 9.871 Brazil 4.982 Thailand 4.920 Ukraine 4.425 Iran 2.284 RSA 1.273 0.0 10.0 20.0 30.0 Million Hectares 40.0 50.0 60.0 Section 2 The Forestry Industry Plantation Area by Species 2011 Pine Eucalyptus Wattle Other 7.9% 0.4% 51.1% 40.6% Total – 1 273 357 ha Plantation Area by Ownership 2011 Corporate SAFCOL Commercial Farmers State/ Municipalities 20.1% Corporate (Ex Safcol) Small Growers 11.3% 10.0% 6.9% 3.5% 48.1% Total – 1 273 357 ha Plantation Area by Province 2011 Limpopo Mpumalanga KZN E. Cape W. Cape 4.8% 3.8% 11.1% 40.8% 39.5% Total – 1 273 357 ha Plantation Area by Province and Genera 2011 Softwood Hardwood 211 799 Mpumalanga 307 194 364 245 KZN 138 967 23 411 E.Cape 118 002 20 947 27 337 Limpopo 2 057 W. Cape 59 398 0 100 000 200 000 300 000 Hectares 400 000 Total – 650 898 ha (softwood) Total – 622 468 ha (hardwood) 500 000 Planted Area Comparisons by Province & Species 2011 Limpopo W Cape Pine 27 337 Eucalyptus Wattle Other 59 398 Mpumalanga 138 967 118 002 KZN 307 194 193 527 20 476 1 671 20 773 15 185 2 429 11 72 E Cape 280 191 82 909 1 145 3 088 506 375 102 0 50 000 100 000 150 000 200 000 250 000 300 000 350 000 Hectares Pine Plantation Area by Province 2011 Mpumalanga KZN E Cape W Cape Limpopo 4.2% 9.1% 18.1% 47.2% 21.4% Total – 650 898 ha (51.1% of total) Eucalyptus Plantation Area by Region 2011 Mpumalanga KZN E Cape W Cape Limpopo 54.2% 4.0% 0.3% 4.0% 37.5% Total – 516 638 ha (40.4% of total) Wattle Plantation Area by Region 2011 Mpumalanga KZN E Cape W Cape Limpopo 82.4% 2.4% 0.0% 0.1% 15.1% Total – 106 600 ha (7.9% of total) Other Hardwood Plantation Area by Region 2011 Mpumalanga KZN E Cape W Cape 22.0% 9.7% 59.2% 7.2% 2.0% Total – 5 216 ha (0.4% of total) Limpopo Plantation Area by Management Objectives 2011 Pulpwood Sawlogs Mining Timber Poles 36.1% 4.5% 3.0% 55.8% 0.7% Total – 1 273 357 ha Other Softwood Plantation Area by Management Objectives 2011 Pulpwood Sawlogs Mining Timber Poles 36.1% 4.5% 3.0% 55.8% 0.7% Total – 650 898 ha Other Hardwood Plantation Area by Management Objectives 2011 Pulpwood Sawlogs Mining Timber Poles 2.9% 9.1% 4.3% 0.8% 82.9% Total – 622 460 ha Other Plantation Area by Province and Ownership 2011 Public Private 392 632 Mpumalanga 126 361 473 311 KZN 29 901 110 942 E.Cape 30 471 25 775 22 509 Limpopo KLF included in “Public” 54 619 W. Cape Leased Safcol packages included in “Private” 6 836 0 100 000 200 000 300 000 Hectares 400 000 500 000 Total Private – 1 057 279 ha (83.0%) Total Public – 216 078 ha (17.0%) 600 000 Percentage Plantation Ownership by Province 2011 Publicly Owned Privately Owned 100% 80% 53% 76% 60% 78% 89% 94% W. Cape KZN 40% 20% 0% Limpopo Mpumalanga E.Cape Province Total Private – 1 057 279 ha (83.0%) Total Public – 216 078 ha (17.0%) Plantation Area by Species and Ownership 2011 Public 488 308 Pine 162 590 467 840 Eucalyptus 48 797 96 882 Wattle Other Hard. Private 3 724 4 249 967 0 100 000 200 000 300 000 Hectares 400 000 500 000 Total Private – 1 057 279 ha (83.0%) Total Public – 216 078 ha (17.0%) 600 000 Percentage Plantation Ownership by Species 2011 Publicly Owned Privately Owned 100% 90% 80% 70% 60% 75% 81% 91% 50% 96% 40% 30% 20% 10% 0% Pine Other Hard. Eucalyptus Species Total Private – 1 057 279 ha (83.0%) Total Public – 216 078 ha (17.0%) Wattle Planted Area Comparisons by Province & Product 2011 Limpopo Pulpwood 224 186 W Cape 28 366 91 085 54 541 35 053 4 266 Mining Timber 1 841 Mpumalanga 260 214 72 805 Sawlogs E Cape KZN 421 352 206 003 45 827 4 971 4 789 6 950 20 121 6 689 8 074 Other 0 100 000 200 000 300 000 Hectares 400 000 500 000 Roundwood Production by Product 2011 12.645 Pulpwood 4.179 Sawlogs Mining Timber 0.838 Poles 0.433 Other 0.423 0 3 6 3 Million m 9 12 Total – 7.6 million m3 / 7.8mt (softwood) Total – 10.9 million m3 / 8.2mt (hardwood) 15 Roundwood Production by Province and Genera 2011 Hardwood Softwood 7.771 KZN 2.204 2.526 Mpumalanga 3.682 E. Cape 0.259 Limpopo 0.367 0.212 1.094 W. Cape 0.011 0.392 0 1 2 3 4 5 6 7 8 3 Million m Total – 7.6 million m3 / 7.8mt (softwood) Total – 10.9 million m3 / 8.2mt (hardwood) 9 Roundwood Production by Province and Genera 2011 Softwood Hardwood 9.975 KZN 6.208 Mpumalanga 1.353 E. Cape 0.578 Limpopo 0.403 W. Cape 0 2 4 6 8 10 12 3 Million m Total – 7.6 million m3 / 7.8mt (softwood) Total – 10.9 million m3 / 8.2mt (hardwood) 14 Roundwood Production ex Plantations by Province & Product 2011 Other KZN Sawlogs Pulpwood 9.104 0.611 0.260 Mpum 2.055 0.895 3.257 0.270 0.796 0.287 E. Cape Limpopo 0.013 0.353 0.212 W. Cape 0.000 0.364 0.040 0 2 4 6 8 10 Million m3 Total – 18.5 million m3 or 16.0 million tons Roundwood Production ex Plantations by Province & Product 2011 Pulpwood Sawlogs Other 9.975 KZN Mpum 6.208 1.353 E. Cape 578 Limpopo 403 W. Cape 0 2 4 6 8 10 12 Million m3 Total – 18.5 million m3 or 16.0 million tons Total Roundwood Production ex Plantations by Province 2011 KZN Mpumalanga E. Cape Limpopo W. Cape 7.3% 3.1% 33.5% 2.2% 53.9% Total – 18.5 million m3 or 16.0 million tons Total Roundwood Production ex Plantations by Product 2011 Pulpwood Sawlogs Mining Timber 22.6% Poles Other 4.5% 2.3% 2.3% 68.3% Total – 18.5 million m3 or 16.0 million tons Softwood Roundwood Production ex Plantations by Product 2011 Sawlogs 46.6% Pulpwood Poles Other 1.0% 0.8% 51.7% Total – 7.6 million m3 or 7.8 million tons Hardwood Roundwood Production ex Plantations by Product 2011 Pulpwood Mining Timber Poles Sawlogs Other 7.7% 3.3% 2.4% 3.3% 83.3% Total – 10.9 million m3 or 8.2 million tons Total Roundwood Production ex Plantations by Species 2011 Pine Eucalyptus Wattle Other 52.4% 6.4% 0.3% 41.0% Total – 18.5 million m3 or 16.0 million tons Composition of Roundwood Production by Product 2011 Softwood Hardwood 100% 90% 80% 70% 60% 50% 94% 40% 30% 20% 28% 10% 17% 14% 0.0% Poles Other Mining Timber 0% Sawlogs Pulpwood Product Total Plantation Area 1980 to 2011 1 600 000 Hectares 1 500 000 1 400 000 1 300 000 1 200 000 244 780 ha decrease 1 100 000 111 950 ha increase 1 000 000 1980 1983 1986 1989 1992 1995 1998 2001 2004 2007 2010 Years Total increase in afforested area over period : 111 950 ha Total % increase in afforested area over period : 9.6% Total Roundwood Production ex Plantations 1980 to 2011 24 Million m 3 22 20 18 16 14 12 10 1980 1983 1986 1989 1992 1995 1998 2001 2004 2007 2010 Years Total increase in production over period Total in increase in afforested area over period : 55.9% : 9.6% Roundwood Production vs. Plantation Area 1980 to 2011 Plantation Area Plantation Production 1980 = 100 200 190 180 170 160 150 140 130 120 110 100 90 1980 1983 1986 1989 1992 1995 1998 2001 2004 2007 2010 Years Total increase in production over period Total in increase in afforested area over period : 55.9% : 9.6% Average Productivity per Hectare 1980 - 2011 18 17 m3 per hectare 16 15 14 13 12 11 10 9 8 1980 1983 1986 1989 1992 1995 1998 2001 2004 2007 2010 Years Total increase in productivity over period – 4.3 m3 per ha p.a. (42%) Production Comparisons 2001, 2006 & 2011 2001 2006 2011 16.016 Sugar 21.052 23.876 16.013 Forestry 19.573 14.634 10.924 Maize 6.947 7.772 1.858 2.114 2.504 Wheat 0 5 10 15 Million tons 20 25 30 Value of Roundwood Production 2011 Pulpwood Mining Timber Other Sawlogs 23.8% 3.8% 2.5% 69.9% Total – R7.0 billion Value of Roundwood Production ex Plantations by Product 2011 Pulpwood 4.902 Sawlogs 1.668 Other 0.268 Mining Timber 0.173 0 1 2 3 4 Billion Rands Total – R7 012 million 5 6 Value of Roundwood Production ex Plantations by Province 2011 KZN 3 853 Mupumlanga 2 284 Eastern Cape 512 Limpopo 205 Western Cape 158 0 500 1 000 1 500 2 000 2 500 3 000 3 500 4 000 4 500 Million Rands Total – R7 012 million Value of Roundwood Production ex Plantations by Province & Product 2011 Other KZN 79 Mupumlanga 105 Limpopo Western Cape 90 Pulpwood 3 530 244 201 Eastern Cape Sawlogs 820 1 263 318 5 141 58 0 145 12 0 500 1 000 1 500 2 000 2 500 3 000 Million Rands Total – R7 012 million 3 500 4 000 Value of Roundwood Production ex Plantations by Province & Product 2011 Pulpwood Sawlogs Other KZN 3 853 Mupumlanga 2 284 Eastern Cape 512 Limpopo 205 Western Cape 158 0 1 000 2 000 3 000 Million Rands Total – R7 012 million 4 000 5 000 Value of Roundwood Production 1980 to 2011 Billion Rand (2010/11 Rands) Nominal Real 8.0 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0 1980 1983 1986 1989 1992 1995 1998 2001 2004 2007 Years Nominal increase over period Real increase over period : R6.8 bn (4 157%) : R4.1 bn (138%) 2010 New Afforestation by Region 1980 to 2011 Mpum & Limp. KZN Cape Total Thousand Hectares 50 45 40 35 30 AVERAGE 25 20 15 10 5 19 80 19 82 19 84 19 86 19 88 19 90 19 92 19 94 19 96 19 98 20 00 20 02 20 04 20 06 20 08 20 10 0 Years New afforestation over period Average per year - 385 511 ha - 12 047 ha Total New Afforestation by Region 1980 to 2011 KZN Mpumalanga & Limpopo E&W Cape 12.0% 54.5% 33.6% Total – 385 511 ha Total New Afforestation by Region 10 Yr Period - 2002 to 2011 KZN Mpumalanga & Limpopo 2.7% E&W Cape 33.8% 63.5% Total – 34 223 ha New Afforestation by Region 10 Year Period – 2002 to 2011 Northern KZN Cape Total Thousand Hectares 8 7 AVERAGE 6 5 4 3 2 1 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Years New afforestation over period Average per year - 34 223 ha - 3 422 ha New Afforestation by Province 2011 W. Cape KZN Limpopo Mpumalanga E. Cape 1.0% 27.9% 0.0% 0.3% 70.8% Total – 1 573 ha New Afforestation by Species 1980 to 2011 Pine Eucalyptus Wattle/Other Total Thousand Hectares 50 45 40 35 30 25 20 15 10 5 0 1980 1984 1988 1992 1996 2000 2004 2008 Years Average p.a. 1980 to 1985 Average p.a. 1986 to 1990 Average p.a. 1991 to 1995 - 10 974 ha (17.1% of total) - 24 558 ha (31.9% of total) - 24 406 ha (31.7% of total) Total New Afforestation by Species 1980 to 2011 Pine Eucalyptus 8.2% 0.9% Wattle Other 46.8% 44.1% Total – 385 511 ha New Afforestation by Species 2011 Eucalyptus Wattle Pine Other Hardwood 1.5% 25.1% 42.0% 31.4% Total – 1 573 ha New Afforestation by Product 1980 to 2011 Pulpwood Other Sawlogs Total Mining Timber Thousand Hectares 50 45 40 35 30 25 20 15 10 5 0 1980 1984 1988 1992 1996 2000 2004 2008 Years Average p.a. 1996 to 2000 Average p.a. 2001 to 2005 Average p.a. 2006 to 2011 - 7 019 ha (9.1% of total) - 5 044 ha (6.5% of total) - 2 910 ha (3.8% of total) Total New Afforestation by Product 1980 to 2011 Pulpwood Sawlogs 5.6% Mining Timber Other 14.0% 57.8% 22.7% Total – 385 511 ha New Afforestation by Product 2011 Pulpwood Sawlogs Other Poles Mng. Timber 22.4% 0.2% 8.9% 1.3% 67.1% Total – 1 573 ha Area Converted Out of Timber Production by Species 1980 to 2011 Pine Eucalypts Wattle/Other Total 7 000 6 000 Hectares 5 000 4 000 3 000 2 000 1 000 0 1980 1984 1988 1992 1996 2000 2004 2008 Years Area converted over period Average p.a. - 90 383 ha - 2 824 ha Area Converted Out of Timber Production by Species 2002 to 2011 Pine Eucalypts Wattle/Other Total 6 000 Hectares 5 000 4 000 3 000 2 000 1 000 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Years Area converted over period Average p.a. - 21 126 ha - 2 112 ha Total Area Converted out of Timber Production by Species 1980 to 2011 Pine Eucalypts 2.5% Wattle Other 23.6% 46.3% 27.6% Total – 90 383 ha Total Area Converted out of Timber Production by Species 2011 Pine Eucalypts 19.9% Wattle Other Hardwood 19.9% 3.2% 57.0% Total – 554 ha Net New Afforestation by Species 1980 to 2011 Pine Eucalypts Wattle/Other Total 45 Thousand Hectares 40 35 30 25 20 15 10 5 0 -5 -10 1980 1984 1988 1992 1996 2000 2004 2008 Years Net new afforestation over period Average p.a. - 295 123 ha - 9 223 ha Net New Afforestation by Species 2002 to 2011 Pine Eucalypts Wattle/Other Total Thousand Hectares 5 4 3 2 1 0 -1 -2 -3 -4 2002 2006 2010 Years Net new afforestation over period Average p.a. - 13 095 ha - 1 310 ha Net New Afforestation by Species 1980 to 2011 Pine Eucalypts Wattle 46.9% 0.5% 3.5% 49.2% Total – 295 123 ha Other Net New Afforestation by Species 2011 600 551 Hectares 500 384 400 300 200 100 79 5 0 Pine Eucalypts Wattle Other Species Total net new afforestation - 1 019 ha Area Converted Out of Timber Production by Region 1980 to 2011 North KZN Cape Total 7 000 6 000 Hectares 5 000 4 000 3 000 2 000 1 000 0 1980 1983 1986 1989 1992 1995 1998 2001 2004 2007 2010 Years Area converted over period Average p.a. - 90 383 ha - 2 824 ha Area Converted Out of Timber Production by Region 2002 to 2011 North KZN Cape Total 6 000 Hectares 5 000 4 000 3 000 2 000 1 000 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Years Area converted over period Average p.a. - 21 129 ha - 2 113 ha Total Area Converted out of Timber Production by Region 1980 to 2011 Mpumalanga & Limpopo KZN W&E Cape 28.1% 42.2% 29.8% Total – 90 383 ha Net New Afforestation by Region 1980 to 2011 North KZN Cape Total 45 Thousand Hectares 40 35 30 25 20 15 10 5 0 -5 -10 1980 1984 1988 1992 1996 2000 2004 Years Net new afforestation over period Average p.a. - 295 124 ha - 9 223 ha 2008 Net New Afforestation by Region 2002 to 2011 North KZN Cape Total 6 Thousand Hectares 5 4 3 2 1 0 -1 -2 -3 -4 2002 2006 2010 Years Net new afforestation over period Average p.a. - 13 094 ha - 1 309 ha Net New Afforestation by Region 1980 to 2011 Mpumalanga & Limpopo KZN W&E Cape 7.0% 34.7% 58.2% Total – 295 124 ha Conversion of Plantations out of Production & to Other Species 1980 to 2011 Pine Eucalyptus Wattle/Other Total Thousand Hectares 15 10 5 0 -5 -10 -15 -20 1980 1984 1988 1992 1996 2000 2004 2008 Years Net loss to production area over period Average p.a. - 90 383 ha - 2 824 ha Conversion of Plantations out of Production & to Other Species 2002 to 2011 Pine Eucalyptus Wattle/Other Total Thousand Hectares 10 8 6 4 2 0 -2 -4 -6 -8 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Years Net loss to production area over period Average p.a. - 21 129 ha - 2 113 ha Total Area Converted out of Production & to Other Species 1980 to 2011 40 000 31 219 20 000 Hectares 2 983 0 -20 000 -40 000 -60 000 -80 000 -53 426 -71 161 Pine Eucalypts Wattle Other Species Net loss to production area over period Average p.a. - 90 383 ha - 2 824 ha Area Converted out of Production & to Other Species 2009 10 000 8 706 8 000 Hectares 6 000 4 000 2 000 -52 0 -2 000 -4 000 -6 000 -3 807 -5 401 -8 000 Pine Eucalypts Wattle Other Species Land taken out of timber production - 554 ha Net Addition to Planted Area by Species 1980 to 2011 Pine Eucalyptus Wattle/Other Total 50 40 Hectares 30 20 10 0 -10 -20 1980 1984 1988 1992 1996 2000 2004 2008 Years Total net addition to production area Average p.a. - 295 123 ha - 9 223 ha Net Addition to Planted Area by Species 2002 to 2011 Pine Eucalyptus Wattle/Other Total 12 10 Hectares 8 6 4 2 0 -2 -4 -6 -8 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Years Total net addition to production area Average p.a. - 13 094 ha - 1 309 ha Total Net Addition to Planted Area by Species 1980 to 2011 250 000 201 221 Hectares 200 000 150 000 109 171 100 000 50 000 6 636 0 -21 904 -50 000 Pine Eucalyptus Wattle Other Species Total net addition to production area Average p.a. - 295 124 ha - 9 223 ha Net Addition (Loss) to Planted Area by Species 2011 12 000 9 367 10 000 8 000 Hectares 6 000 4 000 2 000 -29 0 -2 000 -4 000 -6 000 -3 313 -5 006 -8 000 Pine Eucalyptus Wattle Other Species Total net gain in production area Plus 1 019 ha Damage to Plantations by Genera 1980 to 2011 Softwood Hardwood Total Thousand Hectares 120 100 80 60 40 20 0 1980 1984 1988 1992 1996 2000 2004 2008 Years Total area damaged over period Average p.a. - 994 008 ha - 31 063 ha Damage to Plantations by Fires 1980 to 2011 Fire Other Causes Total Thousand Hectares 120 100 80 60 40 20 0 1980 1983 1986 1989 1992 1995 1998 2001 2004 2007 2010 Years Total area damaged over period - 994 008 ha Total area damaged by fire - 579 728 ha (58%) Total area damaged by other causes - 414 280 ha (42%) Damage to Plantations by Fires 2002 to 2011 Fire Other Causes Total Thousand Hectares 120 100 80 60 40 20 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Years Total area damaged over period - 448 379 ha Total area damaged by fire - 317 850 ha (71%) Total area damaged by other causes - 130 529 ha (29%) Damage to Plantations by Fires 1980 to 2011 Fire Other Causes 100% 80% 60% 40% 20% 0% 1980 1983 1986 1989 1992 1995 1998 Years 2001 2004 2007 2010 Damage to Plantations by Genera 2011 Softwood Hardwood 25.0% 75.0% Total – 40 178 ha (3.2% of total planted area) Damage to Plantations by Cause 2011 Fire Other Causes 61.8% 38.2% Total – 40 178 ha Damage to Plantations by Fire 2011 Arson Accidental Natural 19.1% 41.9% 5.1% Unknown 33.9% Total – 15 348 ha FSC Certificates RSA vs. Africa: as at February 2013 Africa South Africa Number of Certificates 200 153 150 RSA 61% of African Total 100 94 50 44 RSA 43% of African Total 19 0 Farm Managment Unit Chain of Custody RSA FMU certificates cover 1.5 million hectares or 21% of African total coverage of 7.2 million hectares FSC Certified Forests by Ownership: as at February 2013 Private Cos SAFCOL (KLF) Private Cos (ex SAFCOL) Individuals / Group 16.8% 12.4% 54.6% 16.2% Certified Area – 1 511 739 ha (incl. planted & non-planted areas) Section 3 The Forest Products Industry Number of Processing Plants by Type 2011 Sawmills 90 Pole Plants 33 Pulp, Paper & Board Mills 18 Mining Timber Mills 13 Charcoal Plants 4 Match Factories 1 0 20 40 60 80 Number of Plants Total number of plants: 159 100 Intake of Roundwood into Processing Plants 1980 to 2011 Pulp & Paper Mills Mng. Timber Mills Total Sawmills Other Million m3 25 20 15 10 5 0 1980 1983 1986 1989 1992 1995 1998 2001 2004 2007 2010 Years Total increase in intake over period Biggest increase that of pulpwood - 7.5 million m3 (67%) - 8.9 million m3 (211%) Intake of Roundwood into Processing Plants 2011 Pulp, Paper & Board Mills Mng. Timber Mills Sawmills Other 21.7% 4.4% 4.0% 69.9% Total – 18.6 million m3 Roundwood Intake into Processing Plants by Province & Product 2011 Other KZN Sawlogs Pulpwood 11.055 0.669 0.290 2.043 1.541 0.844 Mpum Limpopo 0.000 0.496 0.346 W Cape 0.000 0.579 0.076 E Cape 0.000 0.628 0.007 0 2 4 6 8 10 Million m3 Total – 18.6 million m3 12 14 Roundwood Intake into Processing Plants by Province & Product 2011 Pulpwood Sawlogs Other KZN 12.014 Mpumlanga 4.428 Limpopo 0.842 W Cape 0.655 E Cape 0.635 0 2 4 6 8 10 Million m3 Total – 18.6 million m3 12 14 Average Size of Plant by Intake 1980 vs. 2011 1980 Pulp & Paper Mills 2011 806 351 38 25 Sawmills 63 72 Mng. Timber Mills 12 7 Pole Plants Other Plants 26 Average All 67 46 0 117 100 200 300 400 500 3 Thousand m 600 Overall average intake has increased by: Average intake of PP & Board Mills has increased by: Only average intake of MT Mills has declined – by 700 800 - 154% - 107% - 13% 900 Sales of Certain Products from Processing Plants 1980 to 2011 Pulp (t) Lumber (m3) Mng. Timber (t) Chips (t) 6 000 Thousand Units 5 000 4 000 3 000 2 000 1 000 0 1980 1983 1986 1989 1992 1995 1998 2001 2004 2007 2010 Years Biggest increase that of chips Biggest decrease that of mining timber - 2.5 million tons (471%) - 1.2 million tons (-77%) Value of Sales from Primary Processing Plants 2011 Pulp Chips Lumber Panels Mng. Timber 18.9% 7.5% 7.0% 1.6% 4.9% 60.1% Total – R21.4 billion Other Value of Sales from Primary Processing Plants 2011 Pulp 12.860 Lumber 4.040 Woodchips 1.610 Panels 1.500 Other Products 1.060 Mining Timber 0.350 0 2 4 6 8 10 Billion Rand Total – R21.4 billion 12 14 16 Value of Sales from Primary Processing Plants 1980 to 2011 Billion Rand (2010/11 Rands) Nominal Real 30 25 20 15 10 5 0 1980 1983 1986 1989 1992 1995 1998 2001 2004 2007 2010 Years Nominal increase over period Real increase over period - R20.7 bn (2 971%) - R9.0 bn (72%) Value of Roundwood Sales from Processing Plants by Product & Province 2011 Other KZN 499 W. Cape E. Cape Pulp / Boards / Chips 13 415 690 386 Mpum Limpopo Sawn Timber 1 2 479 1 589 511 466 0 598 116 0 10 0 648 2 000 4 000 6 000 8 000 10 000 12 000 14 000 16 000 Million Rands Total – R21.4 billion Value of Roundwood Sales from Processing Plants by Product & Province 2011 Pulp / Boards / Chips Sawn Timber Other KZN 14 490 4 566 Mpum Limpopo 978 W. Cape 714 E. Cape 658 0 2 000 4 000 6 000 8 000 10 000 12 000 14 000 16 000 18 000 Million Rands Total – R21.4 billion Gross Value of Output Comparisons 2001, 2006 & 2011 2001 2006 For. Prods. 2011 11.867 Maize 16.670 7.419 6.929 Forestry 5.167 2.712 21.407 15.679 7.012 4.340 3.223 3.560 Wheat 5.272 3.654 3.116 Sugar Cane 0 5 10 15 Billion Rand 20 25 Gross Value of Output Comparisons per Planted Hectare 2001, 2006 & 2011 2001 2006 For. Prods. 8.777 Sugar 8.537 7.263 Wheat 2.173 Forestry 2.006 0 16.816 12.230 14.021 7.174 4.213 3.655 Maize 2011 5.831 3.651 4.030 5 5.508 10 Thousand Rand per Hectare 15 20 Value Addition in Primary Processing Industry 2011 Output 7 012 Total Industry 21 407 4 902 Pulp / Paper Mills 1 668 Sawmills M. T. Mills 173 346 Pole Plants 218 521 Charcoal Plants Input 15 968 4 036 28 219 0 5 000 10 000 15 000 20 000 Million Rand Note : excludes secondary processing (e.g. paper manufacturing) 25 000 Value Addition Comparisons in Primary Processing Industry 2011 7.86 Charcoal Plants 3.26 Pulp / Paper Mills Total Industry 3.05 Sawmills 2.42 Pole Plants 2.38 M. T. Mills 2.00 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 Output as ratio of Input Note : Based only on input value of raw fibre (i.e. excludes all other input costs) Section 4 Contribution to Employment Forest Sector Employment – RSA 2011 Sub-sector No. of employees Direct Total Employment Indirect Forestry 62,700 30,000 92,700 Pulp and Paper 13,200 10,800 24,000 Sawmilling 20,000 10,000 30,000 Timber Board 6,000 n/a 6,000 Mining Timber 2,200 n/a 2,200 Other 11,000 n/a 11,000 Total 115,100 50,800 165,900 Direct jobs in Forestry = Indirect jobs in Forestry (165 900 less 62 700) = 62 700 103 200 Direct Employment in Forestry Industry by Province 2011 KZN W Cape Mpumalanga Limpopo E Cape 8.8% 37.8% 3.5% 3.5% 46.4% Total – 62 700 Direct Employment in Forestry Industry by Region 2011 Total Employment 2 520 000 29 100 KZN 953 000 23 700 Mpumalanga E. Cape 1 298 000 5 500 Limpopo 2 200 1 018 000 W. Cape 2 200 1 815 000 0 5 000 10 000 15 000 20 000 25 000 30 000 35 000 Number of Direct Jobs Total estimated direct jobs in Industry – 62 700 Direct Employment in Forestry Industry as % of Those Employed in 2011 Mpumalanga 2.5% KZN 1.2% RSA 0.5% E. Cape 0.4% Limpopo 0.2% W. Cape 0.1% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% % of Total Employed in Formal Sector Total employed in RSA – 13 447 000 3.0% Indirect Employment in Forestry Industry by Province 2011 Total Employment KZN 2 520 000 46 800 Mpumalanga 953 000 35 110 E. Cape 1 298 000 9 360 1 018 000 6 420 W. Cape 1 815 000 5 510 Limpopo 0 10 000 20 000 30 000 40 000 50 000 60 000 Number of Indirect Jobs Total estimated indirect jobs created by Industry – 103 200 Indirect Employment in Forestry Industry as % of Those Employed in 2011 Mpumalanga 3.7% KZN 1.9% RSA 0.8% E. Cape Limpopo W. Cape 0.0% 0.7% 0.5% 0.4% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% % of Total Employed in Formal Sector Total employed in Mpumalanga – 953 000 Direct & Indirect Jobs in Forestry Industry by Province 2011 Direct jobs Indirect jobs KZN Total Employment 2 520 000 75 900 Mpumalanga 953 000 58 810 E. Cape 14 860 W. Cape 1 298 000 8 620 Limpopo 1 018 000 7 710 0 20 000 1 815 000 40 000 60 000 80 000 Number of Jobs Estimated total – 165 900 jobs 100 000 Total Employment in Industry as % of Those Employed in Formal Sector 2011 Direct Indirect 6.2% Mpumalanga KZN 3.1% RSA 1.3% 1.1% E. Cape Limpopo 0.7% W. Cape 0.5% 0% 1% 2% 3% 4% 5% % of Total Employed in Formal Sector 6% 7% Dependents of Those Working in Forestry Industry by Province 2011 Direct job dependents Indirect job dependents KZN 257 000 Mpumalanga 200 000 E. Cape 50 000 W. Cape 26 000 Limpopo 25 000 0 50 000 100 000 150 000 200 000 250 000 Number of Dependents Estimated total – 558 000 dependents 300 000 Total Number of People Dependent on Forestry Industry by Province 2011 Workers Dependents KZN 298 000 Mpumalanga 236 000 E. Cape 59 000 W. Cape 30 000 Limpopo 29 000 0 100 000 200 000 300 000 Number of People Dependent on Industry Estimated total – 652 000 livelihoods 400 000 Estimated % of Population Dependent on Forestry Industry 2011 Total Population Mpumalanga 5.84% KZN 4 040 000 2.90% RSA E. Cape 10 267 000 51 771 000 1.26% 6 562 000 0.90% Limpopo 0.53% 5 405 000 W. Cape 0.51% 5 823 000 0% 1% 2% 3% 4% 5% 6% % of Provincial Population Total RSA population – 51.8 million 7% Section 5 Investment in Sector Investment in RSA Forestry Industry 2011 Trees Roads Moveable Assets 22.8% Land Fixed Assets 13.4% 6.1% 2.8% 54.9% Total Investment - R25.6 Billion Investment in RSA Forestry Industry 2011 Pine Long Wattle Pine Short Gum Short Gum Long 17.2% 30.9% 6.2% 1.5% 44.2% Total Investment - R25.6 Billion Investment in RSA Forestry Industry 2011 Mpumalanga KZN E. Cape W. Cape Limpopo 12.8% 35.0% 6.0% 4.2% 42.0% Total Investment - R25.6 Billion Investment in Plantations – By Province 2011 Mpumalanga 10.743 KZN 8.969 E Cape 3.265 W Cape 1.534 Limpopo 1.083 0 2 4 6 8 10 12 Billion Rand Mpumalanga has highest investment - 42% of total Investment in Mpumalanga Forestry 2011 Pine Long Wattle Gum Short Gum Long Pine Short 21.2% 27.7% 2.2% 1.5% 47.4% Total Investment - R10.7 Billion Investment in KZN Forestry 2011 Pine Long Wattle Gum Short Gum Long Pine Short 15.7% 14.5% 0.1% 49.1% 20.5% Total Investment - R9.0 Billion Investment in E. Cape Forestry 2011 Pine Long Wattle Gum Short Gum Long 9.9% Pine Short 17.8% 1.2% 0.3% 70.9% Total Investment - R3.3 Billion Investment in W. Cape Forestry 2011 Pine Long Wattle Gum Short Gum Long Pine Short 0.6% 88.5% 8.7% 0.0% 2.2% Total Investment - R1.5 Billion Investment in Limpopo Forestry 2011 Pine Long Wattle Gum Short Gum Long Pine Short 16.3% 0.1% 0.1% 19.0% 64.6% Total Investment - R1.1 Billion Investment in Forest Products Sector by Type of Processing Plant 2011 Pulp & Board Other Mng. Timber Sawmills & Veneer Pole Plants 12.8% 3.9% 1.0% 0.2% 82.1% Total Book Value of Investments - R15.2 Billion Investment in Forest Products Sector by Investment Category 2011 Machinery & Equipment Moveable Assets Land & Buildings Other 13.7% 1.6% 1.9% 82.9% Total Book Value of Investments - R15.2 Billion Section 6 Contribution to GDP Composition of RSA GDP 2011 Agric Manufacturing 43.0% Mining Finance Other Secondary Other Tertiary 2.2% 8.5% 14.2% 19.6% 12.5% Total GDP – R2 661 Billion (i.e. R2.7 Trillion) Contribution to GDP 1980 to 2011 Forestry to Agric. GDP FP to total GDP FP to Mnfg. GDP % Contribution to GDP 14% 12% 10% 8% 6% 4% 2% 0% 1980 1983 1986 1989 1992 1995 1998 2001 2004 2007 2010 Years Increase in Forestry to Ag GDP over period from 4.5% to 12.3% Decrease in For. Prod. To Mfg GDP over period from 6.3% to 6.2% Forestry vs. Other Agricultural GGP per Region 2011 Forestry Other Agriculture 100% 90% 80% 70% 60% 50% 40% 30% 20% 43.9% 24.2% 10% 16.5% 4.3% 1.2% E. Cape Limpopo W. Cape 12.0% 0% Mpum KZN RSA Province Forestry in Mpumalanga of major importance Forest Products vs. Other Manufacturing GGP per Region 2011 Forest Products Other Manufacturing 100% 80% 60% 40% 20% 20.5% 19.3% KZN Mpum 10.5% 2.6% 1.5% 6.4% Limpopo E. Cape W. Cape RSA 0% Province Gross Value of Output by Sector & Province 2011 Forestry Forest Products 14 490 KZN 3 853 4 566 Mupumlanga 2 284 978 205 Limpopo Eastern Cape 658 512 Western Cape 714 157 0 3 000 6 000 9 000 12 000 Million Rands 15 000 18 000 Gross Value of Output by Sector & Province 2011 Forestry Forest Products KZN 18 343 Mupumlanga 6 850 Limpopo 1 183 Eastern Cape 1 170 Western Cape 871 0 3 000 6 000 9 000 12 000 Million Rands 15 000 18 000 21 000 Forest Industry Contribution to Total GGP per Region - 2011 Forestry KZN 2.44% 1.22% RSA 0.26% 0.11% 0.80% 0.51% 0.32% 0.25% Eastern Cape Western Cape 3.45% 0.92% Mpumalanga Limpopo Forest Products 0.19% 0.04% 0.0% 1.0% 2.0% % of Regional GGP 3.0% 4.0% Forest Industry Contribution to Total GGP per Region - 2011 Forestry Forest Products KZN 4.36% Mpumalanga 3.66% RSA Limpopo 1.07% 0.62% Eastern Cape 0.57% Western Cape 0.23% 0% 1% 2% 3% 4% % of Regional GGP 5% 6% Section 7 Contribution to Foreign Trade Exports of Forest Products 2012 vs.2011 2011 2012 5.890 Pulp 7.064 4.707 Paper 4.622 Solid Wood & Other 3.235 3.294 0.0 1.0 2.0 3.0 4.0 2011 - R15.0bn 2012 - R13.8bn 5.0 6.0 7.0 8.0 Billion Rand Exports in 2012 R1.2 bn or 7.7% down on 2011 Imports of Forest Products 2012 vs. 2011 2011 2012 0.479 Pulp 0.474 8.403 Paper 7.631 Solid Wood & Other 2011 - R10.5bn 2012 - R11.6bn 2.738 2.417 0.0 2.0 4.0 6.0 8.0 10.0 Billion Rand Imports in 2012 R1.1 bn or 10.4% up on 2011 Imports vs. Exports of Forest Products Trade Balance 2012 vs. 2011 2011 2012 18 16 14.980 13.832 Billion Rand 14 12 11.620 10.522 10 8 6 4.458 4 2.212 2 0 Imports Exports Trade Balance Trade balance in 2012 R2.2bn or 50% less than in 2011 Imports vs. Exports of Forest Products 2012 Imports Exports 5.890 Pulp 0.474 4.707 Paper 7.631 Solid Wood & Other Exports R13.8bn Imports R11.6bn 3.235 2.417 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 Billion Rand Positive trade balance in 2012 = R2.21 billion Forest Product Exports 2012 Pulp Paper Solid Wood Other 19.4% 34.0% 4.0% 42.6% Total – R13.8 billion Forest Product Imports 2012 Pulp Paper Solid Wood Other 23.4% 0.2% 4.1% 72.3% Total – R11.6 billion Trade Balance in Forest Products 1992 to 2012 (nominal) Imports Exports Trade Balance 16 14 Billion Rand 12 10 8 6 4 2 0 1992 1994 1996 1998 2000 2002 Years Increase in imports Increase in exports Increase in trade balance 2004 2006 2008 2010 2012 - R10.2 billion (720%) - R11.5 billion (491%) - R1.3 billion (140%) Trade Balance in Forest Products 1992 to 2012 (real) Imports Exports Trade Balance Billion Rand (2012 Rands) 25 20 15 10 5 0 1992 1994 1996 1998 2000 2002 Years Increase in imports Increase in exports Decrease in trade balance 2004 2006 2008 2010 2012 - R6.6 billion (131%) - R5.5 billion (66%) - R1.1 billion (-33%) Export Comparisons 2002, 2007 & 2012 2002 2007 2012 55.4 Coal 23.7 19.3 18.9 Fruit 10.4 6.2 13.8 12.2 11.2 Forest Prods 2.0 2.1 2.5 Sugar 0 10 20 30 Billion Rand 40 50 60