1. The South African Forestry and Forest Products Industry 2009
Produced By Roger Godsmark
Forestry South Africa, September 2010

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. Total Mpum. land area – 8.2 million ha (6.7% of total)
Land Use in Mpumalanga ha
Total Mpum. 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 Capeha
Total E. Cape land area – 17.1 million ha (13.9% of total)

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

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

10. Plantation Area as % of Land Area by Province
Forestry in Mpumalanga greatest % of land area

11. Drop in Forestry Area – 127 000 ha (9.1%)
Land Use Comparisons 1999, 2004 & 2009
Drop in Forestry Area – ha (9.1%)

12. Plantation Area Comparisons 2009

13. Section 2
The Forestry Industry

14. Plantation Area by Species 2009
Total – ha

15. Plantation Area by Ownership 2009
Total – ha

16. Plantation Area by Province 2009
Total – ha

17. Plantation Area by Province and Genera 2009
Total – ha (softwood)
Total – ha (hardwood)

18. Planted Area Comparisons by Region & Species 2009

19. Pine Plantation Area by Region 2009
Total – ha (51.0% of total)

20. Eucalyptus Plantation Area by Region 2009
Total – ha (40.4% of total)

21. Wattle Plantation Area by Region 2009
Total – ha (8.2% of total)

22. Other Hardwood Plantation Area by Region 2009
Total – ha (0.4% of total)

23. Plantation Area by Management Objectives 2009
Total – ha

24. Softwood Plantation Area by Management Objectives 2009
Total – ha

25. Hardwood Plantation Area by Management Objectives 2009
Total – ha

26. Plantation Area by Province and Ownership 2009
Leased Safcol packages included in “Private”
KLF included in “Public”
Total Private – ha (83.1%)
Total Public – ha (16.9%)

27. Percentage Plantation Ownership by Province 2009
Total Private – ha (83.1%)
Total Public – ha (16.9%)

28. Plantation Area by Species and Ownership 2009
Total Private – ha (83.1%)
Total Public – ha (16.9%)

29. Percentage Plantation Ownership by Species 2009
Total Private – ha (83.1%)
Total Public – ha (16.9%)

30. Planted Area Comparisons by Region & Product 2009

31. Roundwood Production by Product 2009
Total – 7.7 million m3 (softwood)
Total – 11.2 million m3 (hardwood)

32. Roundwood Production by Province and Genera 2009
Total – 7.7 million m3 (softwood)
Total – 11.2 million m3 (hardwood)

33. 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)

34. Roundwood Production ex Plantations by Province & Product 2009
Total – 18.9 million m3 or 16.2 million tons

35. Roundwood Production ex Plantations by Province & Product 2009
Total – 18.9 million m3 or 16.2 million tons

36. Total Roundwood Production ex Plantations by Province 2009
Total – 18.9 million m3 or 16.2 million tons

37. Total Roundwood Production ex Plantations by Product 2008
Total – 18.9 million m3 or 16.2 million tons

38. Softwood Roundwood Production ex Plantations by Product 2009
Total – 7.7 million m3 or 7.9 million tons

39. Hardwood Roundwood Production ex Plantations by Product 2009
Total – 11.2 million m3 or 8.3 million tons

40. Total Roundwood Production ex Plantations by Species 2009
Total – 18.9 million m3 or 16.2 million tons

41. Composition of Roundwood Production by Product 2009

42. Total Plantation Area 1980 to 2009
Total increase in afforested area over period : ha
Total % increase in afforested area over period : 9.8%

43. 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%

44. 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%

45. Average Productivity per Hectare 1980 - 2009
Total increase in productivity over period – 4.6 m3 per ha p.a. (45%)

46. Production Comparisons 1999, 2004 & 2009

47. Value of Roundwood Production 2009
Total – R6.7 billion

48. Value of Roundwood Production ex Plantations by Product 2009
Total – R6 705 million

49. Value of Roundwood Production ex Plantations by Province 2009
Total – R6 705 million

50. Value of Roundwood Production ex Plantations by Province & Product 2009
Total – R6 705 million

51. Value of Roundwood Production ex Plantations by Province & Product 2009
Total – R6 705 million

52. Value of Roundwood Production 1980 to 2009
Nominal increase over period : R6.5 bn (3 971%)
Real increase over period : R4.0 bn (148%)

53. New Afforestation by Region 1980 to 2009
AVERAGE
New afforestation over period ha
Average per year ha

54. Total New Afforestation by Region 1980 to 2009
Total – ha

55. Total New Afforestation by Region 10 Yr Period - 2000 to 2009
Total – ha

56. New Afforestation by Region 10 Year Period – 2000 to 2009
AVERAGE
New afforestation over period ha
Average per year ha

57. New Afforestation by Province 2009
Total – ha

58. New Afforestation by Species 1980 to 2009
Average p.a to ha (17.2% of total)
Average p.a to ha (32.1% of total)
Average p.a to ha (31.9% of total)

59. Total New Afforestation by Species 1980 to 2009
Total – ha

60. New Afforestation by Species 2009
Total – ha

61. New Afforestation by Product 1980 to 2009
Average p.a to ha (9.2% of total)
Average p.a to ha (6.6% of total)
Average p.a to ha (3.0% of total)

62. Total New Afforestation by Product 1980 to 2009
Total – ha

63. New Afforestation by Product 2009
Total – ha

64. Area Converted Out of Timber Production by Species 1980 to 2009
Area converted over period ha
Average p.a ha

65. Total Area Converted out of Timber Production by Species 1980 to 2009
Total – ha

66. Total Area Converted out of Timber Production by Species 2009
Total – ha

67. Net New Afforestation by Species 1980 to 2009
Net new afforestation over period ha
Average p.a ha

68. Net New Afforestation by Species 1980 to 2009
Total – ha

69. Net New Afforestation by Species 2009
Total net new afforestation - Minus ha

70. Area Converted Out of Timber Production by Region 1980 to 2009
Area converted over period ha
Average p.a ha

71. Total Area Converted out of Timber Production by Region 1980 to 2009
Total – ha

72. Net New Afforestation by Region 1980 to 2009
Net new afforestation over period ha
Average p.a ha

73. Net New Afforestation by Region 1980 to 2009
Total – ha

74. Conversion of Plantations out of Production & to Other Species 1980 to 2009
Net loss to production area over period ha
Average p.a ha

75. Total Area Converted out of Production & to Other Species 1980 to 2009
Net loss to production area over period ha
Average p.a ha

76. Area Converted out of Production & to Other Species 2009
Net loss to production area ha

77. Net Addition to Planted Area by Species 1980 to 2009
Total net addition to production area ha
Average p.a ha

78. Total Net Addition to Planted Area by Species 1980 to 2009
Total net addition to production area ha
Average p.a ha

79. Net Addition (Loss) to Planted Area by Species 2009
Total net gain in production area Minus ha

80. Damage to Plantations by Genera 1980 to 2009
Total area damaged over period ha
Average p.a ha

81. Damage to Plantations by Fires 1980 to 2009
Total area damaged over period ha
Total area damaged by fire ha (59%)
Total area damaged by other causes ha (41%)

82. Damage to Plantations by Fires 1980 to 2009

83. Damage to Plantations by Genera 2009
Total – ha (1.8% of total planted area)

84. Damage to Plantations by Cause 2009
Total – ha

85. Damage to Plantations by Fire 2009
Total – ha

86. FSC Certified Forests by Forest Type: August 2009
Certified Area – ha (incl. planted & non-planted areas)

87. FSC Certified Forests by Ownership: August 2009
Certified Area – ha (incl. planted & non-planted areas)

88. The Forest Products Industry
Section 3
The Forest Products Industry

89. Number of Processing Plants by Type 2009
Total number of plants: 192

90. Intake of Roundwood into Processing Plants 1980 to 2009
Total increase in intake over period million m3 (67%)
Biggest increase that of pulpwood million m3 (206%)

91. Intake of Roundwood into Processing Plants 2009
Total – 18.5 million m3

92. Roundwood Intake into Processing Plants by Province & Product 2009
Total – 18.5 million m3

93. Roundwood Intake into Processing Plants by Province & Product 2009
Total – 18.5 million m3

94. Average Size of Plant by Intake 1980 vs. 2009
Overall average intake has increased by: %
Average intake of PP & Board Mills has increased by: %
Only average intake of MT Mills has declined – by - 35%

95. Sales of Certain Products from Processing Plants 1980 to 2009
Biggest increase that of chips million tons (652%)
Only decrease that of mining timber million tons (-72%)

96. Value of Sales from Primary Processing Plants 2009
Total – R20.4 billion

97. Value of Sales from Primary Processing Plants 2009
Total – R20.4 billion

98. Value of Sales from Primary Processing Plants 2009
Total – R20.4 billion

99. 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%)

100. Value of Roundwood Sales from Processing Plants by Product & Province 2009
Total – R20.4 billion

101. Value of Roundwood Sales from Processing Plants by Product & Province 2009
Total – R20.4 billion

102. Gross Value of Output Comparisons 1999, 2004 & 2009

103. Gross Value of Output Comparisons per Planted Hectare 1999, 2004 & 2009

104. Value Addition in Primary Processing Industry 2009
Note : excludes secondary processing (e.g. paper manufacturing)

105. Value Addition Comparisons in Primary Processing Industry 2009
Note : Based only on input value of raw fibre (i.e. excludes all other input costs)

106. Contribution to Employment
Section 4
Contribution to Employment

107. 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

108. Direct Employment in Forestry Industry by Province 2009
Total –

109. Direct Employment in Forestry Industry by Region 2009
Total estimated direct jobs in Industry –

110. Direct Employment in Forestry Industry as % of Those Employed in 2009
Total employed in RSA – 13.4 million

111. Indirect Employment in Forestry Industry by Province 2009
Total estimated indirect jobs created by Industry –

112. Total employed in Mpumalanga – 897 000
Indirect Employment in Forestry Industry as % of Those Employed in 2009
Total employed in Mpumalanga –

113. Direct & Indirect Jobs in Forestry Industry by Province 2009
Estimated total – jobs

114. Total employed in Mpumalanga – 897 000
Total Employment in Industry as % of Those Employed in Formal Sector 2009
Total employed in Mpumalanga –

115. Dependents of Those Working in Forestry Industry by Region 2009
53 000
Estimated total – 1.4 million dependents

116. Total Number of People Dependent on Forestry Industry by Region 2009
Estimated total – 1.8 million livelihoods

117. Estimated % of Population Dependent on Forestry Industry 2009

118. Section 5
Investment in Sector

119. Investment in RSA Forestry Industry 2009
Total Investment - R24.8 Billion

120. Investment in RSA Forestry Industry 2009
Total Investment - R24.8 Billion

121. Investment in RSA Forestry Industry 2009
Total Investment - R24.8 Billion

122. Investment in Plantations – By Province 2009
Mpumalanga has highest investment - 42% of total

123. Investment in Mpumalanga Forestry 2009
Total Investment - R10.3 Billion

124. Investment in KZN Forestry 2009
Total Investment - R9.1 Billion

125. Investment in E. Cape Forestry 2009
Total Investment - R2.9 Billion

126. Investment in W. Cape Forestry 2009
Total Investment - R1.3 Billion

127. Investment in Limpopo Forestry 2009
Total Investment - R1.1 Billion

128. Investment in Forest Products Sector by Type of Processing Plant 2009
Total Book Value of Investments - R15.7 Billion

129. Investment in Forest Products Sector by Investment Category 2009
Total Book Value of Investments - R15.7 Billion

130. Section 6
Contribution to GDP

131. 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)

132. 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%

133. Forestry vs. Other Agricultural GGP per Region 2009
Forestry in Mpumalanga of major importance

134. Forest Products vs. Other Manufacturing GGP per Region 2009

135. Gross Value of Output by Sector & Province 2009

136. Gross Value of Output by Sector & Province 2009

137. Forest Industry Contribution to Total GGP per Region - 2009

138. Forest Industry Contribution to Total GGP per Region - 2009

139. Contribution to Foreign Trade
Section 7
Contribution to Foreign Trade

140. Imports vs. Exports of Forest Products 2009
Positive trade balance in = R2.91 billion

141. Forest Product Exports 2009
Total – R12.5 billion

142. Forest Product Imports 2009
Total – R9.6 billion

143. 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%)

144. 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%)

145. Export Comparisons 1999, 2004 & 2009