the south african forestry and forest products industry 2008
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The South African Forestry and Forest Products Industry 2008. Produced by Roger Godsmark Forestry South Africa, September 2009. Presentation Outline. Introduction The importance of the Forestry Industry The importance of the Forest Products Industry Industry Contribution to Employment - PowerPoint PPT PresentationTRANSCRIPT
The South African Forestry and Forest Products Industry 2008
Produced by Roger Godsmark
Forestry South Africa, September 2009
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
Section 1 Introduction
Land Use in South Africa
68.6%
13.8%
9.6%
1.0%
6.9%
Grazing Arable Nature Conservation Other Forestry
Total RSA land area – 122.3 million ha
1 257 341 ha
Land Use in Mpumalanga
39.8%
21.6%
28.5%
6.2%
3.9%
Grazing Arable Nature Conservation Other Forestry
Total Mpum. land area – 8.2 million ha (6.7% of total)
510 389 ha
Land Use in KwaZulu Natal
58.3%
12.8%15.1%
5.3%
8.5%
Grazing Arable Nature Conservation Other Forestry
Total KZN land area – 9.1 million ha (7.5% of total)
486 020 ha
Land Use in the Eastern Cape
80.0%
6.7%
3.7%
0.9%
8.7%
Grazing Arable Nature Conservation Other Forestry
Total E. Cape land area – 17.1 million ha (13.9% of total)
153 380 ha
Land Use in the Western Cape
70.4%
20.0%
5.6%
0.5%
3.5%
Grazing Arable Nature Conservation Other Forestry
Total W. Cape land area – 12.9 million ha (10.6% of total)
59 570 ha
Land Use in Limpopo
74.0%
14.4%
9.7%
0.4%
1.5%
Grazing Arable Nature Conservation Other Forestry
Total Limpopo land area – 12.0 million ha (9.8% of total).
47 982 ha
Plantation Area as % of Land Area by Province
0.40%
0.46%
0.90%
5.31%
6.24%
0% 1% 2% 3% 4% 5% 6% 7%
Limpopo
W. Cape
E.Cape
KZN
Mpumalanga
% of Land Area Afforested
Forestry in Mpumalanga greatest % of land area
Land Use Comparisons1998, 2003 & 2008
0.421
0.745
1.384
3.560
0.430
0.748
1.372
3.651
0.423
1.257
3.297
0.748
0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5
Sugar
Wheat
Forestry
Maize
Million Hectares
1998 2003 2008
Drop in Forestry Area – 127 000 ha (9.1%)
Section 2The Forestry Industry
Plantation Area by Species 2008
52.5%39.1%
7.6% 0.8%
Pine Eucalyptus Wattle Other
Total – 1 257 341 ha
Plantation Area by Ownership 2008
48.7%
19.2%11.4%
6.9%
3.6%
10.2%
Corporate Commercial Farmers Corporate (Ex Safcol)SAFCOL State/ Municipalities Small Growers
Total – 1 257 341 ha
Plantation Area by Province 2008
3.8%
40.6%
38.7%
4.7%
12.2%
Limpopo Mpumalanga KZN E. Cape W. Cape
Total – 1 257 341 ha
Plantation Area by Province and Genera 2008
55 936
27 141
129 374
133 692
314 122
3 634
20 841
24 006
352 329
196 266
0 100 000 200 000 300 000 400 000 500 000
W. Cape
Limpopo
E.Cape
KZN
Mpumalanga
Hectares
Softwood Hardwood
Total – 660 265 ha (softwood)Total – 597 076 ha (hardwood)
Planted Area Comparisonsby Region & Species 2008
1 106
77
19 659
27 141
2 701
2 385
22 553
185 311
3 345
178 990
314 122
2 420
79 178
270 732
133 691
13 932
0 50 000 100 000 150 000 200 000 250 000 300 000 350 000
Other
Wattle
Eucalyptus
Pine
Hectares
Limpopo Cape Mpumalanga KZN
Pine Plantation Area by Region 2008
47.6%
20.2%
28.1%
4.1%
Mpumalanga KZN Cape Limpopo
Total – 660 265 ha (52.5% of total)
Eucalyptus Plantation Area by Region 2008
36.4%
55.0%
4.6% 4.0%
Mpumalanga KZN Cape Limpopo
Total – 491 934 ha (39.1% of total)
Wattle Plantation Area by Region 2008
14.6%
82.8%2.5%
0.1%
Mpumalanga KZN Cape Limpopo
Total – 95 572 ha (7.6% of total)
Other Hardwood Plantation Area by Region 2008
34.9%
25.3%
28.2%
11.6%
Mpumalanga KZN Cape Limpopo
Total – 9 571 ha (0.8% of total)
Plantation Area by Management Objectives 2008
55.2%
5.3%3.5%
36.1%
Pulpwood Mining Timber Other Sawlogs
Total – 1 257 341 ha
Softwood Plantation Area by Management Objectives 2008
65.8%
32.4%
1.4%
0.3%
Sawlogs Pulpwood Poles Other
Total – 660 265 ha
Hardwood Plantation Area by Management Objectives 2008
3.3%
80.3%
4.1%
11.1%
1.2%
Sawlogs Pulpwood Poles Other Mining Timber
Total – 597 076 ha
Plantation Area by Province and Ownership 2008
3 466
22 279
30 688
32 878
126 528
56 104
25 703
122 692
453 141
383 862
0 100 000 200 000 300 000 400 000 500 000 600 000
W. Cape
Limpopo
E.Cape
KZN
Mpumalanga
Hectares
Public Private
Total Private – 1 041 502 ha (83%)Total Public – 215 839 ha (17%)
Leased Safcol packages included in
“Private”
Percentage Plantation Ownershipby Province 2008
75%
54%
80%93% 94%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Limpopo Mpumalanga E.Cape KZN W. Cape
Province
Publicly Owned Privately Owned
Total Private – 1 041 223 ha (83%)Total Public – 215 839 ha (17%)
Plantation Area by Species and Ownership 2008
3 023
3 558
45 535
163 723
6 546
92 014
446 399
496 543
0 100 000 200 000 300 000 400 000 500 000 600 000
Other Hard.
Wattle
Eucalyptus
Pine
Hectares
Public Private
Total Private – 1 041 223 ha (83%)Total Public – 215 839 ha (17%)
Percentage Plantation Ownershipby Species 2008
96%91%
68%75%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Other Hard. Pine Eucalyptus Wattle
Species
Publicly Owned Privately Owned
Total Private – 1 041 223 ha (83%)Total Public – 215 839 ha (17%)
Planted Area Comparisonsby Region & Product 2008
23 298
2 061
143 980
43 611
7 986
4 934
34 879
183
5 433
214 186
234 490
6 670
3 012
61 145
415 194
56 281
0 100 000 200 000 300 000 400 000 500 000
Other
Mining Timber
Sawlogs
Pulpwood
Hectares
Cape Limpopo Mpumalanga KZN
Roundwood Production by Product 2008
0.62
0.99
5.09
13.43
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Mining Timber
Other
Sawlogs
Pulpwood
Million m3
Total – 8.9 million m3 (softwood)Total – 11.3 million m3 (hardwood)
Roundwood Production by Province and Genera 2008
0.59
0.33
1.40
4.44
2.12
0.01
0.33
0.26
3.62
7.05
0 1 2 3 4 5 6 7 8 9
W. Cape
Limpopo
E. Cape
Mpumalanga
KZN
Million m3
Softwood Hardwood
Total – 8.9 million m3 (softwood)Total – 11.3 million m3 (hardwood)
Roundwood Productionby Province and Genera 2008
0 2 4 6 8 10 12 14
W. Cape
Limpopo
E. Cape
Mpumalanga
KZN
Million m3
Softwood Hardwood
0.596
0.695
1.659
8.058
9.165
Total – 8.9 million m3 (softwood)Total – 11.3 million m3 (hardwood)
Roundwood Production ex Plantationsby Province & Product 2008
0.045
0.244
0.288
0.818
0.218
0.546
0.304
1.147
2.485
0.611
0.005
0.111
0.225
4.755
8.336
0 2 4 6 8 10
Western Cape
Limpopo
Eastern Cape
Mupumlanga
KZN
Million m3
Other Sawlogs Pulpwood
Total – 20.1 million m3 or 17.5 million tons
Total Roundwood Production ex Plantations by Province 2008
45.5%
40.0%
8.2%
3.0%
3.3%
KZN Mpumalanga E. Cape Limpopo W. Cape
Total – 20.1 million m3 or 17.5 million tons
Total Roundwood Production ex Plantations by Product 2008
66.7%
25.3%
3.1%
4.9%
Pulpwood Sawlogs Mining Timber Other
Total – 20.1 million m3 or 17.5 million tons
Total Roundwood Production ex Plantations by Species 2008
44.0%
51.3%
4.6%
0.1%
Pine Eucalyptus Wattle Other
Total – 20.1 million m3 or 17.5 million tons
Softwood Roundwood Production ex Plantations by Product 2008
55.2%
43.3% 0.8%
0.7%
Sawlogs Pulpwood Poles Other
Total – 8.9 million m3 or 9.2 million tons
Hardwood Roundwood Production ex Plantations by Product 2008
85.1%
5.5%
3.7%
3.9%
1.8%
Pulpwood Mining Timber Poles Sawlogs Other
Total – 11.3 million m3 or 8.3 million tons
Composition of Roundwood Production by Product 2008
0.0%12.9%15.0%28.6%
96.1%
0%
20%
40%
60%
80%
100%
Sawlogs Pulpwood Poles Other MiningTimber
Product
Softwood Hardwood
Total Plantation Area 1980 to 2008
1 100 000
1 150 000
1 200 000
1 250 000
1 300 000
1 350 000
1 400 000
1 450 000
1 500 000
1 550 000
1980 1984 1988 1992 1996 2000 2004 2008
Years
He
cta
res
Total increase in afforested area over period : 95 933 haTotal % increase in afforested area over period : 8.3%
Total Roundwood Production ex Plantations1980 to 2008
10
12
14
16
18
20
22
24
1980 1984 1988 1992 1996 2000 2004 2008
Years
Mill
ion
m3
Total increase in production over period : 69.5%Total in increase in afforested area over period : 8.3%
Roundwood Production vs. Plantation Area 1980 to 2008
90
100
110
120
130
140
150
160
170
180
190
200
1980 1984 1988 1992 1996 2000 2004 2008
Years
1980
= 1
00Plantation Production Plantation Area
Total increase in production over period : 69.5%Total in increase in afforested area over period : 8.3%
Average Productivity per Hectare 1980 - 2008
8
9
10
11
12
13
14
15
16
17
18
1980 1984 1988 1992 1996 2000 2004 2008
Years
m3
per
hec
tare
Total increase in productivity over period – 5.8 m3 per ha p.a. (57%)
Production Comparisons1998, 2003 & 2008
1.892
7.693
16.500
22.155
1.547
16.864
23.013
2.31
13.164
17.475
19.724
9.705
0 5 10 15 20 25
Wheat
Maize
Forestry
Sugar
Million tons
1998 2003 2008
Value of Roundwood Production 2008
65.4%1.9%
3.3%
29.4%
Pulpwood Mining Timber Other Sawlogs
Total – R6.0 billion
Value of Roundwood Productionex Plantations by Product 2008
0.116
0.200
1.778
3.953
0 1 1 2 2 3 3 4 4 5
Mining Timber
Other
Sawlogs
Pulpwood
Billion Rands
Total – R6 047 million
Value of Roundwood Productionex Plantations by Province 2008
187
201
525
2 423
2 711
0 500 1 000 1 500 2 000 2 500 3 000
Limpopo
Western Cape
Eastern Cape
Mupumlanga
KZN
Million Rands
Total – R6 047 million
Value of Roundwood Productionex Plantations by Province & Product 2008
49
9
58
156
44
106
190
400
868
213
33
1
66
1 399
2 453
0 500 1 000 1 500 2 000 2 500 3 000
Limpopo
Western Cape
Eastern Cape
Mupumlanga
KZN
Million Rands
Other Sawlogs Pulpwood
Total – R6 047 million
Value of Roundwood Productionex Plantations by Province & Product 2008
2 711
525
187
201
2 423
0 500 1 000 1 500 2 000 2 500 3 000
Limpopo
Western Cape
Eastern Cape
Mupumlanga
KZN
Million Rands
Pulpwood Sawlogs Other
Value of Roundwood Production 1980 to 2008
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
1980 1984 1988 1992 1996 2000 2004 2008
Years
Bill
ion
Ra
nd
(2
00
7/0
8 R
an
ds
)
Nominal Real
Nominal increase over period : R5.9 bn (3 572%)Real increase over period : R3.6 bn (146%)
New Afforestation by Region1980 to 2008
0
5
10
15
20
25
30
35
40
45
50
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
Years
Th
ou
san
d H
ecta
res
Mpum & Limp. KZN Cape Total
New afforestation over period - 380 452 haAverage per year - 13 119 ha
AVERAGE
Total New Afforestation by Region 1980 to 2008
54.2%33.7%
12.1%
KZN Mpumalanga & Limpopo E&W Cape
Total – 380 452 ha
Total New Afforestation by Region10 Yr Period - 1999 to 2008
61.5%
29.8%
8.8%
KZN Mpumalanga & Limpopo E&W Cape
Total – 42 336 ha
New Afforestation by Region10 Year Period – 1999 to 2008
0
1
2
3
4
5
6
7
8
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Years
Th
ou
sa
nd
He
cta
res
Northern KZN Cape Total
New afforestation over period - 42 336 ha Average per year - 4 234 ha
AVERAGE
New Afforestation by Province 2008
0.0%93.8%
0.0%
0.0%
6.2%
W. Cape KZN Limpopo Mpumalanga E. Cape
Total – 4 641 ha
New Afforestation by Species1980 to 2008
0
5
10
15
20
25
30
35
40
45
50
1980 1984 1988 1992 1996 2000 2004 2008
Years
Th
ou
sa
nd
He
cta
res
Pine Eucalyptus Wattle/Other Total
Average p.a. 1980 to 1985 - 10 974 ha (17.3% of total)Average p.a. 1986 to 1990 - 24 558 ha (32.3% of total)
Total New Afforestation by Species1980 to 2008
47.0%
44.1%
7.9% 0.9%Pine Eucalyptus Wattle Other
Total – 380 450 ha
New Afforestation by Species 2008
74.3%
14.0%
10.5%1.2%
Eucalyptus Pine Wattle Other Hardwood
Total – 4 641 ha
New Afforestation by Product1980 to 2008
0
5
10
15
20
25
30
35
40
45
50
1980 1984 1988 1992 1996 2000 2004 2008
Years
Th
ou
san
d H
ecta
res
Pulpwood Sawlogs Mining TimberOther Total
Average p.a. 1991 to 1995 - 24 406 ha (32.1% of total)Average p.a. 1996 to 2000 - 7 019 ha (9.2% of total)Average p.a. 2001 to 2008 - 4 336 ha (9.1% of total)
Total New Afforestation by Product1980 to 2008
57.7%22.6%
14.1%
5.6%
Pulpwood Sawlogs Mining Timber Other
Total – 380 450 ha
New Afforestation by Product 2008
13.0%
2.5%
0.0%
84.1%
0.4%
Pulpwood Sawlogs Poles Mng. Timber Other
Total – 4 641 ha
Area Converted Out of Timber Production by Species 1980 to 2008
0
1 000
2 000
3 000
4 000
5 000
6 000
7 000
1980 1984 1988 1992 1996 2000 2004 2008
Years
Hec
tare
sPine Eucalypts Wattle/Other Total
Area converted over period - 85 836 haAverage p.a. - 2 960 ha
Total Area Converted out of Timber Production by Species 1980 to 2008
44.5%
28.6%
24.3%
2.6%Pine Eucalypts Wattle Other
Total – 85 836 ha
Total Area Converted out of Timber Production by Species 2008
14.2%
58.5%
25.0%
2.3%
Pine Eucalypts Wattle Other Hardwood
Total – 696 ha
Net New Afforestation by Species1980 to 2008
-10
-5
0
5
10
15
20
25
30
35
40
45
1980 1984 1988 1992 1996 2000 2004 2008
Years
Th
ou
san
d H
ecta
res
Pine Eucalypts Wattle/Other Total
Net new afforestation over period - 294 614 haAverage p.a. - 10 159ha
Net New Afforestation by Species1980 to 2008
47.8%
48.6%
3.1%
0.5%
Pine Eucalypts Wattle Other
Total – 294 614 ha
Net New Afforestation by Species 2008
549
3 041
314
410
500
1 000
1 500
2 000
2 500
3 000
3 500
Pine Eucalypts Wattle Other
Species
Hec
tare
s
Total net new afforestation - 3 945 ha
Area Converted Out of Timber Production by Region 1980 to 2008
0
1 000
2 000
3 000
4 000
5 000
6 000
7 000
1980 1984 1988 1992 1996 2000 2004 2008
Years
Hec
tare
s
North KZN South Total
Area converted over period - 85 839 haAverage p.a. - 2 960 ha
Total Area Converted out of Timber Production by Region 1980 to 2008
30.7%
43.9%
25.3%
Mpumalanga & Limpopo KZN W&E Cape
Total – 85 839 ha
Net New Afforestation by Region1980 to 2008
-10
-5
0
5
10
15
20
25
30
35
40
45
1980 1984 1988 1992 1996 2000 2004 2008
Years
Th
ou
san
d H
ecta
res
North KZN South Total
Net new afforestation over period - 294 613 haAverage p.a. - 10 159 ha
Net New Afforestation by Region1980 to 2008
34.5%
57.2%
8.3%
Mpumalanga & Limpopo KZN W&E Cape
Total – 294 613 ha
Conversion of Plantations out of Production & to Other Species 1980 to 2008
-20
-15
-10
-5
0
5
10
15
1980 1984 1988 1992 1996 2000 2004 2008
Years
Th
ou
san
d H
ecta
res
Pine Eucalyptus Wattle/Other Total
Net loss to production area over period - 85 837 haAverage p.a. - 3 179 ha
Total Area Converted out of Production & to Other Species 1980 to 2008
-57 286
16 501
-47 742
2 690
-70 000
-60 000
-50 000
-40 000
-30 000
-20 000
-10 000
0
10 000
20 000
30 000
Pine Eucalypts Wattle Other
Species
Hec
tare
s
Net loss to production area over period - 85 837 haAverage p.a. - 3 179 ha
Area Converted out of Production & to Other Species 2008
-1 521
1 181
-547
190
-2 000
-1 500
-1 000
-500
0
500
1 000
1 500
Pine Eucalypts Wattle Other
Species
Hec
tare
s
Net loss to production area - 697 ha
Net Addition to Planted Area by Species 1980 to 2008
-20
-10
0
10
20
30
40
50
1980 1984 1988 1992 1996 2000 2004 2008
Years
Hec
tare
s
Pine Eucalyptus Wattle/Other Total
Total net addition to production area - 294 613 haAverage p.a. - 10 159 ha
Total Net Addition to Planted Area by Species1980 to 2008
121 638
184 285
-17 586
6 276
-50 000
0
50 000
100 000
150 000
200 000
250 000
Pine Eucalyptus Wattle Other
Species
Hec
tare
s
Total net addition to production area - 294 613 haAverage p.a. - 10 159 ha
Net Addition (Loss) to Planted Area by Species2008
-873
4 629
-59
247
-2 000
-1 000
0
1 000
2 000
3 000
4 000
5 000
6 000
Pine Eucalyptus Wattle Other
Species
Hec
tare
s
Total net gain in production area + 3 944 ha
Damage to Plantations by Genera1980 to 2008
0
20
40
60
80
100
120
1980 1984 1988 1992 1996 2000 2004 2008
Years
Th
ou
san
d H
ecta
res
Softwood Hardwood Total
Total area damaged over period - 907 765 haAverage p.a. - 31 302 ha
Damage to Plantations by Fires1980 to 2008
0
20
40
60
80
100
120
1980 1984 1988 1992 1996 2000 2004 2008
Years
Th
ou
san
d H
ecta
res
Fire Other Causes Total
Total area damaged over period - 907 765 haTotal area damaged by fire - 528 763 ha (58%)Total area damaged by other causes - 379 002 ha (42%)
Damage to Plantations by Fires1980 to 2008
0%
20%
40%
60%
80%
100%
1980 1984 1988 1992 1996 2000 2004 2008
Years
Fire Other Causes
Damage to Plantations by Genera 2008
77.9%
22.1%
Softwood Hardwood
Total – 77 150 ha (6.1% of total planted area)
Damage to Plantations by Cause 2008
91.8%
8.2%
Fire Other Causes
Total – 77 150 ha
Damage to Plantations by Fire 2008
14.9%
11.4%
0.9%
72.8%
Arson Accidental Natural Unknown
Total – 70 812 ha
FSC Certified Forestsby Forest Type: August 2009
97.8%2.2%
Plantations Semi-Natural
Certified Area – 1 572 568 ha (incl. planted & non-planted areas)
FSC Certified Forestsby Ownership: August 2009
76.6%
11.6%
2.4%9.4%
Private Co's Safcol & Ex Safcol DWAF Individuals
Certified Area – 1 572 568 ha (incl. planted & non-planted areas)
Section 3The Forest Products Industry
Number of Processing Plants by Type 2008
55.7%
10.4%
7.1%
24.0%
2.7%
Sawmills Pulp, Paper & Board MillsMng. Timber Mills OtherPole Plants
Total – 183 plants
Intake of Roundwood into Processing Plants 1980 to 2008
0
5
10
15
20
25
1980 1984 1988 1992 1996 2000 2004 2008
Years
Mill
ion
m3
Pulp & Paper Mills Sawmills
Mng. Timber Mills Other
Total
Total increase in intake over period - 8.5 million m3 (77%)Biggest increase that of pulpwood - 9.6 million m3 (227%)
Intake of Roundwood into Processing Plants 2008
70.2%
22.5%
3.6%
3.7%
Pulp, Paper & Board Mills Sawmills
Mng. Timber Mills Other
Total – 19.6 million m3
Roundwood Intake into ProcessingPlants by Province & Product 2008
0.070
0.277
0.008
0.780
0.298
0.463
0.524
0.619
2.058
0.749
0.031
0.001
0.000
2.542
11.217
0 2 4 6 8 10 12
Western Cape
Limpopo
Eastern Cape
Mupumlanga
KZN
Million m3
Other Sawlogs Pulpwood
Total – 19.6 million m3
Roundwood Intake into ProcessingPlants by Province & Product 2008
0.801
0.564
0.627
12.264
5.380
0 2 4 6 8 10 12 14
Western Cape
Limpopo
Eastern Cape
Mupumlanga
KZN
Million m3
Pulpwood Sawlogs Other
Total – 19.6 million m3
Average Size of Plant by Intake1980 vs. 2008
46
26
7
72
25
351
107
60
10
54
43
726
0 100 200 300 400 500 600 700 800
Average All
Other Plants
Pole Plants
Mng. Timber Mills
Sawmills
Pulp & Paper Mills
Thousand m3
1980 2008
Overall average intake has increased by: - 133%Average intake of PP & Board Mills has increased by: - 107%Only average intake of MT Mills has declined – by - 25%
Sales of Certain Products from Processing Plants 1980 to 2008
0
1 000
2 000
3 000
4 000
5 000
6 000
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
Years
Th
ou
sa
nd
Un
its
Pulp (t) Lumber (m3)
Mng. Timber (t) Chips (t)
Biggest increase that of chips - 3.4 million tons (645%)Only decrease that of mining timber - 1.0 million tons (-60%)
Value of Sales from Primary Processing Plants 2008
53.3%
8.9%
20.8%
2.6%
3.7%
10.7%
Pulp Chips Lumber Panels Mng. Timber Other
Total – R21.4 billion
Value of Sales from Primary Processing Plants 1980 to 2008
0
5
10
15
20
25
1980 1984 1988 1992 1996 2000 2004 2008
Years
Bill
ion
Ra
nd
(2
00
7/0
8 R
an
ds
)
Nominal Real
Nominal increase over period - R20.7 bn (2 964%)Real increase over period - R11.0 bn (105%)
Value of Roundwood Sales from Processing Plants by Product & Province 2008
318
8
102
663
302
528
623
466
2 073
755
1
0
35
2 868
12 655
0 2 000 4 000 6 000 8 000 10 000 12 000 14 000
Limpopo
Western Cape
Eastern Cape
Mupumlanga
KZN
Million Rands
Other Sawn Timber Pulp / Boards / Chips
Total – R21.4 billion
Value of Roundwood Sales from Processing Plants by Product & Province 2008
603
631
846
13 712
5 604
0 2 000 4 000 6 000 8 000 10 000 12 000 14 000 16 000
Eastern Cape
Western Cape
Limpopo
Mupumlanga
KZN
Million Rands
Pulp / Boards / Chips Sawn Timber Other
Total – R21.4 billion
Gross Value of Output Comparisons1998, 2003 & 2008
2.639
1.529
2.268
4.454
10.090
3.953
2.209
4.080
9.134
14.591
4.119
4.468
6.047
20.796
21.361
0 5 10 15 20 25
Sugar Cane
Wheat
Forestry
Maize
For. Prods.
Billion Rand
1998 2003 2008
Gross Value of Output Comparisonsper Planted Hectare 1998, 2003 & 2008
1.639
2.052
1.251
6.268
7.290
2.974
2.953
2.502
9.193
10.635
4.811
5.973
6.308
9.738
16.994
0 5 10 15 20
Forestry
Wheat
Maize
Sugar
For. Prods.
Thousand Rand per Hectare
1998 2003 2008
Value Addition in Primary Processing Industry 2008
51
419
565
4 445
11 375
21 360
22
155
116
1 778
3 953
6 047
0 5 000 10 000 15 000 20 000 25 000
Charcoal Plants
Pole Plants
M. T. Mills
Sawmills
Pulp / Paper Mills
Total Industry
Million Rand
Output Input
Note : excludes secondary processing (e.g. paper manufacturing)
Value Addition Comparisons in Primary Processing Industry 2008
2.34
2.50
2.70
2.88
3.53
4.87
0.0 1.0 2.0 3.0 4.0 5.0 6.0
Charcoal Plants
Sawmills
Pole Plants
Pulp / Paper Mills
Total Industry
M. T. Mills
Output as ratio of Input
Note : Based only on input value of raw fibre (i.e. excludes all other input costs)
Section 4 Contribution to Employment
Forest Sector Employment – RSA 2008
No. of employees Total EmploymentDirect Sub-sector
Forestry 76,844 30,000 106,844
Pulp and Paper 13,200 10,781 23,981
Sawmilling 20,000 n/a 20,000
Timber Board 6,000 n/a 6,000
Mining Timber 2,200 n/a 2,200
Other 11,000 n/a 11,000
Total 129,244 40,781 170,025
Direct Employment in Forestry Industry by Province 2008
45.0%
38.0%13.4%
3.6%
KZN Mpumalanga Cape Limpopo
Total – 77,000
Direct Employment in Forestry Industry by Region 2008
2 700
10 300
29 300
34 700
0 5 000 10 000 15 000 20 000 25 000 30 000 35 000 40 000
Limpopo
Cape
Mpumalanga
KZN
Number of Direct Jobs
Total estimated direct jobs in Industry – 77,000
Direct Employment in Forestry Industry as % of Those Employed in 2008
0.3%
0.4%
0.6%
1.6%
3.7%
0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0%
Cape
Limpopo
RSA
KZN
Mpumalanga
% of Total Employed in Formal Sector
Total employed in RSA – 12.5 million
Indirect Employment in Forestry Industry by Province 2008
16 200
61 800
175 800
208 200
0 50 000 100 000 150 000 200 000 250 000
Limpopo
Cape
Mpumalanga
KZN
Number of Indirect Jobs
Total estimated indirect jobs created by Industry – 462,000
Indirect Employment in Forestry Industry as % of Those Employed in 2008
1.8%
2.1%
3.7%
9.5%
21.9%
0% 5% 10% 15% 20% 25%
Cape
Limpopo
RSA
KZN
Mpumalanga
% of Total Employed in Formal Sector
Total employed in Mpumalanga – 803,000
Direct & Indirect Jobs in Forestry Industry by Province 2008
242,900
18,900
72,100
205,100
0 50 000 100 000 150 000 200 000 250 000 300 000
Limpopo
Cape
Mpumalanga
KZN
Number of Jobs
Direct jobs Indirect jobs
Estimated total – 539,400 jobs
Total Employment in Industry as % of Those Employed in Formal Sector 2008
2.1%
2.4%
4.3%
11.1%
25.5%
0% 5% 10% 15% 20% 25% 30%
Cape
Limpopo
RSA
KZN
Mpumalanga
% of Total Employed in Formal Sector
Direct Indirect
Total employed in Mpumalanga – 0.8 million
Dependents of Those Working in Forestry Industry by Region 2008
645,000
227,000
763,000
0 200 000 400 000 600 000 800 000 1 000 000
Limpopo
Cape
Mpumalanga
KZN
Number of Dependents
Direct job dependents Indirect job dependents
Estimated total – 1.7 million dependents
59,000
Total Number of People Dependent on Forestry Industry by Region 2008
904,000
730,000
24,000
64,000
115,000
0 200 000 400 000 600 000 800 000 1 000 000 1 200 000
W. Cape
Limpopo
E. Cape
Mpumalanga
KZN
Number of People Dependent on Industry
Workers Dependents
Estimated total – 2.3 million livelihoods
Estimated % of Population Dependent on Forestry Industry 2008
1.5%
2.7%
5.0%
10.7%
27.2%
0% 5% 10% 15% 20% 25% 30%
Limpopo
Cape
RSA
KZN
Mpumalanga
% of Provincial Population
Section 5 Investment in Sector
Investment in RSA Forestry Industry 2008
56.2%
24.6% 1.5%
11.6%
6.2%
Trees LandRoads Fixed AssetsMoveable Assets
Total Investment - R18.8 Billion
Investment in RSA Forestry Industry 2008
44.7%
29.8%
17.7%
1.7%
6.0%
Pine Long Gum Short Pine Short
Wattle Gum Long
Total Investment - R18.8 Billion
Investment in RSA Forestry Industry 2008
42.1%
33.9%
13.7%
4.3%
6.0%
Mpumalanga KZN E. Cape W. Cape Limpopo
Total Investment - 18.8 Billion
Investment in Plantations – By Province 2008
0.808
1.137
2.585
6.375
7.916
0 1 2 3 4 5 6 7 8 9
Limpopo
W Cape
E Cape
KZN
Mpumalanga
Billion Rand
Mpumalanga has highest investment - 42.1% of total
Investment in Mpumalanga Forestry 2008
50.7%
25.8% 20.0%
1.5%
2.1%
Pine Long Gum Short Pine Short
Wattle Gum Long
Total Investment - R7.9 Billion
Investment in KZN Forestry 2008
18.3%49.8%
17.1%
0.1%
14.8%
Pine Long Gum Short Pine Short
Wattle Gum Long
Total Investment - R6.4 Billion
Investment in E. Cape Forestry 2008
63.5%
9.3%25.5%
0.6%
1.1%
Pine Long Gum Short Pine Short
Wattle Gum Long
Total Investment - R2.6 Billion
Investment in W. Cape Forestry 2008
93.8% 0.6%
1.0%
4.6%
0.0%
Pine Long Gum Short Pine Short
Wattle Gum Long
Total Investment - R1.1 Billion
Investment in Limpopo Forestry 2008
64.9%
18.7%
0.1%
16.2%
0.1%
Pine Long Gum Short Pine Short
Wattle Gum Long
Total Investment - R808 Million
Investment in Forest Products Sector by Type of Processing Plant 2008
84.7%
10.2%
0.7%
4.1%
0.3%
Pulp & Board Sawmills & VeneerPole Plants Mng. TimberOther
Total Book Value of Investments - R15.8 Billion
Investment in Forest Products Sectorby Investment Category 2008
86.2%
11.2%
2.6%
Machinery & Equipment Land & Buildings
Moveable Assets
Total Book Value of Investments - R15.8 Billion
Section 6 Contribution to GDP
Composition of RSA GDP2008
2.9%
6.8%
4.5%
19.1%
50.2%
16.5%
Agric Mining Other Secondary
Manufacturing Finance Other Tertiary
Total GDP – R2 151 Billion (i.e. R2.2 Trillion)
Contribution to GDP 1980 to 2008
0%
2%
4%
6%
8%
10%
12%
14%
1980 1984 1988 1992 1996 2000 2004 2008
Years
% C
on
trib
uti
on
to
GD
PForestry to Agric. GDP FP to Mnfg. GDP
FP to total GDP
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%
Forestry vs. Other Agricultural GGPper Region 2008
9.6%
40.4%
16.7% 15.0% 4.0% 1.4%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Mpum KZN E. Cape Limpopo W. Cape RSA
Province
Forestry Other Agriculture
Forestry in Mpumalanga of major importance
Forest Products vs. Other Manufacturing GGP per Region 2008
6.0%1.2%2.0%16.9%18.0%21.4%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Mpum KZN Limpopo E. Cape W. Cape RSA
Province
Forest Products Other Manufacturing
Gross Value of Outputby Sector & Province 2008
201
188
525
2 423
2 711
631
846
603
5 604
13 712
0 2 000 4 000 6 000 8 000 10 000 12 000 14 000 16 000
Western Cape
Limpopo
Eastern Cape
Mupumlanga
KZN
Million Rands
Forestry Forest Products
Gross Value of Outputby Sector & Province 2008
16 422
8 027
1 128
1 034
832
0 5 000 10 000 15 000 20 000
Western Cape
Limpopo
Eastern Cape
Mupumlanga
KZN
Million Rands
Forestry Forest Products
Forest Industry Contribution to Total GGP per Region - 2008
0.06%
0.31%
0.13%
0.28%
0.77%
1.65%
0.20%
0.34%
0.58%
0.99%
3.90%
3.81%
0% 1% 1% 2% 2% 3% 3% 4% 4% 5%
Western Cape
Eastern Cape
Limpopo
RSA
KZN
Mpumalanga
% of Regional GGP
Forestry Forest Products
Forest Industry Contribution to Total GGP per Region - 2008
5.45%
4.67%
0.26%
065%
0.70%
1.27%
0% 1% 2% 3% 4% 5% 6%
Western Cape
Eastern Cape
Limpopo
RSA
KZN
Mpumalanga
% of Regional GGP
Forestry Forest Products
Section 7 Contribution to Foreign Trade
Forest Product Exports2008
31.4%
41.6%
24.7%
2.3%
Pulp Paper Solid Wood Other
Total – R14.8 billion
Forest Product Imports2008
5.1%
70.2%
24.6%
0.1%
Pulp Paper Solid Wood Other
Total – R11.3 billion
Trade Balance in Forest Products1980 to 2008 (nominal)
0
2
4
6
8
10
12
14
16
1992 1994 1996 1998 2000 2002 2004 2006 2008
Years
Bill
ion
Ra
nd
Imports Exports Trade Balance
Increase in imports - R9.8 billion (694%)Increase in exports - R12.4 billion (531%)Increase in trade balance - R2.6 billion (281%)
Trade Balance in Forest Products1980 to 2008 (real)
0
2 000
4 000
6 000
8 000
10 000
12 000
14 000
16 000
18 000
1992 1994 1996 1998 2000 2002 2004 2006 2008
Years
Bill
ion
Ra
nd
(2
00
8 R
an
ds
)
Imports Exports Trade Balance
Increase in imports - R7.2 billion (176%)Increase in exports - R8.0 billion (120%)Increase in trade balance - R0.9 billion (33%)
Export Comparisons1998, 2003 & 2008
2.0
3.6
5.6
7.8
6.3
0.8
6.7
9.9
13.6
9.1
2.0
13.0
14.8
38.9
59.4
0 10 20 30 40 50 60 70
Sugar
Fruit
Forest Prods
Coal
Metal Ores
Billion Rand
1998 2003 2008