Forestry South Africa
Roundwood Sales Analysis
for the 2009 Financial Year
Roger Godsmark
Forestry South Africa
February 2010
Analysis of Roundwood Sales
and Income Generated
2009
Salient Points to Note
The SA Forestry Industry did not escape the ravages of the international
economic crisis that came to a head in September 2008.
• Tonnage sales of 14.261 mt were not only 638 000t below the budget of
14.9 mt but a massive 2 398 000t (14.4%) less than the corresponding
figure for 2008.
• Sales across all species were down in comparison to 2008, the biggest
decrease being attributable to eucalyptus sales which were over 1.7 mt
or 19.6% down on last year.
• In terms of sales per product, all products saw a decline in sales as
compared to 2008, the biggest decrease being attributable to pulpwood
with a drop in sales of over 1.9 mt (15.5%). Year on year, the biggest
decline was that of Euc Pulpwood which dropped 1.4 mt or 17.7%.
• Despite the levy having increased by 16.4% between 2008 & 2009 (110
cents to 128 cents per ton), total income generated of R17.85 million
was actually R55 000 less than that generated the previous year. It was
also over R1.2 million (6.4%) less than that budgeted for in 2009.
• Overall levy coverage, as one would have expected given the depressed
market conditions, decreased from 94% in 2008 to 82% in 2009 *.
*Note: Caution should, however, be exercised with this comparison as it compares DWAF figures for 2007/8 with
FSA’s 2009 figures.
Roundwood Sales by Species
2009
Softwood
Eucalyptus
Wattle
8.4%
49.2%
42.4%
Total Sales – 14 261 000 tons
Roundwood Sales by Product
2009
Pulpwood
Sawlogs
Mining Timber
Other
20.4%
1.8%
3.7%
74.0%
Total Sales – 14 261 000 tons
Pulpwood Sales by Species
2009
Softwood
Eucalyptus
Wattle
59.7%
11.1%
29.2%
Total Sales – 10 559 000 tons
Sawlog Sales by Species
2009
Softwood
Eucalyptus
7.9%
92.1%
Total Sales – 3 220 000 tons
Other Roundwood Sales by Species
2009
Softwood
Eucalyptus
Wattle
60.2%
4.2%
35.6%
Total Sales – 792 000 tons
Sales Comparisons 2008 vs. 2009
Product
Sawlogs: Soft
2008
2009
Diff tons
Diff %
2 945 228
2 682 158
-263 070
-8.9%
276 704
228 628
-48 075
-17.4%
Sawlogs
3 221 932
2 910 787
-311 145
-9.7%
Pulpwood: Soft
3 433 277
3 079 425
-353 853
-10.3%
Pulpwood: Hard
9 068 340
7 479 602
-1 588 738
-17.5%
12 501 617
10 559 027
-1 942 591
-15.5%
Mng: Timber :
330 428
261 206
-69 222
-20.9%
Poles :Soft
147 463
116 968
-30 494
-20.7%
Poles: Hard
241 704
215 490
-26 214
-10.8%
Poles
389 167
332 458
-56 708
-14.6%
Woodchips: Soft
167 775
165 234
-2 541
-1.5%
Other: Hard
48779
32 916
-15 863
-32.5%
Grand Total
16 659 698
14 261 628
-2 398 070
-14.4%
Sawlogs: Hard
Pulpwood
Roundwood Sales by Contributor
2009
Corporates
Co-ops
Independents
15.6%
1.6%
82.9%
Total Sales – 14 261 000 tons
Roundwood Sales per Month
2009 by Species
Softwood
Eucalyptus
Wattle
Total
Thousand Tons
1 500
1 000
500
0
J
F
M
A
M
J
J
A
S
O
N
Month
Highest sales Lowest sales -
March
July
1 433 000 t
1 036 000 t
D
Roundwood Sales per Month
2009 by Product
Pulpwood
Sawlogs
Other
Total
Thousand Tons
1 500
1 000
500
0
J
F
M
A
M
J
J
A
S
O
N
Month
Highest sales Lowest sales -
March
July
1 433 000 t
1 036 000 t
D
Roundwood Sales per Month
2009 Budget vs. Actual
Budget
Actual
1 500
Thousand Tons
1 400
1 300
1 200
1 100
1 000
J
F
M
A
M
J
J
A
S
O
N
D
Month
Highest surplus
Highest deficit
-
March
July
191 000 t
206 000 t
Contributions Generated by Contributor - 2009
Corporates
Co-Ops
Independents
15.9%
1.5%
82.6%
Total Income Generated – R17 850 000
Levy Income Generated per Month
2009 Budget vs. Actual
Budget
Actual
1 900
Thousand Rands
1 800
1 700
1 600
1 500
1 400
1 300
1 200
J
F
M
A
M
J
J
A
S
O
N
D
Month
Highest Income
Lowest Income
-
March
July
R1 798 000
R1 289 000
Budgeted FSA Expenditure vs. Actual Levy Income 2009
Budgeted Exp.
Actual Income
2 600
Thousand Rands
2 400
2 200
2 000
1 800
1 600
1 400
1 200
1 000
J
F
M
A
M
J
J
Month
A
S
O
N
Accumulated deficit by year end - R3 907 000
(Excludes approved but unbudgeted expenditure nor
attributable income)
D
Tonnage & Levy Income Comparison
2009 Budget vs. Actual
Actual
Budget
20
19
Million Rand / Tons
18
17
16
15
14
13
12
11
638 000 Ton
Deficit
R1 222 000
Deficit
Tonnage
Rands
10
Tonnage @ 128 cents per ton
Tonnage @ 75 cents per ton
-
13 497 000 t
764 000 t
Roundwood Sales Comparisons
2007/08 DWAF vs. 2009 FSA by Species
DWAF
FSA
7.014
Eucalyptus
7.524
93% of DWAF
6.043
Softwood
9.163
66% of DWAF
Overall coverage
82% (94% last yr)
1.204
Wattle
0.771
156% of DWAF
0
2
4
6
8
10
Million Tons
Sales ex Plantations 2007/08 (DWAF) FSA based sales 2009
-
17.5 m tons
14.3 m tons
12
Roundwood Sales Comparisons
2007/08 DWAF vs. 2009 FSA by Product
DWAF
FSA
10.559
10.881
Pulpwood
97% of DWAF
2.911
Sawlogs
5.427
54% of DWAF
0.261
0.427
Mining Timber
61% of DWAF
0.332
0.352
Poles
94% of DWAF
0.330
0.387
Other
85% of DWAF
0
2
4
6
8
10
12
14
Million Tons
Sales ex Plantations 2007/08 (DWAF) - 17.5 m tons
FSA based sales 2009
- 14.3 m tons
16
Analysis of Roundwood Sales
and Income Generated
2002 - 2009
Roundwood Sales per Year
2002 - 2009
@ lower levy
16.994
16.476 16.541 16.600 16.040
16.660
14.305
14.261
Million Tons
20
18
16
14
12
10
8
6
4
2
0
@ full levy
2002
2003
2004
2005
2006
2007
2008
2009
Lower levy excludes a contribution to the ICFR
Sales Comparisons per Species
2002 - 2009
Eucalytpus
Softwood
Wattle
12
Million Tons
10
8
6
4
2
0
2002
2003
2004
2005
2006
Year
2007
2008
2009
Roundwood Sales 2002 - 2009
Eucalyptus
10
9.237
9.010
Million Tons
9
8.828
8.725
8.511
8.065
8
7
7.014
6.889
6
2002
2003
2004
2005
2006
Years
2007
2008
2009
Roundwood Sales 2002 - 2009
Softwood
7.0
6.664
6.667
Million Tons
6.526
6.5
6.229
6.208
6.043
5.995
6.0
5.900
5.5
2002
2003
2004
2005
2006
Years
2007
2008
2009
Roundwood Sales 2002 - 2009
Wattle
1.7
1.575
Million Tons
1.6
1.517
1.5
1.471
1.484
1.425
1.409
1.4
1.309
1.3
1.204
1.2
2002
2003
2004
2005
2006
Years
2007
2008
2009
Roundwood Sale Comparisons per Species
2008 vs. 2009
2008
2009
10
8.725
9
8
6.526
7
Million Tons
7.014
6.043
6
5
4
Down
205 000t
- 14.6%
Down
483 000t
- 7.4%
Down
1 711 000t
-19.6%
Softwood
Eucalyptus
3
2
1.409
1.204
1
0
Wattle
Overall decrease of 2 398 000t or 14.4%
Sales Comparisons per Product
2002 - 2009
Pulpwood
Sawlogs
MT & Other
14
Million Tons
12
10
8
6
4
2
0
2002
2003
2004
2005
2006
2007
2008
Year
Pulpwood growth over period
Sawlog decline over period
MT & Other growth over period
+ 238 000 tons + 2.3%
- 376 000 tons - 11.4%
+ 95 000 tons +13.6%
2009
Roundwood Sales 2002 - 2009
Pulpwood
14
13
12.667
12.674
12.502
Million Tons
12.381
12
11.707
11.391
11
10.559
10.321
10
9
2002
2003
2004
2005
2006
Years
2007
2008
2009
Roundwood Sales 2002 - 2009
Sawlogs
4.50
3.991
Million Tons
4.00
3.638
3.50
3.429
3.287
3.228
3.222
3.039
2.911
3.00
2.50
2.00
2002
2003
2004
2005
2006
Years
2007
2008
2009
Roundwood Sales 2002 - 2009
Mining Timber & Other
1.10
1.011
Million Tons
1.00
0.936
0.931
0.924
0.901
0.90
0.792
0.80
0.70
0.763
0.697
0.60
2002
2003
2004
2005
2006
Years
2007
2008
2009
Roundwood Sale Comparisons per Product
2008 vs. 2009
2008
2009
14
12.502
12
10.559
Million Tons
10
8
Down
144 000t
-15.4%
Down
311 000t
- 9.7%
Down
1 943 000t
-15.5%
6
4
2
3.222
0.936
2.911
0.792
0
Other
Sawlogs
Pulpwood
Overall decrease of 2 398 000t or 14.4%
Levy Income Generated per Year
2002 - 2009
20
Million Rand
18
16
17.850
2008
2009
15.607
14
13.002
11.855
12
10
17.905
12.249
11.468
9.570
8
2002
2003
2004
2005
2006
2007
Year
Levy income in 2009 actually R55 000 less than in 2008
and R1 222 000 under budget
Sales Tonnage per Contributor
2008 vs. 2009
2008
2009
16
13.581
14
11.822
Million Tons
12
10
8
Down
1 759 000t
-13.0%
Down
641 000t
-22.4%
Up
2 000t
+09%
6
2.859
4
2.218
2
0.220
0.222
0
Corporates
Co-ops
Independents
Overall decrease of 2 398 000t or 14.4%
Income Generation per Contributor
2008 vs. 2009
2008
16
14.549
2009
14.745
14
Million Rand
12
10
8
Up
R196 000
+1.3%
Down
R306 000
-9.7%
Up
R55 000
+26.1%
6
4
3.145
2.839
2
0.211
0.266
0
Corporates
Co-ops
Independents
Overall decrease of R55 000 or 0.3%