1. SOUTH AFRICAN FORESTRY AND FOREST PRODUCTS INDUSTRY 2016
SEPTEMBER 2017
By Roger Godsmark

2. 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

3. Section 1
INTRODUCTION

4. Land Use in South Africa
Total RSA land area million ha

5. Land Use in Mpumalanga 495 247 ha
Total MP land area 8.2 million ha (6.7% of total)

6. Land Use in KwaZulu Natalha
Total KZN land area 9.1 million ha (7.5% of total)

7. Land Use in the Eastern Cape
Total E. Cape land area
17.1 million ha (13.9% of total) ha

8. Land Use in the Western Cape
Total W. Cape land area
12.9 million ha (10.6% of total) ha

9. Land Use in Limpopo 12.0 million ha (9.8% of total) 53 085ha
Total Limpopo land area
12.0 million ha (9.8% of total)
53 085ha

10. Plantation area as % of land area by province

11. Land use comparisons: 2006, 2011 & 2016
Drop in forestry area: ha (4.8%)

12. Plantation Area Comparisons 2016

13. Section 2
THE FORESTRY INDUSTRY

14. Plantation Area by Species 2016
Total – ha

15. Plantation Area by Ownership 2016
Total – ha

16. Plantation Area by Province 2016
Total – ha

17. Plantation Area by Province and Genera 2016
Total – ha (softwood); Total – ha (hardwood)

18. Plantation Area by Province and Genera 2016
Total – ha (softwood); Total – ha (hardwood)

19. Planted Area Comparisons by Province & Species 2016

20. Pine Plantation Area by Province 2016
Total ha (49.8% of total)

21. Eucalyptus Plantation Area by Province 2016
Total ha (42.7% of total)

22. Wattle Plantation Area by Province 2016
Total ha (7.1% of total)

23. Other Hardwood Plantation Area by Province 2016
Total ha (0.4% of total)

24. Plantation Area by Management Objectives 2016
Total – ha

25. Softwood Plantation Area by Management Objectives 2016
Total – ha

26. Hardwood Plantation Area by Management Objectives 2016
Total – ha

27. Plantation Area by Province and Ownership 2016
Leased Safcol packages included in “Private”
KLF included in “Public”
Total Private – ha (82.3%)
Total Public – ha (17.7%)

28. Percentage Plantation Ownership by Province 2016
Total Private – ha (82.3%)
Total Public – ha (17.7%)

29. Plantation Area by Species and Ownership 2016
Total Private – ha (82.3%)
Total Public – ha (17.7%)

30. Percentage Plantation Ownership by Species 2016
Total Private – ha (82.3%)
Total Public – ha (17.7%)

31. Planted Area Comparisons by Province & Product 2016

32. Roundwood Production by Product 2016
Total – 6.6 million m3 / 6.9 mt (softwood)
Total – 9.8 million m3 / 7.3 mt (hardwood)

33. Roundwood Production by Province and Genera 2016
Total – 6.6 million m3 / 6.9 mt (softwood)
Total – 9.8 million m3 / 7.3 mt (hardwood)

34. Roundwood Production by Province and Genera 2016
8.419
5.261
1.507
0.729
0.527
Total – 6.6 million m3 / 6.9 mt (softwood)
Total – 9.8 million m3 / 7.3 mt (hardwood)

35. Roundwood Production ex Plantations by Province & Product 2016
Total – 16.4 million m3 or 14.2 million tons

36. Roundwood Production ex Plantations by Province & Product 2016
Total – 16.4 million m3 or 14.2 million tons

37. Total Roundwood Production ex Plantations by Province 2016
Total – 17.9 million m3 or 15.3 million tons

38. Total Roundwood Production ex Plantations by Product 2016
Total – 16.4 million m3 or 14.2 million tons

39. Softwood Roundwood Production ex Plantations by Product 2016
Total – 6.6 million m3 or 6.9 million tons

40. Hardwood Roundwood Production ex Plantations by Product 2016
Total – 9.8 million m3 or 7.3 million tons

41. Total Roundwood Production ex Plantations by Species 2016
Total – 16.4 million m3 or 14.2 million tons

42. Composition of Roundwood Production by Product 2016
Overall: Softwood = 40% & Hardwood = 60%

43. Total Plantation Area 1980 to 2016
19.6% decrease
ha decrease
ha increase
Total increase in planted area over period ha (5.1%)

44. Total Roundwood Production ex Plantations 1980 to 2016
Total increase in production over period: 38.4%
Total increase in afforested area over period: 5.1%

45. Index of Roundwood Production vs. Plantation Area 1980 to 2016
Total increase in production over period: 38.4%
Total increase in afforested area over period: 5.1%

46. Average Productivity per Hectare 1980 - 2016
Total increase in productivity over period – 3.2 m3 per ha p.a. (32%)

47. Production Comparisons 2006, 2011 & 2016

48. Value of Roundwood Production 2016
Total R9.0 billion (R0.5bn less than 2015)

49. Value of Roundwood Production ex Plantations by Product 2016
Total – R8 988 million

50. Value of Roundwood Production ex Plantations by Province 2016
Total – R8 988 million

51. Value of Roundwood Production ex Plantations by Province & Product 2016
Total – R8 988 million

52. Value of Roundwood Production ex Plantations by Province & Product 2016
Total – R8 988 million

53. Value of Roundwood Production 1980 to 2016
Nominal increase over period: R8.8 bn (5 364%)
Real increase over period: R5.0 bn (124%)

54. New Afforestation by Region 1980 to 2016
AVERAGE
New afforestation over period: ha
Average per year: ha

55. Total New Afforestation by Region 1980 to 2016
Total – ha

56. Total New Afforestation by Region 10 Yr Period - 2007 to 2016
Total – ha

57. New Afforestation by Region 10 Year Period – 2007 to 2016
AVERAGE
New afforestation over period: ha
Average per year: ha

58. New Afforestation by Province 2016
Total – ha

59. New Afforestation by Species 1980 to 2016
AVERAGE PER ANNUM 1980 to 1985: ha (16.8% of total)
1986 to 1990: ha (31.4% of total)
1991 to 1995: ha (31.2% of total)
1996 to 2000: ha (9.0% of total)

60. Total New Afforestation by Species 1980 to 2016
Total – ha

61. New Afforestation by Species 2016
Total – ha

62. New Afforestation by Product 1980 to 2016
AVERAGE PER ANNUM 2001 to 2005: ha (6.5% of total)
2006 to 2010: ha (3.3% of total)
2011 to 2016: ha (1.8% of total)

63. Total New Afforestation by Product 1980 to 2016
Total – ha

64. New Afforestation by Product 2016
Total – ha

65. Area Converted Out of Timber Production by Species 1980 to 2016
Area converted over period: ha
Average p.a.: ha

66. Area Converted Out of Timber Production by Species 2007 to 2016
Area converted over period: 7 906ha
Average p.a.: ha

67. Total Area Converted out of Timber Production by Species 1980 to 2016
Total – ha

68. Total Area Converted out of Timber Production by Species 2016
Total – 638 ha

69. Net New Afforestation by Species 1980 to 2016
Net new afforestation over period: ha
Average p.a.: ha

70. Net New Afforestation by Species 2007 to 2016
Net new afforestation over period: ha
Average p.a.: 939 ha

71. Net New Afforestation by Species 1980 to 2016
Total – ha

72. Net New Afforestation by Species 2016
Total net new afforestation ha

73. Area Converted Out of Timber Production by Region 1980 to 2016
Area converted over period: ha
Average p.a: ha

74. Area Converted Out of Timber Production by Region 2007 to 2016
Area converted over period: ha
Average p.a.: 791 ha

75. Total Area Converted out of Timber Production by Region 1980 to 2016
Total – ha

76. Net New Afforestation by Region 1980 to 2016
Net new afforestation over period: ha
Average p.a.: ha

77. Net New Afforestation by Region 2007 to 2016
Net new afforestation over period: ha
Average p.a.: 939 ha

78. Net New Afforestation by Region 1980 to 2016
Total – ha

79. Conversion of Plantations out of Production & to Other Species 1980 to 2016
Net loss to production area over period: ha
Average p.a.: ha

80. Conversion of Plantations out of Production & to Other Species 2007 to 2016
Net loss to production area over period: ha
Average p.a.: 791 ha

81. Total Area Converted out of Production & to Other Species 1980 to 2016
Net loss to production area over period: ha
Average p.a.: ha

82. Area Converted out of Production & to Other Species 2016
Land taken out of timber production: 638 ha

83. Net Addition to Planted Area by Species 1980 to 2016
Total net addition to production area: ha
Average p.a.: ha

84. Net Addition to Planted Area by Species 2007 to 2016
Total net addition to production area: ha
Average p.a.: 939 ha

85. Total Net Addition to Planted Area by Species 1980 to 2016
Total net addition to production area: ha
Average p.a.: ha

86. Net Addition (Loss) to Planted Area by Species 2016
Total net gain in production area: Plus 469 ha

87. Damage to Plantations by Genera 1980 to 2016
Total area damaged over period: ha
Average p.a.: ha

88. Damage to Plantations by Fires 1980 to 2016
Total area damaged over period: ha
Total area damaged – fire: ha (58%)
Total area damaged - other causes: ha (42%)

89. Damage to Plantations by Fires 2007 to 2016
Total area damaged over period: ha
Total area damaged – fire: ha (68%)
Total area damaged - other causes: ha (32%)

90. Damage to Plantations by Fires 1980 to 2016

91. Damage to Plantations by Genera 2016
Total – ha (2.3% of total planted area)

92. Damage to Plantations by Cause 2016
Total – ha

93. Damage to Plantations by Fire 2016
Total – ha

94. FSC Certificates RSA vs. Africa: as at September 2017
of African
Total
RSA 38%
of African
Total
RSA FMU certificates cover million ha or 18% of African total coverage of million ha

95. FSC Certified Forest Areas in Africa as at September 2017
Total FSC certified area in Africa: ha

96. FSC Certified Forest Areas in Selected Countries as at September 2017
Total FSC certified area in world:
198 million ha

97. FSC Certified Forest Areas Top 5 Countries as at September 2017
Total FSC certified area in world:
198 million ha

98. FSC Certified Forests by Region as at September 2017
Total FSC certified area: 198 million ha in 84 countries

99. FSC Certified Forests by Ownership: as at September 2017
Certified Area – ha (incl. planted & non-planted areas)

100. FSC Certified Forests by Ownership as at September 2017
Total FSC certified area: ha

101. THE FOREST PRODUCTS INDUSTRY
Section 3
THE FOREST PRODUCTS INDUSTRY

102. Number of Processing Plants by Type 2016
Total number of plants: 151

103. Intake of Roundwood into Processing Plants 1980 to 2016
Total increase in intake over period: 5.3 m m3 (48%) Biggest increase that of pulpwood: 7.0 m m3 (166%)

104. Intake of Roundwood into Processing Plants 2016
Total – million m3

105. Roundwood Intake into Processing Plants by Province & Product 2016
Total – 16.4 million m3

106. Roundwood Intake into Processing Plants by Province & Product 2016
Total – 16.4 million m3

107. Average Size of Plant by Intake 1980 vs. 2016
Overall average intake has increased by: 137%
Average intake of Sawmills has increased by: 112%
Only average intake of MT Mills has declined by: 61%

108. Sales of Certain Products from Processing Plants 1980 to 2016
Biggest increase that of chips: 1.8 million tons (+335%)
Biggest decrease that of mining timber: 1.3 million tons (-79%)

109. Value of Sales from Primary Processing Plants 2016
Total R25.5 billion

110. Value of Sales from Primary Processing Plants 2016
Total R25.5 billion

111. Value of Sales from Primary Processing Plants 1980 to 2016
Nominal increase over period R24.8 bn (3 563%)
Real increase over period R8.5 bn (50%)

112. Value of Roundwood Sales from Processing Plants by Product & Province 2016
Total R25.5 billion

113. Value of Roundwood Sales from Processing Plants by Product & Province 2016
Total R25.5 billion

114. Gross Value of Output Comparisons 2006, 2011 & 2016

115. Gross Value of Output Comparisons per Planted Hectare 2006, 2011 & 2016

116. Value Addition in Primary Processing Industry 2016
Note: excludes secondary processing (e.g. paper manufacturing)

117. Value Addition Comparisons in Primary Processing Industry 2016
Note: Based only on input value of raw fibre (i.e. excludes all other input costs)

118. CONTRIBUTION TO EMPLOYMENT
Section 4
CONTRIBUTION TO EMPLOYMENT

119. Forest Sector Employment – RSA 2016
Sub-sector
No. of employees
Total Employment
Direct
Indirect
Forestry
60,200
28,000
88,200
Pulp and Paper
13,200
10,800
24,000
Sawmilling
20,000
8,000
Timber Board
6,000
n/a
Mining Timber
2,200
Other
10,000
Total
111, 600
46,800
Direct jobs in Forestry =
Indirect jobs in Forestry ( less ) =

120. Direct Employment in Forestry Industry by Province 2016
Total

121. Direct Employment in Forestry Industry by Region 2016
Total
Employment
Total est. direct jobs in industry:

122. Direct Employment in Forestry Industry as % of Those Employed in 2016
Total employed in RSA:

123. Indirect Employment Created by Forestry Industry by Province 2016
Total
Employment
Total estimated indirect jobs created by industry in forestry and wood processing activities –

124. Indirect Employment Created by Forestry Industry as % of Those Employed in 2016

125. Direct & Indirect Jobs in & Created by Forestry Industry by Province 2016
Total
Employment
Estimated total – jobs

126. Total Employment in Industry as % of Those Employed in Formal Sector 2016

127. Dependants of Those Working in Forestry Industry by Province 2016
19 000
Est. total – dependants

128. Total Number of People Dependent on Forestry Industry by Province 2016
Est. total – livelihoods

129. Estimated % of Population Dependent on Forestry Industry 2016
Total
Population
Total RSA population: 55.9 million

130. INVESTMENT IN THE SECTOR
Section 5
INVESTMENT IN THE SECTOR

131. Investment in RSA Forestry Industry 2016
Total Investment R42.9 billion

132. Investment in RSA Forestry Industry 2016
Total Investment R42.9 billion

133. Investment in RSA Forestry Industry 2016
Total Investment R42.9 billion

134. Investment in Plantations – By Province 2016
Mpumalanga = highest investment
(41.8% of total)

135. Investment in Mpumalanga Forestry 2016
Total Investment R17.9 billion

136. Investment in KZN Forestry 2016
Total Investment R15.4 billion

137. Investment in E. Cape Forestry 2016
Total Investment R5.7 billion

138. Investment in W. Cape Forestry 2016
Total Investment R1.9 billion

139. Investment in Limpopo Forestry 2016
Total Investment R2.0 billion

140. Investment in Forest Products Sector by Type of Processing Plant 2016
Total book value of investments R21.8 billion

141. Investment in Forest Products Sector by Investment Category 2016
Total book value of investments R21.8 billion

142. Section 6
CONTRIBUTION TO GDP

143. Composition of RSA GDP 2016
Total GDP – R3 813 billion (R3.8 trillion)

144. Contribution to GDP 1980 to 2016
Increase in Forestry to Ag GDP over period from 4.5% to 10.2%
Decrease in For. Prod. to Mfg GDP over period from 6.3% to 5.1%

145. Forest Products vs. Other Manufacturing GGP per Region 2016

146. Gross Value of Output by Sector & Province 2016
Forestry: R9.0bn
Forest Products: R25.5bn

147. Gross Value of Output by Sector & Province 2016

148. Forestry Industry Contribution to Agricultural GGP per Region - 2016

149. Forest Industry Contribution to Total GGP per Region - 2016

150. Forest Industry Contribution to Total GGP per Region - 2016
Importance of forestry and forest products sector has been declining in all provinces in which it operates over a number of years.

151. CONTRIBUTION TO FOREIGN TRADE
Section 7
CONTRIBUTION TO FOREIGN TRADE

152. Exports of Forest Products 2015 vs. 2016
2015 – R25.8bn
2016 – R29.1bn
Exports in 2016 R3.322 bn or 13% up on 2015

153. Imports of Forest Products 2015 vs. 2016
R18.5bn
R19.8bn
Imports in 2016 R1.290bn or 7.0% up on 2015

154. Imports vs. Exports of Forest Products Trade Balance 2015 vs. 2016
Trade balance in R2.0bn or 28% more than in 2015.

155. Imports vs. Exports of Forest Products Trade Balance 2014, 2015 & 2016

156. Imports vs. Exports of Forest Products 2016
Exports R29.1bn
Imports R19.8bn
Positive trade balance in = R9 290 billion

157. Forest Product Exports by Product 2016
Total R29.1 billion

158. Forest Product Imports by Product 2016
Total R19.8 billion

159. Trade Balance in Forest Products 1992 to 2016 (nominal)
Increase in imports - R18.4 billion (1 298%)
Increase in exports - R26.7 billion (1 143%)
Increase in trade balance - R8.4 billion (907%)

160. Trade Balance in Forest Products 1992 to 2016 (real)
Increase in imports - R13.6 billion (217%)
Increase in exports - R18.8 billion (182%)
Increase in trade balance - R 5.2 billion (128%)

161. Export Comparisons 2006, 2011 & 2016

162. www.forestry.co.za | www.forestryexplained.co.za
Image: Sappi
Image: Sappi |