1. The South African Forestry and Forest Products Industry 2007
Roger Godsmark
Produced by Forestry South Africa, August 2008

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. Land Use Comparisons in RSA 1996, 2001 & 2007
Drop in Forestry Area – ha (14.9%)

12. Section 2
The Forestry Industry

13. Plantation Area by Species 2007
Total – ha

14. Plantation Area by Ownership 2007
Total – ha

15. Plantation Area by Province 2007
Total – ha

16. Plantation Area by Province and Genera 2007
Total – ha (softwood)
Total – ha (hardwood)

17. Planted Area Comparisons by Region & Species 2007

18. Pine Plantation Area by Region 2007
Total – ha (53.5% of total)

19. Eucalyptus Plantation Area by Region 2007
Total – ha (37.7% of total)

20. Wattle Plantation Area by Region 2007
Total – ha (8.1% of total)

21. Other Hardwood Plantation Area by Region 2007
Total – ha (0.7% of total)

22. Plantation Area by Management Objectives 2007
Total – ha

23. Softwood Plantation Area by Management Objectives 2007
Total – ha

24. Hardwood Plantation Area by Management Objectives 2007
Total – ha

25. Plantation Area by Province and Ownership 2007
Leased Safcol packages included in “Private”
Total Private – ha (83%)
Total Public – ha (17%)

26. Percentage Plantation Ownership by Province 2007
Total Private – ha (83%)
Total Public – ha (17%)

27. Plantation Area by Species and Ownership 2007
Total Private – ha (83%)
Total Public – ha (17%)

28. Percentage Plantation Ownership by Species 2007
Total Private – ha (83%)
Total Public – ha (17%)

29. Planted Area Comparisons by Region & Product 2007

30. Plantation Area by Ownership and Species 2007

31. Roundwood Production by Province and Genera 2007
Total – 9.0 million m3 (softwood)
Total – 11.3 million m3 (hardwood)

32. Roundwood Production by Province and Genera 2007
9.356
7.906
1.750
0.684
0.634
Total – 9.0 million m3 (softwood)
Total – 1.3 million m3 (hardwood)

33. Total Roundwood Production ex Plantations by Province 2007
Total – 20.3 million m3 or 17.8 million tons

34. Total Roundwood Production ex Plantations by Product 2007
Total – 20.3 million m3 or 17.8 million tons

35. Softwood Roundwood Production ex Plantations by Product 2007
Total – 9.0 million m3 or 9.3 million tons

36. Hardwood Roundwood Production ex Plantations by Product 2007
Total – 11.3 million m3 or 8.4 million tons

37. Total Roundwood Production ex Plantations by Species 2007
Total – 20.3 million m3 or 17.8 million tons

38. Composition of Roundwood Production by Product 2007

39. Total Roundwood Production ex Plantations 1980 to 2007
Total increase in production over period : 71.1%
Total in increase in afforested area over period : 9.0%

40. Roundwood Production vs. Plantation Area 1980 to 2007
Total increase in production over period %
Total in increase in afforested area over period - 9.0%

41. Average Productivity per Hectare 1980 - 2007
Total increase in productivity over period – 5.8 m3 per ha p.a. (57%)

42. Production Comparisons 1996, 2001 & 2007

43. Value of Roundwood Production 2007
Total – R5.2 billion

44. Value of Roundwood Production 1980 to 2007
Nominal increase over period : R5.0 bn (3 037%)
Real increase over period : R2.9 bn (129%)

45. New Afforestation by Region 1980 to 2007
AVERAGE
New afforestation over period ,811 ha
Average per year ,422 ha

46. Total New Afforestation by Region 1980 to 2007
Total – ha

47. New Afforestation by Region 10 Year Period – 1998 to 2007
AVERAGE
New afforestation over period ha
Average per year ha

48. Total New Afforestation by Region 10 Yr Period - 1998 to 2007
Total – ha

49. New Afforestation by Province 2007
Total – 2,198 ha

50. New Afforestation by Species 1980 to 2007
Average p.a to ha (17.5% of total)
Average p.a to ha (32.7% of total)

51. Total New Afforestation by Species 1980 to 2007
Total – ha

52. New Afforestation by Species 2007
Total – 2 196ha

53. New Afforestation by Product 1980 to 2007
Average p.a to ha (32.5% of total)
Average p.a to ha (9.3% of total)
Average p.a to ha (8.0% of total)

54. Total New Afforestation by Product 1980 to 2007
Total – ha

55. New Afforestation by Product 2007
Total – ha

56. Area Converted Out of Timber Production by Species 1980 to 2007
Area converted over period ha
Average p.a ha

57. Total Area Converted out of Timber Production by Species 1980 to 2007
Total – ha

58. Total Area Converted out of Timber Production by Species 2007
Total – 793 ha

59. Net New Afforestation by Species 1980 to 2007
Net new afforestation over period ha
Average p.a ha

60. Net New Afforestation by Species 1980 to 2007
Total – ha

61. Net New Afforestation by Species 2007
Total net new afforestation ha

62. Area Converted Out of Timber Production by Region 1980 to 2007
Area converted over period ha
Average p.a ha

63. Total Area Converted out of Timber Production by Region 1980 to 2007
Total – ha

64. Net New Afforestation by Region 1980 to 2007
Net new afforestation over period ha
Average p.a ha

65. Net New Afforestation by Region 1980 to 2007
Total – ha

66. Conversion of Plantations out of Production & to Other Species 1980 to 2007
Net loss to production area over period ha
Average p.a ha

67. Total Area Converted out of Production & to Other Species 1980 to 2007
Net loss to production area over period ha
Average p.a ha

68. Area Converted out of Production & to Other Species 2007
Net loss to production area ha

69. Net Addition to Planted Area by Species 1980 to 2007
Total net addition to production area ha
Average p.a ha

70. Total Net Addition to Planted Area by Species 1980 to 2007
Total net addition to production area ha
Average p.a ha

71. Net Addition (Loss) to Planted Area by Species 2007
Total net gain in production area ha

72. Damage to Plantations by Genera 1980 to 2007
Total area damaged over period ha
Average p.a ha

73. Damage to Plantations by Fires 1980 to 2007
Total area damaged over period ha
Total area damaged by fire ha (55.1%)
Total area damaged by other causes ha (44.9%)

74. Damage to Plantations by Fires 1980 to 2007

75. Damage to Plantations by Genera 2007
Total – ha (7.7% of total planted area)

76. Damage to Plantations by Cause 2007
Total – ha

77. Damage to Plantations by Fire 2007
Total – ha

78. FSC Certified Forests by Forest Type: October 2007
Certified Area – ha (incl. planted & non-planted areas)

79. FSC Certified Forests by Ownership: October 2007
Certified Area – ha (incl. planted & non-planted areas)

80. The Forest Products Industry
Section 3
The Forest Products Industry

81. Number of Processing Plants by Type 2007
Total – 178 plants

82. Intake of Roundwood into Processing Plants 1980 to 2007
Total increase in intake over period million m3 (78%)
Biggest increase that of pulpwood million m3 (229%)

83. Intake of Roundwood into Processing Plants 2007
Total – 19.8 million m3

84. Average Size of Plant by Intake 1980 vs. 2007
Overall average intake has increased by: %
Average intake of PP & Board Mills has increased by: - 98%
Only average intake of MT Mills has declined – by - 13%

85. Sales of Certain Products from Processing Plants 1980 to 2007
Biggest increase that of chips million tons (823%)
Only decrease that of mining timber million tons (71%)

86. Value of Sales from Primary Processing Plants 2007
Total – R18.5 billion

87. Value of Sales from Primary Processing Plants 1980 to 2007
Nominal increase over period - R17.8 bn (2 549%)
Real increase over period - R8.9 bn (93%)

88. Contribution to GDP 1980 to 2007
Increase in Forestry GDP over period from 4.5% to 9.1%
Decrease in For. Prod. GDP over period from 6.3% to 5.7%

89. Gross Value of Output Comparisons 1996, 2001 & 2007

90. Gross Value of Output Comparisons per Planted Hectare 1996, 2001 & 2007

91. Value Addition in Primary Processing Industry 2007
Note : excludes secondary processing (e.g. paper manufacturing)

92. Value Addition Comparisons in Primary Processing Industry 2007
Note : Based only on input value of raw fibre (i.e. excludes all other input costs)

93. Contribution to Employment
Section 4
Contribution to Employment

94. Forest Sector Employment – RSA 2007
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

95. Direct Employment in Forestry Industry by Province 2007
Total – 77,000

96. Direct Employment in Forestry Industry by Region 2007
Total estimated direct jobs in Industry – 77,000

97. Direct Employment in Forestry Industry as % of Those Employed in 2007
Total employed in RSA – 12.5 million

98. Indirect Employment in Forestry Industry by Province 2007
Total estimated indirect jobs created by Industry – 462,000

99. Total employed in Mpumalanga – 803,000
Indirect Employment in Forestry Industry as % of Those Employed in 2007
Total employed in Mpumalanga – 803,000

100. Direct & Indirect Jobs in Forestry Industry by Province 2007
Estimated total – 539,400 jobs

101. Total employed in Mpumalanga – 0.8 million
Total Employment in Industry as % of Those Employed in Formal Sector 2007
Total employed in Mpumalanga – 0.8 million

102. Dependents of Those Working in Forestry Industry by Region 2007
59,000
Estimated total – 1.7 million dependents

103. Total Number of People Dependent on Forestry Industry by Region 2007
Estimated total – 2.3 million livelihoods

104. Estimated % of Population Dependent on Forestry Industry 2007

105. Section 5
Investment in Sector

106. Investment in RSA Forestry Industry 2007
Total Investment - R17.4 Billion

107. Investment in RSA Forestry Industry 2007
Total Investment - R17.4 Billion

108. Investment in RSA Forestry Industry 2007
Total Investment - R17.4 Billion

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

110. Investment in Mpumalanga Forestry 2007
Total Investment - R7.2 Billion

111. Investment in KZN Forestry 2006
Total Investment - R5.9 Billion

112. Investment in E. Cape Forestry 2007
Total Investment - R2.5 Billion

113. Investment in W. Cape Forestry 2007
Total Investment - R1.1 Billion

114. Investment in Limpopo Forestry 2007
Total Investment - R745 Million

115. Investment in Forest Products Sector by Type of Processing Plant 2007
Total Book Value of Investments - R15.8 Billion

116. Investment in Forest Products Sector by Investment Category 2007
Total Book Value of Investments - R15.8 Billion

117. Section 6
Contribution to GDP

118. Composition of RSA GDP 2007
Total GDP – R1 727 Billion

119. Contribution to GDP 1980 to 2007
Increase in Forestry GDP over period from 4.5% to 9.1%
Decrease in For. Prod. GDP over period from 6.3% to 5.7%

120. Forestry vs. Other Agricultural GGP per Region 2007
Forestry in Mpumalanga of major importance

121. Forest Products vs. Other Manufacturing GGP per Region 2007

122. Forest Industry Contribution to Total GGP per Region - 2007

123. Forest Industry Contribution to Total GGP per Region - 2007

124. Gross Value of Output Comparisons 1996, 2001 & 2007

125. Gross Value of Output Comparisons per Planted Hectare 1996, 2001 & 2007

126. Contribution to Foreign Trade
Section 7
Contribution to Foreign Trade

127. Forest Product Exports 2007
Total – R12.2 billion

128. Forest Product Imports 2007
Total – R9.8 billion

129. Trade Balance in Forest Products 1980 to 2007 (nominal)
Increase in imports - R8.3 billion (589%)
Increase in exports - R9.8 billion (421%)
Increase in trade balance - R1.5 billion (164%)

130. Trade Balance in Forest Products 1980 to 2007 (real)
Increase in imports - R6.1 billion (168%)
Increase in exports - R6.2 billion (103%)
Increase in trade balance - R0.06 billion (3%)

131. Export Comparisons 1996, 2001 & 2007