1. The South African Forestry and Forest Products Industry 2011 Produced By Roger Godsmark Forestry South Africa, February 2013

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 – 122.3 million ha 1 273 357 ha

5. Land Use in Mpumalanga Total Mpum. land area – 8.2 million ha (6.7% of total) 518 994 ha

6. Land Use in KwaZulu Natal Total KZN land area – 9.1 million ha (7.5% of total) 503 212 ha

7. Land Use in the Eastern Cape Total E. Cape land area – 17.1 million ha (13.9% of total) 141 413 ha

8. Land Use in the Western Cape Total W. Cape land area – 12.9 million ha (10.6% of total) 61 455 ha

9. Land Use in Limpopo Total Limpopo land area – 12.0 million ha (9.8% of total) 48 284ha

10. Plantation Area as % of Land Area by Province

11. Land Use Comparisons 2001, 2006 & 2011 Drop in Forestry Area – 79 000 ha (5.8%)

12. Plantation Area Comparisons 2011

13. Section 2 The Forestry Industry

14. Plantation Area by Species 2011 Total – 1 273 357 ha

15. Plantation Area by Ownership 2011 Total – 1 273 357 ha

16. Plantation Area by Province 2011 Total – 1 273 357 ha

17. Plantation Area by Province and Genera 2011 Total – 650 898 ha (softwood) Total – 622 468 ha (hardwood)

18. Planted Area Comparisons by Province & Species 2011

19. Pine Plantation Area by Province 2011 Total – 650 898 ha (51.1% of total)

20. Eucalyptus Plantation Area by Region 2011 Total – 516 638 ha (40.4% of total)

21. Wattle Plantation Area by Region 2011 Total – 106 600 ha (7.9% of total)

22. Other Hardwood Plantation Area by Region 2011 Total – 5 216 ha (0.4% of total)

23. Plantation Area by Management Objectives 2011 Total – 1 273 357 ha

24. Softwood Plantation Area by Management Objectives 2011 Total – 650 898 ha

25. Hardwood Plantation Area by Management Objectives 2011 Total – 622 460 ha

26. Plantation Area by Province and Ownership 2011 Total Private – 1 057 279 ha (83.0%) Total Public – 216 078 ha (17.0%) Leased Safcol packages included in “Private” KLF included in “Public”

27. Percentage Plantation Ownership by Province 2011 Total Private – 1 057 279 ha (83.0%) Total Public – 216 078 ha (17.0%)

28. Plantation Area by Species and Ownership 2011 Total Private – 1 057 279 ha (83.0%) Total Public – 216 078 ha (17.0%)

29. Percentage Plantation Ownership by Species 2011 Total Private – 1 057 279 ha (83.0%) Total Public – 216 078 ha (17.0%)

30. Planted Area Comparisons by Province & Product 2011

31. Roundwood Production by Product 2011 Total – 7.6 million m 3 / 7.8mt (softwood) Total – 10.9 million m 3 / 8.2mt (hardwood)

32. Roundwood Production by Province and Genera 2011 Total – 7.6 million m 3 / 7.8mt (softwood) Total – 10.9 million m 3 / 8.2mt (hardwood)

33. Roundwood Production by Province and Genera 2011 0.403 0.578 1.353 6.208 9.975 Total – 7.6 million m 3 / 7.8mt (softwood) Total – 10.9 million m 3 / 8.2mt (hardwood)

34. Roundwood Production ex Plantations by Province & Product 2011 Total – 18.5 million m 3 or 16.0 million tons

35. Roundwood Production ex Plantations by Province & Product 2011 Total – 18.5 million m 3 or 16.0 million tons

36. Total Roundwood Production ex Plantations by Province 2011 Total – 18.5 million m 3 or 16.0 million tons

37. Total Roundwood Production ex Plantations by Product 2011 Total – 18.5 million m 3 or 16.0 million tons

38. Softwood Roundwood Production ex Plantations by Product 2011 Total – 7.6 million m 3 or 7.8 million tons

39. Hardwood Roundwood Production ex Plantations by Product 2011 Total – 10.9 million m 3 or 8.2 million tons

40. Total Roundwood Production ex Plantations by Species 2011 Total – 18.5 million m 3 or 16.0 million tons

41. Composition of Roundwood Production by Product 2011

42. Total Plantation Area 1980 to 2011 Total increase in afforested area over period : 111 950 ha Total % increase in afforested area over period : 9.6% 111 950 ha increase 244 780 ha decrease

43. Total Roundwood Production ex Plantations 1980 to 2011 Total increase in production over period: 55.9% Total in increase in afforested area over period: 9.6%

44. Roundwood Production vs. Plantation Area 1980 to 2011 Total increase in production over period: 55.9% Total in increase in afforested area over period: 9.6%

45. Average Productivity per Hectare 1980 - 2011 Total increase in productivity over period – 4.3 m 3 per ha p.a. (42%)

46. Production Comparisons 2001, 2006 & 2011

47. Value of Roundwood Production 2011 Total – R7.0 billion

48. Value of Roundwood Production ex Plantations by Product 2011 Total – R7 012 million

49. Value of Roundwood Production ex Plantations by Province 2011 Total – R7 012 million

50. Value of Roundwood Production ex Plantations by Province & Product 2011 Total – R7 012 million

51. Value of Roundwood Production ex Plantations by Province & Product 2011 Total – R7 012 million

52. Value of Roundwood Production 1980 to 2011 Nominal increase over period: R6.8 bn (4 157%) Real increase over period: R4.1 bn (138%)

53. New Afforestation by Region 1980 to 2011 New afforestation over period- 385 511 ha Average per year- 12 047 ha AVERAGE

54. Total New Afforestation by Region 1980 to 2011 Total – 385 511 ha

55. Total New Afforestation by Region 10 Yr Period - 2002 to 2011 Total – 34 223 ha

56. New Afforestation by Region 10 Year Period – 2002 to 2011 New afforestation over period- 34 223 ha Average per year- 3 422 ha AVERAGE

57. New Afforestation by Province 2011 Total – 1 573 ha

58. New Afforestation by Species 1980 to 2011 Average p.a. 1980 to 1985- 10 974 ha (17.1% of total) Average p.a. 1986 to 1990- 24 558 ha (31.9% of total) Average p.a. 1991 to 1995- 24 406 ha (31.7% of total)

59. Total New Afforestation by Species 1980 to 2011 Total – 385 511 ha

60. New Afforestation by Species 2011 Total – 1 573 ha

61. New Afforestation by Product 1980 to 2011 Average p.a. 1996 to 2000- 7 019 ha (9.1% of total) Average p.a. 2001 to 2005- 5 044 ha (6.5% of total) Average p.a. 2006 to 2011- 2 910 ha (3.8% of total)

62. Total New Afforestation by Product 1980 to 2011 Total – 385 511 ha

63. New Afforestation by Product 2011 Total – 1 573 ha

64. Area Converted Out of Timber Production by Species 1980 to 2011 Area converted over period- 90 383 ha Average p.a. - 2 824 ha

65. Area Converted Out of Timber Production by Species 2002 to 2011 Area converted over period- 21 126 ha Average p.a. - 2 112 ha

66. Total Area Converted out of Timber Production by Species 1980 to 2011 Total – 90 383 ha

67. Total Area Converted out of Timber Production by Species 2011 Total – 554 ha

68. Net New Afforestation by Species 1980 to 2011 Net new afforestation over period- 295 123 ha Average p.a. - 9 223 ha

69. Net New Afforestation by Species 2002 to 2011 Net new afforestation over period- 13 095 ha Average p.a. - 1 310 ha

70. Net New Afforestation by Species 1980 to 2011 Total – 295 123 ha

71. Net New Afforestation by Species 2011 Total net new afforestation - 1 019 ha

72. Area Converted Out of Timber Production by Region 1980 to 2011 Area converted over period- 90 383 ha Average p.a. - 2 824 ha

73. Area Converted Out of Timber Production by Region 2002 to 2011 Area converted over period- 21 129 ha Average p.a. - 2 113 ha

74. Total Area Converted out of Timber Production by Region 1980 to 2011 Total – 90 383 ha

75. Net New Afforestation by Region 1980 to 2011 Net new afforestation over period- 295 124 ha Average p.a. - 9 223 ha

76. Net New Afforestation by Region 2002 to 2011 Net new afforestation over period- 13 094 ha Average p.a. - 1 309 ha

77. Net New Afforestation by Region 1980 to 2011 Total – 295 124 ha

78. Conversion of Plantations out of Production & to Other Species 1980 to 2011 Net loss to production area over period- 90 383 ha Average p.a. - 2 824 ha

79. Conversion of Plantations out of Production & to Other Species 2002 to 2011 Net loss to production area over period- 21 129 ha Average p.a. - 2 113 ha

80. Total Area Converted out of Production & to Other Species 1980 to 2011 Net loss to production area over period- 90 383 ha Average p.a. - 2 824 ha

81. Area Converted out of Production & to Other Species 2009 Land taken out of timber production - 554 ha

82. Net Addition to Planted Area by Species 1980 to 2011 Total net addition to production area- 295 123 ha Average p.a. - 9 223 ha

83. Net Addition to Planted Area by Species 2002 to 2011 Total net addition to production area- 13 094 ha Average p.a. - 1 309 ha

84. Total Net Addition to Planted Area by Species 1980 to 2011 Total net addition to production area- 295 124 ha Average p.a. - 9 223 ha

85. Net Addition (Loss) to Planted Area by Species 2011 Total net gain in production areaPlus 1 019 ha

86. Damage to Plantations by Genera 1980 to 2011 Total area damaged over period- 994 008 ha Average p.a. - 31 063 ha

87. Damage to Plantations by Fires 1980 to 2011 Total area damaged over period- 994 008 ha Total area damaged by fire- 579 728 ha (58%) Total area damaged by other causes- 414 280 ha (42%)

88. Damage to Plantations by Fires 2002 to 2011 Total area damaged over period- 448 379 ha Total area damaged by fire- 317 850 ha (71%) Total area damaged by other causes- 130 529 ha (29%)

89. Damage to Plantations by Fires 1980 to 2011

90. Damage to Plantations by Genera 2011 Total – 40 178 ha (3.2% of total planted area)

91. Damage to Plantations by Cause 2011 Total – 40 178 ha

92. Damage to Plantations by Fire 2011 Total – 15 348 ha

93. FSC Certificates RSA vs. Africa: as at February 2013 RSA FMU certificates cover 1.5 million hectares or 21% of African total coverage of 7.2 million hectares RSA 43% of African Total RSA 61% of African Total

94. FSC Certified Forests by Ownership: as at February 2013 Certified Area – 1 511 739 ha (incl. planted & non-planted areas)

95. Section 3 The Forest Products Industry

96. Number of Processing Plants by Type 2011 Total number of plants: 159

97. Intake of Roundwood into Processing Plants 1980 to 2011 Total increase in intake over period- 7.5 million m 3 (67%) Biggest increase that of pulpwood- 8.9 million m 3 (211%)

98. Intake of Roundwood into Processing Plants 2011 Total – 18.6 million m 3

99. Roundwood Intake into Processing Plants by Province & Product 2011 Total – 18.6 million m 3

100. Roundwood Intake into Processing Plants by Province & Product 2011 Total – 18.6 million m 3

101. Average Size of Plant by Intake 1980 vs. 2011 Overall average intake has increased by: - 154% Average intake of PP & Board Mills has increased by: - 107% Only average intake of MT Mills has declined – by- 13%

102. Sales of Certain Products from Processing Plants 1980 to 2011 Biggest increase that of chips- 2.5 million tons (471%) Biggest decrease that of mining timber- 1.2 million tons (-77%)

103. Value of Sales from Primary Processing Plants 2011 Total – R21.4 billion

104. Value of Sales from Primary Processing Plants 2011 Total – R21.4 billion

105. Value of Sales from Primary Processing Plants 1980 to 2011 Nominal increase over period- R20.7 bn (2 971%) Real increase over period- R9.0 bn (72%)

106. Value of Roundwood Sales from Processing Plants by Product & Province 2011 Total – R21.4 billion

107. Value of Roundwood Sales from Processing Plants by Product & Province 2011 Total – R21.4 billion

108. Gross Value of Output Comparisons 2001, 2006 & 2011

109. Gross Value of Output Comparisons per Planted Hectare 2001, 2006 & 2011

110. Value Addition in Primary Processing Industry 2011 Note : excludes secondary processing (e.g. paper manufacturing)

111. Value Addition Comparisons in Primary Processing Industry 2011 Note : Based only on input value of raw fibre (i.e. excludes all other input costs)

112. Section 4 Contribution to Employment

113. Forest Sector Employment – RSA 2011 Sub-sector No. of employees Total Employment DirectIndirect Forestry62,70030,00092,700 Pulp and Paper 13,20010,80024,000 Sawmilling20,00010,00030,000 Timber Board 6,000n/a6,000 Mining Timber 2,200n/a2,200 Other11,000n/a11,000 Total115,10050,800165,900 Direct jobs in Forestry =62 700 Indirect jobs in Forestry (165 900 less 62 700) = 103 200

114. Direct Employment in Forestry Industry by Province 2011 Total – 62 700

115. Direct Employment in Forestry Industry by Region 2011 Total estimated direct jobs in Industry – 62 700 2 520 000 Total Employment 953 000 1 298 000 1 018 000 1 815 000

116. Direct Employment in Forestry Industry as % of Those Employed in 2011 Total employed in RSA – 13 447 000

117. Indirect Employment in Forestry Industry by Province 2011 Total estimated indirect jobs created by Industry – 103 200 2 520 000 Total Employment 953 000 1 298 000 1 018 000 1 815 000

118. Indirect Employment in Forestry Industry as % of Those Employed in 2011 Total employed in Mpumalanga – 953 000

119. Direct & Indirect Jobs in Forestry Industry by Province 2011 Estimated total – 165 900 jobs 2 520 000 Total Employment 953 000 1 298 000 1 018 000 1 815 000

120. Total Employment in Industry as % of Those Employed in Formal Sector 2011

121. Dependents of Those Working in Forestry Industry by Province 2011 Estimated total – 558 000 dependents 25 000

122. Total Number of People Dependent on Forestry Industry by Province 2011 Estimated total – 652 000 livelihoods

123. Estimated % of Population Dependent on Forestry Industry 2011 4 040 000 Total Population 10 267 000 6 562 000 5 405 000 5 823 000 Total RSA population – 51.8 million 51 771 000

124. Section 5 Investment in Sector

125. Investment in RSA Forestry Industry 2011 Total Investment - R25.6 Billion

126. Investment in RSA Forestry Industry 2011 Total Investment - R25.6 Billion

127. Investment in RSA Forestry Industry 2011 Total Investment - R25.6 Billion

128. Investment in Plantations – By Province 2011 Mpumalanga has highest investment - 42% of total

129. Investment in Mpumalanga Forestry 2011 Total Investment - R10.7 Billion

130. Investment in KZN Forestry 2011 Total Investment - R9.0 Billion

131. Investment in E. Cape Forestry 2011 Total Investment - R3.3 Billion

132. Investment in W. Cape Forestry 2011 Total Investment - R1.5 Billion

133. Investment in Limpopo Forestry 2011 Total Investment - R1.1 Billion

134. Investment in Forest Products Sector by Type of Processing Plant 2011 Total Book Value of Investments - R15.2 Billion

135. Investment in Forest Products Sector by Investment Category 2011 Total Book Value of Investments - R15.2 Billion

136. Section 6 Contribution to GDP

137. Composition of RSA GDP 2011 Total GDP – R2 661 Billion (i.e. R2.7 Trillion)

138. Contribution to GDP 1980 to 2011 Increase in Forestry to Ag GDP over period from 4.5% to 12.3% Decrease in For. Prod. To Mfg GDP over period from 6.3% to 6.2%

139. Forestry vs. Other Agricultural GGP per Region 2011 Forestry in Mpumalanga of major importance

140. Forest Products vs. Other Manufacturing GGP per Region 2011

141. Gross Value of Output by Sector & Province 2011

143. Forest Industry Contribution to Total GGP per Region - 2011

145. Section 7 Contribution to Foreign Trade

146. Exports of Forest Products 2012 vs.2011 Exports in 2012 R1.2 bn or 7.7% down on 2011 2011 - R15.0bn 2012 - R13.8bn

147. Imports of Forest Products 2012 vs. 2011 Imports in 2012 R1.1 bn or 10.4% up on 2011 2011 - R10.5bn 2012 - R11.6bn

148. Imports vs. Exports of Forest Products Trade Balance 2012 vs. 2011 Trade balance in 2012 R2.2bn or 50% less than in 2011

149. Imports vs. Exports of Forest Products 2012 Positive trade balance in 2012 = R2.21 billion Exports R13.8bn Imports R11.6bn

150. Forest Product Exports 2012 Total – R13.8 billion

151. Forest Product Imports 2012 Total – R11.6 billion

152. Trade Balance in Forest Products 1992 to 2012 (nominal) Increase in imports- R10.2 billion (720%) Increase in exports- R11.5 billion (491%) Increase in trade balance- R1.3 billion (140%)

153. Trade Balance in Forest Products 1992 to 2012 (real) Increase in imports- R6.6 billion (131%) Increase in exports- R5.5 billion (66%) Decrease in trade balance- R1.1 billion (-33%)

154. Export Comparisons 2002, 2007 & 2012