1. www.forestry.co.za Challenges and Opportunities in the Forestry Industry in South Africa Michael Peter Executive Director: Forestry South Africa Seedling Growers Association Symposium 2 June 2016

2. www.forestry.co.za Commercial Plantation Sector Employment: 165 000 (entire value chain) Total dependants: 558 000 Provides the raw material for beneficiation in other subsectors 1 : 5.25 multiplier ratio – Pulp and Paper – Sawmilling – Particle board – Mining timber – Poles The output of timber growers impacts upon the value chain

3. www.forestry.co.za Macro challenges Expansion of area under plantations – 100 000ha – 47 000ha Legislative barriers – Water Act Genus Exchange Licensing – NEMBA Alien invasive species

4. www.forestry.co.za Physical challenges Fire Fire incidence and impact (1980-2012)

5. www.forestry.co.za Physical challenges Impact of fires Annual loss (1979-2012) – 17 858 ha out of 114 300 ha harvested annually – 15.6% of annual harvest loss – @ 50% of average value of timber – R546 million of roundwood lost annually – R2,86 billion in additional downstream processing lost

6. www.forestry.co.za Physical c hallenges Climate change Leptocybe invasa

7. www.forestry.co.za Biological challenges Pests and diseases Pest & Disease impact (1980 – 2012)

8. www.forestry.co.za Biological challenges Impact of Pests and Diseases Annual loss (1979-2012) – 12 812 ha out of 114 300 ha harvested annually – 11.5% of annual harvest loss – @ 50% of average value of timber – R392 million of roundwood lost annually – R2,05 billion in additional downstream processing lost

9. www.forestry.co.za Enhancing returns Reduce input costs for the same output Increase output for the same input – Protection of growing stock Sustainability

10. www.forestry.co.za Roundwood production vs Plantation area (1980 – 2011) Total increase in afforested area over period: 9.6% Total increase in production over period: 55.9% Impact of Research & Development

11. www.forestry.co.za Yield + Protection Yield  Selection, breeding and hybridisation  Site-species matching Protection  Selection, breeding and hybrids PCC Programme – Deployment of rooted cuttings of the P. patula x P. tecunumanii hybrid Wattle Rust – Breeding of resistant planting material  Management protocols PCC – Reduction in post-planting mortality through improved nursery practice Wattle Rust – Rapid screening and innoculation – Need integrated approach to P+D management

12. www.forestry.co.za Future Plantation ownership –Land claims - partnerships –TIMOs –Carbon tax Climate variability

13. www.forestry.co.za Flexibility and agility – not in forestry lexicon – ceteris parabis –Disruptors (metered taxis) Graphic paper to pulp Long rotation pine vs LGS »Billiegom

14. www.forestry.co.za –Future disruptors Bio-polymers, Green chemicals, Bio-energy »Plantations – “The oil of Africa” »Will require new feedstocks »New practices Marker-assisted breeding Resistance Yield and properties GE (CRISPR, TALENs, China DHs) »Greater integration between SGs and R+D

15. www.forestry.co.za Michael Peter mike@forestrysouthafrica.co.za Cell: 082 808 0425 Tel: +27 11 268 1104