The South African Forestry Industry’s Perspective on Forestry & Forest Products Statistics Roger Godsmark Operations Director, Forestry South Africa Presentation to FAO Workshop on Forest Products Statistics 27th November 2014

Presentation Outline Background: Forestry South Africa Overview of the Forestry & FP Industry in South Africa Forestry and Forest Products Industry Data in South Africa Conclusion

Background: Forestry South Africa Section 1 Background: Forestry South Africa

Whose Overriding Role is …….. In Essence FSA is…….. A voluntary Association of timber growers Whose Overriding Role is …….. To represent the best interests of its members; and The interests of the South African Forestry Industry Membership All 11 Corporate timber companies operating in SA 1 300 commercial timber farmers 20 000 small-scale timber growers

* TOTAL PLANTED PLANTATION AREA = 1 268 443: FSA MEMBERS 91.6% Who Are FSA’s Members? MEMBER DESCRIPTION NUMBER HECTARES (1): Corporate Companies Private Ex-SAFCOL SAFCOL (KLF) 9 4 1 612 600 143 300 127 700 SUB-TOTAL 14 883 600 (2): Commercial Enterprises Timber Farmers Timber Co-ops 1 300 232 780 23 600 1 304 256 379 (3): Small-Scale Growers 20 000 45 000 GRAND TOTAL 21 318 1 161 380* * TOTAL PLANTED PLANTATION AREA = 1 268 443: FSA MEMBERS 91.6%

FSA’s Main Activities FSA fulfils its mandate by doing 4 main things Acts as a Lobby Group Government (National, Provincial & Local) NGOs (e.g. Forest Stewardship Council) Other Bodies (e.g. SETA, Funding, Research, Universities etc.) Acts as collector & distributor of funding Acts as the keeper, analyser & distributor of information Co-ordinates, organises and capacitates small-scale growers Lobbying is becoming an ever increasing activity FSA’s interventions generally high level & at national level

Overview of Forestry & FP Industry in South Africa Section 2 Overview of Forestry & FP Industry in South Africa

Forest Resources in South Africa There are three “forest types” in South Africa Woodlands (reported on every 4 years) Land where more than 10% canopy cover +/- 40 million hectares Widespread Mainly exploited for fuelwood Plantations (reported on annually) 1 268 443 hectares of intensively managed exotic tree plantations Highly regulated Pine (51%), Eucalyptus (42%) and Wattle (7%) 70% production goes for pulp & paper production Indigenous forests (reported on every 4 years) Comprises thousands of small forest patches + one large one is S. Cape Protected by law Minimal economic value

Location of Plantations in South Africa You are here

The SA Forestry & Forest Products Industry – An Overview By any measure, the Forestry and Forest Products Industry is a major contributor to SA’s economy 1.3 million hectares of plantations. Investment value - $2.6bn Annual sustainable production 20 million tons Production in 2011/12 15.8mt (18.2m m3) valued at $672 m Primary processing plants – 141 (of which 76 sawmills and 17 pulp, paper & board mills) Intake in 2011/12 18.8mt (of which pulpwood 73% & sawlogs 20%) Main products: pulp (2.6mt), woodchips (2.4mt) and lumber (1.4m m3) Total value of sales in 2011/12 from primary processing plants $1.9bn Exports of forest products in 2013 amounted to $1.7bn which resulted in a positive trade balance of $380m. Employs 170 000 people of which 66 000 in forestry operations

The SA Forest Sector Key Developments & Characteristics Commercial plantation forestry is the focus of data collection Area of commercial forestry plantations has been declining for 20 years Only areas within SA where new afforestation can take place is Eastern Cape (100 000 ha) and Zululand (40 000 ha) Major developments over past 20 years: Move towards “outsourcing” of operations (contractors now biggest employer) Increased focus on mechanisation of operations Increasing focus on developing forestry enterprises in neighbouring countries (especially Mozambique) given lack of expansion opportunities locally Ownership pattern determines ease of data collection Corporates – easy Commercial farmers – relatively easy Small-scale growers – very difficult Processors – formal plants easy, informal plants difficult

Forestry & FP Industry Data in South Africa Section 3 Forestry & FP Industry Data in South Africa

Why is Forestry & Forest Products Data Collected in South Africa? Local legal obligations in terms of National Forests Act (1998) Annual “Commercial Timber Resources and Primary Roundwood Processing” Report Every four years, the “State of the Forests” Report International reporting obligations FAO Although there are legal obligations to produce this data, from a private sector perspective, it is essential that we have this data for various reasons & uses.

Data Requirements of Industry Physical stats on Forestry & FP Industries (e.g. areas, production, intakes etc) (DAFF / Pvt. Sector - FES) Forestry cost benchmarking data (Pvt. Sector - FES) Sawmill cost benchmarking data (Pvt. Sector - Crickmay) Secondary processing stats (Industry Assocs e.g. PAMSA) Import and export data (quantity, value, origin & destination) (SA Revenue Service) Biomass inventory (nobody) GDP data (Stats SA) The provision of most of the data we need is available but not from a central source and in certain cases, at a cost

The “Green Mamba” Data Collection The main vehicle for the collection of Forestry and Forest Products data in South Africa is the following……………. The “Green Mamba”

Data Collection “Commercial Timber Resources and Primary Roundwood Processing” Report Data collected via “Green Mamba” census forms which are posted to recipients By law all forest owners and owners of primary processing plants have to compete the forms Focuses specifically on “Commercial” timber plantations and “Primary” roundwood processors Process from sending out census forms and printing Report takes a year. 1 900 census forms sent out in July each year Recipients have till end of February in following year to complete 1st draft produced in March and final Report published in June. In order to improve response levels, DAFF outsourced collection, compilation and publication of data to well respected private company linked to the Forestry Industry (Forestry Economics Services – FES) Census form long and complicated to fill in.

Data Content (1) “Commercial Timber Resources and Primary Roundwood Processing” Report This Report is comprehensive and provides the Industry with a lot of the data that it needs. It covers the following areas. Forestry Plantation areas per region by: Species Management objectives Age class & mean annual increment (MAI) Production from plantations per region by: Product Value

Data Content (2) “Commercial Timber Resources and Primary Roundwood Processing” Report Forestry (continued) New afforestation & land converted out of timber production per region by: Species Management objectives Damage caused to plantations per region by: Genus (softwood & hardwood) Fire Pests and Diseases Weather Animals

Data Content (3) “Commercial Timber Resources and Primary Roundwood Processing” Report Primary Processing Number of primary processing plants by: Type Intake Investment (book value) Intake per region by: Product Species Production and sales of forest products from primary processing plants by: Value

Concerns DAFF has lost internal capacity to collect data (although by outsourcing the function, the quality of data has improved). By the time the data is published it is already a year out of date. Currently two years out of date as DAFF delayed the signing of the outsourcing contract for over a year three years ago. Only “Commercial” timber plantations and “Primary” roundwood processors are covered (e.g. nothing on woodlands, indigenous forests or secondary processing). Coverage is nowhere near 100% Most of 25 000 small-scale timber growers’ data not collected Many informal processing plants (e.g. sawmills) excluded Verification system (via remote sensing), not in place. Total Biomass inventory is not reported on (this is important (a) for the Reduced Emission from Deforestation and Degradation (REDD) process as do not have baseline data and (b) for carbon trading purposes) Non-timber forest products data not recorded.

What Does the Industry Use the Data For? The Industry regards having sound baseline data as essential for the development of the Industry. Amongst others, the Industry uses the data for the following purposes………. To establish trends so that Industry can initiate corrective action (e.g. fire damage) or to initiate lobbying to change policy (e.g. new afforestation) To assist with the production of timber supply and demand forecasts To determine what forest resources there are in a particular area to determine investment opportunities for industrial development To determine areas where new afforestation could take place To determine where new export markets could exist Regarding cost benchmarking data, to determine the feasibility of potential investment opportunities To produce its own analysis of the Industry

New Afforestation 1980 to 2012 Economy good Economy good but drought Economy good but policy bad Economy bad & policy bad RESULT: FSA engaged with DAFF to try and make it easier for timber growers to obtain water use licences to plant trees

Damage to Plantations by Fires 1980 to 2012 RESULT: After loosing 70 000 ha in 2007 and the following year, Industry put in place more effective fire fighting resources

Average Productivity per Hectare 1980 - 2012 Total increase in productivity over period – 4.1 m3 per ha p.a. (40%)

The Data Itself In order to be able to use the data produced effectively, we need to ensure the following…… It needs to be relevant to our needs Its integrity needs to be sound (i.e. accurate as possible) It needs to be produced on time & at set intervals We would also like to have assess to data from our neighbouring countries

Section 4 Conclusion

Overall Thoughts (1) Standardisation of data collected: Although the South African Forestry Industry is generally well served by the Industry statistics produced by the SA Government and other bodies, there are some issues from an African perspective that we feel need addressing. These are… Standardisation of data collected: What data is collected and reported upon Synchronisation of reporting periods (calendar year vs split year) Standardisation of reporting units (e.g. tons vs m3) Language policy (English & Portuguese i.r.o. SADC) Synchronisation of rebasing of data i.r.o contribution to GDP (New international System of National Accounts (SNA) System) Data collection: Given the challenges that this poses, it may be an idea to look at the following: Remote sensing i.r.o. forestry inventory Verbal reporting rather than written reporting

Overall Thoughts (2) Communication: There is a need to improve the dissemination of forestry and forest products data between African countries. Communication between countries thus far in this respect has been poor. Communication should not be just between Governments but should involve the private sector. Co-operation between countries: There is no need to re-invent the wheel. I am sure that constructive dialogue between countries in the region and with the assistance of the FAO, will be able to come up with a workable solution which will provide accurate and timely data which will be of benefit to both the respective Government’s and Private Sectors involved. Although Forestry South Africa cannot speak on behalf of the South African Government, we would be willing to assist in this process should we be called upon to do so.

Thank You