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 Total RSA land area – million ha ha
Land Use in Mpumalanga Total Mpum. land area – 8.2 million ha (6.7% of total) ha
Land Use in KwaZulu Natal Total KZN land area – 9.1 million ha (7.5% of total) ha
Land Use in the Eastern Cape Total E. Cape land area – 17.1 million ha (13.9% of total) ha
Land Use in the Western Cape Total W. Cape land area – 12.9 million ha (10.6% of total) ha
Land Use in Limpopo Total Limpopo land area – 12.0 million ha (9.8% of total) ha
Plantation Area as % of Land Area by Province
Land Use Comparisons 2001, 2006 & 2011 Drop in Forestry Area – ha (5.8%)
Plantation Area Comparisons 2011
Section 2 The Forestry Industry
Plantation Area by Species 2011 Total – ha
Plantation Area by Ownership 2011 Total – ha
Plantation Area by Province 2011 Total – ha
Plantation Area by Province and Genera 2011 Total – ha (softwood) Total – ha (hardwood)
Planted Area Comparisons by Province & Species 2011
Pine Plantation Area by Province 2011 Total – ha (51.1% of total)
Eucalyptus Plantation Area by Region 2011 Total – ha (40.4% of total)
Wattle Plantation Area by Region 2011 Total – ha (7.9% of total)
Other Hardwood Plantation Area by Region 2011 Total – ha (0.4% of total)
Plantation Area by Management Objectives 2011 Total – ha
Softwood Plantation Area by Management Objectives 2011 Total – ha
Hardwood Plantation Area by Management Objectives 2011 Total – ha
Plantation Area by Province and Ownership 2011 Total Private – ha (83.0%) Total Public – ha (17.0%) Leased Safcol packages included in “Private” KLF included in “Public”
Percentage Plantation Ownership by Province 2011 Total Private – ha (83.0%) Total Public – ha (17.0%)
Plantation Area by Species and Ownership 2011 Total Private – ha (83.0%) Total Public – ha (17.0%)
Percentage Plantation Ownership by Species 2011 Total Private – ha (83.0%) Total Public – ha (17.0%)
Planted Area Comparisons by Province & Product 2011
Roundwood Production by Product 2011 Total – 7.6 million m 3 / 7.8mt (softwood) Total – 10.9 million m 3 / 8.2mt (hardwood)
Roundwood Production by Province and Genera 2011 Total – 7.6 million m 3 / 7.8mt (softwood) Total – 10.9 million m 3 / 8.2mt (hardwood)
Roundwood Production by Province and Genera Total – 7.6 million m 3 / 7.8mt (softwood) Total – 10.9 million m 3 / 8.2mt (hardwood)
Roundwood Production ex Plantations by Province & Product 2011 Total – 18.5 million m 3 or 16.0 million tons
Roundwood Production ex Plantations by Province & Product 2011 Total – 18.5 million m 3 or 16.0 million tons
Total Roundwood Production ex Plantations by Province 2011 Total – 18.5 million m 3 or 16.0 million tons
Total Roundwood Production ex Plantations by Product 2011 Total – 18.5 million m 3 or 16.0 million tons
Softwood Roundwood Production ex Plantations by Product 2011 Total – 7.6 million m 3 or 7.8 million tons
Hardwood Roundwood Production ex Plantations by Product 2011 Total – 10.9 million m 3 or 8.2 million tons
Total Roundwood Production ex Plantations by Species 2011 Total – 18.5 million m 3 or 16.0 million tons
Composition of Roundwood Production by Product 2011
Total Plantation Area 1980 to 2011 Total increase in afforested area over period : ha Total % increase in afforested area over period : 9.6% ha increase ha decrease
Total Roundwood Production ex Plantations 1980 to 2011 Total increase in production over period: 55.9% Total in increase in afforested area over period: 9.6%
Roundwood Production vs. Plantation Area 1980 to 2011 Total increase in production over period: 55.9% Total in increase in afforested area over period: 9.6%
Average Productivity per Hectare Total increase in productivity over period – 4.3 m 3 per ha p.a. (42%)
Production Comparisons 2001, 2006 & 2011
Value of Roundwood Production 2011 Total – R7.0 billion
Value of Roundwood Production ex Plantations by Product 2011 Total – R7 012 million
Value of Roundwood Production ex Plantations by Province 2011 Total – R7 012 million
Value of Roundwood Production ex Plantations by Province & Product 2011 Total – R7 012 million
Value of Roundwood Production ex Plantations by Province & Product 2011 Total – R7 012 million
Value of Roundwood Production 1980 to 2011 Nominal increase over period: R6.8 bn (4 157%) Real increase over period: R4.1 bn (138%)
New Afforestation by Region 1980 to 2011 New afforestation over period ha Average per year ha AVERAGE
Total New Afforestation by Region 1980 to 2011 Total – ha
Total New Afforestation by Region 10 Yr Period to 2011 Total – ha
New Afforestation by Region 10 Year Period – 2002 to 2011 New afforestation over period ha Average per year ha AVERAGE
New Afforestation by Province 2011 Total – ha
New Afforestation by Species 1980 to 2011 Average p.a to ha (17.1% of total) Average p.a to ha (31.9% of total) Average p.a to ha (31.7% of total)
Total New Afforestation by Species 1980 to 2011 Total – ha
New Afforestation by Species 2011 Total – ha
New Afforestation by Product 1980 to 2011 Average p.a to ha (9.1% of total) Average p.a to ha (6.5% of total) Average p.a to ha (3.8% of total)
Total New Afforestation by Product 1980 to 2011 Total – ha
New Afforestation by Product 2011 Total – ha
Area Converted Out of Timber Production by Species 1980 to 2011 Area converted over period ha Average p.a ha
Area Converted Out of Timber Production by Species 2002 to 2011 Area converted over period ha Average p.a ha
Total Area Converted out of Timber Production by Species 1980 to 2011 Total – ha
Total Area Converted out of Timber Production by Species 2011 Total – 554 ha
Net New Afforestation by Species 1980 to 2011 Net new afforestation over period ha Average p.a ha
Net New Afforestation by Species 2002 to 2011 Net new afforestation over period ha Average p.a ha
Net New Afforestation by Species 1980 to 2011 Total – ha
Net New Afforestation by Species 2011 Total net new afforestation ha
Area Converted Out of Timber Production by Region 1980 to 2011 Area converted over period ha Average p.a ha
Area Converted Out of Timber Production by Region 2002 to 2011 Area converted over period ha Average p.a ha
Total Area Converted out of Timber Production by Region 1980 to 2011 Total – ha
Net New Afforestation by Region 1980 to 2011 Net new afforestation over period ha Average p.a ha
Net New Afforestation by Region 2002 to 2011 Net new afforestation over period ha Average p.a ha
Net New Afforestation by Region 1980 to 2011 Total – ha
Conversion of Plantations out of Production & to Other Species 1980 to 2011 Net loss to production area over period ha Average p.a ha
Conversion of Plantations out of Production & to Other Species 2002 to 2011 Net loss to production area over period ha Average p.a ha
Total Area Converted out of Production & to Other Species 1980 to 2011 Net loss to production area over period ha Average p.a ha
Area Converted out of Production & to Other Species 2009 Land taken out of timber production ha
Net Addition to Planted Area by Species 1980 to 2011 Total net addition to production area ha Average p.a ha
Net Addition to Planted Area by Species 2002 to 2011 Total net addition to production area ha Average p.a ha
Total Net Addition to Planted Area by Species 1980 to 2011 Total net addition to production area ha Average p.a ha
Net Addition (Loss) to Planted Area by Species 2011 Total net gain in production areaPlus ha
Damage to Plantations by Genera 1980 to 2011 Total area damaged over period ha Average p.a ha
Damage to Plantations by Fires 1980 to 2011 Total area damaged over period ha Total area damaged by fire ha (58%) Total area damaged by other causes ha (42%)
Damage to Plantations by Fires 2002 to 2011 Total area damaged over period ha Total area damaged by fire ha (71%) Total area damaged by other causes ha (29%)
Damage to Plantations by Fires 1980 to 2011
Damage to Plantations by Genera 2011 Total – ha (3.2% of total planted area)
Damage to Plantations by Cause 2011 Total – ha
Damage to Plantations by Fire 2011 Total – ha
FSC Certificates RSA vs. Africa: as at February 2013 RSA FMU certificates cover 1.5 million hectares or 21% of African total coverage of 7.2 million hectares RSA 43% of African Total RSA 61% of African Total
FSC Certified Forests by Ownership: as at February 2013 Certified Area – ha (incl. planted & non-planted areas)
Section 3 The Forest Products Industry
Number of Processing Plants by Type 2011 Total number of plants: 159
Intake of Roundwood into Processing Plants 1980 to 2011 Total increase in intake over period- 7.5 million m 3 (67%) Biggest increase that of pulpwood- 8.9 million m 3 (211%)
Intake of Roundwood into Processing Plants 2011 Total – 18.6 million m 3
Roundwood Intake into Processing Plants by Province & Product 2011 Total – 18.6 million m 3
Roundwood Intake into Processing Plants by Province & Product 2011 Total – 18.6 million m 3
Average Size of Plant by Intake 1980 vs Overall average intake has increased by: - 154% Average intake of PP & Board Mills has increased by: - 107% Only average intake of MT Mills has declined – by- 13%
Sales of Certain Products from Processing Plants 1980 to 2011 Biggest increase that of chips- 2.5 million tons (471%) Biggest decrease that of mining timber- 1.2 million tons (-77%)
Value of Sales from Primary Processing Plants 2011 Total – R21.4 billion
Value of Sales from Primary Processing Plants 2011 Total – R21.4 billion
Value of Sales from Primary Processing Plants 1980 to 2011 Nominal increase over period- R20.7 bn (2 971%) Real increase over period- R9.0 bn (72%)
Value of Roundwood Sales from Processing Plants by Product & Province 2011 Total – R21.4 billion
Value of Roundwood Sales from Processing Plants by Product & Province 2011 Total – R21.4 billion
Gross Value of Output Comparisons 2001, 2006 & 2011
Gross Value of Output Comparisons per Planted Hectare 2001, 2006 & 2011
Value Addition in Primary Processing Industry 2011 Note : excludes secondary processing (e.g. paper manufacturing)
Value Addition Comparisons in Primary Processing Industry 2011 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 Total Employment DirectIndirect Forestry62,70030,00092,700 Pulp and Paper 13,20010,80024,000 Sawmilling20,00010,00030,000 Timber Board 6,000n/a6,000 Mining Timber 2,200n/a2,200 Other11,000n/a11,000 Total115,10050,800165,900 Direct jobs in Forestry = Indirect jobs in Forestry ( less ) =
Direct Employment in Forestry Industry by Province 2011 Total –
Direct Employment in Forestry Industry by Region 2011 Total estimated direct jobs in Industry – Total Employment
Direct Employment in Forestry Industry as % of Those Employed in 2011 Total employed in RSA –
Indirect Employment in Forestry Industry by Province 2011 Total estimated indirect jobs created by Industry – Total Employment
Indirect Employment in Forestry Industry as % of Those Employed in 2011 Total employed in Mpumalanga –
Direct & Indirect Jobs in Forestry Industry by Province 2011 Estimated total – jobs Total Employment
Total Employment in Industry as % of Those Employed in Formal Sector 2011
Dependents of Those Working in Forestry Industry by Province 2011 Estimated total – dependents
Total Number of People Dependent on Forestry Industry by Province 2011 Estimated total – livelihoods
Estimated % of Population Dependent on Forestry Industry Total Population Total RSA population – 51.8 million
Section 5 Investment in Sector
Investment in RSA Forestry Industry 2011 Total Investment - R25.6 Billion
Investment in RSA Forestry Industry 2011 Total Investment - R25.6 Billion
Investment in RSA Forestry Industry 2011 Total Investment - R25.6 Billion
Investment in Plantations – By Province 2011 Mpumalanga has highest investment - 42% of total
Investment in Mpumalanga Forestry 2011 Total Investment - R10.7 Billion
Investment in KZN Forestry 2011 Total Investment - R9.0 Billion
Investment in E. Cape Forestry 2011 Total Investment - R3.3 Billion
Investment in W. Cape Forestry 2011 Total Investment - R1.5 Billion
Investment in Limpopo Forestry 2011 Total Investment - R1.1 Billion
Investment in Forest Products Sector by Type of Processing Plant 2011 Total Book Value of Investments - R15.2 Billion
Investment in Forest Products Sector by Investment Category 2011 Total Book Value of Investments - R15.2 Billion
Section 6 Contribution to GDP
Composition of RSA GDP 2011 Total GDP – R2 661 Billion (i.e. R2.7 Trillion)
Contribution to GDP 1980 to 2011 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 in Mpumalanga of major importance
Forest Products vs. Other Manufacturing GGP per Region 2011
Gross Value of Output by Sector & Province 2011
Forest Industry Contribution to Total GGP per Region
Section 7 Contribution to Foreign Trade
Exports of Forest Products 2012 vs.2011 Exports in 2012 R1.2 bn or 7.7% down on R15.0bn R13.8bn
Imports of Forest Products 2012 vs Imports in 2012 R1.1 bn or 10.4% up on R10.5bn R11.6bn
Imports vs. Exports of Forest Products Trade Balance 2012 vs Trade balance in 2012 R2.2bn or 50% less than in 2011
Imports vs. Exports of Forest Products 2012 Positive trade balance in 2012 = R2.21 billion Exports R13.8bn Imports R11.6bn
Forest Product Exports 2012 Total – R13.8 billion
Forest Product Imports 2012 Total – R11.6 billion
Trade Balance in Forest Products 1992 to 2012 (nominal) Increase in imports- R10.2 billion (720%) Increase in exports- R11.5 billion (491%) Increase in trade balance- R1.3 billion (140%)
Trade Balance in Forest Products 1992 to 2012 (real) Increase in imports- R6.6 billion (131%) Increase in exports- R5.5 billion (66%) Decrease in trade balance- R1.1 billion (-33%)
Export Comparisons 2002, 2007 & 2012