The South African Forestry and Forest Products Industry 2007 Roger Godsmark Produced by Forestry South Africa, August 2008
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 514 956 ha Total Mpum. land area – 8.2 million ha (6.7% of total)
Land Use in KwaZulu Natal 486 967 ha Total KZN land area – 9.1 million ha (7.5% of total)
Land Use in the Eastern Cape 155 078 ha Total E. Cape land area – 17.1 million ha (13.9% of total)
Land Use in the Western Cape 61 097 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 48 096 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
Land Use Comparisons in RSA 1996, 2001 & 2007 Drop in Forestry Area – 221 000 ha (14.9%)
Section 2 The Forestry Industry
Plantation Area by Species 2007 Total – 1 266 194 ha
Plantation Area by Ownership 2007 Total – 1 266 194 ha
Plantation Area by Province 2007 Total – 1 266 194 ha
Plantation Area by Province and Genera 2007 Total – 677 079 ha (softwood) Total – 589 115 ha (hardwood)
Planted Area Comparisons by Region & Species 2007
Pine Plantation Area by Region 2007 Total – 677 079 ha (53.5% of total)
Eucalyptus Plantation Area by Region 2007 Total – 477 703 ha (37.7% of total)
Wattle Plantation Area by Region 2007 Total – 102 980 ha (8.1% of total)
Other Hardwood Plantation Area by Region 2007 Total – 8 432 ha (0.7% of total)
Plantation Area by Management Objectives 2007 Total – 1 266 194 ha
Softwood Plantation Area by Management Objectives 2007 Total – 677 079 ha
Hardwood Plantation Area by Management Objectives 2007 Total – 589 118 ha
Plantation Area by Province and Ownership 2007 Leased Safcol packages included in “Private” Total Private – 1 051 223 ha (83%) Total Public – 214 971 ha (17%)
Percentage Plantation Ownership by Province 2007 Total Private – 1 051 223 ha (83%) Total Public – 214 971 ha (17%)
Plantation Area by Species and Ownership 2007 Total Private – 1 051 223 ha (83%) Total Public – 214 971 ha (17%)
Percentage Plantation Ownership by Species 2007 Total Private – 1 051 223 ha (83%) Total Public – 214 971 ha (17%)
Planted Area Comparisons by Region & Product 2007
Plantation Area by Ownership and Species 2007
Roundwood Production by Province and Genera 2007 Total – 9.0 million m3 (softwood) Total – 11.3 million m3 (hardwood)
Roundwood Production by Province and Genera 2007 9.356 7.906 1.750 0.684 0.634 Total – 9.0 million m3 (softwood) Total – 1.3 million m3 (hardwood)
Total Roundwood Production ex Plantations by Province 2007 Total – 20.3 million m3 or 17.8 million tons
Total Roundwood Production ex Plantations by Product 2007 Total – 20.3 million m3 or 17.8 million tons
Softwood Roundwood Production ex Plantations by Product 2007 Total – 9.0 million m3 or 9.3 million tons
Hardwood Roundwood Production ex Plantations by Product 2007 Total – 11.3 million m3 or 8.4 million tons
Total Roundwood Production ex Plantations by Species 2007 Total – 20.3 million m3 or 17.8 million tons
Composition of Roundwood Production by Product 2007
Total Roundwood Production ex Plantations 1980 to 2007 Total increase in production over period : 71.1% Total in increase in afforested area over period : 9.0%
Roundwood Production vs. Plantation Area 1980 to 2007 Total increase in production over period - 71.1% Total in increase in afforested area over period - 9.0%
Average Productivity per Hectare 1980 - 2007 Total increase in productivity over period – 5.8 m3 per ha p.a. (57%)
Production Comparisons 1996, 2001 & 2007
Value of Roundwood Production 2007 Total – R5.2 billion
Value of Roundwood Production 1980 to 2007 Nominal increase over period : R5.0 bn (3 037%) Real increase over period : R2.9 bn (129%)
New Afforestation by Region 1980 to 2007 AVERAGE New afforestation over period - 375,811 ha Average per year - 13,422 ha
Total New Afforestation by Region 1980 to 2007 Total – 375 811 ha
New Afforestation by Region 10 Year Period – 1998 to 2007 AVERAGE New afforestation over period - 42 010 ha Average per year - 4 201 ha
Total New Afforestation by Region 10 Yr Period - 1998 to 2007 Total – 42 010 ha
New Afforestation by Province 2007 Total – 2,198 ha
New Afforestation by Species 1980 to 2007 Average p.a. 1980 to 1985 - 10 974 ha (17.5% of total) Average p.a. 1986 to 1990 - 24 558 ha (32.7% of total)
Total New Afforestation by Species 1980 to 2007 Total – 375 809 ha
New Afforestation by Species 2007 Total – 2 196ha
New Afforestation by Product 1980 to 2007 Average p.a. 1991 to 1995 - 24 406 ha (32.5% of total) Average p.a. 1996 to 2000 - 7 019 ha (9.3% of total) Average p.a. 2001 to 2007 - 4 293 ha (8.0% of total)
Total New Afforestation by Product 1980 to 2007 Total – 375 809 ha
New Afforestation by Product 2007 Total – 2 198 ha
Area Converted Out of Timber Production by Species 1980 to 2007 Area converted over period - 85 140 ha Average p.a. - 3 041 ha
Total Area Converted out of Timber Production by Species 1980 to 2007 Total – 85 140 ha
Total Area Converted out of Timber Production by Species 2007 Total – 793 ha
Net New Afforestation by Species 1980 to 2007 Net new afforestation over period - 290 669 ha Average p.a. - 10 766 ha
Net New Afforestation by Species 1980 to 2007 Total – 290 669 ha
Net New Afforestation by Species 2007 Total net new afforestation - 1 403 ha
Area Converted Out of Timber Production by Region 1980 to 2007 Area converted over period - 85 140 ha Average p.a. - 3 041 ha
Total Area Converted out of Timber Production by Region 1980 to 2007 Total – 85 140 ha
Net New Afforestation by Region 1980 to 2007 Net new afforestation over period - 290 669 ha Average p.a. - 10 766 ha
Net New Afforestation by Region 1980 to 2007 Total – 290 669 ha
Conversion of Plantations out of Production & to Other Species 1980 to 2007 Net loss to production area over period - 85 140 ha Average p.a. - 3 041 ha
Total Area Converted out of Production & to Other Species 1980 to 2007 Net loss to production area over period - 85 140 ha Average p.a. - 3 041 ha
Area Converted out of Production & to Other Species 2007 Net loss to production area - 793 ha
Net Addition to Planted Area by Species 1980 to 2007 Total net addition to production area - 290 696 ha Average p.a. - 10 766 ha
Total Net Addition to Planted Area by Species 1980 to 2007 Total net addition to production area - 290 669 ha Average p.a. - 10 766 ha
Net Addition (Loss) to Planted Area by Species 2007 Total net gain in production area - 1403 ha
Damage to Plantations by Genera 1980 to 2007 Total area damaged over period - 830 615 ha Average p.a. - 29 665 ha
Damage to Plantations by Fires 1980 to 2007 Total area damaged over period - 830 615 ha Total area damaged by fire - 457 951 ha (55.1%) Total area damaged by other causes - 372 664 ha (44.9%)
Damage to Plantations by Fires 1980 to 2007
Damage to Plantations by Genera 2007 Total – 97 593 ha (7.7% of total planted area)
Damage to Plantations by Cause 2007 Total – 97 593 ha
Damage to Plantations by Fire 2007 Total – 70 697 ha
FSC Certified Forests by Forest Type: October 2007 Certified Area – 1 622 196 ha (incl. planted & non-planted areas)
FSC Certified Forests by Ownership: October 2007 Certified Area – 1 622 196 ha (incl. planted & non-planted areas)
The Forest Products Industry Section 3 The Forest Products Industry
Number of Processing Plants by Type 2007 Total – 178 plants
Intake of Roundwood into Processing Plants 1980 to 2007 Total increase in intake over period - 8.7 million m3 (78%) Biggest increase that of pulpwood - 9.7 million m3 (229%)
Intake of Roundwood into Processing Plants 2007 Total – 19.8 million m3
Average Size of Plant by Intake 1980 vs. 2007 Overall average intake has increased by: - 141% Average intake of PP & Board Mills has increased by: - 98% Only average intake of MT Mills has declined – by - 13%
Sales of Certain Products from Processing Plants 1980 to 2007 Biggest increase that of chips - 4.4 million tons (823%) Only decrease that of mining timber - 1.2 million tons (71%)
Value of Sales from Primary Processing Plants 2007 Total – R18.5 billion
Value of Sales from Primary Processing Plants 1980 to 2007 Nominal increase over period - R17.8 bn (2 549%) Real increase over period - R8.9 bn (93%)
Contribution to GDP 1980 to 2007 Increase in Forestry GDP over period from 4.5% to 9.1% Decrease in For. Prod. GDP over period from 6.3% to 5.7%
Gross Value of Output Comparisons 1996, 2001 & 2007
Gross Value of Output Comparisons per Planted Hectare 1996, 2001 & 2007
Value Addition in Primary Processing Industry 2007 Note : excludes secondary processing (e.g. paper manufacturing)
Value Addition Comparisons in Primary Processing Industry 2007 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 2007 Sub-sector No. of employees Total Employment Direct Indirect Forestry 76,844 30,000 106,844 Pulp and Paper 13,200 10,781 23,981 Sawmilling 20,000 n/a Timber Board 6,000 Mining Timber 2,200 Other 11,000 Total 129,244 40,781 170,025
Direct Employment in Forestry Industry by Province 2007 Total – 77,000
Direct Employment in Forestry Industry by Region 2007 Total estimated direct jobs in Industry – 77,000
Direct Employment in Forestry Industry as % of Those Employed in 2007 Total employed in RSA – 12.5 million
Indirect Employment in Forestry Industry by Province 2007 Total estimated indirect jobs created by Industry – 462,000
Total employed in Mpumalanga – 803,000 Indirect Employment in Forestry Industry as % of Those Employed in 2007 Total employed in Mpumalanga – 803,000
Direct & Indirect Jobs in Forestry Industry by Province 2007 Estimated total – 539,400 jobs
Total employed in Mpumalanga – 0.8 million Total Employment in Industry as % of Those Employed in Formal Sector 2007 Total employed in Mpumalanga – 0.8 million
Dependents of Those Working in Forestry Industry by Region 2007 59,000 Estimated total – 1.7 million dependents
Total Number of People Dependent on Forestry Industry by Region 2007 Estimated total – 2.3 million livelihoods
Estimated % of Population Dependent on Forestry Industry 2007
Section 5 Investment in Sector
Investment in RSA Forestry Industry 2007 Total Investment - R17.4 Billion
Investment in RSA Forestry Industry 2007 Total Investment - R17.4 Billion
Investment in RSA Forestry Industry 2007 Total Investment - R17.4 Billion
Investment in Plantations – By Province Mpumalanga has highest investment - 41.6% of total
Investment in Mpumalanga Forestry 2007 Total Investment - R7.2 Billion
Investment in KZN Forestry 2006 Total Investment - R5.9 Billion
Investment in E. Cape Forestry 2007 Total Investment - R2.5 Billion
Investment in W. Cape Forestry 2007 Total Investment - R1.1 Billion
Investment in Limpopo Forestry 2007 Total Investment - R745 Million
Investment in Forest Products Sector by Type of Processing Plant 2007 Total Book Value of Investments - R15.8 Billion
Investment in Forest Products Sector by Investment Category 2007 Total Book Value of Investments - R15.8 Billion
Section 6 Contribution to GDP
Composition of RSA GDP 2007 Total GDP – R1 727 Billion
Contribution to GDP 1980 to 2007 Increase in Forestry GDP over period from 4.5% to 9.1% Decrease in For. Prod. GDP over period from 6.3% to 5.7%
Forestry vs. Other Agricultural GGP per Region 2007 Forestry in Mpumalanga of major importance
Forest Products vs. Other Manufacturing GGP per Region 2007
Forest Industry Contribution to Total GGP per Region - 2007
Forest Industry Contribution to Total GGP per Region - 2007
Gross Value of Output Comparisons 1996, 2001 & 2007
Gross Value of Output Comparisons per Planted Hectare 1996, 2001 & 2007
Contribution to Foreign Trade Section 7 Contribution to Foreign Trade
Forest Product Exports 2007 Total – R12.2 billion
Forest Product Imports 2007 Total – R9.8 billion
Trade Balance in Forest Products 1980 to 2007 (nominal) Increase in imports - R8.3 billion (589%) Increase in exports - R9.8 billion (421%) Increase in trade balance - R1.5 billion (164%)
Trade Balance in Forest Products 1980 to 2007 (real) Increase in imports - R6.1 billion (168%) Increase in exports - R6.2 billion (103%) Increase in trade balance - R0.06 billion (3%)
Export Comparisons 1996, 2001 & 2007