1. The South African Forestry and Forest Products Industry 2008
Produced By Roger Godsmark
Forestry South Africa, September 2009

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 1998, 2003 & 2008
Drop in Forestry Area – ha (9.1%)

12. Plantation Area Comparisons 2008

13. Section 2
The Forestry Industry

14. Plantation Area by Species 2008
Total – ha

15. Plantation Area by Ownership 2008
Total – ha

16. Plantation Area by Province 2008
Total – ha

17. Plantation Area by Province and Genera 2008
Total – ha (softwood)
Total – ha (hardwood)

18. Planted Area Comparisons by Region & Species 2008

19. Pine Plantation Area by Region 2008
Total – ha (52.5% of total)

20. Eucalyptus Plantation Area by Region 2008
Total – ha (39.1% of total)

21. Wattle Plantation Area by Region 2008
Total – ha (7.6% of total)

22. Other Hardwood Plantation Area by Region 2008
Total – ha (0.8% of total)

23. Plantation Area by Management Objectives 2008
Total – ha

24. Softwood Plantation Area by Management Objectives 2008
Total – ha

25. Hardwood Plantation Area by Management Objectives 2008
Total – ha

26. Plantation Area by Province and Ownership 2008
Leased Safcol packages included in “Private”
Total Private – ha (83%)
Total Public – ha (17%)

27. Percentage Plantation Ownership by Province 2008
Total Private – ha (83%)
Total Public – ha (17%)

28. Plantation Area by Species and Ownership 2008
Total Private – ha (83%)
Total Public – ha (17%)

29. Percentage Plantation Ownership by Species 2008
Total Private – ha (83%)
Total Public – ha (17%)

30. Planted Area Comparisons by Region & Product 2008

31. Roundwood Production by Product 2008
Total – 8.9 million m3 (softwood)
Total – 11.3 million m3 (hardwood)

32. Roundwood Production by Province and Genera 2008
Total – 8.9 million m3 (softwood)
Total – 11.3 million m3 (hardwood)

33. Roundwood Production by Province and Genera 2008
9.165
8.058
1.659
0.695
0.596
Total – 8.9 million m3 (softwood)
Total – 11.3 million m3 (hardwood)

34. Roundwood Production ex Plantations by Province & Product 2008
Total – 20.1 million m3 or 17.5 million tons

35. Total Roundwood Production ex Plantations by Province 2008
Total – 20.1 million m3 or 17.5 million tons

36. Total Roundwood Production ex Plantations by Product 2008
Total – 20.1 million m3 or 17.5 million tons

37. Softwood Roundwood Production ex Plantations by Product 2008
Total – 8.9 million m3 or 9.2 million tons

38. Hardwood Roundwood Production ex Plantations by Product 2008
Total – 11.3 million m3 or 8.3 million tons

39. Total Roundwood Production ex Plantations by Species 2008
Total – 20.1 million m3 or 17.5 million tons

40. Composition of Roundwood Production by Product 2008

41. Total Plantation Area 1980 to 2008
Total increase in afforested area over period : ha
Total % increase in afforested area over period : 8.3%

42. Total Roundwood Production ex Plantations 1980 to 2008
Total increase in production over period : 69.5%
Total in increase in afforested area over period : 8.3%

43. Roundwood Production vs. Plantation Area 1980 to 2008
Total increase in production over period : 69.5%
Total in increase in afforested area over period : 8.3%

44. Average Productivity per Hectare 1980 - 2008
Total increase in productivity over period – 5.8 m3 per ha p.a. (57%)

45. Production Comparisons 1998, 2003 & 2008

46. Value of Roundwood Production 2008
Total – R6.0 billion

47. Value of Roundwood Production ex Plantations by Product 2008
Total – R6 047 million

48. Value of Roundwood Production ex Plantations by Province 2008
Total – R6 047 million

49. Value of Roundwood Production ex Plantations by Province & Product 2008
Total – R6 047 million

50. Value of Roundwood Production ex Plantations by Province & Product 2008
Total – R6 047 million

51. Value of Roundwood Production 1980 to 2008
Nominal increase over period : R5.9 bn (3 572%)
Real increase over period : R3.6 bn (146%)

52. New Afforestation by Region 1980 to 2008
AVERAGE
New afforestation over period ha
Average per year ha

53. Total New Afforestation by Region 1980 to 2008
Total – ha

54. Total New Afforestation by Region 10 Yr Period - 1999 to 2008
Total – ha

55. New Afforestation by Region 10 Year Period – 1999 to 2008
AVERAGE
New afforestation over period ha
Average per year ha

56. New Afforestation by Province 2008
Total – ha

57. New Afforestation by Species 1980 to 2008
Average p.a to ha (17.3% of total)
Average p.a to ha (32.3% of total)

58. Total New Afforestation by Species 1980 to 2008
Total – ha

59. New Afforestation by Species 2008
Total – ha

60. New Afforestation by Product 1980 to 2008
Average p.a to ha (32.1% of total)
Average p.a to ha (9.2% of total)
Average p.a to ha (9.1% of total)

61. Total New Afforestation by Product 1980 to 2008
Total – ha

62. New Afforestation by Product 2008
Total – ha

63. Area Converted Out of Timber Production by Species 1980 to 2008
Area converted over period ha
Average p.a ha

64. Total Area Converted out of Timber Production by Species 1980 to 2008
Total – ha

65. Total Area Converted out of Timber Production by Species 2008
Total – 696 ha

66. Net New Afforestation by Species 1980 to 2008
Net new afforestation over period ha
Average p.a ha

67. Net New Afforestation by Species 1980 to 2008
Total – ha

68. Net New Afforestation by Species 2008
Total net new afforestation ha

69. Area Converted Out of Timber Production by Region 1980 to 2008
Area converted over period ha
Average p.a ha

70. Total Area Converted out of Timber Production by Region 1980 to 2008
Total – ha

71. Net New Afforestation by Region 1980 to 2008
Net new afforestation over period ha
Average p.a ha

72. Net New Afforestation by Region 1980 to 2008
Total – ha

73. Conversion of Plantations out of Production & to Other Species 1980 to 2008
Net loss to production area over period ha
Average p.a ha

74. Total Area Converted out of Production & to Other Species 1980 to 2008
Net loss to production area over period ha
Average p.a ha

75. Area Converted out of Production & to Other Species 2008
Net loss to production area ha

76. Net Addition to Planted Area by Species 1980 to 2008
Total net addition to production area ha
Average p.a ha

77. Total Net Addition to Planted Area by Species 1980 to 2008
Total net addition to production area ha
Average p.a ha

78. Net Addition (Loss) to Planted Area by Species 2008
Total net gain in production area ha

79. Damage to Plantations by Genera 1980 to 2008
Total area damaged over period ha
Average p.a ha

80. Damage to Plantations by Fires 1980 to 2008
Total area damaged over period ha
Total area damaged by fire ha (58%)
Total area damaged by other causes ha (42%)

81. Damage to Plantations by Fires 1980 to 2008

82. Damage to Plantations by Genera 2008
Total – ha (6.1% of total planted area)

83. Damage to Plantations by Cause 2008
Total – ha

84. Damage to Plantations by Fire 2008
Total – ha

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

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

87. The Forest Products Industry
Section 3
The Forest Products Industry

88. Number of Processing Plants by Type 2008
Total – 183 plants

89. Intake of Roundwood into Processing Plants 1980 to 2008
Total increase in intake over period million m3 (77%)
Biggest increase that of pulpwood million m3 (227%)

90. Intake of Roundwood into Processing Plants 2008
Total – 19.6 million m3

91. Roundwood Intake into Processing Plants by Province & Product 2008
Total – 19.6 million m3

92. Roundwood Intake into Processing Plants by Province & Product 2008
Total – 19.6 million m3

93. Average Size of Plant by Intake 1980 vs. 2008
Overall average intake has increased by: %
Average intake of PP & Board Mills has increased by: %
Only average intake of MT Mills has declined – by - 25%

94. Sales of Certain Products from Processing Plants 1980 to 2008
Biggest increase that of chips million tons (645%)
Only decrease that of mining timber million tons (-60%)

95. Value of Sales from Primary Processing Plants 2008
Total – R21.4 billion

96. Value of Sales from Primary Processing Plants 1980 to 2008
Nominal increase over period - R20.7 bn (2 964%)
Real increase over period - R11.0 bn (105%)

97. Value of Roundwood Sales from Processing Plants by Product & Province 2008
Total – R21.4 billion

98. Value of Roundwood Sales from Processing Plants by Product & Province 2008
Total – R21.4 billion

99. Gross Value of Output Comparisons 1998, 2003 & 2008

100. Gross Value of Output Comparisons per Planted Hectare 1998, 2003 & 2008

101. Value Addition in Primary Processing Industry 2008
Note : excludes secondary processing (e.g. paper manufacturing)

102. Value Addition Comparisons in Primary Processing Industry 2008
Note : Based only on input value of raw fibre (i.e. excludes all other input costs)

103. Contribution to Employment
Section 4
Contribution to Employment

104. Forest Sector Employment – RSA 2008
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

105. Direct Employment in Forestry Industry by Province 2008
Total –

106. Direct Employment in Forestry Industry by Region 2008
Total estimated direct jobs in Industry –

107. Direct Employment in Forestry Industry as % of Those Employed in 2008
Total employed in RSA – 12.5 million

108. Indirect Employment in Forestry Industry by Province 2008
Total estimated indirect jobs created by Industry –

109. Total employed in Mpumalanga – 803 000
Indirect Employment in Forestry Industry as % of Those Employed in 2008
Total employed in Mpumalanga –

110. Direct & Indirect Jobs in Forestry Industry by Province 2008
Estimated total – jobs

111. Total employed in Mpumalanga – 0.8 million
Total Employment in Industry as % of Those Employed in Formal Sector 2008
Total employed in Mpumalanga – 0.8 million

112. Dependents of Those Working in Forestry Industry by Region 2008
59,000
Estimated total – 1.7 million dependents

113. Total Number of People Dependent on Forestry Industry by Region 2008
Estimated total – 2.3 million livelihoods

114. Estimated % of Population Dependent on Forestry Industry 2008

115. Section 5
Investment in Sector

116. Investment in RSA Forestry Industry 2008
Total Investment - R18.8 Billion

117. Investment in RSA Forestry Industry 2008
Total Investment - R18.8 Billion

118. Investment in RSA Forestry Industry 2008
Total Investment Billion

119. Investment in Plantations – By Province 2008
Mpumalanga has highest investment % of total

120. Investment in Mpumalanga Forestry 2008
Total Investment - R7.9 Billion

121. Investment in KZN Forestry 2008
Total Investment - R6.4 Billion

122. Investment in E. Cape Forestry 2008
Total Investment - R2.6 Billion

123. Investment in W. Cape Forestry 2008
Total Investment - R1.1 Billion

124. Investment in Limpopo Forestry 2008
Total Investment - R808 Million

125. Investment in Forest Products Sector by Type of Processing Plant 2008
Total Book Value of Investments - R15.8 Billion

126. Investment in Forest Products Sector by Investment Category 2008
Total Book Value of Investments - R15.8 Billion

127. Section 6
Contribution to GDP

128. Total GDP – R2 151 Billion (i.e. R2.2 Trillion)
Composition of RSA GDP 2008
Total GDP – R2 151 Billion (i.e. R2.2 Trillion)

129. Contribution to GDP 1980 to 2008
Increase in Forestry GDP over period from 4.5% to 9.6%
Decrease in For. Prod. GDP over period from 6.3% to 6.0%

130. Forestry vs. Other Agricultural GGP per Region 2008
Forestry in Mpumalanga of major importance

131. Forest Products vs. Other Manufacturing GGP per Region 2008

132. Gross Value of Output by Sector & Province 2008

133. Gross Value of Output by Sector & Province 2008

134. Forest Industry Contribution to Total GGP per Region - 2008

135. Forest Industry Contribution to Total GGP per Region - 2008

136. Contribution to Foreign Trade
Section 7
Contribution to Foreign Trade

137. Forest Product Exports 2008
Total – R14.8 billion

138. Forest Product Imports 2008
Total – R11.3 billion

139. Trade Balance in Forest Products 1980 to 2008 (nominal)
Increase in imports - R9.8 billion (694%)
Increase in exports - R12.4 billion (531%)
Increase in trade balance - R2.6 billion (281%)

140. Trade Balance in Forest Products 1980 to 2008 (real)
Increase in imports - R7.2 billion (176%)
Increase in exports - R8.0 billion (120%)
Increase in trade balance - R0.9 billion (33%)

141. Export Comparisons 1998, 2003 & 2008