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forestry related services industry south africa

Forestry and Related Services Industry in South Africa 2024

Alex Conradie | South Africa | 23 February 2024

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 on the forestry industry and related services, such as sawmilling, includes information on the location, size and state of the industry, production, income and trade. There is information on notable players and corporate actions, opportunities for SMEs and influencing factors such as the economic environment, rail and port issues and inconsistent electricity supply. Profiles of 18 companies include major players such as Sappi and Mondi, and well-known companies including the NCT Forestry Agricultural Co-operative, Lion Match, York Timbers, PG Bison and Merensky Timber.

Introduction

• Sales of some forestry products are on an upward trend, largely due to increasing exports.
• In 2023, the value of exported forestry products reduced.
• The forestry and sawmilling industries face challenges, including the rail and ports crisis, inconsistent electricity supply, high input costs, reduced local demand for timber, and a shortage of roundwood.
• Well-known companies involved in the forestry and sawmilling industries include Mondi South Africa and Sappi Southern Africa.

Trends

• An increasing number of small-scale and community forestry schemes are being certified by the Forest Stewardship Council.
• The proliferation of informal sawmills.
• The use of timber in building construction is increasing.

Opportunities

• Plans by the state to allow private companies to establish plantations on 22,000ha in the Western Cape.

Challenges

• High input costs.
• Inconsistent electricity supply.
• Reduced local demand for timber.
• Shortage of roundwood.
• Underperformance by Transnet’s rail and port operations.

Outlook

• The World Bank expects log prices to rise in 2024 and 2025.
• Companies expect strained local demand for forestry products in 2024 as disposable income remains low and trading conditions in the agricultural, industrial and mining industries continue to be tough.
• In the medium to long term, local demand is forecast to increase with greater use of timber in building construction.
• South African exporters should benefit from the expected increase in global prices.

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Forestry and Related Services Industry in South Africa
Forestry and Related Services Industry in South Africa 2024

Full Report

R 20 000.00(ZAR) estimated $1083.30 (USD)*

Industry Landscape

R 14 000.00(ZAR) estimated $ 758.31 (USD)*

Historical Reports

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

R 1 900.00(ZAR) estimated $102.91 (USD)*

View Report Add to Cart

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

R 1 900.00(ZAR) estimated $103.86 (USD)*

View Report Add to Cart

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

R 1 900.00(ZAR) estimated $102.91 (USD)*

View Report Add to Cart

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

R 1 900.00(ZAR) estimated $102.91 (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 3
2.3. Size of the Industry 4
3. LOCAL 5
3.1. State of the Industry 5
3.2. Key Trends 9
3.3. Key Issues 9
3.4. Notable Players 9
3.5. Trade 13
3.6. Corporate Actions 14
3.7. Regulations 15
3.8. Enterprise Development and Social Development 16
4. AFRICA 17
5. INTERNATIONAL 20
6. INFLUENCING FACTORS 22
6.1. Economic Environment 22
6.2. Rail and Port Issues 23
6.3. Unforeseen Events 24
6.4. Inconsistent Electricity Supply 25
6.5. Input Costs 25
6.6. Labour 26
6.7. Environmental Issues 28
6.8. Technology, R&D and Innovation 28
6.9. Government Support 29
7. COMPETITIVE ENVIRONMENT 29
7.1. Competition 29
7.2. Ownership Structure of the Industry 30
7.3. Barriers to Entry 30
8. INDUSTRY SUMMARY 31
9. OUTLOOK 31
10. INDUSTRY ASSOCIATIONS 32
11. REFERENCES 32
11.1. Publications 32
11.2. Websites 33
ANNEXURE 1 - Industry Legislation 34
APPENDIX 1 - Summary of Notable Players 38
COMPANY PROFILES 41
Amathole Forestry Company (Pty) Ltd 41
Bracken Timbers (Pty) Ltd 43
C J Rance (Pty) Ltd 46
Duva Timbers (Pty) Ltd 48
Lion Match Forestry (Pty) Ltd 49
Merensky Timber (Pty) Ltd 51
Mondi South Africa (Pty) Ltd 53
MTO Forestry (Pty) Ltd 56
NCT Forestry Agricultural Co-Operative Limited Primary Co-Operative 58
PG Bison (Pty) Ltd 61
R and B Timbers (Pty) Ltd 64
Sappi Ltd 66
Singisi Forest Products (Pty) Ltd 72
South African Forestry Company SOC Ltd 74
Surejoy Industries (Pty) Ltd 78
TWK Investments Ltd 80
U C L Company (Pty) Ltd 85
York Timber Holdings Ltd 89

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.

Introduction

This report focuses on the forestry industry, which includes forestry and related services, and the sawmilling and treatment of poles subsectors. Due to its significant contribution to economic growth and employment, the forestry industry is one of South Africa’s strategic economic sectors. The country’s 1.2 million hectares (ha) of timber plantations produce between 15 million and 18 million tons of timber every year. The forestry industry contributes 0.6% to GDP (R69bn annually) and supports multiple subsectors. The forestry industry and forest-related products collectively make up 9.8% of South Africa’s agricultural GDP and 4.9% of its manufacturing GDP. Valued at over R25bn, forest-related products are a major exporting industry. Commercial forests are a strategic national resource. Timber is a renewable resource and forests play an important role in climate change mitigation. Increasingly, processing plant by-products (biomass) are being used to generate electricity and as an alternative to petrol. There is a growing timber shortage in South Africa, and the industry is struggling to secure enough suitable land to plant new forests.

Strengths

• Major contributor to local economies.
• Strong industry networks.
• Strong linkages between private and community forestry operations.
• Strong partnerships with research institutes.
• Substantial investment in infrastructure in recent years.
• Sustainable (renewable resources) and carbon-neutral industry.
• Timber industry has the components of a circular bioeconomy.
• Vertical integration across the value chain.
• World class sustainable forestry management.

Weaknesses

• Bureaucratic water licensing process.
• Financial sustainability is challenging without vertical integration.
• Limited access to suitable land for afforestation.
• Reduced plantings since the mid-1990s constrain growth of timber plantations and downstream industry.
• Sensitive to cyclical swings in the global economy.
• Significant barriers to entry for small-scale growers.

Opportunities

• Africa’s electrification drive is increasing demand for poles.
• Buying and leasing state-owned land.
• Clear demand for timber and an existing processing capacity.
• Cost-cutting associated with using bioenergy to power processing plants.
• Domestic shortage of timber.
• Increase timber recovery rates (amount of productive wood and wood materials extracted from timber) to improve primary processing and supplies of raw materials.
• Investment opportunities in new technology such as the timber winch.
• New afforestation projects for small-scale growers, including the recipients of land reform.
• New applications for dissolving wood pulp.
• Shift to a bioeconomy: Involvement in the bioeconomy and renewable energy field – biomass by-products to be used as biofuel and bioenergy.
• Strong demand for housing amid government plans to erase a housing backlog of up to 2.9 million units by 2030.
• Timber-frame houses.
• Wood products as an alternative for products made from fossil fuels and non-renewable resources.

Threats

• Continued delays in water licence application processing.
• Decreasing paper markets.
• Drought and climate change.
• High costs of biomass power plants.
• Increased biodiversity loss, forest degradation and overharvesting due to increased demand for forest resources.
• Increased integration of alternative revenue streams, such as macadamia and avocado trees.
• Increasing risk of veld and forest fires due to negligent management, climate change and population growth.
• International competitors
• Minimum wage and mechanisation threatening employment.
• Ongoing risk of pests and diseases.
• Shortage of timber for small-scale processors.
• Slow uptake for use of biomass.
• Transmission pole exporters experiencing overdue payments owed by African state entities.
• Unresolved and new land claims.

Outlook

Forestry has a major role to play in the fight against environmental degradation and climate change. The risks of deforestation and forest degradation will increase as a growing population relies on forests for their livelihoods as a source of food, fuel, income, medicine and shelter. This reliance has grown during the pandemic, as the global economy has contracted. Unless vulnerable forest-dependent communities are supported and responsible forest management is upheld, there is the risk that countries’ commitment to sustainable timber production takes a back seat as they focus on recovering from the pandemic. Commercial forestry faces ongoing natural and man-made threats, including pests, pathogens, diseases, fire, drought, water shortages and ownership of and access to land. South Africa has entered its second recession in two years and the timber market has contracted. Decreasing global woodchip prices will continue to put downward pressure on domestic pulpwood prices. Once Sappi’s plans to expand capacity at the Saiccor Mill are realised, it is likely that there will be an increase in demand for hardwood pulpwood. Smaller sawmills that rely on external suppliers for their timber are struggling. South Africa is experiencing a growing shortage of timber, paired with limited suitable land available for new afforestation. While the private forestry sector is internationally recognised for its sustainable forestry management and has achieved synergy with local communities around land ownership and use, much of the state-owned forestry land remains underutilised and neglected. There may be opportunities for private companies, communities and individuals to take custodianship of state-owned land and increase South Africa’s timber reserves. In downstream value-added segments, there is still much value to be derived through cost-efficiency measures, infrastructure rationalisation and upgrades, energy efficiency improvements and energy generation, and the re-use of materials and waste streams. Wood related products offer sustainable, carbon-neutral alternatives to those derived from fossil fuels and non-renewable resources, and sustainable forest management ensures that timber plantations’ capacity as carbon sinks is maximised. The rise of circular bio-economies in which waste is mitigated and biomass is a contributor to the renewable energy sector holds growing opportunities for the forestry industry. As oil refineries are replaced with bio-refineries, there will be increased demand for the biomass by-products of wood processing. These biorefineries offer alternatives for petroleum derivatives such as fuel, asphalt, adhesives, plastics, detergents, and paints. There are opportunities for maximising value in primary processing of timber, and in the manufacturing subsectors that use wood and wood derivatives to cater to the food processing and packaging, textile, construction, chemical and energy industries.

Read More..
The Forestry and Related Services Industry in South Africa
The Forestry and Related Services Industry in South Africa 2020

Full Report

R 1 900.00(ZAR) estimated $102.91 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 72.04 (USD)*

Historical Reports

Forestry and Related Services Industry in South Africa 2024-02-23

R 20 000.00(ZAR) estimated $1083.30 (USD)*

View Report Add to Cart

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

R 1 900.00(ZAR) estimated $103.86 (USD)*

View Report Add to Cart

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

R 1 900.00(ZAR) estimated $102.91 (USD)*

View Report Add to Cart

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

R 1 900.00(ZAR) estimated $103.86 (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.

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.

Introduction

This report focuses on the Forestry sector which contributed 0.6% to annual national GDP in 2016, marginally up from 0.5% in 2015. Forestry South Africa (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 players benefitted from enhanced natural asset valuations in 2017 and continued to demonstrate the ability to innovate, grow through investment in infrastructure or via mergers and acquisitions and create new revenue streams. The industry faces a variety of difficulties including contraction in producer numbers, rising costs, competition for land and water and pressure on consumer spending.

Strengths

• Established research capacity.
• Strong linkages between private and community forestry operations.
• Substantial investment in infrastructure in recent years.
• Vertical integration across the value chain.

Weaknesses

• Bureaucratic water licensing process.
• On-going pest, pathogen, fire and climate change risks in the forestry segment.
• Reduced plantings since the mid-1990s constrain plantation and downstream industry growth.
• Sensitive to cyclical swings in the global economy.

Opportunities

• Africa’s electrification drive is increasing demand for poles.
• New afforestation projects for small growers and recipients of land reform.
• Packaging opportunities.
• Production of by-products for energy and energy generation.
• Strong demand for housing amid government plans to erase a housing backlog of up to 2.9 million units by 2030.
• Strong markets and new applications for dissolving wood pulp.

Threats

• Continuing drought and continued delays in Water Licence application processing.
• Decreasing paper markets.
• Unresolved land claims and the opening of a new round of land claims, although new claims have been put on hold by the Constitutional Court.

Outlook

Increasing population growth and the need to reduce climate change effects through reduced fossil fuel and derived product usage are expected to drive growth in timber production. However, the supply side faces significant natural and man-made threats, including pests, pathogens, diseases, fire, drought, water shortages, ownership of, and access to land and ensuring continuous supply of sufficient raw material inputs. Role players emphasise that mitigating these risks is vital to ensure continued forestry industry survival, growth and sustainability. In downstream value-added segments, there is still much value to be derived through cost-efficiency measures, infrastructure rationalisation and upgrades, energy efficiency improvements and energy generation, and the re-use of materials and waste streams. However stakeholders believe that the different sub-sectors must continue to innovate and develop to derive maximum value from primary forestry industry products and address opportunities in the agro and food processing and packaging, textile, construction, chemical and energy industries.

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

Full Report

R 1 900.00(ZAR) estimated $102.91 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 72.04 (USD)*

Historical Reports

Forestry and Related Services Industry in South Africa 2024-02-23

R 20 000.00(ZAR) estimated $1093.28 (USD)*

View Report Add to Cart

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

R 1 900.00(ZAR) estimated $102.91 (USD)*

View Report Add to Cart

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

R 1 900.00(ZAR) estimated $102.91 (USD)*

View Report Add to Cart

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

R 1 900.00(ZAR) estimated $102.91 (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.

Introduction

This report focuses on the Forestry and related services sector which contributes 0.5% to annual GDP. South Africa has 1.27 million hectares of afforested land, which equates to 1% of total land area. The combined forestry and forestry products sector is valued at approximately R33bn, with an estimated R22.1bn of this amount attributable to export earnings. Although the local industry has recovered well from the decline in 2009 and has illustrated the ability to innovate and create new revenue streams, it faces a variety of difficulties including rising costs, competition for land and water and reduced consumer spending.

Strengths

• Established research capacity.
• Strong linkages between private and community forestry operations.
• Substantial investment in infrastructure in recent years.
• Vertical integration across the value chain.

Weaknesses

• Bureaucratic licensing process.
• On-going pest, pathogen, fire and climate change risks.
• Sensitive to cyclical swings in the global economy.

Opportunities

• Africa’s electrification drive is increasing demand for poles.
• New afforestation projects for small growers and recipients of land reform.
• Packaging opportunities.
• Production of by-products for energy and energy generation.
• Strong demand for housing amid government plans to erase a housing backlog of up to 2.9 million units by 2030.
• Strong markets and new applications for dissolving wood pulp.

Threats

• Continuing drought and continued delays in Water Licence application processing.
• Decreasing paper markets.
• Increasing mechanisation of Silviculture operations will lead to further job losses.
• Plastic substitution of paper and packaging.
• Reduced plantings since the mid 1990s now constrain plantation and downstream industry growth.
• Unresolved land claims and the opening of a new round of land claims, although new claims have been put on hold by the Constitutional Court.

Outlook

By 2030 the world population is estimated to grow by another more than over 1 billion people, creating an additional 43% demand for food with limited available arable land and shrinking farming area per capita. In addition demand for natural and man-made textile fibres will increase by over 80%, with stagnant cotton production due to limited available arable land for growth. Stakeholders estimate approximately one-third of textile fibres will be cellulose fibres because of absorbency and moisture repellent requirements resulting in a disproportionately high demand for man-made cellulosic fibres. Increased demand for timber products in the informal housing market will require a corresponding rise in production, particularly of Eucalyptus and Wattle. Continuity of quality timber and pulp supply is forecast to become of critical importance while industry players will increase productivity to counter cost pressures and attempt to retain or gain economies of scale. The domestic industry is forecast to have a positive short-term outlook due to a general decline in area planted and supply issues in one of the largest suppliers, Canada. Increasing technology is expected to deliver more value-added products, but costs will be driven by a weakening Rand and increasing land values based on shortages of and competition for available land.

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

Full Report

R 1 900.00(ZAR) estimated $103.86 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 72.04 (USD)*

Historical Reports

Forestry and Related Services Industry in South Africa 2024-02-23

R 20 000.00(ZAR) estimated $1083.30 (USD)*

View Report Add to Cart

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

R 1 900.00(ZAR) estimated $102.91 (USD)*

View Report Add to Cart

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

R 1 900.00(ZAR) estimated $102.91 (USD)*

View Report Add to Cart

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

R 1 900.00(ZAR) estimated $103.86 (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

Introduction

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. It supports 652,000 livelihoods, despite a growing trend towards mechanisation, which has been given greater impetus because of the introduction of a substantially higher minimum wage from 2013. Broad-based black economic empowerment is a priority for the industry, and many small South African growers have supply deals in place with large forestry companies and producers of wood products. Key challenges facing the sector are land claims and water use licences.

Strengths

• Established research capacity.
• Strong linkages between private and community forestry operations.
• Substantial investment in infrastructure in recent years.
• Vertical integration across the value chain.

Weaknesses

• Bureaucratic licensing process.
• On-going pest and pathogen risks, as well as fire risks.
• Sensitive to cyclical swings in the global economy

Opportunities

• Africa’s electrification drive is increasing demand for poles
• New afforestation projects for small growers and recipients of land reform.
• Packaging opportunities.
• Production of by-products for energy.
• Strong demand for housing amid government plans to erase a housing backlog of up to 2.9 million units by 2030.
• Strong markets and new applications for dissolving wood pulp.

Threats

• Declining paper markets.
• Job losses due to increasing mechanisation of silviculture operations.
• Limited water availability in South Africa
• Unresolved land claims and the opening of a new round of land claims.

Outlook

According to forestry companies, 2014 will again be a tough year because of a low-growth environment globally in established markets. Particularly challenging will be printing and paper markets. However, this will be countered by Asian demand for dissolving wood pulp, demand for timber for South African housing and infrastructure, demand for bio-fuels, such as wood pellets, growth potential in packaging markets and the demand for poles in Africa’s electrification programmes. The weakness of the South African currency will encourage suppliers of wood products to actively seek export markets, particularly in China, where the market for dissolving pulp is substantial and growing. The industry has indicated it will continue to seek additional income streams from new products, particularly in chemical cellulose. With regard to the supply of tree fibre, all eyes will be on the government to assess whether the afforestation licensing process will be streamlined so that the target of an additional 100,000 ha of forest by 2018 can be met. The supply pipeline will come under increasing pressure in the future due to growing demand for forest products. Thus, the forestry industry, which by nature is focused on the long term, is expected to focus on improving its supply chain to accommodate future demand for raw material.

The Forestry and Related Services Industry in South Africa
The Forestry and Related Services Industry in South Africa 2014

Full Report

R 1 900.00(ZAR) estimated $102.91 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 72.04 (USD)*

Historical Reports

Forestry and Related Services Industry in South Africa 2024-02-23

R 20 000.00(ZAR) estimated $1083.30 (USD)*

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

R 1 900.00(ZAR) estimated $102.91 (USD)*

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

R 1 900.00(ZAR) estimated $102.91 (USD)*

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

R 1 900.00(ZAR) estimated $102.91 (USD)*

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Table of Contents

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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