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 – 122.3 million ha 1 274 869 ha

5. Land Use in Mpumalanga Total Mpum. land area – 8.2 million ha (6.7% of total) 519 817 ha

6. Land Use in KwaZulu Natal Total KZN land area – 9.1 million ha (7.5% of total) 504 393 ha

7. Land Use in the Eastern Cape Total E. Cape land area – 17.1 million ha (13.9% of total) 141 819 ha

8. Land Use in the Western Cape Total W. Cape land area – 12.9 million ha (10.6% of total) 59 171 ha

9. Land Use in Limpopo Total Limpopo land area – 12.0 million ha (9.8% of total). 49 668 ha

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

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

12. Plantation Area Comparisons 2009

13. Section 2 The Forestry Industry

14. Plantation Area by Species 2009 Total – 1 274 869 ha

15. Plantation Area by Ownership 2009 Total – 1 274 869 ha

16. Plantation Area by Province 2009 Total – 1 274 869 ha

17. Plantation Area by Province and Genera 2009 Total – 650 024 ha (softwood) Total – 624 845 ha (hardwood)

18. Planted Area Comparisons by Region & Species 2009

19. Pine Plantation Area by Region 2009 Total – 650 024 ha (51.0% of total)

20. Eucalyptus Plantation Area by Region 2009 Total – 515 324 ha (40.4% of total)

21. Wattle Plantation Area by Region 2009 Total – 104 055 ha (8.2% of total)

22. Other Hardwood Plantation Area by Region 2009 Total – 5 467 ha (0.4% of total)

23. Plantation Area by Management Objectives 2009 Total – 1 274 869 ha

24. Softwood Plantation Area by Management Objectives 2009 Total – 650 024 ha

25. Hardwood Plantation Area by Management Objectives 2009 Total – 624 845 ha

26. Plantation Area by Province and Ownership 2009 Total Private – 1 058 908 ha (83.1%) Total Public – 215 961 ha (16.9%) Leased Safcol packages included in “Private” KLF included in “Public”

27. Percentage Plantation Ownership by Province 2009 Total Private – 1 058 908 ha (83.1%) Total Public – 215 961 ha (16.9%)

28. Plantation Area by Species and Ownership 2009 Total Private – 1 058 908 ha (83.1%) Total Public – 215 961 ha (16.9%)

29. Percentage Plantation Ownership by Species 2009 Total Private – 1 058 908 ha (83.1%) Total Public – 215 961 ha (16.9%)

30. Planted Area Comparisons by Region & Product 2009

31. Roundwood Production by Product 2009 Total – 7.7 million m 3 (softwood) Total – 11.2 million m 3 (hardwood)

32. Roundwood Production by Province and Genera 2009 Total – 7.7 million m 3 (softwood) Total – 11.2 million m 3 (hardwood)

33. Roundwood Production by Province and Genera 2009 0.368 0.584 1.727 6.671 9.537 Total – 7.7 million m 3 (softwood) Total – 11.2 million m 3 (hardwood)

34. Roundwood Production ex Plantations by Province & Product 2009 Total – 18.9 million m 3 or 16.2 million tons

35. Roundwood Production ex Plantations by Province & Product 2009 Total – 18.9 million m 3 or 16.2 million tons

36. Total Roundwood Production ex Plantations by Province 2009 Total – 18.9 million m 3 or 16.2 million tons

37. Total Roundwood Production ex Plantations by Product 2009 Total – 18.9 million m 3 or 16.2 million tons

38. Softwood Roundwood Production ex Plantations by Product 2009 Total – 7.7 million m 3 or 7.9 million tons

39. Hardwood Roundwood Production ex Plantations by Product 2009 Total – 11.2 million m 3 or 8.3 million tons

40. Total Roundwood Production ex Plantations by Species 2009 Total – 18.9 million m 3 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 : 113 463 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 m 3 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 New afforestation over period- 382 619 ha Average per year- 12 754 ha AVERAGE

54. Total New Afforestation by Region 1980 to 2009 Total – 382 619 ha

55. Total New Afforestation by Region 10 Yr Period - 2000 to 2009 Total – 42 336 ha

56. New Afforestation by Region 10 Year Period – 2000 to 2009 New afforestation over period- 39 614 ha Average per year- 3 961 ha AVERAGE

57. New Afforestation by Province 2009 Total – 2 169 ha

58. New Afforestation by Species 1980 to 2009 Average p.a. 1980 to 1985- 10 974 ha (17.2% of total) Average p.a. 1986 to 1990- 24 558 ha (32.1% of total) Average p.a. 1991 to 1995- 24 406 ha (31.9% of total)

59. Total New Afforestation by Species 1980 to 2009 Total – 382 619 ha

60. New Afforestation by Species 2009 Total – 2 169 ha

61. New Afforestation by Product 1980 to 2009 Average p.a. 1996 to 2000- 7 019 ha (9.2% of total) Average p.a. 2001 to 2005- 5 044 ha (6.6% of total) Average p.a. 2006 to 2009- 2 910 ha (3.0% of total)

62. Total New Afforestation by Product 1980 to 2009 Total – 382 619 ha

63. New Afforestation by Product 2009 Total – 2 169 ha

64. Area Converted Out of Timber Production by Species 1980 to 2009 Area converted over period- 89 390 ha Average p.a. - 2 980 ha

65. Total Area Converted out of Timber Production by Species 1980 to 2009 Total – 89 390 ha

66. Total Area Converted out of Timber Production by Species 2009 Total – 3 554 ha

67. Net New Afforestation by Species 1980 to 2009 Net new afforestation over period- 293 229 ha Average p.a. - 9 774 ha

68. Net New Afforestation by Species 1980 to 2009 Total – 293 229 ha

69. Net New Afforestation by Species 2009 Total net new afforestation - Minus 1 385 ha

70. Area Converted Out of Timber Production by Region 1980 to 2009 Area converted over period- 89 390 ha Average p.a. - 2 980 ha

71. Total Area Converted out of Timber Production by Region 1980 to 2009 Total – 89 390 ha

72. Net New Afforestation by Region 1980 to 2009 Net new afforestation over period- 293 229 ha Average p.a. - 9 774 ha

73. Net New Afforestation by Region 1980 to 2009 Total – 293 229 ha

74. Conversion of Plantations out of Production & to Other Species 1980 to 2009 Net loss to production area over period- 89 390 ha Average p.a. - 2 980 ha

75. Total Area Converted out of Production & to Other Species 1980 to 2009 Net loss to production area over period- 89 390 ha Average p.a. - 2 980 ha

76. Area Converted out of Production & to Other Species 2009 Net loss to production area - 3 554 ha

77. Net Addition to Planted Area by Species 1980 to 2009 Total net addition to production area- 293 229 ha Average p.a. - 9 774 ha

78. Total Net Addition to Planted Area by Species 1980 to 2009 Total net addition to production area- 293 229 ha Average p.a. - 9 774 ha

79. Net Addition (Loss) to Planted Area by Species 2009 Total net gain in production areaMinus 1 385 ha

80. Damage to Plantations by Genera 1980 to 2009 Total area damaged over period- 930 573 ha Average p.a. - 31 019 ha

81. Damage to Plantations by Fires 1980 to 2009 Total area damaged over period- 930 573 ha Total area damaged by fire- 548 568 ha (59%) Total area damaged by other causes- 382 005 ha (41%)

82. Damage to Plantations by Fires 1980 to 2009

83. Damage to Plantations by Genera 2009 Total – 22 808 ha (1.8% of total planted area)

84. Damage to Plantations by Cause 2009 Total – 22 808 ha

85. Damage to Plantations by Fire 2009 Total – 19 805 ha

86. FSC Certified Forests by Forest Type: August 2009 Certified Area – 1 572 568 ha (incl. planted & non-planted areas)

87. FSC Certified Forests by Ownership: August 2009 Certified Area – 1 572 568 ha (incl. planted & non-planted areas)

88. 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- 7.4 million m 3 (67%) Biggest increase that of pulpwood- 8.7 million m 3 (206%)

91. Intake of Roundwood into Processing Plants 2009 Total – 18.5 million m 3

92. Roundwood Intake into Processing Plants by Province & Product 2009 Total – 18.5 million m 3

93. Roundwood Intake into Processing Plants by Province & Product 2009 Total – 18.5 million m 3

94. Average Size of Plant by Intake 1980 vs. 2009 Overall average intake has increased by: - 109% Average intake of PP & Board Mills has increased by: - 130% 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- 3.5 million tons (652%) Only decrease that of mining timber- 1.2 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. Section 4 Contribution to Employment

107. Forest Sector Employment – RSA 2009 Sub-sector No. of employees Total Employment DirectIndirect Forestry66,50030,00096,500 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 Total118,90050,800169,700

108. Direct Employment in Forestry Industry by Province 2009 Total – 66 500

109. Direct Employment in Forestry Industry by Region 2009 Total estimated direct jobs in Industry – 66 500

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 – 371 000

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

113. Direct & Indirect Jobs in Forestry Industry by Province 2009 Estimated total – 437 400 jobs

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

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

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. 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

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

139. Section 7 Contribution to Foreign Trade

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