The South African Forestry and Forest Products Industry 2009 Produced By Roger Godsmark Forestry South Africa, September 2010
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 Total RSA land area – 122.3 million ha
Total Mpum. land area – 8.2 million ha (6.7% of total) Land Use in Mpumalanga 519 817 ha Total Mpum. land area – 8.2 million ha (6.7% of total)
Land Use in KwaZulu Natal 504 393 ha Total KZN land area – 9.1 million ha (7.5% of total)
Land Use in the Eastern Cape 141 819 ha Total E. Cape land area – 17.1 million ha (13.9% of total)
Land Use in the Western Cape 59 171 ha Total W. Cape land area – 12.9 million ha (10.6% of total)
Total Limpopo land area – 12.0 million ha (9.8% of total) Land Use in Limpopo 49 668 ha Total Limpopo land area – 12.0 million ha (9.8% of total)
Plantation Area as % of Land Area by Province Forestry in Mpumalanga greatest % of land area
Drop in Forestry Area – 127 000 ha (9.1%) Land Use Comparisons 1999, 2004 & 2009 Drop in Forestry Area – 127 000 ha (9.1%)
Plantation Area Comparisons 2009
Section 2 The Forestry Industry
Plantation Area by Species 2009 Total – 1 274 869 ha
Plantation Area by Ownership 2009 Total – 1 274 869 ha
Plantation Area by Province 2009 Total – 1 274 869 ha
Plantation Area by Province and Genera 2009 Total – 650 024 ha (softwood) Total – 624 845 ha (hardwood)
Planted Area Comparisons by Region & Species 2009
Pine Plantation Area by Region 2009 Total – 650 024 ha (51.0% of total)
Eucalyptus Plantation Area by Region 2009 Total – 515 324 ha (40.4% of total)
Wattle Plantation Area by Region 2009 Total – 104 055 ha (8.2% of total)
Other Hardwood Plantation Area by Region 2009 Total – 5 467 ha (0.4% of total)
Plantation Area by Management Objectives 2009 Total – 1 274 869 ha
Softwood Plantation Area by Management Objectives 2009 Total – 650 024 ha
Hardwood Plantation Area by Management Objectives 2009 Total – 624 845 ha
Plantation Area by Province and Ownership 2009 Leased Safcol packages included in “Private” KLF included in “Public” Total Private – 1 058 908 ha (83.1%) Total Public – 215 961 ha (16.9%)
Percentage Plantation Ownership by Province 2009 Total Private – 1 058 908 ha (83.1%) Total Public – 215 961 ha (16.9%)
Plantation Area by Species and Ownership 2009 Total Private – 1 058 908 ha (83.1%) Total Public – 215 961 ha (16.9%)
Percentage Plantation Ownership by Species 2009 Total Private – 1 058 908 ha (83.1%) Total Public – 215 961 ha (16.9%)
Planted Area Comparisons by Region & Product 2009
Roundwood Production by Product 2009 Total – 7.7 million m3 (softwood) Total – 11.2 million m3 (hardwood)
Roundwood Production by Province and Genera 2009 Total – 7.7 million m3 (softwood) Total – 11.2 million m3 (hardwood)
Roundwood Production by Province and Genera 2009 9.537 6.671 1.727 0.584 0.368 Total – 7.7 million m3 (softwood) Total – 11.2 million m3 (hardwood)
Roundwood Production ex Plantations by Province & Product 2009 Total – 18.9 million m3 or 16.2 million tons
Roundwood Production ex Plantations by Province & Product 2009 Total – 18.9 million m3 or 16.2 million tons
Total Roundwood Production ex Plantations by Province 2009 Total – 18.9 million m3 or 16.2 million tons
Total Roundwood Production ex Plantations by Product 2008 Total – 18.9 million m3 or 16.2 million tons
Softwood Roundwood Production ex Plantations by Product 2009 Total – 7.7 million m3 or 7.9 million tons
Hardwood Roundwood Production ex Plantations by Product 2009 Total – 11.2 million m3 or 8.3 million tons
Total Roundwood Production ex Plantations by Species 2009 Total – 18.9 million m3 or 16.2 million tons
Composition of Roundwood Production by Product 2009
Total Plantation Area 1980 to 2009 Total increase in afforested area over period : 113 463 ha Total % increase in afforested area over period : 9.8%
Total Roundwood Production ex Plantations 1980 to 2009 Total increase in production over period : 59.0% Total in increase in afforested area over period : 9.8%
Roundwood Production vs. Plantation Area 1980 to 2009 Total increase in production over period : 59.0% Total in increase in afforested area over period : 9.8%
Average Productivity per Hectare 1980 - 2009 Total increase in productivity over period – 4.6 m3 per ha p.a. (45%)
Production Comparisons 1999, 2004 & 2009
Value of Roundwood Production 2009 Total – R6.7 billion
Value of Roundwood Production ex Plantations by Product 2009 Total – R6 705 million
Value of Roundwood Production ex Plantations by Province 2009 Total – R6 705 million
Value of Roundwood Production ex Plantations by Province & Product 2009 Total – R6 705 million
Value of Roundwood Production ex Plantations by Province & Product 2009 Total – R6 705 million
Value of Roundwood Production 1980 to 2009 Nominal increase over period : R6.5 bn (3 971%) Real increase over period : R4.0 bn (148%)
New Afforestation by Region 1980 to 2009 AVERAGE New afforestation over period - 382 619 ha Average per year - 12 754 ha
Total New Afforestation by Region 1980 to 2009 Total – 382 619 ha
Total New Afforestation by Region 10 Yr Period - 2000 to 2009 Total – 42 336 ha
New Afforestation by Region 10 Year Period – 2000 to 2009 AVERAGE New afforestation over period - 39 614 ha Average per year - 3 961 ha
New Afforestation by Province 2009 Total – 2 169 ha
New Afforestation by Species 1980 to 2009 Average p.a. 1980 to 1985 - 10 974 ha (17.2% of total) Average p.a. 1986 to 1990 - 24 558 ha (32.1% of total) Average p.a. 1991 to 1995 - 24 406 ha (31.9% of total)
Total New Afforestation by Species 1980 to 2009 Total – 382 619 ha
New Afforestation by Species 2009 Total – 2 169 ha
New Afforestation by Product 1980 to 2009 Average p.a. 1996 to 2000 - 7 019 ha (9.2% of total) Average p.a. 2001 to 2005 - 5 044 ha (6.6% of total) Average p.a. 2006 to 2009 - 2 910 ha (3.0% of total)
Total New Afforestation by Product 1980 to 2009 Total – 382 619 ha
New Afforestation by Product 2009 Total – 2 169 ha
Area Converted Out of Timber Production by Species 1980 to 2009 Area converted over period - 89 390 ha Average p.a. - 2 980 ha
Total Area Converted out of Timber Production by Species 1980 to 2009 Total – 89 390 ha
Total Area Converted out of Timber Production by Species 2009 Total – 3 554 ha
Net New Afforestation by Species 1980 to 2009 Net new afforestation over period - 293 229 ha Average p.a. - 9 774 ha
Net New Afforestation by Species 1980 to 2009 Total – 293 229 ha
Net New Afforestation by Species 2009 Total net new afforestation - Minus 1 385 ha
Area Converted Out of Timber Production by Region 1980 to 2009 Area converted over period - 89 390 ha Average p.a. - 2 980 ha
Total Area Converted out of Timber Production by Region 1980 to 2009 Total – 89 390 ha
Net New Afforestation by Region 1980 to 2009 Net new afforestation over period - 293 229 ha Average p.a. - 9 774 ha
Net New Afforestation by Region 1980 to 2009 Total – 293 229 ha
Conversion of Plantations out of Production & to Other Species 1980 to 2009 Net loss to production area over period - 89 390 ha Average p.a. - 2 980 ha
Total Area Converted out of Production & to Other Species 1980 to 2009 Net loss to production area over period - 89 390 ha Average p.a. - 2 980 ha
Area Converted out of Production & to Other Species 2009 Net loss to production area - 3 554 ha
Net Addition to Planted Area by Species 1980 to 2009 Total net addition to production area - 293 229 ha Average p.a. - 9 774 ha
Total Net Addition to Planted Area by Species 1980 to 2009 Total net addition to production area - 293 229 ha Average p.a. - 9 774 ha
Net Addition (Loss) to Planted Area by Species 2009 Total net gain in production area Minus 1 385 ha
Damage to Plantations by Genera 1980 to 2009 Total area damaged over period - 930 573 ha Average p.a. - 31 019 ha
Damage to Plantations by Fires 1980 to 2009 Total area damaged over period - 930 573 ha Total area damaged by fire - 548 568 ha (59%) Total area damaged by other causes - 382 005 ha (41%)
Damage to Plantations by Fires 1980 to 2009
Damage to Plantations by Genera 2009 Total – 22 808 ha (1.8% of total planted area)
Damage to Plantations by Cause 2009 Total – 22 808 ha
Damage to Plantations by Fire 2009 Total – 19 805 ha
FSC Certified Forests by Forest Type: August 2009 Certified Area – 1 572 568 ha (incl. planted & non-planted areas)
FSC Certified Forests by Ownership: August 2009 Certified Area – 1 572 568 ha (incl. planted & non-planted areas)
The Forest Products Industry Section 3 The Forest Products Industry
Number of Processing Plants by Type 2009 Total number of plants: 192
Intake of Roundwood into Processing Plants 1980 to 2009 Total increase in intake over period - 7.4 million m3 (67%) Biggest increase that of pulpwood - 8.7 million m3 (206%)
Intake of Roundwood into Processing Plants 2009 Total – 18.5 million m3
Roundwood Intake into Processing Plants by Province & Product 2009 Total – 18.5 million m3
Roundwood Intake into Processing Plants by Province & Product 2009 Total – 18.5 million m3
Average Size of Plant by Intake 1980 vs. 2009 Overall average intake has increased by: - 109% Average intake of PP & Board Mills has increased by: - 130% Only average intake of MT Mills has declined – by - 35%
Sales of Certain Products from Processing Plants 1980 to 2009 Biggest increase that of chips - 3.5 million tons (652%) Only decrease that of mining timber - 1.2 million tons (-72%)
Value of Sales from Primary Processing Plants 2009 Total – R20.4 billion
Value of Sales from Primary Processing Plants 2009 Total – R20.4 billion
Value of Sales from Primary Processing Plants 2009 Total – R20.4 billion
Value of Sales from Primary Processing Plants 1980 to 2009 Nominal increase over period - R19.7 bn (2 823%) Real increase over period - R8.9 bn (78%)
Value of Roundwood Sales from Processing Plants by Product & Province 2009 Total – R20.4 billion
Value of Roundwood Sales from Processing Plants by Product & Province 2009 Total – R20.4 billion
Gross Value of Output Comparisons 1999, 2004 & 2009
Gross Value of Output Comparisons per Planted Hectare 1999, 2004 & 2009
Value Addition in Primary Processing Industry 2009 Note : excludes secondary processing (e.g. paper manufacturing)
Value Addition Comparisons in Primary Processing Industry 2009 Note : Based only on input value of raw fibre (i.e. excludes all other input costs)
Contribution to Employment Section 4 Contribution to Employment
Forest Sector Employment – RSA 2009 Sub-sector No. of employees Total Employment Direct Indirect Forestry 66,500 30,000 96,500 Pulp and Paper 13,200 10,800 24,000 Sawmilling 20,000 10,000 Timber Board 6,000 n/a Mining Timber 2,200 Other 11,000 Total 118,900 50,800 169,700
Direct Employment in Forestry Industry by Province 2009 Total – 66 500
Direct Employment in Forestry Industry by Region 2009 Total estimated direct jobs in Industry – 66 500
Direct Employment in Forestry Industry as % of Those Employed in 2009 Total employed in RSA – 13.4 million
Indirect Employment in Forestry Industry by Province 2009 Total estimated indirect jobs created by Industry – 371 000
Total employed in Mpumalanga – 897 000 Indirect Employment in Forestry Industry as % of Those Employed in 2009 Total employed in Mpumalanga – 897 000
Direct & Indirect Jobs in Forestry Industry by Province 2009 Estimated total – 437 400 jobs
Total employed in Mpumalanga – 897 000 Total Employment in Industry as % of Those Employed in Formal Sector 2009 Total employed in Mpumalanga – 897 000
Dependents of Those Working in Forestry Industry by Region 2009 53 000 Estimated total – 1.4 million dependents
Total Number of People Dependent on Forestry Industry by Region 2009 Estimated total – 1.8 million livelihoods
Estimated % of Population Dependent on Forestry Industry 2009
Section 5 Investment in Sector
Investment in RSA Forestry Industry 2009 Total Investment - R24.8 Billion
Investment in RSA Forestry Industry 2009 Total Investment - R24.8 Billion
Investment in RSA Forestry Industry 2009 Total Investment - R24.8 Billion
Investment in Plantations – By Province 2009 Mpumalanga has highest investment - 42% of total
Investment in Mpumalanga Forestry 2009 Total Investment - R10.3 Billion
Investment in KZN Forestry 2009 Total Investment - R9.1 Billion
Investment in E. Cape Forestry 2009 Total Investment - R2.9 Billion
Investment in W. Cape Forestry 2009 Total Investment - R1.3 Billion
Investment in Limpopo Forestry 2009 Total Investment - R1.1 Billion
Investment in Forest Products Sector by Type of Processing Plant 2009 Total Book Value of Investments - R15.7 Billion
Investment in Forest Products Sector by Investment Category 2009 Total Book Value of Investments - R15.7 Billion
Section 6 Contribution to GDP
Total GDP – R2 284 Billion (i.e. R2.3 Trillion) Composition of RSA GDP 2009 Total GDP – R2 284 Billion (i.e. R2.3 Trillion)
Contribution to GDP 1980 to 2009 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%
Forestry vs. Other Agricultural GGP per Region 2009 Forestry in Mpumalanga of major importance
Forest Products vs. Other Manufacturing GGP per Region 2009
Gross Value of Output by Sector & Province 2009
Gross Value of Output by Sector & Province 2009
Forest Industry Contribution to Total GGP per Region - 2009
Forest Industry Contribution to Total GGP per Region - 2009
Contribution to Foreign Trade Section 7 Contribution to Foreign Trade
Imports vs. Exports of Forest Products 2009 Positive trade balance in 2009 = R2.91 billion
Forest Product Exports 2009 Total – R12.5 billion
Forest Product Imports 2009 Total – R9.6 billion
Trade Balance in Forest Products 1992 to 2009 (nominal) Increase in imports - R8.1 billion (574%) Increase in exports - R10.1 billion (432%) Increase in trade balance - R2.0 billion (214%)
Trade Balance in Forest Products 1992 to 2009 (real) Increase in imports - R5.2 billion (119%) Increase in exports - R5.3 billion (73%) Increase in trade balance - R0.1 billion (2%)
Export Comparisons 1999, 2004 & 2009