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forestry related services industry south africa

The Forestry and Related Services Industry in South Africa 2020

Rebecca Viljoen | South Africa | 03 August 2020

The Forestry and Related Services Industry in South Africa 2018

Marc Bosman | South Africa | 13 March 2018

The Forestry and Related Services Industry in South Africa 2016

Marc Bosman | South Africa | 26 October 2016

The Forestry and Related Services Industry in South Africa 2014

Ingi Salgado | South Africa | 25 March 2014

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Report Coverage

This report focuses on Forestry and Related Services and includes the sawmilling and treatment of poles subsectors. It includes comprehensive information on the state and size of the sector, production, trade and labour statistics and sector developments. There are profiles of 27 companies including major players such as Sappi and Mondi, Lion Match Forestry and PG Bison, the state-owned industry player Safcol and milling and timber product companies such as Plantation Sawmilling and Boards and Stevens Lumber Mills.

Forestry and Related Services

The country’s 1.2 million hectares of timber plantations produce between 15 million and 18 million tons of timber every year. Timber is a renewable resource and forests play an important role in climate change mitigation. There is a growing timber shortage in South Africa, and the industry is struggling to secure enough suitable land to plant new forests. Eleven forestry companies, about 1,100 commercial timber farmers and 20,000 small-scale farmers, representing over 90% of South Africa’s forestry industry, are members of industry body Forestry South Africa. South Africa is a significant exporter of forest-related products, and pulp, paper and solid wood are the industry’s main exports.

Biomass

Increasingly, processing plant by-products (biomass) are being used to generate electricity. As technology improves, large companies that manufacture pulp and paper products are moving into the bioeconomy and major players such as Sappi, Mondi, MTO and York are beginning to integrate biofuel into their products. There significant potential for biofuel since sawmill operators produce large quantities of biomass and some companies are using biomass to generate electricity and establish biorefineries.

Local Economic Impact

Most of the forestry industry’s workforce lives in rural communities. The industry contributes to local economies through job creation, social services and infrastructure development. There has been significant development of small-scale growers, who are usually located near to larger industry players that have harvesting and transport capacity.

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The Forestry and Related Services Industry in South Africa 2020

Full Report

R 1 900.00(ZAR) estimated $100.48 (USD)*

Industry Overview

R 1 330.00(ZAR) estimated $ 70.34 (USD)*

Historical Reports

The Forestry and Related Services Industry in South Africa 2018-03-13

R 1 900.00(ZAR) estimated $100.48 (USD)*

View Report Add to Cart

The Forestry and Related Services Industry in South Africa 2016-10-26

R 1 900.00(ZAR) estimated $100.48 (USD)*

View Report Add to Cart

The Forestry and Related Services Industry in South Africa 2014-03-25

R 1 900.00(ZAR) estimated $100.48 (USD)*

View Report Add to Cart

Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 3
2.2. Geographic Position 5
3. SIZE OF THE INDUSTRY 7
4. STATE OF THE INDUSTRY 11
4.1. Local 11
4.1.1. Corporate Actions 17
4.1.2. Regulations 17
4.1.3. Enterprise Development and Socio-Economic Development 19
4.2. Continental 22
4.3. International 25
5. INFLUENCING FACTORS 28
5.1. Economic Environment 28
5.2. Legislation 29
5.3. Input Costs 30
5.4. Technology, Research and Development (R&D) and Innovation 30
5.5. Labour 32
5.6. Land Ownership 35
5.7. Environmental 35
5.8. Cyclicality 38
6. COMPETITION 38
6.1. Barriers to Entry 39
7. SWOT ANALYSIS 40
8. OUTLOOK 41
9. INDUSTRY ASSOCIATIONS 42
10. REFERENCES 43
10.1. Publications 43
10.2. Websites 44
APPENDIX 1 46
Summary of Notable Players 46
COMPANY PROFILES 49
AMATHOLE FORESTRY COMPANY (PTY) LTD 49
BEDROCK MINING SUPPORT (PTY) LTD 51
BRACKEN TIMBERS (PTY) LTD 53
C J RANCE (PTY) LTD 56
GEELHOUTVLEI TIMBERS CC 58
INDEPENDANT TIMBERS CC 59
KHULANI TIMBER INDUSTRIES (PTY) LTD 60
LAWA ESTATES (PTY) LTD 62
LIMPOPO LUMBER PRODUCTS (PTY) LTD 63
LION MATCH FORESTRY (PTY) LTD 65
MERENSKY TIMBER (PTY) LTD 67
MONDI SOUTH AFRICA (PTY) LTD 69
MTO FORESTRY (PTY) LTD 72
NCT FORESTRY CO-OPERATIVE LIMITED PRIMARY CO-OPERATIVE 74
PG BISON (PTY) LTD 77
PLANTATION SAWMILLING AND BOARDS CC 80
R AND B TIMBERS (PTY) LTD 82
SAPPI LTD 84
SINGISI FOREST PRODUCTS (PTY) LTD 89
SOUTH AFRICAN FORESTRY COMPANY (SOC) LTD 91
STEVENS LUMBER MILLS (PTY) LTD 94
SUREJOY INDUSTRIES (PTY) LTD 96
TIMRITE (PTY) LTD 98
TREATED TIMBER PRODUCTS (PTY) LTD 100
U C L COMPANY (PTY) LTD 103
VUKA TIMBERS (PTY) LTD 106
YORK TIMBER HOLDINGS LTD 108

Report coverage

The detailed Forestry and Related Services report discusses current conditions and the many difficulties faced by role players, which include the contraction in producer numbers, rising costs, disease and pests and competition for land and water. Eighteen industry players are profiled including KAP Diversified Industrial (Pty) Ltd, which in December 2017 issued a SENS notice distancing itself from major shareholder Steinhoff, and asserting that KAP exercises independent management, control and funding. Also profiled is Singisi Forest Products (Pty) Ltd which suffered devastating fires and significant loss in its Matiwane forests during 2017.

The Forestry and related services sector

Forestry South Africa (FSA) members include 11 corporate timber companies, approximately 1,100 commercial timber farmers and 20,000 small growers who collectively own or manage 91.6% of regulated afforestation. According to the Department of Agriculture, Forestry and Fisheries (DAFF), there are approximately 300 primary processing plants classified as saw, pulp and board mills in the country. FSA reported that total 2016 forestry contribution to GDP, when paper and paper packaging are included, was R58.2bn or 1.53% of GDP.

Industry growth and Sustainability

The forestry value chain requires increasing volumes of timber to produce an increasing range of wood, pulp, paper, packaging and products driven by rising populations requiring more sustainable food, clothing and housing. There is mounting pressure on governments and manufacturing industries to meet sustainable development goals (SDGs) and combat climate change by reducing fossil fuel and fossil fuel-derived chemical product, manufacturing and consumption. These movements are driving industry growth. Rising anti-plastic consumer sentiment is driving demand for sustainable wood fibre, pulp, paper and packaging, whether as bags for agricultural commodities or feed products, containerboard for agricultural produce, or packaging to ensure food remains fresher and safer for longer. At the same time the move to produce more sustainable housing and buildings is driving growth in wood construction and the production of engineered wood, structural wood products, and wood boards and panels.

Report coverage

The detailed Forestry and Related Services report discusses current conditions and the many difficulties faced by role players, which include the contraction in producer numbers, rising costs, disease and pests and competition for land and water. Eighteen industry players are profiled including KAP Diversified Industrial (Pty) Ltd, which in December 2017 issued a SENS notice distancing itself from major shareholder Steinhoff, and asserting that KAP exercises independent management, control and funding. Also profiled is Singisi Forest Products (Pty) Ltd which suffered devastating fires and significant loss in its Matiwane forests during 2017.

Read More..
The Forestry and Related Services Industry in South Africa 2018

Full Report

R 1 900.00(ZAR) estimated $100.48 (USD)*

Industry Overview

R 1 330.00(ZAR) estimated $ 70.34 (USD)*

Historical Reports

The Forestry and Related Services Industry in South Africa 2020-08-03

R 1 900.00(ZAR) estimated $100.48 (USD)*

View Report Add to Cart

The Forestry and Related Services Industry in South Africa 2016-10-26

R 1 900.00(ZAR) estimated $100.48 (USD)*

View Report Add to Cart

The Forestry and Related Services Industry in South Africa 2014-03-25

R 1 900.00(ZAR) estimated $100.48 (USD)*

View Report Add to Cart

Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 2
2.2. Geographic Position 5
3. SIZE OF THE INDUSTRY 7
4. STATE OF THE INDUSTRY 13
4.1. Local 13
4.1.1. Corporate Actions 17
4.1.2. Regulations and Standards 19
4.1.3. Enterprise Development and Social Economic Development 23
4.2. Continental 25
4.3. International 28
5. INFLUENCING FACTORS 29
5.1. Economic Environment 29
5.2. Government Initiatives 29
5.3. Rising Operating Costs 30
5.4. Insufficient Investment 31
5.5. Technology, Research and Development (R&D) and Innovation 31
5.6. Renewable Energy 35
5.7. Labour 36
5.8. Cyclicality 40
5.9. Environmental 40
6. COMPETITION 42
6.1. Barriers to Entry 43
7. SWOT ANALYSIS 44
8. OUTLOOK 44
9. INDUSTRY ASSOCIATIONS 45
10. REFERENCES 47
10.1. Publications 47
10.2. Websites 48
COMPANY PROFILES 50
AMATHOLE FORESTRY COMPANY (PTY) LTD 50
BEDROCK MINING SUPPORT (PTY) LTD 52
BRACKEN TIMBERS (PTY) LTD 54
C J RANCE (PTY) LTD 57
KAP DIVERSIFIED INDUSTRIAL (PTY) LTD 59
MASONITE (AFRICA) LTD 63
MERENSKY TIMBER (PTY) LTD 66
MONDI LTD 68
MTO FORESTRY (PTY) LTD 72
NCT FORESTRY CO-OPERATIVE LTD 74
R AND B TIMBERS (PTY) LTD 77
SAPPI LTD 79
SINGISI FOREST PRODUCTS (PTY) LTD 84
SIYAQHUBEKA FORESTS (PTY) LTD 86
SOUTH AFRICAN FORESTRY COMPANY (SOC) LTD 88
TREATED TIMBER PRODUCTS (PTY) LTD 91
U C L COMPANY (PTY) LTD 94
YORK TIMBER HOLDINGS LTD 97

Report Coverage

The detailed Forestry and Related Services report discusses current conditions, trends in the sector and the strategies being followed by role players to ensure growth and sustainability. Seventeen industry players are profiled, including Sappi and Mondi, the two major private sector companies which have operations in several countries. Also profiled are state-owned entity, South African Forestry Company (SOC) Ltd t/a SAFCOL and NCT Forestry Co-Operative Ltd, which markets timber and bark on behalf of about 2,000 small growers and also provides services such as transport brokering to its members.

The Forestry and Related Services Sector

South Africa has 1.27 million hectares of afforested land managed by private timber companies, small growers on land held by traditional authorities, community forestry co-operatives and state-owned plantations. The combined forestry and forestry products sector contributes 0.5% to annual GDP and is valued at approximately R33bn, with an estimated R22.1bn of this amount attributable to export earnings. Government regards the forestry industry as a strategic economic sector with the ability to foster economic growth and job creation. Currently the sector provides employment to approximately 165,900 workers, with 92,700 employed in the forestry sector and the remaining 72,300 in sawmilling, mining timber, pulp and paper and related industries.

An innovative Sector

Although the forestry products sector comprises the processing of a range of traditional wood products, such as poles, furniture, paper and packaging, it is wood-derived chemicals that are creating new revenue streams for major player, Sappi. Also known as chemical cellulose, initially used in the production of viscose fibre for clothing, there are an increasing number of applications, in the manufacture of hygiene products and computer screens for example. There is also a growing market for biomass. South Africa already has four small-scale manufacturers of biotech fuel pellets from biomass, although the products have been geared towards export markets in Europe, where demand is higher.

Read More..
The Forestry and Related Services Industry in South Africa 2016

Full Report

R 1 900.00(ZAR) estimated $100.48 (USD)*

Industry Overview

R 1 330.00(ZAR) estimated $ 70.34 (USD)*

Historical Reports

The Forestry and Related Services Industry in South Africa 2020-08-03

R 1 900.00(ZAR) estimated $100.48 (USD)*

View Report Add to Cart

The Forestry and Related Services Industry in South Africa 2018-03-13

R 1 900.00(ZAR) estimated $100.48 (USD)*

View Report Add to Cart

The Forestry and Related Services Industry in South Africa 2014-03-25

R 1 900.00(ZAR) estimated $100.48 (USD)*

View Report Add to Cart

Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 2
2.2. Geographic Position 5
3. SIZE OF THE INDUSTRY 6
4. STATE OF THE INDUSTRY 10
4.1. Local 10
4.1.1. Corporate Actions 14
4.1.2. Regulations and Standards 16
4.1.3. Enterprise Development and Social Economic Development 18
4.2. Continental 20
4.3. International 22
5. INFLUENCING FACTORS 24
5.1. Economic Environment 24
5.2. Government Initiatives 24
5.3. Rising Operating Costs 26
5.4. Technology, Research and Development (R&D) and Innovation 26
5.5. Labour 28
5.6. Cyclicality 32
5.7. Environmental Concerns 32
6. COMPETITION 34
6.1. Barriers to Entry 35
7. SWOT ANALYSIS 35
8. OUTLOOK 36
9. INDUSTRY ASSOCIATIONS 36
10. REFERENCES 38
10.1. Publications 38
10.2. Websites 41
COMPANY PROFILES 42
AMATHOLE FORESTRY COMPANY (PTY) LTD 42
BRACKEN TIMBERS (PTY) LTD 44
KAP DIVERSIFIED INDUSTRIAL (PTY) LTD 46
MERENSKY TIMBER (PTY) LTD 49
MONDI LTD 51
MTO FORESTRY (PTY) LTD 54
NCT FORESTRY CO-OPERATIVE LTD 56
SAPPI LTD 59
SINGISI FOREST PRODUCTS (PTY) LTD 64
SIYAQHUBEKA FORESTS (PTY) LTD 66
SOUTH AFRICAN FORESTRY COMPANY (SOC) LTD 68
TREATED TIMBER PRODUCTS (PTY) LTD 71
U C L COMPANY (PTY) LTD 73
YORK TIMBER HOLDINGS LTD 76

Extract

According to forestry companies, 2014 will be a tough year because of a low-growth environment globally in established markets...

Description

The forestry and forest products industry contributes in the region of R30bn a year to the South African economy, and a significant portion of this amount is export earnings. Forestry is deemed a priority sector by the government because of its potential to contribute to rural development and employment.

The Forestry and Related Services Industry in South Africa 2014

Full Report

R 1 900.00(ZAR) estimated $100.48 (USD)*

Industry Overview

R 1 330.00(ZAR) estimated $ 70.34 (USD)*

Historical Reports

The Forestry and Related Services Industry in South Africa 2020-08-03

R 1 900.00(ZAR) estimated $100.48 (USD)*

View Report Add to Cart

The Forestry and Related Services Industry in South Africa 2018-03-13

R 1 900.00(ZAR) estimated $100.48 (USD)*

View Report Add to Cart

The Forestry and Related Services Industry in South Africa 2016-10-26

R 1 900.00(ZAR) estimated $100.48 (USD)*

View Report Add to Cart

Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Supply Chain 1
3. SIZE OF THE INDUSTRY 2
4. STATE OF THE INDUSTRY 5
4.1. Local 5
4.1.1. Corporate Actions 6
4.1.2. Regulations 6
4.1.3. Black Economic Empowerment (BEE) 7
4.2. Regional 8
4.3. International 8
5. INFLUENCING FACTORS 9
5.1. Economic Environment 9
5.2. Rising Input Costs 9
5.3. Labour Resources 10
5.4. Granting of Afforestation Licences 11
5.5. Land Reform 11
5.6. Damage to Forests 11
5.7. Technology and Information Technology 11
5.8. Cyclicality 12
5.9. Environmental Concerns 12
6. COMPETITION 13
6.1. Barriers to Entry 14
6.2. Research and Development (R&D) 14
6.3. Innovation 14
7. SWOT ANALYSIS 15
8. OUTLOOK 15
9. INDUSTRY ASSOCIATIONS 15
10. REFERENCES 16
10.1. Publications 16
10.2. Websites 16
ORGANOGRAM 18
COMPANY PROFILES 19
BRACKEN TIMBERS (PTY) LTD 19
HANS MERENSKY HOLDINGS (PTY) LTD 20
MONDI LTD 22
NCT FORESTRY CO-OPERATIVE LTD 24
PG BISON (PTY) LTD 26
SAPPI LTD 28
SOUTH AFRICAN FORESTRY COMPANY (SOC) LTD 31
TTP HOLDINGS (PTY) LTD 33
YORK TIMBER HOLDINGS LTD 34